Turkmenistan Bottlers

Location:

Turkmenistan

Project number:

42124

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

01 Jun 2011

Status:

Completed

PSD disclosed:

27 Apr 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a loan of up to USD 20 million to finance the further expansion of Turkmenistan Coca-Cola Bottlers. The loan proceeds will be used to finance an increase of production and bottling capacity at the Company. Any transaction will be subject to approval by the management and boards of all parties, and to the negotiation and execution of appropriate legal documentation.

Transition Impact

The proposed investment will enhance the transition impact of the Project , supporting greater competition and consumer choice by increasing the production of Company’s products and the introduction of new Stock Keeping Units (SKUs). It will also widen the distribution reach via increasing the number of modern independent distributors and the independent warehousing capacity.

The Client

Turkmenistan Coca-Cola Bottlers, a company incorporated under the laws of Turkmenistan and 59.5% directly owned by Coca-Cola Icecek A.S. (“CCI”). CCI is a publicly traded Turkish Company and owns 20 production facilities with operations in 10 countries, including Turkey, Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Turkmenistan, Jordan, Iraq and Syria and Tajikistan.

EBRD Finance

Up to USD 20.0 million long-term loan to finance further expansion of Turkmenistan Coca-Cola Bottlers operations in Turkmenistan.

Project Cost

USD 20.5 million

Environmental Impact

This project was categorised B given that the impacts associated with the project are site specific and readily mitigated.

The Company is implementing a series of Coca-Cola management systems which cover the range of issues required under the EBRD’s Performance Requirements. This means there is an environmental management system (ISO 14001 certified) which ensures identification of key environmental issues, compliance with national environmental standards, and monitoring of key environmental indicators. There are similar systems in place covering both health and safety (OHSAS 18001) and labour issues. The implementation of these systems by the Company also ensures compliance with good international practice. The only outstanding issue is the treatment of waste waters, and the Company is in the process of finalising a waste water treatment plant which is due to be completed by the end of June 2011.

Coca-Cola management system requires the regular auditing of the Company’s performance using third party auditing specialists. The Company will be required to continue compliance with EBRD’s PRs and provide the Bank with an environmental and social report on an annual basis.

Technical Cooperation

None.

Company Contact

Çiğdem Güres Erden
Coca-Cola İçecek Anonim Şirketi
Tel: +90 (216) 528 4490

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

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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.