IFC’s environmental and social review reveals that the investment will have impacts that must be managed in a manner consistent with the following IFC Performance Standards on Social and Environmental Sustainability (the “Performance Standards” or “PS”): PS1: Social and Environmental Assessment and Management Systems PS2: Labor and Working Conditions PS3: Pollution Prevention and Abatement PS4: Community Health, Safety and Security The following PSs were screened for but not found relevant for the project: PS5 (Land Acquisition and Involuntary Resettlement) as the current project is carried out within the existing Company’s site; PS6 (Biodiversity Conservation and Sustainable Natural Resource Management) as the Company has no involvement in natural resource operations; PS7 (Indigenous People) and PS8 (Cultural Heritage) as the current project is carried out in a developed urban area with no prior cultural asset history and there are no indigenous people.

This is a category B project according to IFC’s environmental and social review procedures. The Project’s limited environmental and social adverse impacts can be avoided or mitigated by adhering to national laws and regulations, generally recognized performance standards and guidelines. Key EHS and social impacts/issues of the project include: - Environmental and social impact assessment of new chocolate production; - EHS management system capacity to address current and potential future risks; - Food safety and microbiological contamination prevention; - Labor and working conditions, including occupational health and safety; - Refrigerants used; - Staff and community safety due to a location within a seismic active region.

