Project description
and objectives:
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The proposed project envisages subscription to equity in MBASK Insurance
Company to acquire a 30% stake.
By providing an additional source of financing, the EBRD’s investment will
assist MBASK Insurance Company to strengthen its capital base and enable it to
develop its infrastructure, sales network and to introduce new commercial and
personal lines insurance products.
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Transition impact:
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The project will promote the development of, and competition in, the provision
of primarily non-life insurance products in Azerbaijan (where current
insurance penetration, measured as is significantly less than 1% of GDP).
Through its representation on the company’s Supervisory Board, and through the
provision of technical assistance, the EBRD will contribute to the improvement
of MBASK Insurance Company’s business practices and provide advice on key
insurance related issues. This will enable MBASK Insurance Company to meet,
and demonstrate to the market, international standards of insurance practice.
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The client:
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MBASK Insurance Company, a limited liability company licensed and operating as
an insurance company in Azerbaijan.
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EBRD finance:
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Approximately US$ 1 million equity.
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Total project cost:
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Approximately US$ 1.5 million.
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Environmental impact:
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The environmental risks associated with MBASK Insurance Company’s operations
may include the companies’ insurance products to the extent that they cover
claims for environment-related damage (e.g. third part liability, property
damage, fire and natural disaster, health).
However, in order to mitigate environmental impact MBASK Insurance Company
will conduct its insurance operations (both underwriting and investment
activities) in accordance with the EBRD’s Guidelines for Investments in the
Insurance Sector. The Guidelines require that the Company’s policy and
products include mechanisms and tools which allow Company staff to identify,
assess, and control any environmental risks which may be associated with a
particular customer or product, and to ensure that insurance cover is not
provided for activities included on EBRD’s Environmental Exclusion List. MBASK
Insurance Company will also be required to submit an Annual Environmental
Report to the EBRD.
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Technical
cooperation:
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It is anticipated that, subject to donor approval, technical co-operation
funding of will be provided from the 2001 EU-EBRD Investment Preparation
Facility (2001). A firm or suitably qualified individual will be selected to
provide management support services to MBASK Insurance Company.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Nofal K. Rzayev, Advisor to the Board
MBASK Insurance Company
90/9Hazi Aslanov Street
Baku AZ1095
Azerbaijan
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EBRD contact:
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Vladimir Klechtchev, Operation Leader: klechtcv@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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