Uzbekistan: Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project

Nonsovereign Project | 56258-001

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.

Project Details

  • Project Officer
    Noorullah
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Uzbekistan
  • Sector
    • Agriculture, natural resources and rural development
Project Name Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project
Project Number 56258-001
Borrower / Company Foreign Enterprise Indorama Agro Limited Liability Company
Indorama Corporation Private Limited
Country / Economy Uzbekistan
Location Nation-wide
Type or Modality of Assistance
Loan Ordinary capital resources USD 15.00 million Proposed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
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 Noorullah
Project Sponsor(s)
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.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
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
Concept Clearance -
Credit Committee Meeting -
Approval 30 Jan 2023
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
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Evaluation Documents See also: Independent Evaluation

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Related Publications

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