DFF-Tashkent Pipe Plant-2 (WC)



Project number:


Business sector:

Ferrous Fabricated Metal Product Manufacturing

Notice type:


Environmental category:


Approval date:

02 Aug 2022



PSD disclosed:

02 Aug 2022

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 senior secured 2-year working capital loan of up to US$ 10 million to Tashkent Pipe Plant for financing the procurement of raw materials for the production of spiral submerged arc welded pipes (SSAW) - commonly used in water infrastructure, construction and transport industries. 

Project Objectives

The Project aims to enhance operational efficiency of Tashkent Pipe Plant and increase the share of import substitution products in the market.

Transition Impact

ETI score: 64

Competitiveness: The Project will provide working capital that will allow the company to start in-house production of hot rolled coils to manufacture spiral submerged arc-welded pipes at a cheaper cost-base, thus supporting operational changes leading to competitiveness improvements and enabling the operational performance of the company to go beyond prevailing standards in the country. 
Inclusive: The Project will introduce equal opportunity policies and practices and increase the Company's female workforce by 5-10 percentage points.

Client Information


JV LLC "Tashkent Pipe Plant", registered under the laws of Uzbekistan, is one of the largest local producers of fabricated steel products and the leading private producer of steel pipes in the country.

EBRD Finance Summary

USD 10,000,000.00

Senior secured working capital loan of up to US$10 million

Total Project Cost

USD 10,000,000.00


The EBRD's additionality stems from (i) providing financing that is not available in the local market on comparable terms and conditions (e.g. a bullet repayment structure with a longer tenor); (ii) providing comfort by mitigating non-financial risks such as country or political risks; and (iii) helping the Company achieve higher financial standards via IFRS restatement and audit.

Environmental and Social Summary

Categorised B (2019 ESP).  The E&S risks and impacts associated with the Project include health & safety, air emissions, fugitive emissions, water management, energy efficiency and noise.  These impacts can be readily addressed through mitigation measures and existing E&S management provisions. The E&S due diligence (ESDD) carried by an independent consultant, identified some areas that the Company needs to focus on and an ESAP has been developed and will be agreed with the Company before signing of the loan agreement with reporting performed annually via the AESR.  Key actions include review and revision of the existing HSE Policies and Environmental and Social Mitigation and Management Plan (ESMMP) in order to include the commitments for the Client to comply with the EBRD requirements as well as enhancing the air quality, noise and wastewater monitoring program and development of an internal and external grievance mechanism. 

The Company operates certified management systems to manage EHS risks. Labour provisions are generally aligned with PR2 and covered within various HR policies and procedures. This includes provisions on harassment in the work place, equal opportunities and non-discrimination, employee code of conduct, employee training and a grievance mechanism.  No retrenchment of employees was required due to COVID-19.  The Company operates two production lines: Long products (Electric arc furnace, Induction furnace, continuous caster, reheat furnace) and flat products (Reheat furnace, narrow strip mill & coil units) that are permitted   by the Uzbekistan authorities and in process to achieve compliance with the BAT/BREF documents for the Iron and Steel and Ferrous Metals Processing Industry.  The Company is presently carrying an energy efficiency audit in order to identify opportunities for energy demand reduction. The Company's facility is located in an industrial area of Tashkent, distant to any communities.  No land acquisition is required for the Project.  It is also worth noting that the area of the Project implementation is not currently subject to flooding and there are no nearby water streams with potential for flooding at present or in the near future.  

Occupational health and safety provisions and performance are in line with the EBRD's requirements.  Such provisions extend to the transport of its products by road.  The Company has put in place appropriate controls to manage risks associated with COVID-19. The Project is not associated with any impacts to biodiversity or cultural heritage. The Company has in place a stakeholder engagement plan and associated grievance mechanism.

The project is considered Paris aligned for climate mitigation as it features is joint MDB "aligned list" and due diligence has confirmed that its economic feasibility is not materially dependent on fossil fuel exploitation, processing and transport. The project is consider Paris aligned for climate adaptation as the initially screened flood risk was determined to not be material to the project location following site specific review as part of due diligence. The PC risk score is 2. Meaning that the CART is not considered to be materially exposed to physical climate risk. There is no GET component associated with this project.

Technical Cooperation and Grant Financing

Legal due diligence: €11,135 mobilised to cover an overall assignment of €22,270. Funding source: Japan-EBRD Cooperation Fund (JECF). 

Company Contact Information

Viktoriya Sutsepina
4 Furkat Street, Tashkent, 100021, Uzbekistan

PSD last updated

02 Aug 2022

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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