Sorainen Belarus acted as counsel for Nordic Environment Finance Corporation (NEFCO) on its granting the first loan in Belarus under the Cleaner Production Facility programme. The loan, to Vitebsk Meat Packing Plant (MPP), is for modernising meat production facilities in Vitebsk, Eastern Belarus, including upgrade of the factory’s steam boilers and heat exchangers as well as its water treatment facilities. Vitebsk MPP is a joint stock company producing a wide range of meat products and one of the largest meat processing factories in Belarus. NEFCO is an international financial institution established by the five Nordic countries. NEFCO finances investments and projects primarily in Russia, Ukraine and Belarus, in order to generate positive environmental effects of interest to the Nordic region. The NEFCO Cleaner Production Facility is a loan programme intended to promote reduction of industrial pollution through efficient resource and energy utilisation. Refurbishment of the factory’s boiler house and water treatment system is expected to reduce consumption of natural gas by some 330,000 m3 yearly, which will translate into substantial reductions of carbon dioxide and nitrogen oxides.
The Sorainen team drafted finance documents, assisted in negotiations, performed limited due diligence of the borrower and issued a legal opinion.