DFF Tach Hil Expansion

Location:

Turkmenistan

Project number:

52031

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

29 Jun 2021

Status:

Signed

PSD disclosed:

02 Jul 2021

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 loan of US$ 2.8 million to IE "Tach Hil", a Turkmenistan based producer of hygienic products and plastic bags.  The loan will partially finance the procurement of equipment to upgrade the production efficiency of hygienic products' line and to diversify product range. It will help purchase moulding machines for the PET bottles and equipment for the production of plastic bags and to finanace working capital needs.

 

Project Objectives

The objective of the project is to invest in equipment of hygienic products and plastic bags to help Tach Hil increase products range. 

Transition Impact

ETI score: 80

The jroject will help the Tach Hil expand its product range and improve labour productivity contributing to the "Competitive" quality and improve export potential of the new products under the "Integrated" quality.

Client Information

TACH HIL IE

Tach Hil is a sole proprietorship type company incorporated and operating in Turkmenistan and engaged in the production of hygienic products and plastic bags.

EBRD Finance Summary

USD 2,800,000.00

US$ 2.8 million senior secured loan to IE "Tach Hil".

Total Project Cost

USD 4,111,000.00

Additionality

The EBRD is providing financing in US dollars, the availability of which which is scarce in the local market, with a loan tenor which is longer than otherwise available locally.

Environmental and Social Summary

Categorised B (ESP 2014).  The production of household products is associated with a limited number of environmental and social impacts, which can be readily identified and managed through appropriate mitigation measures.  Issues to be considered include product quality and safety, management of hazardous and non-hazardous chemicals, water use and waste disposal, solid waste management and occupational health and safety.  Management of these issues within the Company is largely focussed on compliance with national legal requirements and the company has adequate staffing and systems in place to ensure the compliance is maintained.  To better address key environmental and social impacts the Company has implemented a number of best practice management systems to improve its production process including ISO 9001 for quality, ISO 14001 for environment and ISO 22716, which provides guidelines for the production, control, storage and shipment of cosmetic products.  The Company also operates a health and safety management system according to OHSAS 18001 to ensure appropriate management of occupational health and safety issues.  Together, these systems help to ensure that the Company complies with the Bank's Performance Requirements (PRs).  The Company should continue to ensure compliance with the PRs and provide annual reporting on E&S matters to the Bank.

Technical Cooperation and Grant Financing

The Project will include Technical Cooperation (TC) component for local outside counsel, which will partially cover (50%) the total legal due diligence costs of €14,285.

Company Contact Information

Mr Tachmurad Gurdov
export@tachil.com
+99312575457
+99312575457
www.tachil.com
Zumerret st. 38, Industrial Zone, Ak Bugday district, Ahal region, Turkmenistan

Implementation summary


PSD last updated

02 Jul 2021

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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