Danone Industria Project.Russia,Ukraine,Belarus,Kazakhstan and Azerbaijan

The Bank co-invested with Groupe Danone in its Russian dairy subsidiary, Danone Industria in 2001as part of a Multi-Project Facility (MPF) (see PSD: http://www.ebrd.com/english/pages/project/psd/2001/1968.shtml). In 2010 the Bank exchanged its shareholding in Danone Industria for a stake in Danone CIS, a holding company that consolidates the subsidiaries of Danone in Russia, Ukraine, Belarus, Kazakhstan and Azerbaijan to support the Danone operations in those countries.

The Bank’s investment is expected to have the following main impact on the transition in the Region: a) Market expansion The Bank is supporting the expansion of Danone’s dairy operations in Ukraine, Belarus and Kazakhstan in addition to Russia where the Bank already co-invested in Danone Industria. The Belarusian and Kazakh dairy markets are still in relatively early stages of their development, with no major local operator able to produce high quality dairy products. Danone’s product portfolio mix remains unique for the region, with a number of strong and affordable brands of children’s yoghurts, yogurt drinks, and desserts. (b) Backward linkages.

Further expansion of Danone’s operations in the region will have a positive impact on the local fresh milk suppliers (with most of them being small independent farms).

European Bank for Reconstruction and Development.Country: Regional.Project number:41758.Business sector: Agribusiness.Public/Private:Private.Environmental category:B Board date:8 June 2010.Status: Signed. PSD disclosed:9 Dec 2011

Danone CIS (f. Project Neva)z

Azerbaijan.National Water Supply and Sanitation Project

The objective of the National Water Supply and Sanitation Project for Azerbaijan is to improve the availability, quality, reliability, and sustainability of

water supply and sanitation services in 20 of Azerbaijan's regional (rayon) centers. The changes are: (i) revising the Project Development Objective (PDO);

(ii) reducing the number of Azerbaijan's regional (rayon) centers benefitting from investments in component A.1 given increased costs and expanded

investments in each rayon; (iii) eliminating the State Amelioration and Water Management Agency of Nakhchivan Autonomous Republic (SAWMA) as an implementing agency and dropping all activities supporting it (components A.2, C2, and D2); (iv) cancelling $22.42 million due to misprocurement of two contracts managed by SAWMA; (v) dropping component C.3, strengthening the tariff council, and C.4, review and Improvement of selected technical standards; (vi) revising the definition of incremental operating costs; (vii) reallocating project costs to reflect cancellation and other changes; (viii) revising the results framework to reflect changes and improve the monitoring indicators; (ix) eliminating financial covenants on collected revenues and operating expenses for Azersu; and (x) extending the closing date to February 28, 2013.

World Bank.Document Date:  2011/10/26.Document Type:  Project Paper.Report Number:59683.Volume No:  1 of 1

Azerbaijan.National Water Supply and Sanitation Project : restructuring

c

Azerbaijan.Corporate and Public Sector Accountability Project

The objective of the Project is to strengthen accountability and transparency in financial reporting for public and corporate sectors in line with international best practices, and to support institutional strengthening to sustain reforms.

World Bank.Author:Youness Ghada.Document Date:2011/09/23.Document Type:Agreement

Amendment to Financing Agreement for Credit 4405-AZ Conformedg

Azerbaijan:Japanese Grant for Co-financing Corporate and Public Sector Accountability Project

We refer to the Grant Agreement between the Republic of Azerbaijan (the “Recipient”) and the International Development Association (“World Bank”), as administrator of grant funds provided by Japan dated September 26, 2008 (the “Grant Agreement”). We also refer to your letter dated August 8, 2011, requesting the World Bank to make certain amendments to the Grant Agreement as well as further discussions with the World Bank.

World Bank.Author:Youness Ghada.Document Date:2011/09/23.Document Type:Agreement

Republic of Azerbaijan:Japanese Grant for Co-financing Corporate and Public Sector Accountability Project (Grant No.TF057849).Amendment to the Grant Agreementa

IFC Risk Certification Program Helps Boost Financial Sustainability in Central Asia

worldbank.Tashkent, Uzbekistan, November 25, 2011—IFC, a member of the World Bank Group, is providing financial risk-management training to institutions in Azerbaijan, the Kyrgyz Republic, Tajikistan, and Uzbekistan, helping them reduce their risk of losses.

