Sustainable Cotton Supply Chain Development in Uzbekistan (IFC-601530)

Countries
  • Uzbekistan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 7, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Republic of Uzbekistan - Uzpahtasanoatexport
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Project Cost (USD)
$ 5.20 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Campaign Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 15, 2023

Disclosed by Bank Mar 10, 2017

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank documents, the project goal is to improve cotton farming practices in the Republic of Uzbekistan by developing and introducing a sustainable cotton standard system with market-led and demand-driven incentives to help in reducing the risk of forced labor in cotton production. During 2017-2018, IFC will implement a pilot program aimed at designing, testing and implementing the system based on global standards for Better Cotton in two regions. During the pilot stage IFC will implement the system at pilot farms in two oblasts and then will test a scaling-up model with 3,000 farmers in these oblasts. IFC will partner with the Joint Stock Holding Company Uzpahtasanoatexport in order to integrate the better cotton standard system into the national cotton production system.

Furthermore, IFC will build up the capacity at Uzpahtasanoatexport on maintaining the system in a sustainable manner. During 2019-2022, IFC will focus on scaling up the sustainable cotton standard in the rest of the country and on achieving the full institutionalization of the system by Uzpahtasanoatexport. To roll out the project, IFC will also partner with the Ministry of Agriculture, the Association of Farmers, the Federation of Trade Unions, and the International Labor Organization, and IFCs investee client, Indorama Kokand Textile.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The project will be implemented with financial support provided by the Hungarian EXIM Bank, IFCs long-term donor partner.

In 2015, the President of Uzbekistan set up Uzpahtasanoatexport, a holding company with the following functions: (a) acceptance and processing of raw cotton and technical cotton seeds for supply to oilseed processing enterprises; (b) registration of the amount and quality of accepted cotton; (c) enforcement of standards in cotton processing industry; and (d) introduction of advanced technologies in cotton industry sector.

To learn more about the holding company Uzpahtasanoatexport, visit:

http://www.fao.org/faolex/results/details/en/c/LEX-FAOC160456/

http://extwprlegs1.fao.org/docs/pdf/uzb160456.pdf


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works