GAP TURKMEN 3

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 15858

Status Complete

Location

Turkmenistan

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 15858

Status Complete

Location

Turkmenistan

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

18 Dec 2001

Disclosure date

30 Oct 2001

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

A proposed second long-term loan to finance the expansion of Gap-Turkmen’s production capacity of yarn and denim fabric and to enable the company to diversify its product range by producing gabardine trousers and fashion jeans in addition to its current classic denim jeans.

The loan is intended to finance the purchase and installation of the additional textile equipment necessary for the Gap-Turkmen production capacity increase and product range diversification. The project would ensure the long-term viability and competitiveness of Gap-Turkmen, increasing its sales and profitability, by enabling the company to meet market demand increases for yarn and denim, including that for gabardine trousers and fashion jeans.

Transition Impact

The project is in line with the Bank’s strategy to provide financing for selected enterprises in Turkmenistan, which support export-oriented private sector development.

The transition impact is related to: (1) better links and quality control over the supply network and associated government bodies, and (2) the transfer of skills through close cooperation with the Ministry of Textiles.

As this project is the only successful export-oriented textiles venture thus far, it will act as a model in the region for export-oriented private sector development.

The Client

Gap-Turkmen, a joint-stock company incorporated under the laws of Turkmenistan.

EBRD Finance

US$ 10.7 million (€11.6 million) senior secured loan with the repayment term of 5 years including a 12 month grace period.

Project Cost

The original project cost was US$ 89 million, including the existing plant valued at US$ 40 million. After a capital increase of US$ 15 million in 1999, and with the new expansion project, total costs will be US$ 115 million (€ 125.5 million).

Environmental Impact

Screened B/1. Gap-Turkmen facilities have been constructed to meet both local and international environmental standards. Environmental due diligence carried out by independent consultants in October 2000 confirmed that the company fully complies with environmental, health and safety standards in Turkmenistan as well as with the relevant EU directives. In January 2001, Gap-Turkmen was awarded ISO 14000, an International Environmental Management Quality Certificate, which confirms the company’s environmental awareness and compliance with the applicable international standards. The company is considered by the regulatory authorities to be the most modern, well-equipped and environmentally friendly company operating in Turkmenistan.

Technical Cooperation

None.

Company Contact

Transition impact

ETI Score:75

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search