RF - Berk Snacks WC

Location:

Turkmenistan

Project number:

52291

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Approval date:

04 Aug 2020

Status:

Signed

PSD disclosed:

21 Sep 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 a senior secured loan of up to US$ 1.5 million (€1.3 million) to Individual Enterprise "Alem Gamisi". The operation will enable the Company to ensure the continuity of potato chips production during the COVID-19 crisis by mitigating the risk of possible disruption in supply of imported raw materials.

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.

Project Objectives

 The Loan will support Alem Gamisi's liquidity and help it withstand the Covid19-caused crisis.

 

Transition Impact

ETI score: 60

As per OpID 48533:

Primary Quality Well-governed: The original project with Alem Gamisi is expected to improve financial reporting IT system and introduce independent audit requirement.

Secondary Quality Green: Alem Gamisi committed to set up processing in a manner to ensure minimal waste and recycling of most waste elements, as well reduce electricity utilisation.

The goal of the proposed transaction is to preserve the gains achieved through previous engagements with the Borrower.

PTI Score: 60 (Framework Level)

Client Information

ALEM GAMISI INDIVIDUAL ENTERPRISE

"Alem Gamisi" is an individual enterprise, incorporated in Turkmenistan. The company is the producer of potato chips.  

EBRD Finance Summary

USD 1,500,000.00

Total Project Cost

USD 1,500,000.00

Additionality

COVID-19 crisis response: the EBRD financing effectively bridges a liquidity gap due to adverse market conditions, caused by the pandemic.  

Environmental and Social Summary

Categorised C (ESP 2019) and Low Risk.  The production of potato chips is associated with a number of environmental and social issues which are well understood and can typically be managed through standard mitigation measures.  The Borrower is an existing client of the Bank and has been subject to both environmental and social due diligence and monitoring on a number of occasions. For this proposed project, the Borrower has adequate capacity and systems in place to ensure compliance with national EHS requirements and the Bank's PRs.  The Borrower will be required to continue to provide annual E&S reporting to the Bank.

Technical Cooperation and Grant Financing

The Project will have a Technical Cooperation (TC) component provided by the Shareholder Special Fund (out of the funding managed by the SME F&D).

Company Contact Information

Begench Altymuhammedov
alemgamisi@mail.ru
99312520250
+99312520270
Ashgabat-Mary highway, Gami village Ak Bugday district, Ahal region, Turkmenistan

PSD last updated

28 Sep 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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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