Environmental Monitoring Report UZB: Horticulture Value Chain

Environmental Monitoring Report

# Annual Safeguard Monitoring Report April 2020

UZB: Horticulture Value Chain Development Project

Prepared by Diana Rakhimova (UZIAFSA) for the Agency for implementation of projects in the field of agroindustry and food security (UZAIFSA) and the Asian Development Bank.

ANNUAL SAFEGUARD MONITORING REPORT

Project Number: 3471-UZB (SF) Reporting period: January – December 2019

Republic of Uzbekistan: Horticulture Value Chain Development Project (Financed by the ADB’s ordinary capital resources)

Prepared by: Rakhimova Diana, (UZAIFSA) Tashkent, Uzbekistan

For: ADB

Agency for implementation of projects in the field of agroindustry and food security (UZAIFSA)

Endorsed by: Bakhtiyor Kamalov (Deputy Director General of UZAIFSA)

This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. ABBREVIATIONS

ADB – Asian Development Bank CAR – Capital adequacy ratio CBU – Central Bank of Uzbekistan ESMS – Environmental and social management system MAWR – Ministry of Agriculture and Water Resources MOF – Ministry of Finance PFI – Participating financial institution PIU – Project implementation unit PMO – Project management office RRA – Rural Restructuring Agency SEE – State Environmental Expertise EIS – Environmental Impact Statement NBU – National Bank for foreign economic activity of the Republic of Uzbekistan SLA – Subsidiary Loan Agreement UZAIFSA – Agency for implementation of projects in the field of agroindustry and food security Table of Contents

Part I Introduction ...... 4 1.1. Short description of the program ...... 4 1.2. Summary of activities and project progress during the previous 12 months...... 4 1.3 Project organization and environmental management team, including organizational relationships with PFIs, sub-borrowers etc...... 8 Part II Environmental issues ...... 11 2.1. Environmental issues in the previous 12 months...... 11 2.2. The findings and conclusions of the monitoring ...... 12 2.3. Recommendations are required to show how any exceedances will be prevented in the future...... 13 Part III: Compliance with ADB’s Social Protection Requirements and ADB’s Prohibited Investment Activities List ...... 15 3.1 Provide assessment on these two sets of requirements...... 15 3.2. A brief description of the taken measures...... 16 Part IV: ESMS operations (for PFIs which are financing B-category subprojects) ...... 18 4.1. A brief description of the effectiveness of the ESMS within 12 months...... 18 4.2 Capacity building activities ...... 19 4.3 Specific data on the following activities is recommended ...... 20 Part V: Conclusion and action plan ...... 22 5.1. Conclusions...... 22 5.2. Action plan for the next reporting period...... 22 Annexes ...... 24 Annex 1: Site photographs ...... 31 Annex 2. Mission photograhs ...... 35 Annex 3. ESMS reports ...... 37

Part I Introduction

1.1. Short description of the program

1. The project supports the government strategy in horticulture value chain development through increasing outreach of participating financial institutions (PFI) to horticulture farmers and entrepreneurs in all in twelve regions nationwide and the Republic of Karakalpakistan. It improved access to market-based bank finance for farmers, agroprocessing enterprises, owners and operators of cold storage facilities, trading and logistics service suppliers involved in the horticulture value chain. The project helped increase farm productivity, processing and storage capacity, and reduced post-harvest losses through upgrading and setting up intensive orchards, modern and efficient greenhouses, processing, storage and refrigeration facilities. In this turn, it promoted long- term economic and environmental sustainability, and enhanced profitability for farmers and agribusiness enterprises.

2. Uzbekistan’s horticultural products are fast becoming the second largest agricultural export commodity group, after cotton. Horticultural export revenues have more than tripled since 2006. Uzbekistan is geographically well positioned to take advantage of the large and growing markets for horticultural products domestically and abroad. Of the 20 million tons of horticultural output in 2016, only 15% was processed. Of the 3 million tons of fruit produced, 69% are consumed fresh, 20% are processed, and 11% are exported, while for the 10 million tons of vegetables, 81.0% are consumed fresh, 11.3% are processed, 4.3% are used for seeds, and 3.4% are exported. There is significant opportunity for improved value addition from increased processing and exports of both fresh and processed products. Meeting quality and food safety requirements of the more stringent export markets remain a challenge.

3. The Government is supporting the subsector in many important ways. It has adopted a special set of policies for the horticulture subsector. An additional 220,000 ha of agricultural lands will be gradually released from cotton and wheat in favor of horticulture and fodder crops by 2021.

4. This project is categorized as FI for environment and FI (treated as C) for involuntary resettlement, and indigenous peoples safeguards since there are no indigenous people’s communities in Uzbekistan.

5. The government shall cause each PFI to ensure that the preparation, design construction, implementation, operation, and decommissioning of each qualified subproject comply with (i) all applicable laws and regulations of the government relating to environment, health, and safety; (ii) the Environment Safeguards; and (iii) the ESMS, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.

1.2. Summary of activities and project progress during the previous 12 months.

6. According to the Loan Agreement and project agreements, eight participating financial institutions (PFIs) as well as National Bank of Uzbekistan, Asaka Bank, Uzpromstroybank, Ipak Yuli Bank, Ipoteka Bank, Hamkorbank, Turon Bank and Davr Bank were selected to participate in the project. Out of the total loan proceed of USD 154 million, USD 151 million was allocated for the credit line and USD 3 million was earmarked for project management and implementation support. In fact, as of January 1, 2019 USD 152.2 million (or 98.8% of the loan amount) has been released from Loan 3471-UZB, including USD 151.4 million to PFIs for sub-loan financing, and USD 0.761 million to RRA for project management and implementation.

7. The additional financing project aims to help the Government of Uzbekistan to scale up the existing project’s support to horticulture value chain development in all 12 regions nationwide and in the Republic of Karakalpakstan. It will increase the outreach of PFIs and improve access to market-based bank finance for horticulture enterprises (farmers, agro-processing enterprises, owners and operators of cold storage facilities, and trading and logistics service suppliers). These will include both additional enterprises not financed under the original project (financed by Loan 3471-UZB) and enterprises already financed under the original project to enable them to expand operations. The additional financing will enhance the impact of the existing project and further increase farm productivity, improve processing and storage capacity, and reduce postharvest losses through upgrading and establishing intensive orchards; modern and efficient greenhouses; and processing, storage, and refrigeration facilities. Seven PFIs were selected to participate in the project. These are: Asaka Bank, Davr Bank, Ipak Yuli Bank, Ipoteka Bank, National Bank of Uzbekistan, Turon Bank, and Uzpromstroybank.

8. As of 31 December 2019, cumulative disbursement is $152.64 million, accounting for 99.1% of total loan proceeds. Funds released to PFIs for sub loan financing is $151.4 million, of which $151.2 million has been disbursed by PFIs to sub borrowers. The remaining $0.2 million has also been committed to eligible subprojects. The average size of the sub-loan is $0.9 million. The project has supported 165 horticulture subprojects through sub loans. Of the subprojects financed to-date, 71 with a sub loan value of $81.6 million have been for production, and 93 with a sub loan value of $69.6 million have been for post-harvest storage and processing.

