25040 - ADA-Ticaret Joint Stock Company

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Summary of Proposed Investment

Project Number

25040

Company Name

ADA Ticaret JSC

Date SPI Disclosed

Jun 13, 2006

Country

Azerbaijan

Industry

Tourism, Retail and Property

Projected Board Date

Jul 13, 2006

Status

Completed

Sector

Retail (Including Supermarkets, Grocery Stores, etc.)

Date Revised SPI Disclosed

Oct 10, 2006

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Feb 14, 2007
Signed : Feb 16, 2007
Invested : Mar 8, 2007

Project Description

ADA-Ticaret Joint-Stock Company (or the company) plans to establish a food retail chain in Azerbaijan. The company’s stores will be conveniently located and will offer a broad range of quality grocery products at affordable prices in a clean and comfortable setting. The project is to establish at least 50 stores in Baku, the capital of Azerbaijan, between 2006 and 2008.

The project described in this SPI is identical in scope to that described in an earlier version of this SPI disclosed on June 13, 2006 under the name ADA-Azerbaijan Joint Stock Company. The new company name reflects a change in shareholding.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	17.97
Equity	0.03

Development Impact

-Introducing convenience, product range, quality and affordability of modern grocery shopping to middle and lower middle income consumers in Azerbaijan;
- Stimulating competition in the industry which will result in increased efficiency, better service and lower prices;
- Developing linkages with local suppliers thus fostering the production of quality goods in Azerbaijan, and contributing to the increased development and efficiency of the retail supply chain; and
- Creating employment for more than 1,300 permanent employees as well as a large number of indirect jobs in supplying and transportation/delivery sectors.

- Providing long-term financing to ADA-Ticaret and enabling the company to roll out its stores quickly and to establish a footprint in Baku;
- Supporting “south-south” investment as the shareholder’s equity will be provided by Russian nationals and Russian residents; and
- Assisting the company to attain international best practices in corporate governance, insurance, and in environmental and social standards that will have a demonstrative impact for other companies in Azerbaijan.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because the project has limited potential adverse environmental and social impacts that are few in number, site specific and readily mitigated. The potential for adverse environmental or social impact from the Project is limited, especially in the first stages, where stores are being constructed in existing but upgraded retail outlets, and the distribution center is under development at a redeveloped site used as a warehouse for the last 30 years or so.

Contacts

For Inquiries About the Project, Contact

Mr. Hassan Rizayev
ADA-Ticaret JSC
Babek Avenue 28, Block #2199
Xatai District
Baku, AZ1031, Azerbaijan
Email: hrizayev@ucgroup.ru

Baku Mayor''s office (for environmental documents)
AZ1001, Baku
Istiglaliyet str. 4
Telephone: +99412 497 83 73

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This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

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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