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| Description of company and purpose of project |
The project consists of expanding and diversifying the operations of Altyn Ajydar (AA or the company), an existing client of IFC and the leading producer of corrugated carton packaging in the Kyrgyz Republic (KR). It involves the construction, equipping and placing into operation of a cardboard and fluting paper facility with capacity of 8,250 tons p.a., a plastic packaging facility with capacity of 2,400 tons per annum, and the modernization of the existing corrugated packaging plant reaching capacity of 25 million tons per annum.
The project will allow AA to diversify into plastic packaging, improve operating efficiencies in the cardboard packaging business through economies of scale and achieve additional savings from import substitution of raw material. |
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| Project sponsor and major shareholders of project company |
| AA was established in 1995 as a Kyrgyz-Chinese joint venture, and employs 120 staff. AA is owned 68% by the Terehov family and 32% by two Chinese shareholders, Mr. Van Yun Chan (19%), a Chinese relative of Mr. Terehov, and by a business acquaintance, Mr. Lian Mien (13%). Mr. Pavel Terehov is the founder and largest shareholder (20% of shares). |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $2.93 million. The proposed IFC investment is a $1.0 million A loan and a $400,000 C loan for IFC’s own account. This is IFC’s second investment after approving in September 1999 a $300,000 A loan to help in the first expansion. The balance of the proposed financing is capital made available through internal cash generation and equity contribution from the sponsor. |
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| Location of project and description of site |
| The project is located in existing facilities in the Zapadnaa Promzena industrial site, in the periphery of Bishkek, Kyrgyz Republic. |
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| Project Development Impact and IFC's Role |
| The project’s expected merits include the timely creation of 70 additional jobs in the capital city of Bishkek, which is at present dealing with unusually high unemployment levels. The project brings new technology into the country, hence raising the national bar for industrial production efficiencies and in training of operational staff. The project brings also a new manufacturing sector, plastic packaging, to the country. AA is nationally well regarded as a successful entrepreneurial business important and inspirational to the development of the private sector. IFC’s continued support for AA serves as a demonstration effect to stimulate SME development on a commercially viable basis. IFC is contributing essential long-term financing in conjunction with IT advisory services to ensure an efficient and environmentally sound project. |
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| Environmental and social issues - Category B |
This is a category B project, according to IFC environmental and social review procedures. Key issues include liquid effluents, work place noise levels and work place air quality; solid waste disposal and employee training provided on environmental, health, and safety matters.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
Kyrgyz-Chinese Joint Venture Altyn Ajydar
142 Gorky Street
720005 Bishkek
Kyrgyz Republic |
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| To contact the project company, please write to: |
Mr. Pavel Terehov, Vice President
Kyrgyz-Chinese Joint Venture Altyn Ajydar
142 Gorky Str., Bishkek
Kyrgyz Republic
Phone: (993 312) 544 420
Fax: (933 312) 54 02 04 |
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