KuAz Energy Efficiency project (KuAz EE).
Summary of Proposed Investment (SPI).
 

Description of the project:
The proposed investment would support Kuibyshevazot Open Joint Stock Company (KuAz) in implementation of its 2009-2010 energy efficiency and clean production program. The program is expected to result in significant energy savings and reduction of greenhouse gases emissions.

Project sponsor and major shareholders of project company:
Located in Togliatti, Samara region, KuAz is the leading Russian manufacturer of caprolactam (the raw material for synthetic fibers, engineering plastics, automotive and other downstream products) and one of the top five Russian producers of nitrogenous fertilizers, and is an existing IFC client.

Total project cost and amount and nature of IFC investment:
The total project cost is estimated at $50.0 million. The proposed IFC investment is a senior loan of up to $20.0 million.

Location of project and description of site:
Project investments will be implemented in Togliatti, Samara region, Russian Federation.

Anticipated development impact of the project:
Investment to be financed under the proposed project will help KuAz implement its energy efficiency and clean production program, and ultimately achieve reduction of greenhouse gases emissions and reduction in energy consumption.

IFC’s expected development contribution:
The proposed loan will provide KuAz with long term financing that is currently not possible to secure from commercial banks or capital markets, to implement energy efficiency and clean production program. Also, as a result of the proposed investment the company would benefit from gaining further access to World Bank Group’s experience in the area of energy efficiency and cleaner production, helping secure successful implementation of the project.

Environmental and social issues B-limited:
This is a category B project according to IFC’s environmental and social review procedure. A summary of IFC’s environmental and social review findings for the project including the rationale for the B categorization is publicly available in the Environmental and Social Review Summary (ESRS) disclosed through IFC’s external website.

For inquiries and comments about the project contact:
Larissa Smoleva
JSC "Kuibyshevazot"
Finance Department
6, Novozavodskaya St.
445007 Togliatti
Samara Region, Russian Federation
www.kuazot.ru

e-mail: fino9@kuazot.ru
Telephone: +7 8482 56-10-42
Fax: +7 8482 56-11-02

Local access of project documentation:
Project documentation is available at the above location.

For inquires and comments about IFC:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384