Summary of Proposed Investment
Project Number
9589
Company Name
IKEA MOS (Retail and Property) OOO
Date SPI Disclosed
Oct 8, 1999
Country
Russian Federation
Industry
Tourism, Retail and Property
Status
Completed
Sector
Retail (Including Supermarkets, Grocery Stores, etc.)
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Dec 17, 1999
Signed : Mar 28, 2000
Invested : May 25, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Russia - IKEA MOS |
RegionEurope II
Sector
Project No009589
Projected Board DateNovember 8, 1999
Company NameOOO IKEA MOS Retail & Property Ltd.
Technical Partner and/or Major Shareholders
The project will be sponsored by Germany-based IKEA Einrichtungs GMBH and owned by IKEA Einrichtungs GMBH and INGKA Holding Europe, Amsterdam.
Project Cost Including proposed IFC investment
The total project cost is US$60 million equivalent. The IFC investment will consist of a US$15 million senior A loan.
Location of project and Description of site
The site is located in the municipality of Khimki, on the outskirts of Moscow. The 60 hectare site is an undeveloped parcel of land alongside Leningradskii Boulevard. It is five km from the Sheremetevo Airport and 25 km from the Moscow Kremlin.
Description of Company and Purpose of Project
IKEA MOS is a Russian closed joint stock company founded to construct and operate a 31,000 sq. meter greenfield furniture store and associated car park in suburban Moscow. The store is expected to be one of the largest IKEA stores in the world.
The project will have substantial development impact as it will: (i) be equipped with the latest technology and utilize modern marketing tools; (ii) directly employ and train 350 Russian nationals and will lead to the creation of other jobs upstream and downstream of the store itself; and (iii) provide Russian consumers with high quality, well designed home furnishings in an attractive environment.
Environmental Category and Issues
This is a category B project, according to IFC’s environmental review procedure because a limited number of specific environmental impacts may result which could 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 project sponsor to IFC’s technical and environmental department staff. The following potential environmental, safety and health impacts of the project were analyzed:
- Site selection, land acquisition, and potential contamination.
- Solid waste management.
- Sewage treatment.
- Fire prevention and life safety.
- Employee health and safety (including training programs).
The company has presented plans to address these issues and to demonstrate that the proposed project will comply with applicable Russian Federation and World Bank requirements.
The is from the InfoShop.
| Host country location of environmental documents | In the IKEA corporate offices at the Khimki site. In the IFC Moscow office: 2 Pushechnaya Street 103012 Moscow, Russia |
Date SPI sent to InfoShop October 8, 1999
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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