EBRD helps Indorama introduce advanced cotton farming tech in Uzbekistan
The European Bank for Reconstruction and Development is supporting the modernisation of agriculture and enhanced economic opportunities for the local population in Uzbekistan with a financing package of up to $70 million to Indorama Agro (Indorama). The EBRD financing will be accompanied by a parallel loan of the same size from the International Finance Corporation.
EBRD's package will consist of a $60 million capital expenditure loan and a $10 million working capital loan in Uzbek sum equivalent. It will support the operations of Indorama, an established cotton industry player engaged in rotational crop farming, a systematic approach to selecting locations and cycles of crop planting.
The EBRD loan is also supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change programme, which helps companies in participating EBRD economies to implement innovate climate technologies and is financed by the Global Environment Facility Trust Fund. A grant of $140,800 will contribute to the introduction of GPS/laser levelling technology, that is used to address the issue of uneven soil surfaces, which can affect the yield of crops, the use of water and associated resources.
Indorama Agro will be the first company to introduce this technology that is widely recognised as a good agronomic and crop management practice but which is a novelty to Uzbekistan’s agricultural sector. Technical assistance of around €305,000 is provided by the government of Japan, Indorama Corporation and the EBRD Shareholder Special Fund.
