News Column

Kvarlis Baga project

June 7, 2014

Project number : 34907 Region : Europe and Central Asia Country : Georgia Company name : Kvarlis Baga Sector: F-AF - Dairy Products Date SPI disclosed: May 28, 2014 Project Description: Established in 2011, Kvarlis Baga Ltd (the Company ) is one of the largest Georgian dairy farms. The Proposed IFC loan will be will be utilized for: (i) to increase dairy farms existing capacity from 116 milking cows to 350 milking cow; and (ii) working capital requirement (collectively the Project ). Expected Development Impact : The proposed Project has significant development impact including the following: - direct and indirect job creation and preservation in regions where job opportunities are scarce; - supporting food security in an IDA country; - increased tax payments (generating additional amount of taxes to be paid to the State). IFC%s Expected Role and Additionality IFC%s additionality includes following: - Long-term financing, which is not readily available for agribusiness sector in Georgia; - Standard-setting in Environmental & Social issues; and - Advisory Services: IFC%s food safety advisory team is exploring areas of cooperation with the Company. Environmental & Social Categorization Rationale This proposed investment is expected to have limited environmental and social impacts which are expected to be site-specific and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria, as described in the following sections. Thus, this is a Category B project in accordance with IFC s Environmental and Social Sustainability Policy. Key risks and issues associated with the project are: the Kvarlis Bagi s capacity to undertake adequate social and environmental assessment; monitoring of environmental, health and safety management practices; labor and working conditions during expansion and operations of facilities for farm employees as well as for contract workers; facility design and life and fire safety; animal welfare; adoption of best available technology including equipment selection; water availability/water use efficiency; waste water and organic waste management; refrigeration agents and other hazardous material management; farm land acquisition, community health and safety; internationally acceptable food safety standards in preparation, storage, and delivery of milk.

Project completion date : 2015-05-28 12:00:00

Major organization : KVARELI BAGA LTD

Address : 13 Chavchavadze Str, 4800, Kvareli

Country :Georgia

Email :

Financier : International Finance Corporation (IFC),

Financier address : International Finance Corporation (IFC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA Tel: (202) 473-3800 Fax: (202) 974-4384

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Source: TendersInfo (India)

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