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Regional: Inclusive Beverage Production and Distribution Project

Nonsovereign (Private) Project | 53314-001 Status: Proposed

The project will support RG Brands' Kazakhstan LLP (RGB) expansion across beverages through the financing of coolers for retail in both Kazakhstan and Kyrgyz Republic and production equipment and maintenance capex in Kazakhstan. The loan will provide long term financing in local currency not readily available in Kazakhstan market and support diversification of the economy by enhancing non-oil exports and improvement of livelihoods of stakeholders in the retail value chain.

Project Details

Project Officer
Dora, Tushna Request for information
Country
  • Regional
Sector
  • Agriculture, natural resources and rural development
 
Project Name Inclusive Beverage Production and Distribution Project
Project Number 53314-001
Borrower/Company RG BRANDS KAZAKHSTAN LLP
Country Regional
Kazakhstan
Kyrgyz Republic
Location Kazakhstan - Nation-wide; Kyrgyz Republic - Nation-wide
Type or Modality of Assistance
Loan Ordinary capital resources USD 20.00 million Proposed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Dora, Tushna
Project Sponsor(s)
Description The project will support RG Brands' Kazakhstan LLP (RGB) expansion across beverages through the financing of coolers for retail in both Kazakhstan and Kyrgyz Republic and production equipment and maintenance capex in Kazakhstan. The loan will provide long term financing in local currency not readily available in Kazakhstan market and support diversification of the economy by enhancing non-oil exports and improvement of livelihoods of stakeholders in the retail value chain.
Objectives and Scope ADBs financing will help enhance RGBs distribution infrastructure across Kazakhstan and the Kyrgyz Republic. The funds will be invested in purchase of coolers, of which at least 50% will be for women, and which will be placed in the company's retail network which is dominantly small, independently run convenience stores, thereby promoting non-farm livelihoods, in semi-urban and rural areas.
Linkage to Country/Regional Strategy

The project is consistent with Strategy 2030 Operational Plan for Priority 5 (Promoting Rural Development and Food Security, 2019 2024) as the plan calls for: (i) _local value addition for both domestic and export markets_, (ii) _opportunities to make an impact in the fast-growing branded food, modern retail, and e-commerce sectors driven by the emergence of urban middle class._; and (iii) the need for upper middle-income countries (like Kazakhstan), as key drivers of the regional economy, to increasingly play a lead role in regional cooperation and integration.

The project is also aligned with the country partnership strategy for Kazakhstan (2017-2021), which identified strengthening foundation for economic diversification through private sector development including agribusiness as a key operational priority. It also states contributing to inclusive development and reducing spatial and gender inequalities. Likewise, the project is also aligned with the country partnership strategy for Kyrgyz Republic (2018-2022), which identifies strengthening agricultural value chains and promotion of regional integration and cooperation as key focus areas.

Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

RGB has implemented a corporate wide Environmental and Social Management System (ESMS) per ADB SPS since 2013, the latest revision of which was done in April 2019. The two manufacturing and bottling plants (Aksengir and Kostanay) also implement environmental, health and safety and

quality management systems that are certified to ISO14001, OHSAS18001 and ISO9001 standards as well as good management system (GMP) for food manufacturing.

Involuntary Resettlement The proposed project will not trigger impacts on involuntary resettlement.
Indigenous Peoples The proposed project will not trigger impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 09 Oct 2019
Credit Committee Meeting 29 Oct 2019
Approval 09 Dec 2019
Last PDS Update 09 Dec 2019

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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