📋 Tender Overview
Location: Montenegro
Project number: 55228
Business sector: Manufacturing and Services
Notice type: Private
Environmental category: B
EBRD Finance Summary: EUR 3,000,000.00
Total Project Cost: EUR 3,000,000.00
Project Description
EBRD financing of €3 million in two tranches of €2 million and €1 million for the expansion of Farmont's logistics centre and opening and/or acquistion of a small pharmacy retail chain.
Project Objectives
EBRD financing will enable the Company to expand its existing logistics centre with additional 2,000 sqm, in addition to current one 800 sqm. New logistics centre will fulfil all the energy efficiency standards achieve at least one energy efficiency class better on the energy certificate (EPC) than the national baseline. The expansion of the logistics centre will enable Farmont to increase its capacities and expand its wholesale business. In addition, through tranche 2, the the Company will open several new pharmacies and/or purchase a small chain of pharmacies, that will enable vertical integration, and higher profitability.
Transition Impact
ETI score: 60
Primary Quality: Competitive
Farmont, which is the third largest medicines wholesaler and fourth largest pharmacy retailer in the country will expand in the highly concentrated markets. The Project will lead to incremental forward linkages as the Company will both increase its wholesale capacities and expand its pharmacy business.
The Company will introduce IFRS audit reporting as well as business planning and reporting, which are not currently widespread in this sector in the country.
Secondary Quality: Green
More than 15% of the Bank's proceeds qualifies as GET finance.
