The European Bank for Reconstruction and Development (EBRD) and International Financial Corporation (IFC) is supporting the modernisation of agriculture and enhanced economic opportunities for the local population in Uzbekistan with a financing package of up to US$ 130 million to Indorama Agro (Indorama).
The package will consist of a US$ 60 million capital expenditure loan each from EBRD and IFC and a US$ 10 million working capital loan in Uzbek sum equivalent from EBRD. It will support the operations of Indorama, an established cotton industry player engaged in rotational crop farming, a systematic approach to selecting locations and cycles of crop planting.
Following the political transformation in the country, the Uzbek government decided to introduce cotton farming “clusters”, which are designed to attract local and international private investment and best business practices into this state-dominated sector. The approach is supported by the International Labour Organization and international lenders such as the EBRD and the International Finance Corporation (IFC), which have been supporting the initiative through technical assistance and lending programmes.
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