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 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 |
|
|||||
| 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 | Private Sector Operations Department | |||||
| Responsible ADB Division | Office of the Director General, PSOD | |||||
| 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 | 23 Oct 2020 |
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Inclusive Beverage Production and Distribution Project: Report and Recommendation of the President | Reports and Recommendations of the President | Dec 2019 |
| Inclusive Beverage Production and Distribution Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Sep 2019 |
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
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
-
ADB Deal with RG Brands to Support Women-Run Businesses in Kazakhstan, Kyrgyz Republic
ADB and RG Brands, a leading food and beverage group in Kazakhstan, signed a $20 million loan to modernize operations along the company’s regional distribution chain. The assistance will improve the livelihoods of shopkeepers...