Tajero has presented plans to address environmental and social (E&S) impacts to ensure that the proposed Project will, upon implementation of the specific agreed measures included in the Environmental and Social Action Plan (the “ESAP”) attached to this summary, comply with the environmental and social requirements of host country laws and regulations; and IFC’s Policies, Performance Standards and Guidelines. The information about how these potential impacts will be addressed by the Company is summarized in the paragraphs that follow. PS1: Social and Environmental Assessment and Management Systems National legislation includes requirements for new projects with potential negative E&S impacts to carry out an environmental and social impact assessment (ESIA) including mitigation measures followed by approval and issue of construction and ultimately operating permits. The new chocolate production will have limited in scale and number E&S impacts due to small -to- medium size production; compact facility location; absence of process wastewaters, harmful air emissions and limited non-dangerous waste generation. However, to ensure all potential E&S impacts are identified and mitigated Tajero will conduct E&S studies comparable with the scale of impacts and will submit copies of environmental and operational approvals and permits to IFC. The current E&S management system includes major elements to control current E&S aspects; in this respect, Tajero intends to improve its management system through appointment of an E&S manager for the chocolate production and implementation of further actions included in the ESAP to ensure compliance with national legislation and IFC’s PS. The Company is committed to establish the food safety management system applicable to its current sausage and future chocolate operations based on HACCP (Hazard Analysis and Critical Control Points) principles and, if feasible in the future to go through subsequent ISO 22000 certification. HACCP will be implemented gradually in accordance with a Food Safety Plan that apart from other actions will include HACCP training for relevant specialists. Reporting on Tajero EHS performance to IFC will be carried out within the context of Annual Monitoring Reports. PS2: Labor and Working Conditions Tajero employs about 315 permanent staff and 120 trade agents; a further 10 new local jobs will be created when launching the chocolate production. Temporary workforce is used to meet seasonal customer demands. Tajero provides sufficient support facilities for employees’ work including changing and wash rooms, onsite canteen. Special areas are available for religious services and praying. Tajero adheres to national labor laws and maintains written contracts with permanent and temporary staff where general working conditions including salary, working time, annual leave and obligatory medical insurance are documented. Internal regulations supplement conditions of contracts and set up essential terms of employment including employee’s and management’s rights and responsibilities, hours of work, wages, and leave for illness. Tajero’s social benefits seem satisfactory and are likely additional reason for the low turnover of staff. Going forward, Tajero will develop an official human recourses policy to define and ensure employees’ rights and labor protection, including right /freedom for professional associations, trade unions; use of non-discrimination principles based on gender, race, age, ethnic and religious association, or nationality in employment; prohibition of child and forced labor. The policy will be applicable to all businesses of Tajero Group including its construction companies. The Company has informal practice for resolving potential conflicts internally. To enhance the existing practice and encourage feedback from personnel Tajero will install mailboxes available at public premises and develop a formal grievance procedure consistent with IFC’s Performance Standard 2 allowing grievances to be presented anonymously and without the risk of oppression. The procedure will be available to all employees. Reportedly, Tajero had zero incidents throughout the last three years, however the company will arrange internal monitoring, registering and reporting on incidents and near-misses including traffic related incidents. Occupational health and safety (OHS) risks at the chocolate production are limited to potential heavy physical labor at loading of sugar to the sugar grinding machine; fat and oils to the fat melting machine with steam heating system and other raw materials to the choco-blending machines. Other operations are automated completely with no access to production facilities. Equipment purchased from a supplier that follows European safe standards has safeguard protection of hot surfaces and moving parts. The Company commissions a competent consultant to control life and fire safety (L&FS) aspects regularly; facilities are equipped with fire extinguishers and primary fire fighting means. The L&FS system is being enhanced through fire-resistant coating of warehouse ceilings, the construction of a detached firewater tank, installation of a fire water pump and additional fire hoses. In addition, relevant staff training will be arranged upon accomplishment of works. It is supported by regular inspections of relevant authorities. The safety of personnel and local communities during seismic activities is a key issue for the project as it is situated in the active seismic zone. The Company will ensure that the design of the building and its structural elements are made in accordance with regulations for the constriction in active seismic zones and will develop an evacuation plan. To address the issue of potential exposure to natural hazard Tajero will invite an independent competent consultant to verify to Tajero and IFC that the building and its structural elements for the new chocolate production met abovementioned requirements. PS3: Pollution Prevention and Abatement Tajero implements feasible efforts to have energy efficiency systems including purchasing of equipment for the chocolate production from a supplier adhering to the European standards. Energy saving bulbs controlled by movement detectors are installed where possible. Power is sourced from the public grid to provide process and housekeeping demands for production, heating, hot water and steam supply. Water is supplied from the municipal mains. Direct air emissions will be limited to potential sugar powder releases and will be kept within local limits. Wastewaters will be minor in volume and discharged to the municipal treatment system. Process water used for steam generation will be circulated in close loops. Tajero will use specialized contractors for waste removal. The Company is committed to develop waste management plan for core businesses including the chocolate and sausage productions, lorry park and car repair workshops, warehouses with the aim of minimizing waste generation. Past use of asbestos containing materials (ACMs) is limited to asbestos-cement corrugated roofing of a warehouse being demolished now. To minimize the health and environmental risks associated with ACMs, the Company has agreed to undertake measures for avoiding the use of ACM in new construction and any future building renovation. Application and storage of chemicals used for premises cleaning will be maintained in accordance with national regulations and controlled by operational personnel and supervisory authorities. Pest control will be undertaken through agreements with competent authorities. Refrigerants used for chilling and freezing equipment include R404 and R22. Releases of R22 (also known as HCFC-22), such as those from leaks, contribute to ozone depletion and the Freon was included in the phase-out schedule according to terms of the Montreal Protocol on Substances that Deplete the Ozone Layer, an international environmental agreement, established requirements that began the worldwide phase-out of ozone-depleting substances (ODS). Tajero has agreed no new equipment containing ODS will be purchased. To prevent R22 releases Tajero will inventory freezing and chilling equipment, ensure its proper maintenance, contact suppliers to identify technical solutions for R22 replacement and develop a phase out plan. Tajero has agreed to use reasonable effort to assure the cocoa supplies used in the chocolate production are sourced from sustainable suppliers, and report on this in the Annual Monitoring Reports. Estimated greenhouse gas emissions from consumption of electricity and fuel of the car fleet at the first year of production average 45 tons in carbon dioxide equivalent. PS4: Community Health, Safety and Security Operation of Tajero’s chocolate production facilities in normal conditions does not expose local community to health risks associated with air emissions, wastewater and waste management due to limited impacts in spite of facilities being surrounded by private residential properties. Tajero is aware of risks to community health due to spoilage in production and subsequent business devastation caused by recall of substandard food products. To address the potential issue the Company implements the following actions. Standard food safety measures used for sausage production include separation of dirty and clean zones; staff hygiene (clothes, shoes, gloves and hair coverage) and equipment and premises cleaning. Also Tajero is establishing a system for monitoring and recording of warehouses indoor conditions (temperature, humidity, etc) for products’ storage to ensure food quality; the same approach will be implemented for the storage of chocolate raw materials and finish goods. Raw materials purchased for chocolate production have food safety certificates confirming product quality and compliance with typical microbiological standards. Going forward, Tajero, as mentioned above, is committed to develop the robust food safety plan for implementation of the food safety management system based on HACCP/ ISO 22000 principles that will be applicable for future chocolate and current sausage production. It will cover, among other actions, quality control of raw materials and incoming potable water, staff hygiene and education, customer complaints mechanism. Tajero does not use contracted guards; its own unarmed staff selected after multilevel interviews and probation period provides access control to Tajero’s facilities. Personnel are trained onsite in appropriate conduct toward workers and local communities in line with Tajero’s safeguard regulations and local laws.

The company discloses general information on its business activities and plans through its web site http://www.tajero.tj/index.htm , marketing and promotion actions and advertising. Tajero is committed to local disclosure information related to the proposed IFC investment. Disclosure of information will be based on IFC’s findings on the project E&S aspects and will be done locally in an appropriate manner.

For more information about the project and local access of documentation, please contact: Mr. Gaibullozoda Abdurakhmon Director General Tel: +992 37 234 26 76/77; +992 44 601 11 22/33 Fax: +992 37 234 26 78 Website: http://www.tajero.tj/index.htm Address: 3 Kushteppa site, jamoat Rossiya, Rudaki district, Dushanbe, 735103, Tajikistan