Project Description
A senior secured loan of up to USD 3.0 million ("Loan") to Sayohon LLC ("Company"), a private ride-hailing company incorporated in the city of Dushanbe ("City"), Tajikistan.
Proceeds of the Loan and the shareholder's contribution will be used to finance the acquisition of up to 100 electric vehicles ("EV"s) and 30 EV charging infrastructure at the Company's depot as well as at selected locations across the City (the "Project").
The Company will be further supported by an incentive grant of up to USD 0.5 million financed by the Global Environment Facility ("GEF") under the Finance and Technology Transfer Centre for Climate Change ("FINTECC"). The grant is payable after the purchase, installation, and commissioning of the eligible technology, including EVs and charging infrastructure.
Project Objectives
The Project is considered to be at the forefront of the City's transition towards electric mobility and is aimed to have a wider impact on EV ecosystem through the rollout of EV taxis and charging stations across selected locations in the City.
The Project is part of the Bank's engagement with the City under the EBRD Green Cities programme. As such, it is considered as a follow-on investment under Green Cities Framework 2 Window II ("GrCF2 W2") from Dushanbe's Green City Action Plan ("Dushanbe GCAP").
Transition Impact
ETI score: 70
- Green (primary): the Project will improve urban transport services and support Dushanbe GCAP objectives, resulting in a considerable reduction of greenhouse gas emissions and air pollutants.
- Inclusive (secondary): the Project will generate new demand for skills and job opportunities for EV drivers, as well as the development of labour market for EVs operation and maintenance.
Client Information
SAYOHON LLC
Sayohon LLC provides ride-hailing services in Dushanbe and across Tajikistan's major cities offering access to a variety of mobility options through a mobile-based application. The Company is one of the largest privately owned ride-hailing operators, managing a fleet of more than 3,000 cars, employing around 200 full-time equivalent personnel, serving around 19 million rides annually and operating under Rakhsh Taxi brand name.
EBRD Finance Summary
USD 3,000,000.00
A senior secured loan of up to USD 3.0 million. The Loan will consist of a committed tranche of up to USD 2.0 million ("Tranche I") and an uncommitted tranche of up to USD 1.0 million ("Tranche II"). The commitment of Tranche II will remain at the Bank's sole discretion.
Total Project Cost
USD 4,500,000.00
The Loan will be co-financed with the Company's shareholders loan of up to USD 1.0 million.
Additionality
The Bank's additionally includes the following components:
- Financing Structure;
- Risk mitigation;
- Policy, sector, institutional, or regulatory change;
- Standard-setting helping projects and clients achieve higher standards;
- Knowledge, innovation and capacity building.
Environmental and Social Summary
Categorised B under the Environmental and Social Policy ("ESP") 2019. The purchase of 100 EVs that will operate in the City will have environmental and social benefits. This will result in improved air quality as well as overall safety and efficiency of urban transportation. Any potential adverse environmental and social impacts will be site-specific and manageable through the implementation of the targeted mitigation measures. The Environmental and Social Due Diligence ("ESDD") has been undertaken in-house by the Bank. This comprised the completion of environmental and social questionnaires, and remote meetings with the Company's management and environmental and social staff. It also reviewed the Company's policies, procedures, and practices related to environmental and social matters as well as an assessment of the Company's capacity to manage key risks associated with the project in accordance with ESP 2019. Key risks identified by the ESDD relate to road and traffic safety, electric safety, fleet management, and management of COVID-19 related risks. It confirmed that the Company is generally compliant with the local regulations and has the capacity to implement the Project in line with the Bank's performance requirements. At the same time, improvements are required in terms of its overall environmental, social, and safety management systems to bring the Project into compliance with the EBRD performance requirements. Given that the road safety has been identified a serious concern during ESDD, the Bank will provide TC support to the Company to develop and implement a traffic and road safety management system that will align with good international practice and ISO 39001.
The targeted mitigation measures that were developed and agreed with the Company include commitments aimed at improving traffic safety practices, fleet management procedures, COVID-19 related risk management, a code of conduct for the drivers and GBVH procedures, a stakeholder engagement plan, labour management system, and a grievance review system.
The Bank will monitor the Company's activities through annual environmental and social monitoring reports.
Technical Cooperation and Grant Financing
Pre-signing:
- TC 1: Technical due diligence: EUR 75,000 was financed by GEF under FINTECC facility.
- TC 2: Financial due diligence: EUR 24,851 was financed by the Women Entrepreneurs Finance Initiative on a cost-sharing basis with the Company.
- TC 3: Legal due diligence: EUR 32,000 was financed by the EBRD's Shareholders Special Fund ("SSF") on a cost-sharing basis with the Company.
Post-signing:
- TC 4: ESAP implementation support (including introduction of ISO 39001: Road Traffic Safety Management System): EUR 50,000; to be financed by SSF.
Company Contact Information
Mr. Murod Nazarov, General Director of Sayohon LLC
nazarov.murod@gmail.com
+992 70 000 3333
5 Abdulahad Kakharov Street 21, Dushanbe, Tajikistan
PSD last updated
28 Feb 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
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General enquiries
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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 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.
