Responsible Retrenchment Without Investor Risk

As the project transitioned from the construction phase, a large-scale workforce reduction became necessary. The EBRD considered mass workforce demobilization a significant social risk and therefore required a transparent and socially responsible retrenchment process. Compliance with this requirement was one of the conditions for the successful completion of the relevant project stage and closure of obligations to the investor.

Our team developed a formal Retrenchment Plan in accordance with EBRD requirements and applicable social standards. We provided comprehensive documentary support throughout the demobilization process, including verification of employment terminations, statutory severance and other required payments, and fulfillment of the company’s obligations toward affected employees. A complete evidence package was also prepared to demonstrate the absence of unresolved labor disputes or outstanding employee claims against the project.

As a result, the EBRD confirmed that the workforce demobilization complied with the applicable social requirements and recognized the high standard of implementation of the Retrenchment Plan. The process was completed without significant social conflicts or outstanding employee claims, enabling the project to satisfy the Bank’s requirements and successfully complete the relevant financing stage.