|
|
 |
 |
| 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) |
| |
| Project number | 10334 |
| Project name | SEF JSC Akun Ltd. |
| Country | Kyrgyz Republic |
| Sector | Food & Beverages |
| Department | Agribusiness |
| Company name | Akun Ltd. |
| Environmental category | B |
| Date SPI disclosed | March 6, 2001 |
| Projected board date | April 11, 2001 |
| Status | Active |
| Previous Events | Invested: August 27, 2002
Signed: November 12, 2001
Approved: June 27, 2001 |
|
| Project sponsor and major shareholders of project company |
The project sponsor is JSC Stock Company Akun Ltd. (Akun, or the company). The company is owned 40% by Mr. Chinibay Tursunbekov, 40% by Mr. Tarik Pekel, and 20% by Mr. Okeev.
Mr. Tursunbekov has been a successful entrepreneur and active investor since the Kyrgyz Republic gained independence. He has worked several years in Ankara/Turkey as advisor on investments in the Kyrgyz Republic. Initially, he successfully operated the first privately-owned bakery in the country. Soon after, he acquired two smaller flour mills and produced better quality flour and, on a smaller scale, pasta. In 1997, he acquired the current two larger flour mills with his Turkish partner.
Mr. Pekel is a well-known professor in the agricultural faculty of the University of Ankara/Turkey. He is also a freelance consultant for the food-processing sector. Indirectly he owns the Turkish company Orkimsen in Ankara which manufactures/assembles good quality flour mills. He also has a flour mill in Kazakhstan. Orkimsen was involved in the modernization of Akun's flour mills.
Mr. Okeev was the former ambassador of the Kyrgyz Republic to Turkey. He is currently the head of a cultural association in Bishkek and is not involved in the business operations of Akun. |
|
| Total project cost and proposed IFC investment |
| The total project cost is estimated at around $8.8 million. The proposed IFC investment is about $2.4 million A loan for IFC's own account (portion of this amount could be an equity investment). |
|
| Location of project and description of site |
| The project site is located in an urban area in Bishkek, the capital of the country with very good access to transportation routes to all directions in the country. |
|
| Description of company and purpose of project |
Akun is a leading high-quality flour producer in the country. It has two flour mills: one with 60 tons/day capacity and the other one with 150 tons/day capacity. Akun's superior milling technology and the resulting high quality baking flour has proven to be well received by the local market.
The new investment project is to establish a pasta/macaroni plant in the Kyrgyz Republic which will be integrated into the existing and profitable flour/semolina plant. At full capacity, yearly production output is expected to be 19,000 tons per year (60 tons per day) of which 70% will be dry short-cut pasta and 30% long-cut pasta.
The project has a strong developmental impact. First of all, it will produce high quality pasta at lower prices, thus reducing the need of imports. The much needed hard currency will therefore remain in the country. Second, about 30 new jobs will be created. Also the increasing use of wheat will allow local farmers to stabilize their operations by having a strong and continuous buyer. Finally, state of the art pasta production technology will be introduced to the country and therefore, over time the skill level of local employees will increase substantially. For the refurbishment of the building and site local constructing firms will be used.
IFC has a strong role to play since it will provide long-term lending, which is otherwise almost unavailable. Moreover, IFC will ensure that the project is implemented in an environmentally sound manner. It is anticipated that IFC will arrange technical assistance for the company in areas such as management information systems. |
|
| 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
|
|
| Location of environmental documents in locally affected community |
The environmental documents will be disclosed at the gates of the project site at the following address:
308 Den Syo Pin
Bishkek, Kyrgyz Republic |
|
| To contact the project company, please write to: |
Mr. Chinibay Tursunbekov, Director
308 Den Syo Pin
Bishkek
Kyrgyz Republic
Telephone: (996-312) 24 09 97/24 12 37
Fax: (996-312) 25 46 49 |
|
|
|