The project objective is to contribute to greenhouse gas emissions reduction through commercialization of innovative cold storage technology which can be replicated to other targeted countries.
Along with the CITIC Capital Pan Eurasia Fund (the Fund), AIIB is proposing to make an equity co-investment in EMP Belstar Superfreeze Group Holdings (the Company or Superfreeze), which develops and operates a portfolio of cold-chain storage facilities with its unique technology to utilize waste cold energy from LNG regasification processes to cool storage warehouses. Such facilities can contribute to reduce greenhouse gas emissions via reduced food waste and reliance on grid electricity, enhance food safety, and support the deployment of vaccines.
The Company’s first facility has been successfully operating in Korea since 2019 and its second facility, located adjacent to an LNG regasification terminal in Incheon, is currently under late-stage development. The growth plan is to leverage the Company’s technical and operational experience it has developed in Korea to further expand its operations into other Asian markets including Viet Nam, China, and Singapore. The Company is in discussions with governments and strategic players in these markets. AIIB’s co-investment equity will be utilized primarily to fund investment in the Incheon facility and will also support international expansion business development activities.
AIIB’s Environmental and Social Policy (ESP) including the Environmental and Social Standards (ESSs) and Environmental and Social Exclusion List (ESEL) apply to this Project. The Project has been identified as Category B by the Fund Manager, on the basis that it has a limited number of potentially adverse E&S impacts, they are not unprecedented and can be successfully managed using good practices in an operational setting. The Fund Manager has reviewed the Company’s environmental and social management system (ESMS) which is enhanced and aligned to AIIB’s ESP requirements.
The Project’s key environmental and social impacts may include health and safety of the workers during construction of the physical works and operational maintenance, emergency preparedness and response, and others. The Fund Manager will monitor that the required information, including ESMS policy and procedures, occupational health and safety policy and procedures, workplace and environmental monitoring data, as well as emergency preparedness procedures are appropriately prepared by the Company. The Project will comply with (i) the labor laws and standards of the Republic of Korea as well as (ii) the provisions of AIIB’s ESP.
The Fund Manager has disclosed the name, location, industry sector and other relevant identification information relating to the Project on the Fund Manager’s website in both Mandarin and English. The Project’s E&S information and an overview of ESMS is disclosed on the Company’s website.
Post investment, AIIB will rely on the Fund Manager to monitor the Company on the completion of the conditions subsequent and its E&S performance. AIIB requires submission of relevant E&S documentation and E&S performance monitoring reports from the Fund Manager in an agreed format and frequency. AIIB will conduct post-reviews of the implementation of the project as part of its regular supervision, comprising engagement with the Fund Manager, potential site visits and detailed review of the E&S documentation, when conditions allow.
The Fund Manager has established its External Communications Mechanism (ECM) on the Fund Manager’s website and the Company has enhanced its Grievance Redress Mechanism (GRM) to address concerns of relevant project stakeholders. The GRM and ECM will be made available to all stakeholders including subcontracted labor and will provide information on AIIB’s Project-Affected People’s Mechanism (PPM).