9. All PFIs submit documents (including list of disbursed sub-loans and withdrawal application) to UZAIFSA for checking of eligibility. If any issues, UZAIFSA clarifies with PFIs and sends to ADB for consideration. In turn ADB reviews Withdrawal Application and replenishes advance account as necessary.

10. During the implementation of these subprojects, 3,559 new jobs have been created, of which 2,272 are for men and 1,287 for women (36%). The capacity building training have been conducted on (a) environmental safeguards for 265 credit officers of PFIs; (b) growing of fruits and vegetables, and associated gender development and mainstreaming for 1,678 farmers; (c) storage and processing of fruits and vegetables for 1,535 farmers; (d) delivery of fruit of vegetable products to the consumers and exporting for 1,462 farmers.

Table 1: Summary of activities and project progress during 12 months

№ PFIs Withdrawn Disbursement Balance amount (in million USD) (in million USD) Subproject’s Ammount number (in million USD)

1 NBU 50.6 49 50.6 0

2 Asaka bank 46.7 37 46.7 0

3 15.1 20 15.1 0 Uzpromstroybank 4 Ipoteka bank 11.0 20 11.0 0

5 Ipak Yuli bank 10.0 9 10.0 0

6 Turonbank 10.0 7 10.0 0

7 Hamkorbank 5.0 19 4.93 0.06

8 Davr bank 3.0 4 3.0 0

Total 151.4 165 151.3 0.06

11. If we see this amount in terms of directions to implement projects, we can see in the diagram below that the most amount of credit line disbursed for the purpose of modern greenhouses creation (USD 64.2 million), processing of horticulture products (USD 36.2 million), creation of intensive gardens (USD 17.4 million) and modern refrigeration storages (USD 25.9 million). A few projects were financed to procure agricultural technologies (USD 6.5 million) and to establish enterprises operating in packaging sphere of horticultural products (USD 1.1 million).

70.00 64.18

60.00

50.00 36.16 40.00 25.94 30.00 17.45 20.00 6.50 10.00 1.12 - Modern Intense Processing of Modern Agricultural Packaging refrigeration garden horticulture greenhouse technology agricultural storage products complexes products

12. This amount in terms of regional disbursement shows that more projects were financed in Tashkent, Samarkand, Sirdarya, Fergana and Surkhandarya regions, and credit line was allocated to fewer projects in Karakalpakistan Republic, Kashkadarya, Khorezm, Bukhara, Andijan, Navoiy, Namangan and Djizak regions as shown in the table below:

Table 2. Allocations and withdrawals of credit line were done by PFIs as shown in the table below:

Processing 13. Modern Modern Manufactur Agricultural Intense of refrigeratio greenhouse e of machinery garden horticulture Total n storage complexes packaging and other products

nu nu nu am nu nu amo amo num amo amo num amo mb mb mb ou mb mb amount unt unt ber unt unt ber unt er er er nt er er Karakalpak stan 3 0,70 2 1,12 5 1,82 Republic Andijan 4 1,00 1 0,69 4 1,83 3 3,66 12 7,18 Bukhara 4 1,14 1 0,04 1 1,10 9 6,47 15 8,74 Jizzah 1 2,52 1 3,10 1 0,41 2 1,18 5 7,21 Kashkadary 0,5 9 3,64 2 1,54 1 12 5,68 a 0 Navoi 6 8,70 6 8,70 Namangan 3 0,76 3 0,82 1 6,45 1 0,96 8 8,98 Samarkand 6 1,46 4 9,23 5 6,12 7 4,65 22 21,46 Sirdarya 1 1,41 1 0,22 6 14,57 8 16,20 Surkhandar 12 4,97 3 8,33 1 1,41 3 0,50 19 15,21 ya 0,6 3 1,62 3 3,59 4 6,73 8 11,46 2 2 5,69 22 29,71 Tashkent 2 Fergana 16 5,90 1 3,70 2 4,10 1 0,32 20 14,02 Khorezm 3 0,82 2 1,27 6 4,36 11 6,46 1,1 65 25,94 13 17,46 23 36,16 55 64,18 3 6 6,50 165 151,4 Total 2 7

14. Since the beginning of the project implementation, 165 subprojects were financed: all subprojects underwent preliminary environmental screening by the PFIs strictly following the ESMS procedures of which 158 are classified as "B" and the remaining 7 subprojects are classified as "C" according to the legislation of Uzbekistan in the field of environmental protection and ADB's requirement.

Table 3: Financed sub-loans in all reporting period

ESMS Number of sub-loans by environmental PFIs approval date categories B C Total SICB «Ipak Yuli» 24.05.2017 9 - 9 PJSCB «DAVR BANK» 15.05.2017 4 - 4 JSCB «Turonbank» 25.05.2017 6 1 7 JSCB «Hamkorbank» 29.05.2017 17 2 19 JSCB «Asaka bank» 30.05.2017 37 - 37 JSCMB «Ipoteka bank» 25.05.2017 20 - 20 National Bank of 45 4 49 Uzbekistan for Foreign 26.05.2017 Economic Activities JSCB «Uzpromstroybank» 30.05.2017 20 - 20 Tot 158 7 165 al

15. All subprojects underwent preliminary environmental screening by the PFIs strictly following the Environmental and Social Management System (ESMS) procedures. All 165 projects did not need the development of a Resettlement Action Plan within the scope of the Project.As the results of the project screening evidence, none of the projects belonged to Category “A”.

16. The State Environmental Expertise (SEE) was carried out for each subproject on the basis of a draft EIS (Environmental Impact Statement) and obtained the approval of the Environmental Conclusions of the State Committee for Ecology and Environmental Protection. Control over observance of the requirements of environmental legislation at the enterprises of each sub-project is assigned to the regional department for ecology and environmental protection (depending on which region and district the particular subproject belongs to). During the monitoring, the PFIs check that each sub borrower meets the requirements of the ESMS in accordance with the national regulations and requirements of ADB.

17. Monitoring and reporting of the implementation of safeguards requirements and procedures within the established ESMS are prepared by PFIs. The PFIs’ quarterly progress reports include status of compliance with safeguards covenants. The PFIs submit to RRA (the EA) annual ES performance reports (Appendix 8 of the ESMS in Report and Recommendations to the President of ADB (RRP) linked document 12) by the end of January every year. Based on the PFIs’ annual reports, Rural Restructuring Agency (RRA) submits to ADB annual Safeguard Monitoring reports (Appendix 9 of the ESMS) by mid-February of the following calendar.

18. As a result of the implementation of 165 sub-projects improved contribution of horticulture sector is achiever to inclusive economic growth and rural employment, a preliminary estimate indicates that the project has helped to establish 3,509 hectares (ha) of intensive orchards and 136,6 ha of water- and energy-saving greenhouses; increased refrigerated storage capacity by 69,400 tons (on the basis of one-off single load capacity), post-harvest processing capacity by 122,091 tons, and packaging material manufacture of 13,5 million square meters; and procured 179 units of agricultural machinery. Summary table of activities of Created capacity from disbursed 8

subproject during the reporting period is given in the Table 4.

