601530 - Sustainable Cotton Supply Chain Development in Uzbekistan

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Summary of Advisory Services Project Information

Project Number

601530

Primary Business Area

Manufacturing, Agribusiness & Services

Disclosure Date

Mar 10, 2017

Country

Uzbekistan

Region

Central Asia and Turkiye

IFC Approval Date

Feb 7, 2017

Status

Completed

Estimated Total Budget

$5,283,926.00
(Project budget includes all project-funded activities)

Last Updated Date

Jul 24, 2024

Project Estimated Start Date

Feb 1, 2017

Project Estimated End Date

Dec 31, 2022

Project Description

The Project goal is to improve cotton farming practices in the Republic of Uzbekistan by developing and introducing a sustainable cotton standard system with market-led and demand-driven incentives to help in reducing the risk of forced labor in cotton production. During 2017-2018, IFC will implement a pilot program aimed at designing, testing and implementing the system based on global standards for Better Cotton in two regions. During the pilot stage IFC will implement the system at pilot farms in two oblasts and then will test a scaling-up model with 3,000 farmers in these oblasts. IFC will partner with the Joint Stock Holding Company Uzpahtasanoatexport in order to integrate the better cotton standard system into the national cotton production system.

Furthermore, IFC will build up the capacity at Uzpahtasanoatexport on maintaining the system in a sustainable manner. During 2019-2022, IFC will focus on scaling up the sustainable cotton standard in the rest of the country and on achieving the full institutionalization of the system by Uzpahtasanoatexport. To roll out the project, IFC will also partner with the Ministry of Agriculture, the Association of Farmers, the Federation of Trade Unions, and the International Labor Organization, and IFCs investee client, Indorama Kokand Textile. The project will be implemented with financial support provided by the Hungarian EXIM Bank, IFCs long-term donor partner.

Development Results

Through this Advisory Project, IFC will facilitate transformations in the sector by introducing a sustainable cotton standard system to be embedded into the national cotton industry system, thus enabling farmers access to knowledge, financing and extending support on improving their farm management practices, cotton growing practices and on introducing decent work practices on their farms. Through the introduction of the sustainable cotton standard system IFC will help to increase the productivity and the environmental, social and financial sustainability of cotton production in Uzbekistan. This, in turn, will allow the country to produce greater volumes of cotton on smaller acreage, and will contribute to a strategic goal of the diversification of crops in Uzbekistan.

Indicator	Calendar Year 2020 Results	Cumulative Results as of 2020
Number of participants in workshops, training events, seminars, conferences, etc.	2,600	10,639
Number of entities receiving advisory services	8	31
Number of reports (assessments, surveys, manuals, Phase I/strategic option reports, research, analytical, evaluations, etc.) completed	19	146
Number of trainers trained	75	233
Number of training modules and new products developed	46	139
Number of workshops, training events, seminars, conferences, etc.	116	347
Number of entities that implemented recommended changes	6	18
Value of production sold to anchor agribusiness (US$)	46,376,367	65,145,750
Volume of production sold to anchor agribusiness (metric tons)	95,488	153,394
Number of individuals trained by project-trained people and/or institutions	12,101	28,009
Number of women trained by project-trained people and/or institutions	7,340	19,734
Number of farmers reached (direct and indirect)	22,582	43,579
GHG emissions expected to be reduced (metric tons/year)	8,590	8,590

E&S Risks / Impacts and Mitigation

Performance Standard	Description & Potential Impact	Mitigation
PS 1. Assessment and Management of Environmental and Social Risks and Impacts	As part of its Due Diligence, and as mandated by IFC's Sustainability Policy, the IFC team has screened this Project in order to assess consistency with IFC's Performance Standards.	IFC's advice will be provided in a manner consistent with the principles of the relevant Performance Standards. The IFC team will assist the client, as the final decision maker, in gaining a good understanding of IFC's Performance Standards.
PS 2. Labor and Working Conditions	Initial Disclosure: As part of its Due Diligence, and as mandated by IFC's Sustainability Policy, the IFC team has screened this Project in order to assess its consistency with IFC's Performance Standards.	Initial Disclosure: IFC's advice will be provided in a manner consistent with the principles of the relevant Performance Standards. The IFC team will assist the client, as the final decision maker, in gaining a good understanding of IFC's Performance Standards.
PS 4. Community Health, Safety and Security	Initial Disclosure: As part of its Due Diligence, and as mandated by IFC's Sustainability Policy, the IFC team has screened this Project in order to assess its consistency with IFC's Performance Standards.	IFC's advice will be provided in a manner consistent with the principles of the relevant Performance Standards. The IFC team will assist the client, as the final decision maker, in gaining a good understanding of IFC's Performance Standards.

This Summary of Advisory Services Project Information (ASPI) is prepared by IFC to disclose a factual summary of the main elements of this advisory services project. It may also include findings and recommendations related to environmental and social considerations regarding this project. The purpose of the ASPI is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the client. IFC considers that this ASPI is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed within sixty days of project's approval and may be updated periodically afterwards. Total budget and start dates are estimates only. The following ASPI is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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