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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 11077 |
| Project name | Farmers' Ownership Model |
| Country | Tajikistan |
| Sector | Agriculture And Forestry |
| Department | Global Manufacturing & Services |
| Company name | SugdAgroServ |
| Environmental category | B |
| Date SPI disclosed | January 18, 2002 |
| Projected board date | February 28, 2002 |
| Status | Active |
| Previous Events | Invested: February 12, 2003
Signed: April 10, 2002
Approved: March 22, 2002 |
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| Project sponsor and major shareholders of project company |
| The project company is Farmers Ownership Model (FOM). FOM will be financed on a commercial basis by IFC, and on a grant basis by the Swiss State Secretariat for Economic Affairs (SECO). The Zafarabad Mcht Association of Farmers (in Zafarabad province) and the Andarasoy Association of Nov Farmers (in the adjacent Nov province) are the most likely candidates to become farm shareholders in the joint stock company. Together, the two associations account for approximately 1,940 hectares. IFC selected farmers who are least indebted and will eventually expand membership to adjacent farmers, and to others in Southern Tajikistan should the pilot program prove to be successful. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at US$502,000. The proposed IFC investment is a US$250,000 A loan for IFC's own account. The balance is capital reserve made available through Swiss grant funds and share capital paid in by farmers. |
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| Location of project and description of site |
| The project will be located in the Nov and Zafarabad regions of Northern Tajikistan and expand thereafter to other regions. |
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| Description of company and purpose of project |
This is an innovative pilot attempt by IFC to alleviate the acute poverty of cotton farmers in Tajikistan by enabling them to take control of their own commercial activities. FOM, which will be owned by the farmers, will use the IFC Loan and the SECO grant to: (i) purchase and deliver to the farmers a complete input bundle (including seeds, fertilizers, agrochemicals, tools, implements, grain bags, crop storage, equipment rental, picking charges and transport); (ii) arrange for processing the farmers’ crop; (iii) sell through its marketing service the farmers’ crops directly on the market; and (iv) identify and develop market opportunities and enterprises to assist with improving farmer viability and enterprise diversification.
The proposed project will bring management skills and financial support to the agricultural sector and demonstrate the economic benefits to be gained by upgrading the quality and quantity of the cotton crop. The technical assistance will be managed by Private Enterprise Partnership (PEP), who will train the farmers in proper production, irrigation, fertilization and financial management, in addition to appointing the manager. The technical assistance is part of the overall Swiss-IFC Central Asia technical assistance Partnership for Central Asia that has been recently approved by SECO and that will be implemented by PEP. The project is expected to increase cotton yield and revenues for farmers currently living in abject poverty. The venture will also bring an increase of foreign exchange in the country, as over 80% of Tajikistan's cotton is exported. |
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| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
| The documents will be located at The World Bank country office, 105 Rudaki Street, Dushanbe, Republic of Tajikistan. |
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| To contact the project company, please write to: |
Private Enterprise Partnership, c/o International Finance Corporation, Tajikistan
Rudaki Avenue 95/1, 7th floor
Dushanbe Tajikistan
Phone: 993-372-210-756 |
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