DFF - Imkon Plus Expansion

Location:

Uzbekistan

Project number:

49508

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

13 Dec 2017

Status:

Disbursing

PSD disclosed:

27 Oct 2017

Translated version of this PSD: Uzbek

Project Description

Provision of a senior secured long-term loan of up to US$10 million to Imkon Plus LLC ("the Company"), a leading ice cream producer in Uzbekistan.

Project Objectives

The EBRD funding will support expansion of the Company's distribution network as well as the construction and operation of a cold storage and processing facility for frozen fruit and vegetables.

Transition Impact

The transition impact of the Project is expected to derive from its contribution to the competitive and well-governed qualities. In particular, the Project will support the Company to increase its market coverage and improve its operational efficiency by expanding its distribution network (including by entering new cities) and by developing a new frozen fruit and vegetable segment (including through exploring export opportunities). In addition, the Project is expected to strengthen and improve the Company's governance and business conduct, especially with regard to improving financial management and reporting (by adopting IFRS standards) as well as supporting the adoption of international certification and standardization (by preparing for ISO-22000 standard).

Client Information

IMKON PLUS

Imkon Plus LLC, established in 1997, is one of the leading ice cream production companies in Uzbekistan.

EBRD Finance Summary

USD 10,000,000.00

USD 10 million long-term loan to be provided in two tranches.

Total Project Cost

USD 13,500,000.00

Environmental and Social Summary

Categorised B (ESP 2014).  The production of ice cream and the cold storage of fruits and vegetables is associated with specific environmental and social issues which are typically well understood and readily addressed through standard mitigation measures.  Environmental and social (E&S) due diligence was undertaken internally by the Bank's staff and included completion of an E&S Questionnaire by the Company and a site visit by an ESD specialist to the site. 

The company's production facilities and warehouse are located in the Kibrai district, which is in the outskirts of Tashkent.  The Company produces more than 75 types of ice-cream by utilising a number of production lines which employ modern equipment from Europe and North America. The Company also operates its own fleet of trucks for delivery of products.  Food safety, environmental and health and safety management are based largely on national requirements although the Company is certified to the ISO 9001 quality standard.  Environmental and health and safety management are the responsibility of production staff and there are no formal management systems for environmental, food safety or health and safety management.  Key environmental issues are standard for the food industry and include water and energy use, management of waste waters and solid wastes and some limited air emissions.  There is a dedicated HR manager and HR management is undertaken in accordance with national requirements.

There are a number of areas for improvement which are being formulated into an environmental and social action plan.  Improvements include the appointment of dedicated staff for E&S management, the implementation of formal management systems in accordance with ISO 14001 and OHSAS 18001, the introduction of a food safety management system in accordance with ISO 22,000 and the implementation of a revised grievance mechanism. The Company will be required to report to the Bank on the implementation of the ESAP through the annual E&S reports submitted to the Bank.

Company Contact Information

Mr. Khusnutdin Tulyaganov, Director
imkonplus@mail.ru

Tel: (+998 90) 188 8180
Karamurskaya street, Salar village, Kibray district, Tashkent Region, Uzbekistan

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