Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

24 Mar 2020



PSD disclosed:

07 Apr 2020

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

The provision of a US$ 1.5  million loan to Safa, Turkmenistan's leading producer of polyethylene and polypropylene packaging. The Company will purchase new equipment to expand its existing production capacity and to increase its market share through further import substitution


Project Objectives

Purchase of specialised equipment for manufacturing of plastic bags. The project will enable Safa to increase its product range and strengthen its market position.

Transition Impact

ETI score: 80

The DFF SME framework primarily targets the Competitive quality by helping the SMEs to restructure and to become more efficient or professional. Sub-projects can target any of the other transition qualities as the secondary objective. The majority of projects, however, typically support the Well-governed quality by helping companies improve their financial management, or the Green quality by facilitating energy efficiency or environmental improvements. The Project contributes to the following:

1. Competitive quality through improved gross margins as a result of the new product introduction and

2. Integrated quality through increase in and diversification of the Company's exports.

Client Information


Sole proprietorship "SAFA" (the "Company"), a legal entity registered and operating in Turkmenistan. The Company is the leading producer of polyethylene (PE) and polypropylene (PP) packaging in the country.

EBRD Finance Summary

USD 1,500,000.00

The Project involves the purchase of specialised equipment for manufacturing of plastic bags

Total Project Cost

USD 4,400,000.00

The total Project cost is USD 4.4 million


- Financing Structure: (a) Loan tenor is above the market average and (b) the Loan is a large volume instrument that fills a market gap, both necessary to structure the Project;

- Risk mitigation: (a) long term relationship with the client provides comfort to the client to be willing to take more risk or/and finance enabling outcomes such as innovation or expansion into new markets (b) The EBRD provides comfort to the client by mitigating non-financial risks.

Environmental and Social Summary

Categorised B under the 2014 ESP.  Due diligence confirmed that the environmental and social impacts relating to the Project are site-specific and can be readily mitigated through the implementation of a targeted action plan. Due diligence was carried out internally by ESD and included review of a detailed questionnaire completed by the client and associated documentation.

The Client's current approach is focused on compliance with relevant national legislation and updates to the existing approvals will need to be secured for the new equipment.  The Client currently recycles defective plastic products and operates an exhaust ventilation system to manage emissions from the process.  The Client is required to develop a fit for purpose Environmental and Social (E&S) management system, including appointing personnel responsible for E&S issues at the facility level. Hazard identification, risk assessment and the development of operating procedures for new equipment will be a core part of the system.  In addition, the existing emergency response plan will be updated prior to the operation of the new equipment.

The Company will update its Human Resources Policy to align with the EBRD Performance Requirement (PR) 2, including developing and implementing an employee grievance mechanism.  An external grievance mechanism will be put in place, in accordance with PR10, appropriate to the scale of the Project.

All actions identified above have been included in the Environmental and Social Action Plan (ESAP),which has been agreed with the client.

Technical Cooperation and Grant Financing

The Project was supported with the following pre-investment TCs funding:

1.      Financial due diligence:

-        Main objective: verify the Company's financial standing;

-        Funding source: SME Finance Facility for Central Asia i Phase 2/Special Shareholder Fund (SSF);

-        Amount/currency and funding status: €13,000.

2.      Legal due diligence:

-        Main objective: review the current legal standing and draft/negotiate legal documentation;

-        Funding source: SME Finance Facility for Central Asia i Phase 2/Special Shareholder Fund (SSF);

-        Amount/currency and funding status:  €14,660.

The Company shares 30 per cent of the two assignments above for a total of  €8,298.

3.      International Advisory Project

-        Main objectives: 1) develop the Company's strategy; 2) improve the Company's efficiency; 3) improve the Company's product quality for export purposes.

-        Funding source: SME Finance Facility for Central Asia i Phase 2. The Company will share 10-12 per cent of the project cost ( € 6,000 i 7,200).

-        The assignment is planned to be launched in 1H 2020.

Company Contact Information

Kerim Charyev
6 Garagum street, Residential Complex Ruhabat, Bagtyyarlyk district, Ashgabat, Turkmenistan 744010

Implementation summary

PSD last updated

07 Apr 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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