The company’s operation was established by Mr. Victor Bostan in 2002. Mr. Bostan, Chairman and CEO of the company, is a Moldovan national with 23 years experience in the CIS wine market and owns 81.25% shareholding in the company. Detroit Investments, an existing IFC client, holds 18.75% stake.

The total project cost is estimated at $22 million. The proposed IFC investment is composed of $5 million in equity or quasi equity investment in BWL and a $5 million A loan to SRL Vinaria Bostavan, a 100% subsidiary of BWL. The total IFC investment is $ 10 million.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.0
Equity	5.0

* These investment figures are indicative

The company is headquartered in Chisinau, Moldova and has wineries and vineyards in Etulia, Onesti and Bardar in Moldova. The location of the project will in rural areas of Moldova.

The project is expected to have the following development impacts: - Rehabilitating key production assets in Moldova’s wine industry, a major contributor to the country’s GDP. - Expanding linkages to farmers and other input suppliers and SMEs (transporters, distributors, retailers). - Create jobs directly and indirectly and improve living standards of employees within the companies and along the supply chain. - Enhance product safety and affordability by implementing international best practice and certifications. - Contribute to Government revenues through additional income and excise taxes

IFC’s role includes: - Supporting the Moldovan’s government’s efforts to restructure a key industry and encouraging FDI sector development. - Providing long-term (5-8 years) financing, which is not easily available to the company from local financial institutions. - Stamp of approval – IFC’s participation will provide confidence to potential lenders and investors in the wine sector in Moldova.

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 and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. IFC’s environmental and social appraisal for the project consisted of document review, company interviews, visits to the project sites, and meetings with members of the local communities.

Environmental and social issues associated with this project include:

- environmental, health and safety management systems;
- labor and working conditions;
- land acquisition;
- cultivation and harvesting practices and potential environmental and occupational health and safety impacts arising from use of chemical inputs and pesticides;
- occupational health and safety management;
- management of hazardous materials and wastes;
- sustainability and quality of potable water;
- air emissions from production processes;
- use, treatment and discharge of process wastewater;
- sustainable management of solid waste.

The company has presented plans to address these issues to ensure that the proposed project will comply with all relevant environmental and social requirements of the local laws and of World Bank/IFC policies, performance standards and guidelines. Specific information about how potential environmental and social impacts will be addressed by Bostavan (including a detailed action plan) is set out in the Environmental and Social Review Summary (ESRS) disclosed in the World Bank Infoshop and locally in Chisinau.