Table 4. Created capacity from disbursed subproject

№ Type of investment Unit of measure Capacity 1 Modern refrigeration storage Ton 69,400 2 Intense garden Hectare 3,509 3 Processing of horticulture complexes Ton 122,091 4 Modern greenhouse complexes Hectare 136,6 5 Manufacture of packing Sq.meter 13,5 million 6 Agriculture machinery and other Pcs. 179

19. According to paragraph (l) of Section 6.01 of the Subsidiary loan agreement, (SLA) PFIs are provided annual reports on the effectiveness of implementation of environmental and social measures. Tables 4 and 5 indicat summaries of extended subloans using ADB funds within the Horticulture Value Chain Development Project (HVCDP).

1.3 Project organization and environmental management team, including organizational relationships with PFIs, sub-borrowers etc.

20. A project management office (PMO) has been set up under the existing organization of Rural Restructuring Agency. According to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 21.11.2018 №940, the Agency for implementation of projects in the field of agroindustry and food security was established (UZAIFSA) on the base of RRA.

21. The PMO is provided with highly qualified staff and operational costs and it is responsible for monitoring the project implementation, including training, capacity development, and providing technical support to PFIs. In order to save the cost of engaging a large team of consultants for project management and to ensure efficient utilization of the loan fund allocated to project management (estimated at USD 3.0 million). PMO staff included in-house UZAIFSA specialists. The PMO is responsible for overall environmental compliance with the ADB’s Safeguard Policy Statement (2009). Implementation of ESMS to comply with ADB safeguards requirements and environmental national regulations.

22. Environmental specialist is responsible for coordinating and reporting to ADB, advising PFI's on possible environmental issues, coordinating overall environmental monitoring at the project level, and integrating environmental safeguards issues into the curriculum for the agricultural extension program. Environmnetal spesialist is also responsible for identifying training needs for PFI, ensuring that PIAL integrate environmental requirements into bidding documents. In addition, she conducts periodic field trips to subprojects, ensuring that PFI's are committed to their environmental oversight and monitoring responsibilities and overall environmental compliance. 23. At the same time each PFI has established a project implementation unit (PIU) under its existing structure to oversee the implementation of the credit line activities at the respective PFI.

Figure 1: Project Organization Chart

Loan Agreement between ADB and MOF MOF and RRA

CWRD RRA

obligations to monitor implementation of PFI relending

During implementation PFIs submit to ADB through RRA: quarterly progress report; Project Agreements Statement of Utilization of Funds; annual reports on safeguards compliance

Asaka Bank, Davr Bank, Hamkorbank Ipak Yuli Bank, Ipoteka Bank,

)

ADB = Asian Development Bank; CWER = Environment, Natural Resources, and Agriculture Division of Central and West Asia Department of ADB; CWRD = Central and West Asia Department of ADB; MOF = Ministry of Finance; PFI = participating financial institution; PIU = project implementation unit; PMO = project management office; and RRA = Rural Restructuring Agency.

24. All PFIs have an assigned manager of environmental and social measures at full employment responsible for the preparation of annual reports on the environmental and social efficiency of ESMS. During this reporting period, there were no major changes in the composition of the Environmental Management team for the project as shown in table 5.

Table 5: Environmental Management Team for the Project

Name Org Position Contact (email and/or tel.)

Diana Rakhimova UZAIFSA Environmental [email protected] Expert +998 99 8989099

Sardor JSICB «Ipak Yuli» ESMS Coordinator [email protected] Nigmatullaev (+998-71) 140-6943

(+998-71) 140-6900

Gayrat Mahmudov PJSCB «DAVR BANK» ESMS Coordinator [email protected] +998(90) 909 0223 JSCB «Turonbank» Zuhhridin Hamraev Deputy of the Head of [email protected] Division Coordinator of the ESMS +99897 1401385 Avazbek JSCB «Hamkorbank» Head of sector for [email protected] Fazliev environmental assessment and +998 (90) 253 0690 monitoring.

Mirza Boboev JSCB «Asaka bank» Head of [email protected] Department (78) 120 82 96

Sherzod Boltaev JSCMB «Ipoteka bank» Head of Department [email protected] +9989(71) 150 8930

Obid Rashidov National Bank of Coordinator of the [email protected] Uzbekistan for Foreign ESMS Economic Activities +9989(71) 234 1117 Laziz Ramazanov JSCB Coordinator of the [email protected] «Uzpromstroybank» ESMS +998 93 5953395

25. A PFI is responsible for conducting proper pre-investment inspection on prospective subborrowers in accordance with the PFI’s prevailing credit and risk management policies and procedures, and following appropriate commercial banking criteria together with past and ongoing environmental performance. In case if such inspection was not undertaken or is not undertaken in with appropriate level of rigor, the subborrower may be required to immediately repay to the PFI any disbursed funds and the PFI to repay such funds to MOF, in accordance with the terms of the SLA.

Part II Environmental issues

2.1. Environmental issues in the previous 12 months.

26. During the reporting period, the monitoring of subprojects was carried out by the UZAIFSA and PFI. UZAIFSA ‘s monitoring department conducts monitoring at the project sites once every six months and PFI specialists who were specially trained and instructed in the framework of monitoring compliance of the Environmental Plan, labor and safety measures. In line with the ESMS monitoring requirements, the credit officer/ESMS coordinator conducts quarterly monitoring of environmental issues and risks as part of a general monitoring process. The PFIs’ quarterly progress reports include the status of compliance with safeguards covenants. Monitoring of environmental legislation compliance at the enterprises of each subproject is assigned to the regional department for ecology and environmental protection. The sub- borrowers are also responsible for their own regular monitoring and compliance. If non- compliances are observed, non-compliance letters are issued to the sub-borrowers with deadlines to close, subject to financial penalties if not complied with. According to monitoring results, the main non-compliances observed were mainly related to health and safety, handling and storage of pesticides and mineral fertilizers waste management, not using of PPE by workers, non-satisfactory sanitarian conditions for dining facilities, solid and liquid waste, spills, garbage etc.

27. During the visit of the mission of the Asian Development Bank in cooperation with UZAIFSA from July 1 to 11, 2019, meetings were held with regional employees of participating financial institutions (PFIs), site visits were made to selected sub-projects, as well as branches of Asaka, NBU, Hamkor, Ipoteka and Uzpromstroybank in Namangan and Fergana regions. For analysis of compliance of the Loan Agreement mandatory requirements regarding the implementation of the environmental and social management system (ESMS) on: . Availability of an approved policy; . Compliance with the ADB prohibited investment activity list (PIAL); . The screening procedure, classification and review; . Organizational structure and staffing, including skills and knowledge in the environmental and social sphere; . Availability of an Environmental Management Plan; . Complaint mechanism; . training requirements; and monitoring and reporting.

