|
|  |
| ADA-Ticaret Joint Stock Company |
|
| Summary of Proposed Investment |
| This Summary of Proposed Investment 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. Board dates are estimates only. |
| Project number | 25040 |
| Company name | ADA-Ticaret Joint Stock Company |
| Country | Azerbaijan |
| Sector | Wholesale and Retail Trade |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
|
| Date SPI disclosed | June 13, 2006 |
| Projected board date | July 13, 2006 |
| Date revised SPI disclosed | October 10, 2006 |
| Previous Events | Invested: March 8, 2007
Signed: February 16, 2007
Approved: February 14, 2007 |
|
| View Environmental & Social Review Summary (ESRS), click here |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
ADA-Ticaret Joint-Stock Company (or the company) plans to establish a food retail chain in Azerbaijan. The company’s stores will be conveniently located and will offer a broad range of quality grocery products at affordable prices in a clean and comfortable setting. The project is to establish at least 50 stores in Baku, the capital of Azerbaijan, between 2006 and 2008.
The project described in this SPI is identical in scope to that described in an earlier version of this SPI disclosed on June 13, 2006 under the name ADA-Azerbaijan Joint Stock Company. The new company name reflects a change in shareholding. |
|
| Project sponsor and major shareholders of project company |
| The company is to be 80% owned by A&DA Holding GmbH, an Austrian holding company, owned by three private individuals, one of whom is a Russian citizen. The company’s remaining 20% shareholding is distributed among the Azeri management team. |
| Total project cost and amount and nature of IFC's investment |
| The estimated project cost is a about $50 million. IFC is considering an investment of up to $18 million comprising of an A loan and equity. |
| Location of project and description of site |
| The stores will be located in Baku. The proposed sites will be located to residential areas and major roads. |
|
| Anticipated development impact of the project |
-Introducing convenience, product range, quality and affordability of modern grocery shopping to middle and lower middle income consumers in Azerbaijan;
- Stimulating competition in the industry which will result in increased efficiency, better service and lower prices;
- Developing linkages with local suppliers thus fostering the production of quality goods in Azerbaijan, and contributing to the increased development and efficiency of the retail supply chain; and
- Creating employment for more than 1,300 permanent employees as well as a large number of indirect jobs in supplying and transportation/delivery sectors. |
 |
| IFC's expected development contribution |
- Providing long-term financing to ADA-Ticaret and enabling the company to roll out its stores quickly and to establish a footprint in Baku;
- Supporting “south-south” investment as the shareholder’s equity will be provided by Russian nationals and Russian residents; and
- Assisting the company to attain international best practices in corporate governance, insurance, and in environmental and social standards that will have a demonstrative impact for other companies in Azerbaijan. |
| 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 the project has limited potential adverse environmental and social impacts that are few in number, site specific and readily mitigated. The potential for adverse environmental or social impact from the Project is limited, especially in the first stages, where stores are being constructed in existing but upgraded retail outlets, and the distribution center is under development at a redeveloped site used as a warehouse for the last 30 years or so. |
|
| For inquiries about the project, contact: |
Mr. Hassan Rizayev
ADA-Ticaret JSC
Babek Avenue 28, Block #2199
Xatai District
Baku, AZ1031, Azerbaijan
Email: hrizayev@ucgroup.ru
Baku Mayor's office (for environmental documents)
AZ1001, Baku
Istiglaliyet str. 4
Telephone: +99412 497 83 73 |
|
| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
|
|
|
|