As part of the first round of the Risk Certification Program implementation, IFC conducted review classes on the fundamentals of financial risk on November 17-24 in Tashkent. The review classes focus on risk-management methodologies, governance structures for the management of risk in financial institutions, and an overview of globally accepted standards and concepts in these areas.

The program is organized in partnership with the Global Association of Risk Professionals, a globally recognized leader in financial-risk testing and certification programs, and educational and training activities.

Representatives of the Central Bank of the Republic of Uzbekistan and local training partners (Regional Baking Training Center and Federation of Accountants, Auditors and Consultants of Uzbekistan) joined the classes and passed GARP’s certification exam in Tashkent. Local training partners will further train staff of local banks and financial institutions during the second phase of the program. The review classes were held in Azerbaijan in September and in the Kyrgyz Republic and Tajikistan in October.

“Risk management is important aspect of stability of the banking system”, said Jahongir Abdurasulov, Deputy Director of Department of licensing and coordination of credit organizations’ activity at the Central Bank of the Republic of Uzbekistan. ”The banks are looking for good risk-management practices and are trying to test various methods. IFC’s Risk Certification Program, the first in the region, provides a unique opportunity to improve my knowledge of risk management from an international perspective.”

This training initiative is part of the IFC Azerbaijan-Central Asia Financial Markets Infrastructure Advisory Services Project, and the IFC Financial Markets Crisis Management Project, which are funded by Austria, Finland, the Netherlands, and Switzerland.

“IFC’s Risk Certification Program provides local banks and microfinance institutions access to globally acknowledged financial risk-management concepts and standards,” said Rolf Behrndt, IFC Regional Business Line Manager. “We hope as many bank and microfinance organization employees as possible will take these opportunities to expand their knowledge of financial risk management and earn certificates from the Global Association of Risk Professionals.”

IFC aims to strengthen financial markets in the region by strengthening credit information systems and risk-management practices and education, as well as by facilitating the resolution of distressed loans.

Available in: Uzbek, русский

About IFCIFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org

About GARPThe Global Association of Risk Professionals (GARP) is a not-for-profit global membership organization dedicated to preparing professionals and organizations to make better informed risk decisions. Membership represents nearly 150,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions, and corporations from more than 195 countries. GARP administers the Financial Risk Manager (FRM®) and the Energy Risk Professional (ERP®) exams; certifications recognized by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels. www.garp.org.

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AccessBank Azerbaijan Proyect

The EBRD is considering making available a senior loan of up to US$ 25 million to Azerbaijan’s Accessbank to increase access to finance for local micro, small and medium-sized enterprises (MSMEs). The transaction would stimulate the development and support the expansion of such lending in the country, particularly outside the Baku region. It would also provide longer tenor financing, which has become increasingly scarce as a consequence of the global financial crisis and the sovereign debt crisis in the Eurozone. The transaction would thereby strengthen Accessbank’s balance sheet and business model by improving the diversification and maturity of its funding.

Transition Impact

The transaction has the following transition impact objectives:

• market expansion, by increasing financial intermediation and access to finance for MSMEs
• the further growth of agricultural lending products
• the transfer of skills

As the only commercial bank in Azerbaijan focused entirely on providing financial services to MSMEs, Accessbank has a significant demonstration effect on other local banks.

Through its regional presence outside Baku, the bank will be able to reach MSMEs in regions where access to finance is more limited.

Accessbank has also piloted lending to small farmers and expects to roll out its agricultural lending products to all of its regional branches shortly.

Additionally, Accessbank is developing a sensitivity analysis for sub-borrowers in FX without sufficient FX income. The goal is demonstrate their capacity to repay under different stress scenarios and disclose the impact of a devaluation on repayments.

The Client

Accessbank Azerbaijan, the leading provider of financial services to MSMEs in Azerbaijan, the second most profitable private Azeri bank, and the sixth largest by total loan portfolio.

EBRD Finance

MSME senior loan of up to US$ 25 million with a tenor of up to five years (two years grace period) in two tranches (i) US$ 15 million and (ii) US$ 10 million (uncommitted).

Project Cost

US$ 25 million.

Environmental Impact

Categorised FI under EBRD's Environmental and Social Policy. Accessbank will be required to comply with EBRD's Performance Requirements for FIs (specifically PR 2 and 9) and should implement the respective Environmental and Social Procedures as per e-Manual.

Technical Cooperation

None.

Company Contact

Renata Iksar, iksarr@ebrd.com
Sven Friebe: friebes@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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

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Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.

Last updated 11 November 2011