28. The mission recommended some actions to improve and strengthen environmental and social monitoring which are described in section 2.3.). Photographs of the site visits of the mission are given in Annex 2

29. The subprojects, which were assigned Environmental Category “B”, as per the charged obligation, are monitored at least once in every six months. According to the monitoring reports of PFIs only visual and desktop monitoring are conducted under the subprojects. None of the PFIs monitoring groups owns the equipment to measure the environmental quality indicators. Consequently, the PFI representatives undertake the monitoring only by visualization and exploration of the environmental documents developed within the scope of the subprojects. All inspections are documented in written form (Annex 8, template 3 with images supported - if necessary). Photographs of the site monitoring are given in Annex 1

30. In case of complaints of the population or other concerned parties, needing the identification of the environmental quality indicators by means of measurements, the relevant unit of “Goskomekologia“provides the required measurements based on the Resolution No. 949 of the Cabinet of Ministers of the Republic of Uzbekistan dated November 22, 2019. 12

31. All discrepancies observed in the past reporting period during the visit in 2019, have been significantly improved.

32. As the annual reports submitted by PFIs show, there were no complaints filed and no incidents occurred in the implementation phase of the subprojects in 2019 consequently, within the scope of the subprojects, no corrective measures were developed.

33. The nature and scale of impact on the environment is insignificant and cannot lead the quality of the environment to negative changes.

2.2. The findings and conclusions of the monitoring

34. During the visits to the projects with refrigeration units in Augest of 2019, there were identified minor non-compliances, as: garbage in cesspools, safety breach associated with the equipment of working personnel:

 «Tashabbus Do’rmon», LLC «Horazm Qovunlari» – Occupational health and safety of workers: were absent workers personal protective equipment ( helmets, if necessary, masks and goggles, uniforms and protective shoes)  LLC «Art Logistics Vegetables Fruits» - insignificant irregularities were revealed for warehousing and storage of building materials, a household garbage was observed in the project area.  ООО «Yozavon Marvaridi» - breakage in the drainage channel draining water from the freezer.  «Best Butter Production» - unsafe storage of Freon

35. During the visits to greenhouses in July – November of 2019, by UZAIFSA Environmental Specialist was observed:  LLC «Zafarjon Jasur Navoiy» LLC «Lider Best Tomato»,LLC “Kontinental Grand Servis” by «Shaxruza Diyor Navoiy» - chemicals storages and preparation аге not constructed yet and thеiг handling is not done in full compliance with the safety rulеs;  “Navbahor Fayz Eksport” - irregularities were revealed for warehousing and storage of building materials,  LLC «Sharq Yulduzi Fayz»,LLC «Sunday Business Group - non-satisfactory sanitarian conditions for dining facilities, incorrect storage of building material in the greenhouse.  LLC «Art Logistics Vegetables Fruits», LLC «Sunday Business Group», LLC «Texchorvaservis», LLC «Avtomobilchi» LLC «Navoy agrо», LLC «Zafarjon Jasur Navoiy», «Muhammad Mironshokh» ООО «Ozodbek Servis» – in addition, it was requested to add a detailed pest managment plan, storage conditions and use of pesticides, chemicals management, experience and skills in the use of pesticides and mineral fertilizers, as well as a safety measures plan to the ESIA project.

36. The nature and scale of the environmental impact of all the above non-compliances are insignificant and cannot lead to negative changes in the quality of the environment.

37. Recommendations for solving the above environmental problems are indicated in the paragraph 2.3.

38. Prior to the implementation of any type of activity in the field of horticulture production, 13

ESMS manager of each certain PFI’s informed one by one all beneficiaries of the subprojects on environmental and technical safety requirements. During the reporting period, any other issues related to noise and vibration, water and air quality have not been identified. There were no any accidents or emergency situation except a minor disruption. Complaints from nearby residential populations were not received. Environmental inspections are carried out by specialists of the district department for ecology and environmental safeguard in accordance with committee's internal environmental monitoring program.

39. During the monitoring, the PFIs also checked the current environmental state of the sub-projects.

2.3. Recommendations are required to show how any exceedances will be prevented in the future.

40. Uzaifsa Environmental specialist suggested recommendations for identified deficiencies in the above indicated sub-projects, particularly: • Specify whether the sub-borrower has permission for water use (by the arch network or groundwater), as well as how all household waste and water runoff utilized during the operation of the greenhouse farm and the employees' vital activity of the greenhouse complex. In case the presence of the above documents and contracts with waste disposal organizations, request copies of them. • as specified above, a very important issue which requires the subproject beneficiaries and the PFI attention is to improve the efficiency and safety while handling mineral fertilizers and pesticides, in particular fоr greenhouse and orchards subproject. • improve the work on monitoring environmental protection and safety at construction sites and training workers and own personnel on environmental aspects, as well as conducting basic monitoring in accordance with the ZVOS. • correct all the shortcomings and irregularities made during the work, tidy up collective protective equipment, clean the proper areas of rubbish, provide all workers with personal protective equipment, organize medical kits, equip electrical equipment and fire boards, organize safety and health nooks.

41. Keep all floors clean in the premises and prevent fertilizer from being carried by people or machines outside the project site Store each fertilizer in a separate container in a folding room or in a fixed place. The personnel must complete relevant training session or instruction.

42. Integrated methods of pest control with the rational use of both chemical and non- chemical methods of control.

43. It was also recommended to carry out activities aimed at ensuring the readiness of the object to actions to prevent, localize and eliminate the consequences of accidents or emergencies.

44. There were instructions, recommendations given to ensure healthy, and safety use of pesticides:  Wearing recommended protective clothing (long-sleeved shirt and trousers, socks, boots and gloves) in order to reduce exposure or skin contact;  Chemically resistant shoes and gloves; Use of safety glasses; Use of approved respirators;  Stand on the windward side when using pesticides; Avoid contact of food with pesticides; 14

 When pouring pesticides, keep the container below eye level to prevent eye contact;  After handling pesticides, wash hands thoroughly with soap before eating or drinking;

45. During ADB review mission, conduced on 1-11 July 2019 in cooperation with UZAIFSA, the mission reviewed the implementation of Environmental and Social Management System (ESMS) in eight PFIs, and visited selected sub-projects, as well as branches of Asaka, NBU, Hamkor, Ipoteka and Uzpromstroybank in Namangan and Fergana regions.

46. The mission recommends the following actions to improve and strengthen environmental and social monitoring: (a) Revise the TOR and cost estimates for ESMS compliance review and training of PFIs staff; (b) Strengthen the site-specific monitoring of environment management with special attention to health and safety, and waste management requirements; (c) Improve ESMS records and documentation at the regional branches for each ADB financed subprojects; (d) Ensure that environmental management measures and requirements are included in Credit Agreements for each subproject; (e) Strengthen human resources allocation for ESMS implementation; (f)Ensure monitoring of any unanticipated land acquisition or involuntary resettlement impacts.

47. For all recommendations above have been taken appropriate measures by UZAIFSA and PFIs which are given in Chapter 3.2

Part III: Compliance with ADB’s Social Protection Requirements and ADB’s Prohibited Investment Activities List

3.1 Provide assessment on these two sets of requirements.

48. ADB's requirements for social protection were met. According to the list of prohibited types of investment activities, a preliminary environmental screenings of social and safeguard measures were carried out.

49. During of the project implementation, PFI specialists conducted a preliminary analysis (screening) of each sub-project with respect to social safeguard measures.

50. “Among PFI’s experience of rejection to finance several projects (project belongs to category B, however, the client did not present the required documents (state expert opinion, etc.); the client asked for funding the project of a poultry farm with more than 40 thousand hens,etc.) there is also experience rejection of the projects proceeding from the ADB’s Prohibited Investment Activities List, for example, the client carries out activities for the sale of alcohol.

