Gap Turkmen 2

Location:

Turkmenistan

Project number:

6297

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

20 Jul 1999

Status:

Signed

PSD disclosed:

23 Jul 1999

Project Description

Capital increase to ensure the long-term future of the first vertically integrated denim fabric and ready-made goods production complex in Turkmenistan. Production of ready-made goods commenced in February 1998. An original investment from the EBRD of US$ 31 million (EUR 30.08 million) was signed in December 1995 which has been disbursed and is repaying. The company has been producing denim since 1997 and the production of ready-made goods commenced in February 1998.

Project objectives: The capital increase is intended to provide long-term working capital needs to ensure the ongoing economic viability of the integrated textile plant.

Transition Impact

This operation has high transition impact predominately through the demonstration effects of being the EBRD's first private sector operation in the country as well as the first joint-stock company in Turkmenistan.

The ways of doing business in this joint venture are setting a benchmark for other foreign investments, and developing significant skills in the process.

A/O Gap Turkmen and its systems are a model for other investments in Turkmenistan.

The company is also the first local organisation, and the first in the Commonwealth of Independent States to receive ISO 9002 Quality Management Certification, an internationally recognised symbol of quality.

The operation has created over 1,600 new local jobs.

The company is one of the few exporters of high value added goods in the country.

The Client

A/O Gap Turkmen, a joint-stock company incorporated under the laws of the Republic of Turkmenistan.

EBRD Finance

The EBRD is contributing US$ 3.0 million (EUR 2.88 million) to the US$ 15.0 million (EUR 14.4 million) pro-rata capital increase.

Project Cost

The original cost was estimated at US$ 89.339 million, including the existing plant valued at US$ 39.694 million. With the capital increase, total project costs are US$ 104.339 million.

Environmental Impact

A/O Gap Turkmen facilities have been constructed to meet both local and international environmental standards. An environmental audit carried out in March 1999 confirmed that the company fully complies with environmental, health and safety standards in Turkmenistan as well as with the relevant EU directives. The company is considered by the regulatory authorities to be the most modern, well-equipped and environmentally friendly operating company in Turkmenistan.

Technical Cooperation

None

 

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

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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.