PK Borets has approached the European Bank for Reconstruction and Development (EBRD) for a Senior A/B Loan of up to USD 150 Million to support its core business operations of manufacturing electric submersible pump systems, and related equipment, for the oil field services industry. Proceeds from the Bank's financing will be used to refinance existing debt, finance the Company's working capital and leasing program, and finance a production modernisation program. In particular, it will help in commercialization of energy-efficient technologies in the sector by supporting the commercial production of Borets’ new "Permanent Magnet Motor", which consumes less energy than the traditional motors in Russian ESP systems.
As part of the Bank’s due diligence, a corporate environmental audit was carried out which focused on Borets’ i) ability to manage and address all relevant social and environmental risks and impacts of its business and operations; ii) past and current performance against Russian and EU legislation and the Bank's Performance Requirements (PRs); and iii) the identification of the Company’s main stakeholder groups and current stakeholder engagement activities.
Results of the audit concluded that Borets is in material compliance with relevant Russian and EU environmental legislation and the EBRD’s Performance Requirements. As part of the audit, an Environmental and Social Action Plan (ESAP) has been agreed with the Company with the aim of improving Boret’s corporate Environmental Health and Safety (EHS) performance across its operations. Key issues included in the ESAP are i) The development of a single EHS Policy for the business as a whole to set the direction of the Company, including aims and objectives for EHS performance. The EHS policy will have the objective of managing risk and performance on a proactive basis; ii) the implementation of a single EHS Management System to execute the Policy including the setting of Key Performance Indicators (KPIs) and a method of reporting and tracking of EHS KPIs for continuous improvement; iii) as part of the proposed EHS Policy and Management System, the Company will increase its environmental training and awareness of its staff at all levels of the business; iv) the Company will develop a formal stakeholder engagement and disclosure plan across its business; v) The Company will address the EHS and regulatory risks associated with having residents living within the Sanitary Protection Zones of several of their sites; and vi) Using a risk based approach, the Company will analyse and address potential soil and groundwater quality issues at the selected sites within its portfolio.
Implementation of the ESAP is intended to compliment the Company’s ongoing EHS programmes and ensure continued compliance with relevant Russian, EU and EBRD requirements. |
