The 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.
Impact of COVID-19 and response measures. OJSC Khujand International Airport (the "Borrower") has suspended its operations after the closure of Tajikistan's airspace on 20 March 2020 in response to the COVID-19 pandemic's spread.
Proposed immediate and medium-term approach. In order to address the shortage of working capital requirements during the lockdown and operations restart period, the borrower has approached the Bank with a request to consider provision of a working capital facility in the amount of up to USD 2.0 million (the "Loan") to cover minimum required cash costs during the April 2020 - April 2021 period.
The borrower is an existing EBRD client under the Khujand Airport Emergency Loan Project OpID 43343 (the "project") and has achieved the majority of monitoring benchmarks for existing operations, with three still to be achieved by the project's end in April 2021. The proposed loan will help the company stay afloat during the Covid-19 crisis and the initial period of business recovery.
ETI score: 60
KHUJAND INTERNATIONAL AIRPORT OJSC
OJSC Khujand International Airport, incorporated under the laws of the Republic of Tajikistan, is 100 per cent state-owned via the State Committee for Investments and State Property Management under the Government of Tajikistan.
EBRD Finance Summary
Total Project Cost
EBRD financing is provided during the extraordinary circumstances brought about by COVID-19 crisis. EBRD financing effectively bridges a liquidity gap due to adverse market conditions, e.g. the COVID-19 crisis. The proposed financing is based on previous EBRD experience where financing structure, policy dialogue and know-how have helped the company achieve higher standards.
Environmental and Social Summary
Categorised B (2019 ESP). The provision of short-term working capital to the Company is not associated with any new environmental or social risks or impacts. Environmental and Social Due Diligence ("ESDD") has been undertaken by ESD specialists in line with the ESD COVID-19 response and included reviewing an ESDD questionnaire, annual Environmental & Social ("E&S") reports provided by the Company to the Bank and publicly available information. ESDD confirmed that the Company continues to be compliant with national law, the relevant EBRD Performance Requirements ("PR"), and is on track with implementing the existing Environmental and Social Action Plan ("ESAP"), has maintained its institutional capacity for E&S risk management, and is addressing public safety and Operational Health and Safety risks linked to the COVID-19 response.
The Company has been adversely affected by flight cancellations; most of its employees are on un-paid leave until the COVID-19 situation permits a return to work. The Bank will work with the Company to ensure it continues supporting its employees in line with PR 2 and national requirements. Currently, the Company has no plans for labour restructuring or redundancies within the next two years, but should this change, the Company will need to prepare and submit a Retrenchment Plan in line with PR 2 to the EBRD. Based on the due diligence results, the Bank is in the process of agreeing an updated ESAP, which will address the issues identified during ESDD and those associated with COVID-19. This includes developing response plans related to labour management and stakeholder engagement to address COVID-19 related impacts. The Client is required to continue ensuring that the new project complies with the PRs, as well as submitting an annual E&S report to the Bank.
Technical Cooperation and Grant Financing
Company Contact Information
Mr. Qurboni Alimardon
15-Airport Khujand, Tajikistan 735715
PSD last updated
06 Jul 2020
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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 email@example.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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.