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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 | 10409 |
| Project name | Tajikistan Finconsult Company |
| Country | Tajikistan |
| Sector | Professional, Scientific and Technical Services |
| Department | Global Manufacturing & Services |
| Company name | Tajikistan Finconsult Company |
| Environmental category | C |
| Date SPI disclosed | July 25, 2000 |
| Projected board date | August 30, 2000 |
| Status | Completed |
| Previous Events | Signed: June 15, 2001
Approved: November 9, 2000 |
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| Project sponsor and major shareholders of project company |
The project will be sponsored by the International Development Projects (IDP). IDP is an international consultancy company, which provides services in the financial sector to international financial institutions and private firms. The company was established in Milan, Italy, in 1993 by four Italian partners, from Iranian background, with extensive international experience in development and commercial banking, investment and financial management and private sector business activities. Another major shareholder of the proposed Company is SIMEST, an Italian financial institution created to support Italian investments abroad.
The shareholding structure of the proposed project company's ownership structure is:
IDP 51.0%
IFC/SIMEST 49.0% |
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| Total project cost and proposed IFC investment |
| Total Project cost is US$416,200. IFC's investment will be in the form of: (i) Equity subscription of up to US$99,000 and (ii) a shareholder's loan of up to US$101,000. |
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| Location of project and description of site |
| The company will be established in Dushanbe, the capital city of Tajikistan. |
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| Description of company and purpose of project |
This capacity building project involves the establishment of the first local consultancy company, Finconsult, in Tajikistan that would provide consultancy and auditing services in accordance with international standards. The proposed project is aimed at setting up on a commercial basis an audit/consulting firm to provide a wide range of services to international as well as Tajik clients ranging from IAS auditing to management training. This will provide international donors/lenders and Tajik clients easy access to international standard services at reasonable costs.
The proposed project also aims at providing specialized training in the field of financial management. This will improve the skills of the local professionals to international levels and allow them to work within the parameters and conditionalities set by the international organizations.
IFC Role:
This will be IFC's first investment in the Tajik service industry. IFC has a strong role to play in the project, primarily by subscribing in the project as well as by providing a shareholder's loan in foreign currency which is practically unavailable in Tajikistan. IFC’s involvement will assist a viable project with its financing needs in timely fashion and assist in demonstrating success in the private services industry. IFC’s investment and involvement will allow IDP to undertake a capital investment and enter into Tajik market, which otherwise would be delayed till availability of adequate finances and a suitable partner. The project will assist local entities from preparation of business plans to seek financing to getting an IAS audit to understand their businesses as well as to comply with international donors/lenders' conditionalities.
Development Impact:
Finconsult will be the first financial consulting firm to be based in Tajikistan. The Tajik economy is in the process of expansion, however no local financial management services are available to local organizations. The project will assist the local SME’s in business development and in seeking financing; it will assist larger organizations to undertake IAS audits and approach international lenders/donors for financing, or in cases where financing has been received to meet their financial conditions; Finconsult will also provide financial training to local professionals and hence improve their skills to international levels. The success of the project should encourage other investors to invest in the Tajik service industry as the perceived risk diminishes. The benefits include the availability of low-cost, high standard financial expertise and services taken for granted in many other parts of the world. |
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| Environmental and social issues - Category C |
This is a Category C project according to IFC's environmental and social review procedure. No further environmental review is required.
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| To contact the project company, please write to: |
Firouz Afrouz
IDP - Managing Director
Address:
Via Borgogna, 5
20122 Milan
Italy
Phone: 39 -2-794-111
Fax: 39 -2-794-685 |
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