51. Prior to approval, subprojects were screened according to the following questions:

Involuntary Resettlement Impact Checklist Table 6

Screening Questions Yes No Remarks

If yes, exclude from 1. Will there be land acquisition using eminent domain law? financing

2. Will there be permanent or temporary loss of shelter and If yes, exclude from residential land due to land acquisition? financing.

3. Will there be permanent or temporary loss of agricultural If yes, exclude from and other productive assets due to land acquisition? financing.

4. Will there be losses of crops, trees, and fixed assets due to If yes, exclude from land acquisition? financing.

5. Will there be permanent or temporary loss of businesses or If yes, exclude from enterprises due to land acquisition? financing.

6. Will there be permanent or temporary loss of income If yes, exclude from sources and means of livelihoods due to land acquisition? financing.

7. If land or private property is purchased through negotiated If yes, exclude from settlement or willing buyer-willing seller, will it result in the financing. permanent or temporary removal or displacement of renters, or leaseholders?

8. If land or private property is purchased through negotiated If yes, exclude from settlement or willing buyer-willing seller, will it result in the financing. permanent or temporary removal or displacement of informal land-users (people without legal rights on the land) or squatters?

9. Will the project involve any permanent or temporary If yes, exclude from restrictions in land use or access to legally designated parks financing. or protected areas and cause people or any community to lose access to natural resources, traditional habitats, communal land, or communal facilities? 16 10. Will the project use government land or any public land or If yes, exclude from property, which will require the permanent or temporary financing. removal of informal occupants or users (residential or economic)?

52. During the preliminary monitoring at the sub-project areas, all the above questions were answered (NO) confirming the absence of impact caused to Involuntary Resettlement, which in turn does not hamper the financing of sub-projects.

53. PFIs specialists discussed, explained and clarified to the subprojects owners of all the requirements for the environmental and social safeguard that they should comply with during the implementation of the subproject.

3.2. A brief description of the taken measures.

54. During the monitoring conducted by the UZAIFSA in December 2019, it was noted that the corrective measures recommended in 2019 were completely implemented. On the current visit, no significant environmental impacts have been detected.

55. Below are the measures taken by beneficiaries in order to eliminate the inconsistencies identified during the visit in May 2018.

«Tashabbus Do’rmon», LLC «Horazm Qovunlari» workers are provided with workwear, shoes and gloves.

LLC «Art Logistics Vegetables Fruits increased the number of garbage bins for waste collection and garbage, as well as the frequency of area cleaning. LLC «Art Logistics Vegetables Fruits», LLC «Sunday Business Group», LLC «Texchorvaservis», LLC «Avtomobilchi» - the planned construction of a separate warehouse for chemicals and minerals storage.0

56. It was clarified that timely disposal of waste, prevention of littering in the territory of projected objects will prevent negative impact on natural resources: soil, underground horizon.

57. During the reporting period, incidents and accidents were not observed in the projects areas.

58. In order to minimize environmental and social risks, UZAIFSA has been taken appropriate measures to eliminate all incompliances in accordance with the requirements of the Asian Development Bank:

i. 15 July 2019 Uzaifsa sent a request to all PFI's to send credit contracts for reviewing all ADB-funded sub-projects (loan 3471) for compliance by the client with the conditions for environmental and social safeguard measures that must be provided in the credit contract; - all credit contracts were received and reviewed;

ii. Institutional strengthening of the Banks’ head offices and regional branches by hiring a full-time Manager with education in environmental and protective measures. PFIs need to periodically conduct training sessions for current and new employees involved in meeting the ESMS requirements. -Among all 8 PFIs, only Hamkor Bank and Ipak Yuli Bank have hired a full-time Environmental and Social Safeguard Manager (ESSM) with an environmental background. 17 All PFIs conduct regular training to strengthen implementation of the ESMS and allocates funds for building staff capacity as part of the bank’s business plan. UZAIFSA requested an update the lists of regional employees involved in the implementation of the ESMS.

iii. ESMS coordinators must complete all documents for “B” category sub-projects, documentation and store the considered environmental and social risks, managing them and monitoring process in each sub-borrower’s credit files;

iv. UZAIFSA advised to PFIs Strengthen the complaints mechanism and consultation, closely monitor and address project-specific complains and grievances received from local communities and record actions taken to resolve.

Part IV: ESMS operations (for PFIs which are financing B-category subprojects)

4.1. A brief description of the effectiveness of the ESMS within 12 months.

59. According to paragraph 9 of Schedule 4 in Loan agreement between Republic of Uzbekistan and ADB dated 03.03.2017, no withdrawal shall be made from the Loan account for a PFI for the purposes of any qualified subprojects until such PFI has established the ESMS in a manner satisfactory to ADB and has appointed designated staff who is capable and adequately trained in fully implementing the ESMS.

60. For each sub-project, a State Environmental Expertise (SEE) was carried out on the basis of a draft Environmental Impact Statement (EIS) and obtained approval Environmental Conclusions of the State Committee for Ecology and Environmental Protection. Control over observance of the requirements of environmental legislation at the enterprises of each sub-project is assigned to the regional department for ecology and environmental protection (depending on which region and district the particular subproject belongs to).

61. During the monitoring, the PFIs check that each sub borrower meets the requirements of the ESMS in accordance with the national regulations and requirements of ADB.

62. During the project implementation period, none of the PFIs did face significant environmental problems for each sub-project. There were no exceedances in the frame of established norms for the current subprojects.

63. ADB's requirements for social protection were met. According to the list of prohibited types of investment activities, a preliminary screening of social safeguard measures were carried out. All requirements are implemented based on the documents of the ESMS. Implementation of corrective actions was not required.Guided by the agreement on the refinancing of part of the ADB loan, Article VI, Section 6.01, paragraph (l) of the PFIs provided annual reports on the effectiveness of the implementation of environmental and social measures. In this report, the information should be provided by PFIs and responsible persons for the implementation of the ESMS.

64. At the end of January 2019 and the beginning of February 2020, all PFIs provided to UZAIFSA annual reports on the effectiveness of environmental and social measures implementation. Based on the analysis of the submitted reports, it can be seen that the process of subprojects review and approval was carried out in accordance with the national legal and normative acts of the Republic of Uzbekistan. The risk categorization was implemented on the base of the screening for the presence of environmental and social risks under the legislation of the Republic of Uzbekistan and ADB requirements. All subprojects with category "B" passed pre-investment monitoring. Monitoring of environmental safeguard and social issues in the framework of sub loans was implemented particularly on a bi-annual basis by the Bank staff. Please see the Annex 3. PFIs provided annual reports on the effectiveness of the implementation of environmental and social measures.

65. No issues related to social safeguard measures (land acquisition, individual’s/commercials displacement, loss of income/livelihood) were observed.

