Project description
and objectives:
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The proposed project involves the establishment of a modern textile plant in
Uzbekistan to manufacture basic and polo T-shirts for export using locally
available cotton yarn. The sponsors are private Turkish textile manufacturers,
i.e. Baha Tekstil and Ultas. In view of the rising production costs in Turkey
and increased competition in the global textile industry after the lifting of
textile quotas in Jan 2005, the Sponsors decided to shift part of their
operations to Uzbekistan, a low cost cotton growing country, in order to
maintain their competitiveness.
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Transition impact:
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Uzbekistan is one of the world’s largest producers of cotton and the
second-largest exporter, yet only less than one third of the cotton is
processed domestically. The rest is exported unprocessed, representing a big
loss of potential earnings for the country.
The proposed project will promote
(i) economic development in Uzbekistan and contribute to its foreign exchange
earnings by increasing the production and export of value added goods in an
economically important key sector
(ii) private sector development through the Bank's involvement in a
manufacturing project undertaken by a 100% privately owned company. It will
also have a good demonstration effect by signaling the commercial viability of
cotton processing in Uzbekistan.
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The client:
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The Borrower is Bayteks, a private company established in Uzbekistan, which is
majority owned by Ultas (a state-of-the-art spinning mill in Nigde) and Baha
Tekstil (a knit-wear plant in Istanbul), both private Turkish companies.
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EBRD finance:
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USD 7 million senior loan.
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Total project cost:
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USD 29.3 million.
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Environmental impact:
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The Project was screened B/1.
Environmental and social due diligence, which is currently underway, will
address relevant national employment laws and standards and International
Conventions, particularly in relation to core labour standards. Information on
the local suppliers of cotton will also be collected in relation to
Conventions of the International Labour Organisation related to the employment
of children and young people, discrimination at work, and forced labour. Other
environmental issues associated with this type of project include wastewater
discharge, air emissions, dyeing, noise and waste management. Worker health
and safety issues may also be of concern particularly in relation to workplace
noise exposure and cotton dust emissions. Preliminary due diligence indicate
that the Sponsor operates all their existing facilities to the highest
international environmental and social standards and the Uzbek facility is
being built to ensure full compliance with international standards on health
and safety, life and fire safety, core labour standards, and child labour.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Haluk Bayatli
Tel: +998 71 398 80 80
Fax: + 998 71 148 03 05
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EBRD contact:
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Volker Recker, Operation Leader: reckerv@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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