Project Araltuz

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a convertible loan facility of US$ equivalent of KZT 5.5 billion to a parent company of Araltuz JSC (Araltuz), to be established under the jurisdiction of Astana International Financial Centre (AIFC).

Project ID 52613

Status Disbursing

Location

Kazakhstan

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Assel Bakirova
info@araltuz.kz
+7 (727) 364-56-20
www.araltuz.kz
050026, Kazakhstan, Almaty, Zhumaliyev str. 112

Project ID 52613

Status Disbursing

Location

Kazakhstan

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

31 May 2023

Disclosure date

16 Jun 2023

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

Project objectives

The Bank's financing will be used towards Araltuz's investment programme aiming at introduction of new products and sales diversification to new markets.

Transition impact

ETI Score:65

Quality: Integrated

The project will support expansion of the Company's exports to new markets as a result of implementation of the CAPEX programme, which will expand the Company's product range towards value-added products.

Secondary Quality: Well-governed

The Project will support the Company in improvement of its corporate governance via implementation of a Corporate Governance Action Plan ("CGAP"), which entails integration of the Company's broader environmental and social matters into its governance and decision-making processes.

Client information

TO BE DEFINED

Araltuz is a leading producer of table and technical salt in Central Asia

EBRD Finance Summary

USD 12,188,000.00

Total project cost

USD 41,088,000.00

Additionality

Additionality sources

Financing Structure. The Bank offers to structure the Project in the form of a convertible loan, a product which is not readily available from other banks in Kazakhstan. The Bank's financing is critical for the Project to materialise, so the Bank's participation is highly additional.

Standard-setting. The CGAP developed with the help of an external consultant engaged by the Bank was agreed with the client and all CG issues identified by the consultants were addressed in CGAP. Additionally, the Company will aim to enhance its board of directors and board committees with a mix of skills, qualifications, expertise and gender balance that allows the board to address key challenges, risks and opportunities, including ESG and climate-related risks and opportunities. The Company has committed to promote equal opportunities for women and men by addressing gender gaps as part of CGAP and increasing the number of women among the Company's board members.

Knowledge, innovation, and capacity building. EBRD provides support to the Company in developing relevant internal policies, which are required for proper implementation of CGAP by the Company.

Environmental & Social Summary

Categorised B (2019). The independent ESDD was conducted in 2021 and consisted of the review of the Company's policies and operational standards, including a site visit. The ESDD identified that a national EIA will be commissioned for the new plant construction once the Detailed Design is completed, and the process technology is identified. The Company will need to ensure that the selected process technology meets the requirements of the Best Available Technologies for the sector. Araltuz' current performance is compliant with Kazakhstan's national environmental and health and safety regulations although Araltuz will aim to further improve its EHS practices. The Company has certified Quality Management and Food Safety Management systems and will aim to establish environmental, health and safety management systems. The ESDD identified certain specific areas that Araltuz will aim to improve with due regard to environmental issues including certain infrastructure and facilities. The Company has a Community Liaison Officer and provides financial aid to local municipality; it will need to further streamline its stakeholder identification and engagement activities through the implementation of the Stakeholder Engagement Plan. The ESAP for identified risks and impacts has been agreed with the Company.

Technical Cooperation and Grant Financing

TC: The Company will benefit from TC support of up to € 150,000 for the implementation of the Corporate Governance Action Plan and Climate Governance Action Plan, drawing on funding secured from EBRD's Special Shareholder Fund ("SSF") and a dedicated CCG Facility. 20 per cent of costs to be covered by the Company.

Company Contact Information

Assel Bakirova
info@araltuz.kz
+7 (727) 364-56-20
www.araltuz.kz
050026, Kazakhstan, Almaty, Zhumaliyev str. 112

PSD last updated

16 Jun 2023

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Project Araltuz

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)