RF - Ak Bulut Liquidity Support

Location:

Turkmenistan

Project number:

52052

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

03 Nov 2020

Status:

Disbursing

PSD disclosed:

17 Nov 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

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

Project Objectives

The Project will help the Borrower to:

  1. Reduce the negative impact of the supply chain disruptions caused by the pandemic;
  2. Arrange advance payments for new suppliers.

Transition Impact

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.

Client Information

TURKMENIN RYSGALY

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

USD 500,000.00

A senior secured loan of up to US$ 0.5 million for working capital purposes (the purchase of additional raw materials). 

 

Total Project Cost

USD 500,000.00

Additionality

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

Batyr Taganov
akbulut.ab@mail.ru
+99365719509
10 km of the Mary-Bayramali Road, Vekilbazar etrap, Mary velayat, Turkmenistan

PSD last updated

17 Nov 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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