The main sponsor is TTS S.A., a company incorporated under the laws of Romania. The company was established in 1997. TTS. S.A. is privately held by 15 individual shareholders, 13 of whom are part of the company’s management. Its primary shareholders are: - Mr. Mircea Mihailescu (50.5%) - Mr. Ion Stanciu (14%) - Mr. Viorel Stefan (10%) - Mr. Peter Hungerbuhler (10%). Together they own 84.5% of TTS S.A. Mr. Mihailescu is also the founder and CEO of TTS S.A.

As of June, 2007, approximately Euro 8.3 million ($11.6 million) of additional funds are needed to complete the investment plan (which began in 2006). IFC would provide a C loan for its own account of up to Euro 10 million on a corporate finance basis towards this capital requirement, the remainder amount of the loan used to refinance long term debt. The IFC C loan will be convertible into TTS S.A. shares under certain terms and conditions.

22.18 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	14.78
Equity	7.39

* These investment figures are indicative

TTS is headquartered in Bucharest and with significant operations in Constanta Port (largest port in Romania and the Black Sea) and Galati (headquarters of Navrom, Romania’s largest river shipping company and a TTS S.A. subsidiary).The crane and grain handling terminal will be located at TTS Group facilities at the Constanta Port. The silo for which new equipment is needed is located in Galati. The pushers will be used on the Danube River, both within Romania and in neighboring European countries.

Substantial development impact will result from improving the country’s transport infrastructure, including: - increased trade for several basic industries such as agriculture and mining; - improved cargo handling capacity and efficiency at the port of Contanta, a major trade hub in Central and Eastern Europe; - further development of river transport, a more cost effective and environmentally benign transportation mode than the alternative road transport; and - new river trade volume to Constanta, which will generate economic growth, boost local employment, and contribute to incremental tax revenues for the government. A more efficient transportation system in Romania should contribute to further regional integration and should have positive spillover effects in neighboring countries, increasing trade among EU countries as well as among neighboring transitioning economies such as Ukraine and Moldova.

Despite increased liquidity, the company has still limited access to financing terms beyond 5 years and grace periods beyond 12 months. With longer maturity and grace period, IFC provides a financing alternative that allows the company to carry its investment plan without compromising short term liquidity. In addition, IFC will contribute, with its network of investee companies and international contacts, to TTS regional and international expansion efforts in markets such as Serbia, Egypt and Colombia. Finally, IFC will continue helping TTS to adopt best practices in areas such as financial reporting and environmental and insurance standards, which have gained increasing importance for the company after EU accession and as the company grows in size.

Issues are essentially the same as those identified for the original investment and include:

- environmental, health and safety management systems;
- vessel safety and pollution control;
- oil/hazardous cargo spill prevention and control;
- maintenance/repair yard pollution control and hazardous materials and waste management; and
- employee health and safety.

IFC’s ongoing review and supervision of the existing category B investment shows the company continues to ensure that its operational facilities and subsidiaries comply with applicable environmental, health and safety (EHS) requirements, including:

- international navigation standards under the International Safety Management (ISM) Code of the IMO,
- the Danube Commission recommendations,
- Romanian shipping-related rules and EHS laws, and
- IFC Performance Standards.

TTS operations at Constanta and Galati are confined to limited areas within the larger industrialized ports, and there is no community exposure to risks or impacts, or people to be affected by additional land acquisition. Activities do not extend to any ecologically sensitive areas. There are no indigenous peoples or cultural heritage issues associated with the project.