ASHGABAT (TCA) — The European Bank for Reconstruction and Development (EBRD) is providing financing of US$ 10 million to Turkmenistan Coca-Cola Bottlers (TCCB) to support the company’s expansion and energy efficiency improvements, the Bank said on February 24.
The EBRD funds will allow TCCB to invest in energy efficient coolers, new vehicles and bottling machines to improve the company’s production processes, boost its capacity and reduce energy waste.
As part of the project the firm will train local small and medium-sized enterprises (SMEs) to help them meet Coca-Cola standards and potentially become suppliers.
Engin Goksu, Head of EBRD operations in Turkmenistan, says: “We are pleased to continue our work with Turkmenistan Coca-Cola Bottlers and support the company’s expansion and energy efficiency drive. This loan reflects the EBRD’s top priorities in Turkmenistan, boosting foreign direct investment in this market and supporting local value chains. Being a supplier to a company like Coca-Cola can make a massive difference to a local start-up business. We are already supporting one company in Turkmenistan which became a supplier thanks to its improvements in quality; the new project will see more SMEs in the country have a chance to raise standards to international levels.”
TCCB, bottler of Coca-Cola branded beverages in Turkmenistan, is a subsidiary of Coca-Cola İçecek (CCI), a longstanding client of the Bank. In 2011, the EBRD financed the expansion of production capacity in Turkmenistan with a $20 million loan. In 2015, the EBRD provided a €45m loan for CCI’s expansion in Tajikistan.
To date, the EBRD has invested over €236 million in various projects in Turkmenistan, with a focus on private sector development and SMEs.