Confirm cookie choices
Cookies are pieces of code used to track website usage and give audiences the best possible experience.
Use the buttons to confirm whether you agree with default cookie settings when using

DFF - Kokand Fertilisers GET Capex



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

21 Jan 2020



PSD disclosed:

24 Jan 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

Provision of a USD 12.5 million loan to finance the modernisation and implementation of an energy-efficient capex programme, and local currency loan for the equivalent of USD 10 million to finance initial working capital needs of the recently privatised JSC Kokand Superphosphate Plant, renamed post-privatization to JSC Indorama Kokand Fertilizers and Chemicals ("IKF" or the "company"), an outdated phosphate fertiliser plant located in Uzbekistan (the "project").

Project Objectives

The project aims to (i) enhance operational efficiency of the obsolete plant by bringing in new equipment and modernising the plant infrastructure, (ii) improve health, safety, economic inclusion and environmental standards of the company, and (iii) increase production and contribute to enhance the overall competitiveness of the sector in the country.

Transition Impact

ETI Score: 75

The project will deliver competitiveness and enhanced inclusion as transition impact. Namely, it will support the turnaround of a recently privatised, obsolete company resulting in significant efficiency gains and greater profitability. Also, the project will bring in a global and strategic player in the fertiliser production market of Uzbekistan and is expected to lead to FDI inflows.

The project will also create employment opportunities for women, supporting IKF to achieve a more balanced gender representation by implementing a dedicated equal opportunities action plan. This will strengthen entry-points, skill acquisition and retention of women workers.

TOMS Score: 75

Client Information


Indorama Holdings B.V. currently owns 95.54 per cent of the company. The remaining shareholding belongs mainly to current and former cmpany employees. Indorama Holdings B.V. is a wholly-owned subsidiary of Indorama Corporation Pte. Ltd., domiciled in Singapore ("IRC").

IRC is the holding company of Indorama Group, one of Asia's leading industrial conglomerates with wide interests in petrochemicals, fertilisrs and related downstream businesses.  IRC is wholly-owned for the benefit of Mr. S.P. Lohia and his family. Indorama Group was established in 1975 in Indonesia. It is West Africa's largest of petrochemicals, including olefins, polyolefins, phosphoric acid, phosphate fertilisrs, ammonia, and urea, and one of the world's largest producers of synthetic disposable gloves.

Together with its associate, Indorama Ventures Public Company Limited, domiciled in Thailand, Indorama Group is the world's leading producer of polyester and the leading producer of polyester feedstock (PX, PTA, and MEG) and man-made fibers. Its manufacturing activities are spread across 136 sites in 37 countries with a total sales volume of almost 25 million tons a year and annual sales value of over US$15 billion.

EBRD Finance Summary

USD 12,500,000.00

EBRD Finance Summary:

CAPEX loan (in USD) - USD 12,500,000.00

WC loan (in UZS) equivalent - USD 10,000,000.00

Total Project Cost

USD 35,000,000.00

Including related WC loan: USD 45,000,000.00


The EBRD provides financing on terms not readily available in the local market. The Bank's presence also brings additional comfort to clients and investors by mitigating non-financial risks. The project also helps the company achieve higher environmental standards, as well as access to support in energy and resource efficiency & climate resilience financing.

Environmental and Social Summary

Categorised B (2014) ESP. Environmental and Social Due diligence (ESDD) was carried out by Environment and Social Department (ESD) and included review of the local Environmental Impact Assessment (EIA) (approved by the authorities in August 2019), a site visit and follow up discussions with the Company. ESDD has shown that the Sponsor has an existing corporate E&S management system, Code of Conduct and other documentation, which are aligned with the applicable Performance Requirements (PR). The Company will need to implement a similar E&S management system for the Project to ensure plant related E&S impacts are appropriately mitigated and managed.

The Company's production facilities and warehouse are located in Kokand in Fergana valley which it will modernize by implementing a turn-around programme aimed at enhancement of operational efficiencies and improvement of health, safety, economic inclusion and environmental standards. Impacts of the construction works will be mitigated through the implementation of an E&S Management Plan. Soil and groundwater sampling has been conducted and no major legacy issues have been identified. The modernised plant will be designed to meet EU Best Available Techniques (BAT) and emission limits for the sector through installation of emission control equipment, emissions monitoring programme and a wastewater re-circulation system. With the application of BAT, emission rates will further decrease compared to those considered in the national EIA, updated air quality modelling has been completed which indicates with the application of mitigation measures no significant impacts to local air quality. The Company will develop a major accident prevention policy and conduct a detailed quantitative risk assessment (QRA) including implementation of any recommendations.

The Company will retain and expand the current workforce during the operation of the new plant. Both the Company and contractors will be required to implement applicable Performance Requirements and develop the appropriate policies and procedures, including an employee grievance mechanism. An independent labour audit will be undertaken during the first year of operation. Also, the Company will develop a stakeholder engagement plan and external grievance mechanism and routinely disclose pertinent E&S information to stakeholders. This would include communicating any process safety risks and controls and emergency preparedness and response provisions to stakeholders. An ESAP including these items has been agreed with the Company.

Technical Cooperation and Grant Financing

The Company will benefit from Technical Cooperation (TC) funds of up to EUR 50,000 for design and implementation of an equal opportunities action plan targeting women from pre-approved SSF funds for Uzbekistan under the Gender Advisory Services Programme (TCRS 296). The TC assignment will be delivered with a 10% contribution by the Company.

The Company will also benefit from non-TC USD 122,000 grant for advanced climate technologies from EBRD Finance and Technology Transfer Centre for Climate Change (FINTECC) programme funded by the Global Environment Facility (GEF) in the ETC region.

Company Contact Information

Mr. Rahul Singh
+998 71 2332264
11/1 Amir Temur Avenue, Mirobod district, 100100 Tashkent, Uzbekistan

PSD last updated

27 Jan 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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


GDPR Cookie Status