DFF - Altyn Yunus

Location:

Turkmenistan

Project number:

52492

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

22 Jun 2021

Status:

Signed

PSD disclosed:

22 Jun 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 loan of up to US$ 2 million to Altyn Yunus, a Turkmenistan-based producer of snacks and confectionery products. The funds will contribute towards AY's investment programme aimed to build new production facility for the production of jelly sweets

 

 

Project Objectives

The main objective of the project is to invest in equipment for the productions of jelly sweets and support the expansion of Altyn Yunus operations.

Transition Impact

ETI score: 80

The project will help to the Company to expand to the new segment and improve labour productivity contributing to the "Competitive" quality and improve financial reporting standards under the "Well-governed" quality.

Client Information

ALTYN YUNUS IE

Individual Enterprise Altyn Yunus (the "Borrower") is a wholesale distributor of FMCG  and household chemistry products, as well as producer of snacks and confectionery products in Turkmenistan.

EBRD Finance Summary

USD 2,000,000.00

A senior secured long-term loan of up to US$ 2,000,000 for financing the Borrower's capital expenditure. 

Total Project Cost

USD 5,500,000.00

Total project costs are US$ 5,500,000, of which USD 2,000,000 will be provided by the EBRD, and remaining USD 3,500,000 by the Borrower.

Additionality

The EBRD is providing financing in US$, which is scarce in the local market, with a loan tenor which is longer than other available offers in the local market.

Environmental and Social Summary

Categorised B (ESP 2019).  The production of confectionary is associated with a number of environmental and social issues which are well understood and readily managed through standard mitigation measures.  Due diligence for this project was undertaken by ESD based on an environmental and social questionnaire completed by the Company. Responses to the questionnaire did not reveal any significant environmental or social issues of concern related to the project or the operations of the Company. The Company has adequate capacity to manage key environmental and social issues and systems in place to address those.  The Company already operates formal management systems for quality (ISO 9001) and food safety (ISO 22000) and the HACCP system. The Company has obtained the required permits, under national law, for all operations and is subject to regular inspections. Adequate policies and procedures are in place to manage human resource issues including an appropriate grievance mechanism for workers. Risks assessments are undertaken for key occupations to monitor health and safety and accidents and incidents are tracked and mitigating measures applied. The new production facility in which the Project will take place is located in an industrial with appropriate infrastructure systems and measures, and does not pose any risk to its surroundings. The Company will be required to maintain compliance with the Bank's Performance Requirements and provide annual E&S reporting to the Bank.

Technical Cooperation and Grant Financing

The Project will include Techincal Cooperation (TC) component for: (i) local outside counsel (provided by the EBRD Shareholder Special Fund), which will partially cover the legal due diligence costs; and (ii) financial due diligence (provided by EU IFCA), which will partially cover the financial due diligence costs.

Company Contact Information

Dunya Nazarowa
dunya.altynyunus@gmail.com
+99365629853
+99312468152
www.altynyunus.tm
82 Ataturk str Ashgabat Turkmenistan

PSD last updated

22 Jun 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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