Project summary document

Project description
and objectives:

The Direct Investment Facility (DIF) was originally approved by the EBRD Board in October 1997 with funding of USD30 million, and then in November 2001 its funding was increased to USD60 million, and finally to €30 million in June 2007, bringing the total amount of funding to approx. €74.4 million.

The DIF (managed by the ETC Private Equity Unit) is a mechanism through which the EBRD invests in a portfolio of equity-driven investments in primarily small and medium-sized private sector enterprises in the countries where equity capital is not yet readily available. Currently, the designated eligible countries are Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan, Uzbekistan as a priority region plus Belarus, Bosnia & Herzegovina, FYR Maccedonia, the Russian Far East and Kaliningrad, and Turkmenistan. 

The objective of the DIF is to act as a catalyst for equity investment by demonstrating to both local and foreign investors the value of direct investment in small entrepreneurial business opportunities in difficult markets. Projects are selected for their commercial viability, their prospective returns, the strength and experience of management, the likelihood of an appropriate exit strategy, etc.

Sub-projects:

• DIF - Silk Road Motel, Garadak
• DIF - Milavitsa
• DIF - Besser Kyrgyzstan
• DIF - Babylon
• DIF - RAF Avia
• DIF - Issyk-Ata Hydro Power Station Rehabilitation
• DIF - BDC-Vytas
• DIF - Kalipso
• DIF - Structured Component Industries (SCI)
• DIF - TMS Wool Scouring
• DIF - IntelliKraft
• DIF - Ala-Archa
• DIF - SealMag
• DIF - Firestop
• DIF - Intercos-IV
• DIF - Progas
• DIF - Iberia Refreshments
• DIF - SHEN Concern
• DIF - Kimico Gardine
• DIF - Teliani Valley
• DIF - Primus
• DIF - Delidor
• DIF - Liqvor
• DIF - Hytex Plastic
• DIF - Tamara Fruit
• DIF - TMS Wool Scouring II
• DIF - Cascade Insurance and Reinsurance Company (CIRCO)
• DIF - Lomisi
• DIF - Star Group
• DIF - Imedi L
• DIF - Karven Club
• DIF - Georgian Hazelnut Production Ltd.
• DIF - Minii Delgur
• DIF - Natfood/Biella
• DIF - Alfapet
• DIF - AIDD/Australian Independent Diamond Drilling LLC
• DIF - Alpha Pharma
• DIF - Dairy Spring
• DIF - Coca-Cola Tajikistan

Transition impact:

The primary objective of DIF continues to be achieving transition impact by focusing on the promotion of the private sector in the countries of operation, and in particular, but not exclusively, on local entrepreneurial activity.  Transition impact is achieved through requiring and promoting sound commercial planning, strong management capability, introduction of proper accounting standards, introduction of and adherence to good corporate governance principles.

The client:

Private medium sized companies in designated eligible countries.

EBRD finance:

The total financing provided by the Bank is currently €74.4 million. The project is supported by technical cooperation funding.

Total project cost:

EUR 74.4 million

Environmental impact:

Individual projects will be screened on a case-by-case basis and environmental due diligence conducted accordingly. Individual projects will be required to comply, at a minimum, with national health, safety and environmental regulations and standards.

Technical
cooperation:

Historically, TC funding has been bilateral, primarily from EC, Swiss, Greek, Canadian, Italian, Dutch Taiwanese, UK and US Cooperation Funds. Since November 2004, DIF has had access to untied funds from the ETC Multi-Donor Fund. To date, the total allocation is €2.3 million.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

EBRD contact:

Julian Healy, Operation Leader: healyj@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com