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

Countries
  • Uzbekistan
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
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 7, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Republic of Uzbekistan - Uzpahtasanoatexport
The holder of the loan, grant, or other investment.
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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 5, 2018

Disclosed by Bank Mar 10, 2017


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Project 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
  • International Finance Corporation (IFC)

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

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