Sustainable Infrastructure In Relation To “ZapSibNefteKhim” Project
|Approval Date||18 September 2018|
|Total Project Cost||USD 9,424 million|
|Loan Amount||USD 300 million|
|Implementation Agency||ZapSibNefteKhim LLC|
Project SummaryExpand All
The Project will enhance environmental safety at ZapSibNefteKhim polyolefin complex under SIBUR management. Once fully operational the complex would cover Russia’s demand for most polyolefins and increase export capacity of Russia’s petrochemicals sector. The New Development Bank (NDB) financing is designed to support construction of the infrastructure facilities that contribute to protecting environment, saving water and energy resources through modern and clean technologies for reduced environmental impact. The Project is in alignment with the NDB’s objective to promote infrastructure and sustainable development.
The proposed NDB loan through the modality of Non-Sovereign Project Loan will be used by SIBUR for construction of general infrastructure, and to a large extent for the financing of environmental protection measures.
The positive impacts of the Project include (1) contributing to the effective utilization of Russia’s midstream feedstock by implementing international best practices; (2) creating new jobs; (3) improving the environmental footprints through financing of environmental protection measures such as wastewater treatment facilities.
The Project has been classified as category A in accordance with NDB’s Environment and Social Framework (ESF). It has also been categorized as highest E&S category by the Russian environmental regulations, and classified as Category A by the Equator Principles and IFC E&S performance Standards. The Project is currently fulfilling all applicable country system requirements for Category A projects in accordance with the Russian regulations and international standards in regards to impact assessment, management, monitoring, and reporting. The Project complies with the requirements of NDB ESF and will continue to do so upon successful implementation of E&S mitigation measures as per country system requirements.
The total cost of the Project is estimated to be USD 9,424 million. The NDB will finance USD 300 million, accounting for 3.2% of the total cost. The remaining balance will be financed through SIBUR equity and other financial sources.
|Financier||Amount ($ million)|
|New Development Bank||300|
|International and domestic banks||4,960|
The Project is being implemented by ZapSibNefteKhim LLC, a subsidiary of SIBUR. Contractors for the Project will be selected through a competitive and transparent bidding process.