Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project

Mar 2023 Nov 2022 Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project56258-001Foreign Enterprise Indorama Agro Limited Liability CompanyIndorama Corporation Private LimitedUzbekistanNation-wide4310LoanOrdinary capital resourcesUSD 15.00 millionApprovedLoanOP1: Addressing remaining poverty and reducing inequalitiesOP2: Accelerating progress in gender equalityOP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainabilityAgriculture, natural resources and rural development Agro-industry, marketing, and trade Effective gender mainstreaming Private Sector Operations DepartmentOffice of the Director General, PSODNoorullahThe transaction involves a loan of up to 15,000,000 to Foreign Enterprise Indorama Agro LLC IAL for the Indorama Climate-Resilient Farmer Livelihood and COVID-19 Recovery Project in Uzbekistan.The project will finance advances to cotton and wheat farmers, thereby benefitting more than 3,600 farmers and farm workers in Uzbekistan by supporting their livelihoods, strengthening their climate resilience, and supporting recovery from the coronavirus disease COVID-19 pandemic. Disruptions caused by COVID-19 and the Russian invasion of Ukraine have led to significantly higher farm input prices, which has adversely affected farmer livelihoods and thereby increased their vulnerability to climate change. In addition, ADB will help strengthen IALs corporate governance under an agreed action plan.The project is aligned with Strategy 2030, which calls for ADB to scale up its financing for agribusiness. The project is aligned with i the Government of Uzbekistan's strategy to increase productivity of commercial farms; ii the introduction of modern cotton farming and textile production; and iii ADB's country partnership strategy 20192023 for Uzbekistan, which targets financing directly to bankable private sector and state-owned enterprise clients, principally in finance, agribusiness, and infrastructure.The project is aligned with ADB's 20 billion COVID-19 response package, whereby ADB's Private Sector Operations Department supports the incomes of those adversely affected by the pandemic. In addition, the project is in line with ADB's 14 billion food security response program that aims to ease the food crisis and promote long-term food security in Asia and the Pacific, and ADB's ambition to deliver 100 billion in climate financing to its DMCs during 2019 to 2030. The project is further aligned with the OP for private sector operations, 20192024, which calls for mobilizing funds to capital intensive subsectors in terms of capital expenditure and working capital and in promoting inclusive, climate resilient, and environmentally sustainable business models.LoanBCCADB has categorized the investment in compliance with ADB's Safeguard Policy Statement 2009 as environment category B.ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement 2009 as involuntary resettlement category C.ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement 2009 as indigenous peoples category C.--11 Apr 202318 Apr 2023Initial Poverty and Social Analysis Environment and Social Compliance Audit Reports

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