- 22-11-2024
- 13
Al Mar Consulting conducted an Environmental and Social Audit as part of the "Agriculture Modernization" project in Uzbekistan
Al Mar Consulting conducted an Environmental and Social Audit as part of the "Agriculture Modernization" project in Uzbekistan
Since 2020, the Government of Uzbekistan, with the support of the World Bank, has been implementing the "Agriculture Modernization" project. Learn more about the project here:https://tinyurl.com/3t98jsxe;
The project aims to assist farmers and agribusinesses in adopting modern agricultural technologies, accessing essential consulting and agri-logistics services, and securing concessional loans to develop their businesses. These efforts improve labor productivity, enhance the quality and diversity of agricultural products, and enable local producers to access domestic and international markets.
Commercial banks play a key role in the project, utilizing project funds to offer concessional loans to farmers and agribusinesses. To qualify for financing, subprojects must comply with the World Bank's Environmental and Social Standards (ESS). More about ESS:https://tinyurl.com/23wjkb73;
This week, the World Bank office in Tashkent hosted a roundtable on social and environmental matters. Specialists, including the Al Mar Consulting team, and representatives from four banks involved in the project—National Bank of Uzbekistan, Ipoteka-bank, Turonbank, and the Business Development Bank—attended the event.
The audit results evaluating these banks' mechanisms for managing and monitoring social and environmental risks in subprojects implemented by their borrowers, who are beneficiaries of the "Agriculture Modernization" project, were presented. The presentation highlighted that the audit confirmed the satisfactory compliance of these banks with the World Bank's ESS while identifying areas for further improvement. It was also noted that the banks have established the necessary internal structures to support the environmental and social aspects of subprojects under the project.
Recommendations for enhancing environmental, social, and corporate governance (ESG) systems within the banks themselves were also presented as part of their business development strategies.
The World Bank will continue to strengthen the capacity of commercial banks to ensure broader access to project financing for farmers and agribusinesses in Uzbekistan.
Repost of the World Bank Uzbekistan Group publication dated November 22, 2024.