EBRD and Hamkorbank help set up new production line in Samarkand
- EBRD and Hamkorbank support Uzbek packaging producer Midas Plastics
- €2.92 million project under Risk Sharing Facility
- GEF US$ 204,000 grant through the Bank’s FINTECC to finance sustainable packaging technologies
Dairy products producers will have a greater variety of packaging at their disposal following the installation of a modern production line by Midas Plastics financed by the EBRD and Hamkorbank.
The company is a new producer based in Samarkand, the second-largest city in the country. In a joint transaction with the EBRD, Hamkorbank is providing a loan of up to €2.92 million to Midas Plastics, while 60 per cent of the risk on the loan will be shared by the EBRD under a Risk Sharing Facility signed between the financial institutions.
The loan is supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme designed to transfer technology in the area of climate change mitigation and adaptation and financed by the Global Environment Facility Trust Fund. A grant of US$ 204,000 will finance the introduction of sustainable packaging technologies, which will help extend the shelf life of dairy products and reduce the amount of commercial waste.
Midas Plastics will also be able to produce lighter plastic packaging of at least 25 per cent of which will consist of recycled plastic.
To date, the EBRD has invested €1.92 billion through 85 projects in the economy of Uzbekistan. Support of small businesses is particularly important as the country moves to reform its economy and strengthen its private sector.