66. No cases of non-compliance of requirements have been identified 19

4.2 Capacity building activities

67. In order to increase the capacity, training sessions were organized in the framework of the project: . a seminar of ADB consultant Irakly Kavidadze (February 17, 2018); . a seminar of the Rural Restructuring Agency on environmental management for commercial banks (certificate of February 26, 2018) and other short-term seminars (trainings). . on April 19-21, 2018, ADB organized a “Training Seminar and Regional Exchange on Monitoring the Implementation of Environmental Safeguard Measures. TS 8663-Sustainable Environmental Management Projects in Central and West Asia" in Georgia. The workshop was aimed at environmental officers of project implementation teams (PIUs). Two members of RRA staff participated in this workshop. . presentation for PFI’s on the implementation of environmental management and social issues was conducted by ADB Technical consultant Armine Yedigaryan, (December 10, 2018);

68. Social impacts and Capacity Development:

 Employment (new jobs): 5,766 including 2,250 women  265 PFIs staff trained on environmental safeguards  capacity building trainings were conducted for 6,176 farmers on following topics:  Production and growing of fruits and vegetables  Storage and processing of fruits and vegetables  Delivery of fruits and vegetable products to the consumer and exporting  Gender development and mainstreaming in horticulture

69. Within the framework of the “Horticulture Value Chain Development” project, it was envisaged to provide consultation services to increase the potential of PFI's "Consultancy services for compliance review of environmental and social protection management system (ESMS) implementation; and the training on environmental and social screening and monitoring of subprojects

70. In this regard, was signed the contract No. HVCD/CQS/CS01 dated December 06, 2019, between the Agency for implementation of projects in the field of agroindustry and food security (Agency) and Eco-spectry (Georgia) and Eco-spectry Uzbekistan (Uzbekistan) for the provision of the above services.

71. Consultants are being recruited according to ADB’s Guidelines on the Use of Consultants (2015, as amended from time to time). Recruitment plan and detailed scope of works with terms of reference are being discussed with ADB in advance.The Consultant will conduct a review and monitoring of subprojects for each participating financial institution throughout the country for compliance with the ESMS requirements.

72. Training will be carried out in 5 central regions of the Republic of Uzbekistan (Andijan, Samarkand, Bukhara, Khorezm and Tashkent), where sub-projects will be selectively reviewed/verified.

73. The Consultant will prepare training manuals, infographics and related materials – based on each time-bound capacity-building plan that will fit the general and specific learning requirements of the PFIs.

74. The training duration in each region will be 2 days (from 10:00 o’clock/am – till 6:00 o’clock/pm). Training program consists of 10 modules and 2 exercises. During the implementation of this assignment, Consultant will submit the following reports to the 20 UZAIFSA Inception report: Develop proposals for the topic specific curriculum for each section. Identification of training needs and development of a training plan based on the capacity gap assessment (interviews, SWOT analyses and questionnaire) and understanding of functions to be performed by PFI's, the consultant shall identify priority key training needs and develop a training plan, including the purpose of the training, the training topic, structure of the seminar, main content of the seminar, training of the group members, the result of the training, the training methodology, and all this to discuss with the UZAIFSA specialist for interaction and approval. Needs Assessment Report will be part/Annex of/to the Inception report, which will include filled up questionnaires of all PFIs. ESMS compliance review report: Post-training reports: after completion of trainings. Post-training reports should include the criteria for selection of subprojects, the schedule of environmental and social audit, the questionnaire which will be used for auditing and the list of attendees; Final report: After the training seminars and audits planned, the Consultant must deliver a preliminary final report to the UZAIFSA specialist. Consultant provides a detailed report on the training seminars and audits, including the following aspects: • Copies of training materials (electronic and printed); • Photographs (photo albums) of the training workshops; • The results of the survey, including analysis of the responses; • Information related to the conducted environmental and social review; • The list of non-compliances revealed during the audits and proposed corrective action plan; • Recommendations and capacity development plan for each PFIs for improving the delivery of training seminars in the future. • The reports will be presented both in English and Russian languages in hard copy and in electronic form in MS Office format. After receiving comments from the UZAIFSA and ADB, the Consultant should submit a final report (Russian and English) to the UZAIFSA specialist within a week both in paper and in electronic form (Microsoft Word and Power Point).

4.3 Specific data on the following activities is recommended

 Site inspections and audits – to summarize the number and type of site visits.

75. Monitoring was carried out on a quarterly basis during a year. Audits by the banks were conducted in Fabruary March, June, November of the reporting period, and the UZAIFSA implemented it in, June, July, November, and December. Totally 95 financed sub projects have been inspected out of 165. Monitoring of remained and newly financed projects will be conducted in the next reporting period.

76. Prior to the implementation of any type of activity in the field of horticulture production, all beneficiaries of subprojects were aware of environmental and technical safety requirements. To the present day, problems related to noise and vibration, water and air quality have not been identified. There were no any accidents or emergency situation. During the monitoring, the PFIs also checked the current environmental state of the subprojects.

 Noncompliance case.

77. Some non-compliance was observed during site visits. Among them: untimely disposal of wastes from construction sites, not using of PPE by workers, non-satisfactory sanitarian conditions for dining facilities, solid and liquid waste, spills, garbage etc. After being notified, all non-compliances were eliminated. Each subproject was provided with the recommendations on methods of storing waste and observing safety regulations. .

21  Corrective action plans.

78. a very important issue which requires the subproject beneficiaries and the PFI attention is to improve the efficiency and safety while handling mineral fertilizers and pesticides, in particular, fоr greenhouse and orchards subproject.

 Consultation and complaints.

79. Prior to the financing of each subproject, the PFI specialist consulted the beneficiaries about the environmental and social requirements of ADB. In this, regard no complaint was received.

Part V: Conclusion and action plan

5.1. Conclusions.

80. The annual report on the monitoring of safeguard measures of the project provided information on the implementation of the project in the field of development of the value chain in the horticulture sector. Based on the PFI data, it can be concluded that the project helped to increase the productivity of farming activities, increase the processing and storage capacity and reduce post-harvest losses due to the implementation and improvement of intensive gardening practices, modern and efficient greenhouses and processing, storage and refrigeration capacities. PFIs have expanded the coverage of farmers and enterprises, 165 subprojects were financed during the entire project period, while in the reporting period - there were 3 subprojects financed. Each sub-project was carried out by SEE on the basis of the developed draft EIS and agreed Environmental Conclusions of the State Committee for Ecology and Environmental Protection. During the project implementation period, PFI did not faced to significant environmental problems for each sub-project.

81. PFIs provided annual reports to UZAIFSA on the effectiveness of environmental and social measures. It should also be noted that while preparing the annual reports of the PFI, there were some difficulties related to environmental issues. The reason for this was the frequent changes of the responsible staff within the PFIs.

82. Thus, compliance with the policies and procedures of the ESMS will lead to long-term of economic and environmental sustainability and increased profitability for farmers and agribusinesses. 83. At the observance of the rules of safety and sanitary-hygienic conditions, there will be no significant impact on the environment.

