The provision of US$ 0.5 million loan to finance working capital needs of Turkmenin Rysgaly, one of the leading producers of hygienic products in Turkmenistan
The Project will help the Borrower to:
- Reduce the negative impact of the supply chain disruptions caused by the pandemic;
- Arrange advance payments for new suppliers.
ETI score: 60
Transition impact is expected to derive from:
- Competitive: Support the borrower's efforts in diversifying product range and introducing new products.
- Integrated: Significantly increase exports as a share of total sales.
The proposed operation aims to preserve transition impact achieved under the existing project with the borrower.
The existing project with the client received an ETI of 80 at approval. Monitoring is done at the FW level with a current FW PTI of 60.
Turkmenin Rysgaly, a sole proprietorship incorporated in Turkmenistan. The Borrower is one of the leading producers of nappies, hygienic pads and wet wipes in the country. It also packages detergents, imported in bulk, under its own brand. In 2018 the EBRD helped the Borrower diversify its range of products (liquid and hard sope and toothpaste manufacturing and packaging.
EBRD Finance Summary
A senior secured loan of up to US$ 0.5 million for working capital purposes (the purchase of additional raw materials).
Total Project Cost
Covid-19 crisis response: the EBRD financing will bridge the liquidity gap caused by the adverse market conditions. The loan will help Turkmenin Rysgaly receive funds in foreign currency not available from domestic lenders
Environmental and Social Summary
Categorised B and Low Medium risk. The production of hygiene products is associated with a limited number of environmental and social (E&S) impacts, which can be readily identified and managed through appropriate mitigation measures. E&S due diligence was undertaken for the previous transaction with the Company and a limited environmental and social action plan (ESAP) agreed. The Company has provided E&S reporting which confirms on-going compliance with national requirements and the Bank's PRs and demonstrates progress on implementing the agreed ESAP. No additional mitigating measures will be required for this new project. The Company should continue to provide annual E&S reporting to the Bank.
Technical Cooperation and Grant Financing
This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to Covid-19, and this deviation, can be found on our website.
Company Contact Information
10 km of the Mary-Bayramali Road, Vekilbazar etrap, Mary velayat, Turkmenistan
PSD last updated
17 Nov 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.