PROJECT TITLE: Ko’kcha textile Modernization Project

CLIENT: Commerzbank AG Zurich / LLC "KO`KCHA TEKSTIL"

PERIOD: 2019

PROJECT AIM

Environmental and Social Due Diligence. Third party assessment and monitoring activities on labour and working conditions according to and E&S Due Diligence according to the relevant IFC Performance Standards

DESCRIPTION OF ACTUAL SERVICES PROVIDED IN THE ASSIGNMENT

Under the conditions of the SERV covered credit, Ko’kcha Tekstil must assure that proper labour conditions are met for the whole project (including the production of supplied cotton). Furthermore, Ko’kcha must assure the Environmental and Social Benchmarks of the IFC in the expanding factory are met.

-To present a third-party assessment which benchmarks the actual project conditions and management systems related to the labour and working conditions against the relevant IFC Performance Standards as well as related to the other environmental and social conditions of the Ko’kcha Tekstil factory in Tashkent. If corrections are needed, a respective Environmental and Social Action Plan (ESAP) has to be elaborated to close the gaps.

-To elaborate a monitoring system to present regular monitoring reports of the labour and working conditions according to the relevant IFC Performance Standards during the time of the validity of the subsequent SERV insurance policy. The periodicity of the monitoring and the responsibility for the monitoring has to be defined (i.e. annually until the end of the assignment).

-Characterize the Project area of influence, including associated facilities, where environmental, social, health and safety impacts/risks could potentially occur.

-Evaluate the impacts / risks of Project actions from the perspective of the adequacy of the environmental and social assessment/management documents, and the completeness of such assessments, plans and procedures, including meaningful consultation with affected people and establishment of a grievance redress mechanism at the time the completed/under modernization actions were initiated;

-Provide an opinion on the Project’s compliance with local/national laws and regulations, relevant international standards;

-Develop an environmental and social risks (ESAP), where non-compliance is identified, setting out actions that the Project needs to implement in order to achieve compliance.