Installation and operation of a water and soft drinks bottling plant in Ura-Tyube, Tajikistan.The loan agreement was signed on the 4 September 1998. The subscription agreement will be signed at a later date.
The main objectives of the Bank's operation would be to increase the availability of safe drinking water in Tajikistan, to enhance Tajikistan's export revenues, and to achieve the transfer of technological and management know-how.
The project will contribute to the development of market-based relations in the agri-food sector in Tajikistan, will expand competition and will achieve the transfer of skills through the involvement of modern-trained management. Also, as one of the Bank's first investments in Tajikistan, the project will have a high demonstration effect.
The investee company under the proposed project will be Obi-Zulol, a joint venture specifically created for the purpose of operating this new enterprise. It was registered in 1996 as a joint-stock company of the closed type in Tajikistan by Zafarabad and the Consolidated Export Corporation. Subject to the successful outcome of due diligence, a specialised water sector investment fund from the United States is also considering financing for this company.
Ordinary equity of US$ 1.7 million (ECU 1.55 million) and preferred redeemable shares of US$ 3.5 million (ECU 3.2 million).
US$ 12.6 million (ECU 11.52 million).
The project was screened as B/0 by the Environmental Appraisal Unit, requiring an environmental analysis of the proposed development. Environmental due diligence was conducted by independent consultants according to Terms of Reference provided by the EBRD.
The proposed development would result in a positive impact on public health in the region, by providing safe drinking water and soft drinks in an area with poor water supply quality. It also includes the construction and operation of a unit for waste-water treatment and a water supply monitoring and treatment station. The environmental due diligence did not raise any significant issues in relation to the construction and operation of a plant for drinking water bottling. The project is planned in compliance with Tajik requirements for environment and health and safety. Also, it will introduce state-of-the-art industry practice, in line with European Union standards. An Environmental Action Plan (EAP) was prepared on the basis of the findings of the Environmental Analysis. It includes provisions for water supply management, and waste-water and waste management. Through implementation of the EAP, the company will ensure that operations comply with applicable Tajik and European Union environmental standards.
The company will be required to report periodically to the EBRD on environment and health and safety matters, in particular on the implementation of the EAP and immediate notification on any incident or accident with significant material damage or other environmental consequences.
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Text of the PIP