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
    Kim, Viktoriya
    Private Sector Operations Department
    Request for information
  • Country/Economy
    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 / Economy Uzbekistan
Location Nation-wide
Type or Modality of Assistance
4153 Loan Ordinary capital resources USD 12.00 million Committed
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 Private Sector Operations Department
Responsible ADB Division Office of the Director General, PSOD
Responsible ADB Officer Kim, Viktoriya
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. The corporate audit observed gaps in Korzinka's 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. ADB and Korzinka agreed on an initial corrective action plan (CAP). Korzinka has been making steady progress on completing the outstanding CAP items.
Involuntary Resettlement ADB has categorized the project in compliance with ADB Safeguard Policy Statement (2009) (SPS) as category C for involuntary resettlement. The loan is not used to fund any construction or expansion of physical assets which involve activities that may directly or indirectly result in involuntary resettlement. Korzinka is on track to enhance its internal land acquisition and land lease process that will allow an enhanced management of social risks.
Indigenous Peoples ADB has categorized the project in compliance with ADB Safeguard Policy Statement (2009) (SPS) as category C for Indigenous Peoples. The loan is not 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 ADBs 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 and to manage grievances. Korzinka is on track with further strengthening its grievance management mechanism in line with good industry practice.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 08 Dec 2021
Last PDS Update 18 Jan 2023

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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