DFF - Agromir

Location:

Uzbekistan

Project number:

49500

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

18 Oct 2017

Status:

Disbursing

PSD disclosed:

11 Sep 2017

Translated version of this PSD: Russian

Project Description

The Project will finance the construction of a modern warehouse facility in the Samarkand region, Uzbekistan, as well as working capital of Agromir Juice JV LLP (the "Company"). The Project will help introduce a unified warehouse management system, which will enhance control over inventory.

Project Objectives

The Project will provide the necessary operational efficiency for the Company, as it (i) needs to ensure sufficient stock during peak sales period, and (ii) sufficient working capital to support its growing operations and facilitate better access to both local and imported raw materials.

Transition Impact

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 the efficiency of its operations, lowering losses related to storage and inventory management, cost savings on logistics, as well as (ii) improvee its corporate governance standards, namely through the introduction and maintenance of financial reporting in line with IFRS, as well as compliance with the high environmental performance requirements and implementation of a targeted environmental and social action plan.

Client Information

AGROMIR JUICE JV LLC

Agromir Juice JV LLC is an Uzbekistan-based producer of juices, juice concentrates, vegetable paste and other products. The Company is one of the leading juice producers in Uzbekistan.

EBRD Finance Summary

USD 10,000,000.00

Total Project Cost

USD 10,000,000.00

Environmental and Social Summary

Categorised B (2014 ESP). The Environmental and Social risks associated with the Project are site-specific, readily identifiable, and can be mitigated through the implementation of a targeted environmental and social action plan (ESAP).

Environmental and Social Due Diligence is currently ongoing and includes the review of the completed ESDD questionnaire and a site visit to the factory in Samarkand conducted by the EBRD's staff.

Issues of focus include labour and supply chain management, in particular as it relates to forced and child labour, management of food hygiene, occupational health and safety and waste management.

An ESAP will be developed and agreed with the Company to structure existing operations in line with the PRs before the Board meeting.

The PSD will be updated after the results of the ESDD.

Technical Cooperation

The cost of the energy efficiency audit was partially covered by the EBRD Shareholders Special Fund.

Company Contact Information

Khabibulo Aripov
khabibullo_aripov@agromir.uz
(+99871) 140 31 02
(+99871) 140 31 07
www.agromir.uz

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.