Summary of Proposed Investment
Project Number
9655
Company Name
BRODOGRADILISTE VIKTOR LENAC d.d.
Date SPI Disclosed
Sep 30, 1999
Country
Croatia
Industry
Manufacturing
Status
Completed
Sector
Ship Building and Repairing
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Feb 23, 2000
Signed : Mar 14, 2000
Invested : Apr 18, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Croatia - Viktor Lenac d.d. |
RegionCentral and Southern Europe
Sector
Project No009655
Projected Board DateOctober 29, 1999
Company NameViktor Lenac d.d.
Technical Partner and/or Major Shareholders
Viktor Lenac d.d. had over 900 shareholders, all private, as of July 1 1999. Major shareholders include Beleggingsmaatchapig Ella III of the Netherlands (35.2%), Montiron Shipping Corporation Ltd. of Liberia (10.5%), Inter Holdfin of the USA (10.2%), and IHF d.o.o. of Rijeka, Croatia (9.32%). No other shareholder owns more than 5% of the shares.
Project Cost Including proposed IFC investment
The project is expected to cost up to US$92.5 million. IFC would provide up to US$11.4 million of debt for its own account (IFC A loan), up to an additional US$11.5 million of syndicated debt (IFC B loan), up to US$4.25 million of ordinary equity, and up to US$5.375 million of preferred equity.
Location of project and Description of site
The project will be on property leased under a 32-year concession agreement by Viktor Lenac, roughly 5 km south of Rijeka, on the Adriatic Coast of Croatia. This land includes Martinscica Bay, where most of the operations of the company now take place, as well as land adjoining the Bay to the south, where a US$43 million steel machining and steel assembly facility will be built. Behind the proposed new facility are stone cliffs, which will provide most of the stone used in shoreline civil works. US$12 million of the project will be used to purchase a large floating dock, which will be moored in Martinscica Bay itself.
Description of Company and Purpose of Project
Viktor Lenac is the only private industrial-scale shipyard in Croatia. It is listed on Tier 1 of the Zagreb stock exchange. The company performs repairs and conversions of vessels, as well as the construction and conversion of offshore platforms. The project is a five-year investment plan to improve the company''s productivity and to increase its ability to build and service large marine vessels and other constructions related to the offshore oil and gas industry. The project will create more than 400 new jobs and provide a strong boost to hundreds of other subcontractors and small businesses in the Rijeka area.
Environmental Category and Issues
This is a Category B project according to IFC''s environmental and social review procedure. Environmental and social issues associated with this project include: additional air and water pollution control measures required for the new facility; solid waste management; reclamation of the area used to quarry stone; adequacy and implementation of occupational health and safety procedures; impact of redundancy following privatization.
Air emissions will be minimal. There are no power generation facilities or boilers on site (power is drawn from the grid). The metal working areas will be equipped with a filtration system for fugitive emissions. Emissions of particulate matter generated by quarrying a neighboring stone cliff face will be mitigated through dust depression measures.
Victor Lenac has largely switched to high pressure water, instead of sand blasting, to clean steel sheets. Process and stormwater discharge is to the municipal sewer for which the company has the appropriate permits. Waste is disposed of to private contractors and a municipal landfill. Oil is recycled.
The company is implementing occupational safety and health measures appropriate for the size and nature of the operation. The company has adequate fire prevention and control capabilities and emergency response procedures.
The company has demonstrated strong civic responsibility in its support (financial and otherwise) of the local community. Its training programs target both employees and contractors: in 1997 and 1998 these programs recorded a total of 2000 participants. Employees made redundant following privatization were treated fairly and in accordance with the law.
The is available from the InfoShop.
| Host country location of environmental documents | Viktor Lenac offices Martinscica Bay Kostrena Croatia |
Date SPI sent to InfoShop
“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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