OREANDA-NEWS. Eurasian Development Bank (EDB) and Gallai Sugd signed finance lease agreements. The documents were executed by Rashid Kadyrov, Director of the EDB Representative Office in Dushanbe, and Farhod Kurbonov, General Director of Gallai Sugd, as well as Mirzoabbos Ohunov, Director of Gallai Shimoli, a subsidiary of Gallai Sugd.

The purpose of the transaction is the provision of finance to purchase equipment, complete the construction of production facilities and increase the company's working capital. EDB will provide approximately USD 5 billion for seven years.

The project will make it possible to launch an up-to-date high-tech mill, which will process up to 150 tonnes of wheat a day, and the production of pasta.

This initiative is in line with EDB's strategic objectives and mission. When making the decision to provide finance, EDB considered that the project would contribute significantly to ensuring sustainable economic growth in Tajikistan. It will also help to solve the country's food security tasks and enhance the production of essential goods such as flour, pasta and bread.

Kanat Dosmukametov, Deputy Chairman of the Management Board at EDB, believes that the project will foster the advancement of single markets in the region since it will contribute to the development of trade between EDB member states and of a single production chain in the food market. In particular, Gallai Sugd purchases all wheat for flour and bread production from Kazakh producers. Therefore, the expansion of its production facilities will also promote trade between Kazakhstan and Tajikistan. In addition, the project will create approximately 76 new jobs.

The Gallai Sugd Group of Companies is one of the leading players in the Tajik wheat market, accounting for up to 20% of its size. The company has been in the wheat market for fifteen years and has been exporting flour to all regions of Tajikistan for nine years. It has its own flour distribution network, which covers the entire country and employs 325 people.

Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.