The provision of debt financing in the amount of up to US$ 2.0 million to expand the existing FMCG food production facilities and to increase the catering chain in Tashkent, Uzbekistan, which will improve the company's operational performance.
The proceeds of the loan will finance the expansion of storage facilities, brewing and pastry production capacities, the ice cream distribution network as well as the expansion of the existing coffee houses chain.
The transition impact of the Project is expected to derive from its contribution to the competitive and well-governed qualities, namely supporting the company to:
(i) improve production and storage efficiency and expand its production capacities and its distribution network for certain products
(ii) improve its corporate governance standards, namely through the introduction and maintenance of financial reporting in line with IFRS.
ABN-MB JV LTD
The ABN-MB LLC Joint Venture is a SME size company incorporated in Uzbekistan which operates a well-known local coffee house chain and restaurants in Tashkent. The company also manufactures a range of food products including chocolate, pastry, beverages and ice cream.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
This project was categorised B as the environmental and social risks associated with the Company's activities are site specific and readily addressed through standard mitigation measures.
Environmental and Social Due Diligence (ESDD) on this project was undertaken by independent consultants and included meetings with ABN-MB staff and site visit to the Company's manufacturing facility in Tashkent, Uzbekistan.
ESDD has demonstrated that the existing facilities and proposed Project are overall considered low risk from an environmental, health & safety perspective. The manufacturing site is located in a designated industrial area, Bektemir, with low risk to any environmental and social receptors present in the area. All permits are in place.
While ABN-MB management has expressed strong commitment to Environmental, Health and Safety, and Social (EHSS) aspects, the company lacks formal EHSS management policies, systems and procedures. The development of those has been included in an Environmental and Social Action Plan (ESAP), that was agreed with the Client. The ESAP also includes provisions to enhance the current EHSS resources and designate a dedicated EHSS officer. EBRD will monitor the Project through the review of annual reports as well as visits by the Bank's staff.
Technical Cooperation provided was cost-shared with the client. It included the following engagements:
(i) support to streamline and improve accounting practices;
(ii) international advisory support regarding international best practices in food production and the catering sector
(iii) commercial and technical feasibility assessments for the project;
(iv) environmental and social due diligence and advisory.
Additionally, technical cooperation was provided for legal due diligence costs to cover part of the expenses in connection with the preparation of the Bank's financing of the Project.
Company Contact Information
5 Furqat Street Tashkent, Uzbekistan
For business opportunities or procurement, contact the client company.
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