5.2. Action plan for the next reporting period.

84. Compliance of the PFIs to project agreement covenants is monitored through periodic ADB review missions, quarterly progress reports by the PFIs, random spot checks of subloan documents, and review of the PFIs' audited financial statements. An environmental specialist hired by the PMO (based in UZAIFSA) will help monitor PFIs’ training and carry out monitoring site visits, also assist to PFIs in the implementation of ESMS, including the preparation of Annual Environmental and Social (ES) performance reports of the PFIs and ensure on-time completion of the annual report on ESMS. If necessary, will assist to PFIs and beneficiaries of environmental and social issues. See table 7 below. 85. Within the framework of the project, training sessions for PFI specialists and ESMS review for compliance should be conducted. The objectives of this assignment is to conduct (a) the compliance review of environmental and social protection management system (ESMS) implementation by PFIs; (b) the training for 8 PFIs on environmental and social screening; and c) monitoring of subprojects. 86. The consultant will review and assess the ESMS set up and its implementation in the eight PFIs. The assessment will include: (a) gap filling measures (if any) in ESMS to ensure compliance with the recent updates in national (legislation of Republic of Uzbekistan) and international requirements; (b) opportunities for harmonization of principles, policies and procedures. Moreover, based on the assessment the Consultant will: (i) prepare an ESMS implementation manual and guidance documents as well as training modules for staff of EA and PFIs/IAs; (ii) perform randomly selected subprojects for compliance with ESMS, and (iii) delivery training seminars for the staff of the executing 23 agency (EA) and PFIs. Estimated time for training and rewiew subprojects is Q1-2 of 2020.

Table 7: The monitoring action plan of the UZAIFSA Environmental Specialist

№ Region February February March October November December January February April April August 1 Karakalpakistan Republic 2 Khorezm 3 Bukhara 4 Navoiy 5 Kashkadarya 6 Surkhandarya 7 Namangan 8 Andijan 9 Fergana 10 Samarkand 11 Jizzakh 12 Syrdarya 13 Tashkent region

UZAIFSA specialists will carry out monitoring according to the ESMS during the next reporting period January 2020 – February 2021

24 Annexes Annual ESMS performance reports by PFIs. Please see the Annex (3) 25  Table 8: Information on all loans Any outsta Safeguard nding category envir onme

ntal

and

and Type of Value IP Sub- Tenor loan of issues project of Industry (large exposur durin using Name of Sub-project loan Sector corporate/ e g ADB (mont SME/trade (thousa repor funds hs) Env IR IP finance) nd US$) ting (yes/no) perio d and action s taken to addre ss the issues JSICB «Ipak Yuli»

LTD "Asl Tabiat Bog'lari" SME 119 3 600,0 Greenhouse B C N/A No Yes

2 690,60 Intensive LTD "ECO AGRO CHROMOS" SME 48 5 garden B C N/A No Yes

"HOJI GADOYBOY OTA" SME 116 1 500,0 Greenhouse B C N/A No Yes FARMING ENTERPRISE

"BAYTQO`RGON-ARIPOV Refrigerated SME 49 991,25 B C N/A No Yes XAITVOY" фермер хужалиги store Equipment for processing 47 495,0 "MAX POWER" LTD SME of agriculture B C N/A No Yes products (drying) 55 195,545 Greenhouse LTD UZAGROTEK GROUP SME B C N/A No Yes Refrigerated 58 181,0 SAGDIYANA FORM LTD SME store B C N/A No Yes

Refrigerated MUATTAROVLAR 58 146,6 SME store B C N/A No Yes MAHSULOTLARI ХУСУСИЙ КОРХОНАСИ

