Novus Logistics Center

Project Description

The Novus Logistics Center Ukraine project involves the operation and maintenance of a 50,000 m² logistics center in Kyiv, Ukraine. The center includes dry storage, cold storage, deep freeze, packaging warehouse, and unit picking facilities. The logistics center will facilitate the operations of the Novus supermarket chain, which is also owned by the Guarantee Holder. The project aims to enhance the storage and distribution capabilities of Novus, a leading food retailer in Ukraine, by centralizing its logistics operations.

Environmental Categorization

The Project is a category B under the MIGA’s Policy on Environmental and Social Sustainability. Click here to view the environmental and social review summary.

Development Impact

The project is expected to have significant development impacts, including enhanced consumer access to fresh products, job creation, and demonstration effects amidst an ongoing conflict. The centralized logistics center will enable Novus to store a greater variety of higher-quality goods, particularly fresh and seasonal products, under optimal conditions. This will improve inventory and logistics management, leading to cost savings and improved financial performance for Novus. Additionally, the project supports job creation and includes a Gender Action Plan to address challenges related to attracting, retaining, and promoting women.

Climate Finance

The project is tagged for climate finance, with 93% of the guaranteed investment considered climate finance. The logistics center is expected to achieve the IFC EDGE or equivalent green building certification, which entails significant savings in energy, water, and materials use. The project also includes climate adaptation measures such as drought-resistant landscaping and retention walls to mitigate flood risk and water stress.