Summary of Proposed Investment
Project Number
10334
Company Name
Akun Ltd.
Date SPI Disclosed
Mar 6, 2001
Country
Kyrgyz Republic
Industry
Agribusiness and Forestry
Projected Board Date
Apr 11, 2001
Status
Completed
Sector
Grain Processing (Milling, Starch, Flour, Malt)
Department
Regional Industry MAS MCT
Environmental Category
B - Limited
Previous Events
Approved : Jun 27, 2001
Signed : Nov 12, 2001
Invested : Aug 27, 2002
Project Description
Akun is a leading high-quality flour producer in the country. It has two flour mills: one with 60 tons/day capacity and the other one with 150 tons/day capacity. Akun''s superior milling technology and the resulting high quality baking flour has proven to be well received by the local market.
The new investment project is to establish a pasta/macaroni plant in the Kyrgyz Republic which will be integrated into the existing and profitable flour/semolina plant. At full capacity, yearly production output is expected to be 19,000 tons per year (60 tons per day) of which 70% will be dry short-cut pasta and 30% long-cut pasta.
The project has a strong developmental impact. First of all, it will produce high quality pasta at lower prices, thus reducing the need of imports. The much needed hard currency will therefore remain in the country. Second, about 30 new jobs will be created. Also the increasing use of wheat will allow local farmers to stabilize their operations by having a strong and continuous buyer. Finally, state of the art pasta production technology will be introduced to the country and therefore, over time the skill level of local employees will increase substantially. For the refurbishment of the building and site local constructing firms will be used.
IFC has a strong role to play since it will provide long-term lending, which is otherwise almost unavailable. Moreover, IFC will ensure that the project is implemented in an environmentally sound manner. It is anticipated that IFC will arrange technical assistance for the company in areas such as management information systems.
The new investment project is to establish a pasta/macaroni plant in the Kyrgyz Republic which will be integrated into the existing and profitable flour/semolina plant. At full capacity, yearly production output is expected to be 19,000 tons per year (60 tons per day) of which 70% will be dry short-cut pasta and 30% long-cut pasta.
The project has a strong developmental impact. First of all, it will produce high quality pasta at lower prices, thus reducing the need of imports. The much needed hard currency will therefore remain in the country. Second, about 30 new jobs will be created. Also the increasing use of wheat will allow local farmers to stabilize their operations by having a strong and continuous buyer. Finally, state of the art pasta production technology will be introduced to the country and therefore, over time the skill level of local employees will increase substantially. For the refurbishment of the building and site local constructing firms will be used.
IFC has a strong role to play since it will provide long-term lending, which is otherwise almost unavailable. Moreover, IFC will ensure that the project is implemented in an environmentally sound manner. It is anticipated that IFC will arrange technical assistance for the company in areas such as management information systems.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Chinibay Tursunbekov, Director
308 Den Syo Pin
Bishkek
Kyrgyz Republic
Telephone: (996-312) 24 09 97/24 12 37
Fax: (996-312) 25 46 49
308 Den Syo Pin
Bishkek
Kyrgyz Republic
Telephone: (996-312) 24 09 97/24 12 37
Fax: (996-312) 25 46 49