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.
Provision of a USD 2.8 million senior secured loan to finance the acquisition of a third production line for the manufacturing of single-use medical gloves (the "project") by JV Healthline LLC (the "company", "Healthline"). The project is in response to the increased demand for medical personal protective equipment (PPE) due to the COVID-19 pandemic.
Healthline has been an existing client of the EBRD since November 2019. The initial project involved the establishment of a medical glove production facility with two production lines to which the EBRD provided debt financing of USD 9.2 million. To respond to the increased demand for PPE, Healthline decided to install a third production line under the project which will increase the production capacity of disposable medical gloves.
The project is part of the company's strategy to expand its existing product range and establish a new production plant for the manufacturing of disposable medical gloves (surgical and examination gloves). The proposed addition (third manufacturing line) will capitalise on the existing infrastructure and enable it to leverage on economies of scale improving its operational efficiencies as well as its bargaining power with suppliers and clients. The proceeds of the EBRD loan (USD 2.8 million) will be directed to acquire the manufacturing line of disposable medical gloves.
The financing of the additional production line pursues similar transition impact objectives as the existing transaction with the company. The transition rationale of the original transaction therefore still holds with incremental impact identified.
The project targets the Competitive and Integrated qualities. Namely, the Project is expected to further improve the company's productivity and result in higher revenues and profitability, under the Competitive quality.
In addition, the project pursues the widening of the company's export scope, under the Integrated quality.
HEALTH LINE JV LLC
JV Healthline LLC is a limited liability company incorporated in Uzbekistan in 2004. The Company is a leading local manufacturer and trader of disposable medical devices including disposable syringes, intravenous sets, gynaecological speculums, blood lancets, catheters and dialysis filters.
EBRD Finance Summary
CAPEX loan (in USD) - USD 2,800,000.00
Total Project Cost
Total Project cost is USD 3.8 million. EBRD will finance USD 2.8 million and the Company will provide the remaining USD 1.0 million from its own sources (internal cash flow).
The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period. Such financing is necessary to structure the project.
Environmental and Social Summary
Categorised B under the 2019 ESP. Environmental & Social Due Diligence (ESDD) carried out in 2019 for the preceding project as well as additional ESDD showed that the client is in compliance with the EBRD PR & existing ESAP to date as well as national requirements of Covid-19 with their own specific emergency plan as a medical globe manufacturer. For this project, the client is required to continue to comply with PRs and ESAP as well as submit an annual ES report to the Bank.
The preceding ESDD included a site visit by ESD staff, and the additional ESDD has been carried out by a review of the status of the ESAP and the completed Covid-19 Questionnaire. Regarding the status of the ESAP, the client has carried out the following: development and implementation of an updated employee grievance mechanism in July, 2020, recruitment of a dedicated EHS manager, preparation of ISO quality standard (ISO9001 & ISO13485) documentation for the new glove production facility and preparation of hazardous substance management design solutions.
The company's operation has been approved by the government as a medical equipment producer. The company's quality management procedures for the existing facility are in line with these accreditations and the Rule for the production of medicines (GMP Directive EU). The Company maintains a log of complaints related to products and asserted that there has been no material issues associated with their medical device in the past three years. The Company's HR and Occupational Health and Safety practices are in alignment with national requirements as well as PR2 & PR4 and have been further enhanced by the implementation of the ESAP.
The new production line (90% completed) is located inside the boundary of the Company's current production site which is located in a newly designated industrial zone. The plant will operate a wastewater recirculating system where the wastewater will be treated and returned to the process system. A waste heat re-circulation system will also be installed to reduce energy consumption.
The company has implemented the following Covid-19 response measures in accordance with national legal requirements: daily health check (body temperature check), wearing of a face mask and one-time use gloves, social distance, hand hygiene and cleaning regime all through the facility and an emergency plan in the case of occurrence of a Covid-19 patient in the facility.
The Bank will continue to monitor the project's environmental & social performance by reviewing the annual report as well as a site visit if deemed necessary.
Technical Cooperation and Grant Financing
Company Contact Information
236A Navruz street, Uzgarish K.F.Y., Zangiata district, Tashkent region, 111802, Uzbekistan
PSD last updated
05 Nov 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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 firstname.lastname@example.org. 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 email, mail 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.