DFF - Datly Sherbet Expansion

Location:

Turkmenistan

Project number:

51653

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

24 Mar 2020

Status:

Disbursing

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 senior secured long-term committed loan of US$ 8m loan ("Loan") to IE Datly Sherbet (the Company"), one of the leading confectionary producers in Turkmenistan. The Loan will finance the first phase of the Company's expansion.

Project Objectives

The loan will finance purchase of equipment to diversify confectionary's product range as part of the first development phase.

Transition Impact

ETI score: 66

1.The Company will invest in expansion and product range diversification thus improving its competitiveness as compared to other producers and importers contributing to the Competitive quality.

2. The new product range will enable the Company to explore opportunities on the markets of China and Kyrgyzstan. Eventually, the exports of confectionary and pastry products shall reach 20 per cent of the total confectionary output by 2023 contributing to the Integrated quality.  

Client Information

DATLY SHERBET IE

"Datly Sherbet", a sole proprietorship established and operating in Turkmenistan, is one of the leading confectionary manufacturers founded in 2014 (the "Company"). 

EBRD Finance Summary

USD 16,000,000.00

A senior secured long-term loan of US$ 8 m for financing of the Company's capital expenditure as part of its phased development programme.

Total Project Cost

USD 32,200,000.00

Additionality

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 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) EBRD mitigates non-financial risks.

Environmental and Social Summary

Categorised B (ESP 2014).  Environmental and social due diligence for this project included a review of an E&S questionnaire provided by the Company.  Previous E&S due diligence on the same company included a site visit by a member of the Bank's Environment and Sustainability Department. The Company has confirmed, through both the questionnaire previous due diligence and annual reporting that it is compliant with national requirements for environment, health, safety and labour management. The company is currently operating certified systems for the quality management (ISO 9001) and food safety (ISO 22000) and has adequate staffing in place to manage the key EHS issues.  The Company's production facilities are modern, completed in 2017, and the site for the additional Project elements has been acquired from the government and is adjacent to current production facilities.  To enhance the current management of environmental, health and safety issues the Bank has agreed an environmental and social action plan (ESAP) with the Company including requirements to ensure appropriately qualified EHS staff are in place, and to further develop current management systems to integrate environmental health and safety consideration into those systems in accordance with good practice models such as ISO 14001 and 45001.  The Company will be required to comply with the Bank's PRs and report annual on E&S performance and the implementation of the ESAP.

Technical Cooperation and Grant Financing

None

Company Contact Information

Mr. Begench Orazov
info@tazeay.com
+99352218233
+99352218233
http://tazeay.com/index.php
Mary city, Margiana-Seydi crossroad, Turkmenistan

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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