BAKU, Azerbaijan, May 28
By Klavdiya Romakayeva - Trend:
The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) will provide $120 million for the development of Indorama Agro in Uzbekistan, Trend reports citing IFC press service.
According to the information, new investment by IFC in Uzbekistan’s cotton sector will help further develop a sustainable model for private sector development and modernization of the industry while improving the livelihoods of farmers in the cotton supply chain and giving them access to new skills and technologies.
IFC’s $60 million long-term loans to Indorama Agro LLC, a wholly-owned subsidiary of Indorama Corporation, will help finance the development of about 50,000-hectares of farmland in two regions of Uzbekistan - Syrdarya and Kashkadarya, while also supporting independent farmers through contract farming. The EBRD is providing a parallel $60 million long-term loan and a $10 million short-term loan to the project.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In the fiscal year 2020, IFC invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.
Indorama Corporation (IRC) is one of Asia’s leading chemical holding companies based in Singapore. IRC has over 20 manufacturing sites in eight countries manufacturing a multitude of products including nitrogen fertilizers, phosphate fertilizers, polyethylene, polypropylene, polyester, textiles, cotton fiber, and medical gloves. Indorama is the largest producer of Urea and Phosphate fertilizers in Sub-Saharan Africa, the largest producer of polyolefins in West Africa, and the third-largest producer of synthetic gloves in the world. Indorama is also an integrated producer of cotton and synthetic spun yarns.
Indorama Agro was established in the wake of the government of Uzbekistan’s agricultural reforms particularly targeting the cotton sector, which aim to encourage new private investments by leasing large clusters of land to private players who are integrated into the cotton value chain.
IFC’s work with Indorama is part of the broader country-level work of the World Bank Group to support the Uzbek government in its efforts to use sustainable farming practices in the country’s cotton sector. IFC continues to collaborate with all relevant stakeholders to develop and implement market-driven solutions for sustainable cotton production, which is fundamental for the development of the textile industry and for building on Uzbekistan’s recent success in eliminating systemic forced labor in the cotton sector.
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