Uzbekistan: Korzinka COVID-19 Food Retail Supply Chain Support Project

Nonsovereign Project | 55297-001

3-year senior secured loan of up to $12 million (local currency equivalent) with 1 year grace period and semi-annual equal amortization to support increased working capital and operational expenditure needs related to COVID-19.

Project Details

  • Project Officer
    Noorullah

    Request for information
  • Approval Date
    8 December 2021
  • Country
    Uzbekistan
  • Sector
    • Agriculture, natural resources and rural development
Project Name Korzinka COVID-19 Food Retail Supply Chain Support Project
Project Number 55297-001
Borrower/Company Anglesey Food Foreign Enterprise LLC (Korzinka)
Country Uzbekistan
Location Nation-wide
Type or Modality of Assistance
4153 Loan Ordinary capital resources USD 12.00 million Approved
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change 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 Noorullah
Project Sponsor(s)
Description 3-year senior secured loan of up to $12 million (local currency equivalent) with 1 year grace period and semi-annual equal amortization to support increased working capital and operational expenditure needs related to COVID-19.
Objectives and Scope The project will provide essential liquidity to Korzinka, a company engaged in food retailing, to enhance resilience to the disruptive economic effects of the coronavirus disease (COVID-19) pandemic, sustain food security, support Korzinka growth, and preserve the livelihoods of more than 4,400 employees and more than 1,200 farm workers. Furthermore, ADB will help raise Korzinka equal opportunity standards in the food retail industry and improve the inclusion of women in the workforce.
Linkage to Country/Regional Strategy

The project is aligned with Strategy 2030, which calls for ADB to scale up its financing for agribusiness. The project will be the first ADB non-sovereign agribusiness transaction in Uzbekistan and is aligned with (i) the government strategy to diversify agricultural output towards high-value horticulture; and (ii) ADB country partnership strategy 2019 to 2023 for Uzbekistan, which targets financing directly to bankable private sector and [state-owned enterprise] clients, principally in the financial, agribusiness, and infrastructure areas. Smaller-ticket transactions will be considered.

The project is consistent with Strategy 2030s Operational Plan (OP) for priority 1 which calls for generating quality jobs, and OP for priority 5, which calls for making an impact in the fast-growing branded food, modern retail, and e-commerce sectors driven by the emergence of urban middle class. It is aligned with Strategy 2030 OP for priority 2, which seeks to expand operations in support of agribusiness value chains whereby women jobs and entrepreneurship opportunities will be enhanced in higher value-generating activities. In addition, it is aligned with pillar 2 of the OP for priority 7 and supports CAREC 2030 in Operational Cluster D by promoting regional trade in agriculture via Korzinka regional cross-border trade links.

The project is aligned with ADB's $20 billion COVID-19 response package, whereby ADB Private Sector Operations Department focuses on financing for working capital and operating expenditure to support continuity of operations of financially strong companies facing temporary liquidity issues because of the pandemic. The project is aligned with Operational Plan for Private Sector Operations, 2019 to 2024, which identifies food brands and food retail as a priority segment because of the potential to drive and structure upstream subsectors (e.g., on quality standards, traceability).

Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects ADB has categorized the project in compliance with ADB Safeguard Policy Statement (2009) (SPS) as category C for environment. ADB's due diligence included a corporate audit through desktop review. Korzinka is certified as ISO 9001 and ISO 22000 and is currently preparing to apply for ISO 14001, ISO 45001, and ISO 50001 certification, and recertification. Thus, most policies and procedures in the integrated management system either need to be developed or are being revised and amended. The corporate audit observed gaps in Korzinka environmental and social policies and procedures and corrective actions were recommended to enhance the environment, health and safety, social, and labor policies and procedures and to strengthen institutional capacity. Detailed findings and corrective actions have been discussed and agreed.
Involuntary Resettlement ADB has categorized the project in compliance with ADB Safeguard Policy Statement (2009) (SPS) as category C for involuntary resettlement. The loan will not be used to fund any construction or expansion of physical assets which involve activities that may directly or indirectly result in involuntary resettlement.
Indigenous Peoples ADB has categorized the project in compliance with ADB Safeguard Policy Statement (2009) (SPS) as category C for Indigenous Peoples. The loan will not be used to fund any construction or expansion of physical assets which involve activities that may directly or indirectly affect indigenous peoples or vulnerable ethnic minorities.
Stakeholder Communication, Participation, and Consultation ADB's proceeds provide limited opportunities for stakeholder engagement and external consultations. However, Korzinka has a system in place to engage with its customers and the public.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 08 Dec 2021
Last PDS Update 14 Dec 2021

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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