Project description
and objectives:
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Investment in three selected local companies with significant commercial potential, with the objective of assisting in their transformation into competitive and profitable market-oriented companies, thus demonstrating to local industries and prospective investors the value of modern management and financial control procedures and of outside investment.
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Sub-projects:
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- Bistyle (formerly Investment in New Kadam)
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Transition impact:
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The project will be the first operation to help locally owned Kyrgyz enterprises become market-oriented companies. Successful transformation of the companies will provide a significant demonstration of the benefits of market-oriented business for other companies. Also the project, through its combination of investment and technical cooperation, will directly transfer modern industrial technology, management, marketing and accounting skills to the investee companies.
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The client:
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Three selected local companies, comprising an shoe production, a egg producer and a woollen textile plant.
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EBRD finance:
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Equity and loan financing of US$ 7 million (Euro 5.9 million).
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Total project cost:
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Investment progress:
The first investment under the programme in the restructured shoe manufacturing project was signed in December 1998 and entails an initial equity subscription of US$ 670,00 which is expected to be subscribed in late January 1999 and this will be followed by a loan of a similar amount later in 1999 if performance justifies it. EU-TACIS technical assistance funding has been used to provide a full time experienced chief operating officer for two years and provided short term specialists in design, production, finance and marketing. Production is expected to start with new designs in February 1999. Active negotiations are continuing on the other two projects.
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Environmental impact:
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This operation was screened B/1, which requires that for each investment an environmental audit or assessment will be undertaken. Based on the results of these studies, Environmental Action Plans will be developed to address issues arising within a timeframe satisfactory to the Bank. All investee companies will be required to comply with EU, World Bank or similar internationally acceptable environmental standards.
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Technical
cooperation:
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Euro 1.6 million.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Daniel Berg, Operation Leader: bergd@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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