The project companies will be majority owned by Cyprus-based Aldama Limited, which is privately held by Russian and Portuguese individuals who are experienced warehouse operators. They are co-owners and managers of Joint Stock Company PTF Kulon, a major warehousing company that currently owns and operates a warehouse and office complex in Moscow providing storage services to several foreign and local companies located in Moscow.

The total cost of the project is estimated at $21.5 million. IFC is considering a financing package of up to $15 million consisting of a $2.5 million A loan for IFC’s own account, a syndicated B loan or parallel financing of up to $7.5 million for the account of participant banks and an income participating $5 million C loan for IFC’s own account.

7.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.50
Equity

* These investment figures are indicative

The Southern site is located in the South of Moscow within the city limits; the Baltia site is situated in a rural area outside the city limits adjacent to Moscow’s North-Western boundary. Location of the sites is advantageous for warehousing, logistical and office operations serving the Moscow metropolitan area. Both Southern and Baltia have good access to utilities and major transportation routes.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the sponsors. The following potential environment, health and safety impacts of the projects were analyzed.

- Site Selection and Land Acquisition;
- Water Supply, Sewage, and Stormwater Management;
- Solid and Hazardous Waste Management; and
- Fire and Life Safety.
Location of environmental documents in locally affected community
Copies of environmental disclosure documents for the project will be made available at the following locations: - The sponsors’ website www.kulon.ru - Krasnogorsk District Central Library Georgiya Dimitrova Street, 9 Krasnogorsk, Moscow Region - Chertanovo-Tsentralnoe Local Administration Southern Administrative District of Moscow Dnepropetrovskaya Street, 16/8 Moscow

IFC's investment will help to implement the project by providing long-term financing of structure and tenor currently unavailable in the local financial market. IFC’s support will help alleviate a shortage of logistical infrastructure in Moscow, contributing to an improvement in the business environment in Russia. Development impacts associated with the project will be derived from the wider and more efficient availability of consumer goods at competitive prices throughout Russia. The project may also lower costs and improve the ability of foreign manufacturers to export their products to the Russian market as well as the ability of Russian manufacturers to sell their products in Russia and abroad.