Uzbekistan : Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project
The transaction involves a loan of up to $15,000,000 to Foreign Enterprise Indorama Agro LLC (IAL) for the Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project in Uzbekistan.
Private Sector Operations Department
Request for information
11 April 2023
- Agriculture, natural resources and rural development
|Project Name||Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project|
|Borrower / Company||Foreign Enterprise Indorama Agro Limited Liability Company
Indorama Corporation Private Limited
|Country / Economy||Uzbekistan
|Type or Modality of Assistance||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
|Sector / Subsector||
Agriculture, natural resources and rural development / Agro-industry, marketing, and trade
|Gender||Effective gender mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Office of the Director General, PSOD|
|Responsible ADB Officer||Noorullah|
|Description||The transaction involves a loan of up to $15,000,000 to Foreign Enterprise Indorama Agro LLC (IAL) for the Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project in Uzbekistan.|
|Objectives and Scope||The project will finance advances to cotton and wheat farmers, thereby benefitting more than 3,600 farmers and farm workers in Uzbekistan by supporting their livelihoods, strengthening their climate resilience, and supporting recovery from the coronavirus disease (COVID-19) pandemic. Disruptions caused by COVID-19 and the Russian invasion of Ukraine have led to significantly higher farm input prices, which has adversely affected farmer livelihoods and thereby increased their vulnerability to climate change. In addition, ADB will help strengthen IALs corporate governance under an agreed action plan.|
|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 is aligned with (i) the Government of Uzbekistan's strategy to increase productivity of commercial farms; (ii) the introduction of modern cotton farming and textile production; and (iii) ADB's country partnership strategy 20192023 for Uzbekistan, which targets financing directly to bankable private sector and state-owned enterprise clients, principally in finance, agribusiness, and infrastructure.
The project is aligned with ADB's $20 billion COVID-19 response package, whereby ADB's Private Sector Operations Department supports the incomes of those adversely affected by the pandemic. In addition, the project is in line with ADB's $14 billion food security response program that aims to ease the food crisis and promote long-term food security in Asia and the Pacific, and ADB's ambition to deliver $100 billion in climate financing to its DMCs during 2019 to 2030. The project is further aligned with the OP for private sector operations, 20192024, which calls for mobilizing funds to capital intensive subsectors (in terms of capital expenditure and working capital) and in promoting inclusive, climate resilient, and environmentally sustainable business models.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) as environment (category B).|
|Involuntary Resettlement||ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) as involuntary resettlement (category C).|
|Indigenous Peoples||ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) as indigenous peoples (category C).|
|Stakeholder Communication, Participation, and Consultation|
|Timetable for assistance design, processing and implementation|
|Credit Committee Meeting||-|
|Approval||11 Apr 2023|
|Last PDS Update||18 Apr 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.
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|
|Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Nov 2022|
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.
|Title||Document Type||Document Date|
|Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project: Environmental and Social Compliance Audit Report||Environment and Social Compliance Audit Reports||Mar 2023|
Evaluation Documents See also: Independent Evaluation
None currently available.
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, Indorama Sign Sustainability Linked-Loan to Support Farmer Climate Resilience in UzbekistanADB and Foreign Enterprise Indorama Agro LLC, a wholly owned subsidiary of Indorama Corporation (IRC) signed a $15 million loan to support the livelihoods of farmers in Uzbekistan, enhance their climate resilience, and support ongoing recovery from the COVID-19 pandemic.