"HOJI GADOYBOY OTA" SME 84 999 989 Gardening B C N/A No Yes FARMING ENTERPRISE

OOO " JAXON IDEAL SERVICE SME 60 180 000 Greenhouse B C N/A No Yes " PJSCB «DAVR BANK» Small Processing of "BULUNGUR-SANDVIK" LLC 1 383,0 Business 60 agricultural B C N/A No Yes JV products Small 334,946. "ROYAL ROSES" LLC Business 37 Greenhouse B C N/A No Yes 5 26 Small "ORGANIK GREEN FOOD" 116000, Business 60 Greenhouse B C N/A NO Yes LLC 0 JSCB «Turonbank» Long term "Sarbon Asl Savdo" LTD. 72 440 Greenhouse B C N/A No Yes credit Long term “Texchorvaservis” LTD. credit 84 393 Greenhouse B C N/A No Yes Commercial firm of manufacturing Long “Shurchi Mebel” termcredit 60 490 Cold storage B C N/A No Yes Long term “Nurobod” LTD. 60 2000 Cold storage B C N/A No Yes credit Processing of Long “EAST-WEST SURXON“LTD. 84 312 agricultural B C N/A No Yes termcredit products Processing of Long term “O'ZMATBAA TA'MINOT“LTD. 120 3400 agricultural B C N/A No Yes credit products Purchase of Long term “AGROVER“ LTD. 120 5000 farm C C N/A No Yes credit machinery JSCB «Hamkorbank» “Nukus Universal Bazasi” SME 84 641,5 Greenhouse B C N/A No Yes LTD Intensive “Baxt Imkon Rivoj SME 60 691,0 garden B C N/A No Yes Chorvasi” farm Processing of “Andijon-Un” LTD SME 84 250,0 agricultural B C N/A No Yes products “Rukhshabod Agro Sahovat” SME 72 350,0 Greenhouse B C N/A No Yes LTD “Navoiy Aziya Trans Servis” SME 120 150,0 Greenhouse B C N/A No Yes PE “Temir Tulagan Boglari” SME 84 99,6 Cold storage B C N/A No Yes farm “Usta Salimhoji” PE SME 84 200,0 Cold storage B C N/A No Yes “Fursat Mahorat” PE SME 120 232,7 Cold storage B C N/A No Yes Intensive «Boqi Saryon» LTD SME 84 36,6 B C N/A No Yes garden Processing of «Abdumalik Baraka Savdo» SME 84 124,3 agricultural B C N/A No Yes LTD products «Shamatov Brok Treyd» LTD SME 60 247,2 Cold storage B C N/A No Yes «Baraka Meva Sanoat Intensive SME 84 289,0 B C N/A No Yes Servis» LTD garden «Sulton Bobo» farm Purchase of SME 60 135,0 farm С C N/A No Yes machinery «Agroelit Parkent» LTD Intensive SME 84 836,0 B C N/A No Yes garden «Yonariq Davr Istiqboli» LTD Intensive SME 60 60,0 С C N/A No Yes garden «Best Butter Production» LTD SME 120 69,0 Cold storage B C N/A No Yes Qarshi makhsus sanoat qurilish tamir LTD SME 84 124,6 Construction B C N/A No Yes «Baraka Meva Sanoat Servis» LTD SME 84 349,9 Trade B C N/A No Yes “Jasur” farm SME 60 34,4 cattle-breeding B C N/A No Yes JSCB «Asaka bank» Long term LLC «Mangit Invest Plys» 60 477,0 Greenhouse В C N/A No Yes credit Dried Long term PE «Poytug' Barkamol Qurilish» 84 494,2 agricultural В C N/A No Yes credit products 27 Dried Long term LLC «Barkamol Avlod Qalqoni» 84 446,4 agricultural В C N/A No Yes credit products Dried Long term LLC «Asl Meva Invest» 84 100,0 agricultural В C N/A No Yes credit products Dried Long term PE «Bunyod servis lyuks» 84 650,0 agricultural В C N/A No Yes credit products Long term LCC «Sabo Hamkor» credit 60 1 502,2 Greenhouse В C N/A No Yes Dried «Andijon export and import business Long term 60 316,4 agricultural В C N/A No Yes solutions» credit products Long term Greenhouse LLC «Jondor Qurilish Invest» credit 60 1 998,8 and cold store В C N/A No Yes Long term LLC «Eltek Eksk lyuziv» credit 60 450,0 Greenhouse В C N/A No Yes Farm Enreprise «Uktam Buston Long term 84 450,0 Greenhouse В C N/A No Yes Saxovati» credit The Long term production of LLC «Gala River» 60 1 100,0 В C N/A No Yes credit concentrated grape juice Long term LLC «Grand Bukhara agro» credit 84 2 000,0 Greenhouse В C N/A No Yes Long term LLC «Kongres Baraka Agro» 250,0 Greenhouse В C N/A No Yes credit 60 Long LLC «Mo’jiza agro service» termcredit 60 960,0 Greenhouse В C N/A No Yes Long term LLC «Kelajak ta’mir savdo service» credit 60 180,0 Greenhouse В C N/A No Yes Dried Long term «Botir Isaev» Farm Enterpise 60 280,0 agricultural В C N/A No Yes credit products Long LLC «Apple Universal Service» termcredit 84 700,0 Greenhouse В C N/A No Yes «Ochilov Javoxir Uzum Bog» Farm Long term Enterpise credit 60 386,0 Greenhouse В C N/A No Yes LLC «Samarkand Temir Beton Long term Konstruktsiya» credit 60 546,4 Greenhouse В C N/A No Yes Dried «Urgut Elektro Service» Farm Long 84 225,6 agricultural В C N/A No Yes Enterpise termcredit products Long term LLC «Shohjahon Bobur Boglari» credit 60 580,0 Greenhouse В C N/A No Yes Dried Long term «Intensiv gold fruit» Farm Enterpise 84 1 810,0 agricultural В C N/A no Yes credit products Long PE LLC «Sirdarinskiy Bereg» termcredit 60 5 000,0 Greenhouse В C N/A No Yes Long term LLC «Mirzaobod Universal Trade» credit 60 5 000,0 Greenhouse В C N/A No Yes Long term LLC «Xoji Bohodirhon ota» credit 84 1 000,0 Greenhouse В C N/A No Yes Dried Long LLC «Nulu Fayz Imkon» 60 325,0 agricultural В C N/A No Yes termcredit products Dried Long term «Surhon obi hayot» Farm Enterpise 84 5 000,0 agricultural В C N/A No Yes credit products Long term «Ezgulik Sari Agro» Farm Enterpise 60 1 970,0 Greenhouse В C N/A No Yes credit Long Intensive LLC «Riv Makon» termcredit 60 897,0 garden В C N/A No Yes Dried Long term LLC «Muh Plast Service» 60 493,0 agricultural В C N/A No Yes credit products Dried Family enterprise «Nodira Diyor Long term 60 150,0 agricultural В C N/A No Yes Mevalari» credit products 28 Dried Long LLC «Zimniy Sad» 84 3 167,9 agricultural В C N/A No Yes termcredit products Dried Long term LLC «Chodak Sardor farm servis» 60 390,0 agricultural В C N/A No Yes credit products Dried Long term LLC «Yozavon Marvaridi» 60 118,0 agricultural В C N/A No Yes credit products Long LLC «Ali Kushchi Agro export» termcredit 60 1 092,8 Greenhouse В C N/A No Yes Long term Intensive LLC «Sag Agro» credit 120 4 750,0 garden В C N/A No Yes Long Intensive LLC «Sag Agro Bulung'ur» termcredit 120 1 924,0 garden В C N/A No Yes JSCMB «Ipoteka bank» Agricultural JV "Nisi Multifruits Trade" SME 60 667 processing В C N/A No Yes "Dilrabo-94" LLC SME 60 156,2 Cold storages В C N/A No Yes "Jamshid Javohir Agrotexservis" LLC SME 60 450 Greenhouse В C N/A No Yes «NAVOIYAGRO» LLC SME 84 1500 Greenhouse В C N/A No Yes "Suvon Omonturdi" PE SME 60 200 Cold storages В C N/A No Yes "Farovon Termiz Chorva» LLC SME 60 250 Cold storages В C N/A No Yes Dryer fruits "Dil shams qamar" LLC SME 60 265,9 and В C N/A No Yes vegetables «Ozodbek -Servis» LLC SME 60 390 Greenhouse В C N/A No Yes Intensive "Marokand agro invest» Farming SME 84 992,6 garden В C N/A No Yes "Pastdarg'om Erkin Sabzavotlari" SME 60 1000 Greenhouse В C N/A No Yes Farming "Platina Parnik Servis" LLC SME 60 500 Greenhouse В C N/A No Yes "TASHKENT TRUST TRADE" LLC SME 48 250 Cold storages В C N/A No Yes "Qiziriq ximiyaviy ugit" LLC SME 60 244,7 Cold storages В C N/A No Yes Greenhouse «PERFECT LOGISTICS» LLC SME 60 1090,8 and cold В C N/A No Yes storages Production of «Miller Grand Kapital» PE SME 60 948,5 В C N/A No Yes beverages Manufacture “Ravshan Yodik Production” LLC SME 60 500,3 carton boxes В C N/A No Yes for fruits «Mirzahamdeov Ravshan» PE SME 60 250 Cold storages В C N/A No Yes "Turkiston Mirishkorlari" LLC SME 60 376,8 Cold storages В C N/A No Yes "Yogdu Fayz bogdorchilik" Farming SME 60 798,5 Cold storages В C N/A No Yes “Fayzli Omon”LLC SME 60 168,7 Cold storage В C N/A No Yes National Bank of Uzbekistan for Foreign Economic Activities Muhammad Mironshoh LTD SME 60 760 Greenhouse B C N/A No Yes Processing of Agro Feed LTD SME 72 3 386 agricultural B C N/A No Yes products Processing of Agro Processing Group LTD SME 72 4 656 agricultural B C N/A No Yes products JE LLC OLCHAZOR IMPEX SME 60 1 988 Cold storages B C N/A No Yes Processing of Musaffo Iqlim Service LLC SME 60 1 992 agricultural B C N/A No Yes products LLC KRISTALL-FUYUN INDUSTRIES SME 60 698 Cold storages B C N/A No Yes CHASHMA TOMCHI LTD SME 60 598,5 Greenhouse B C N/A No Yes AZIZ AGRO IMKON SANOAT SME 60 579,8 Greenhouse B C N/A No Yes HAZORBOG SHIRIN MEVALARI LTD SME 60 198 Cold storages B C N/A No Yes SHAHRUZA DIYOR NAVOIY SME 60 498 Greenhouse B C N/A No Yes LTD 29 GABO LTD SME 60 165 Cold storages B C N/A No Yes Ozodbek Azamatbek FE SME 60 120 Cold storages B C N/A No Yes Alisher Qipshaq LTD SME 60 306,40 Cold storages B C N/A No Yes 199,8 Kungrad Vek Story LTD SME 60 Cold storages B C N/A No Yes M GULOM LTD SME 60 198,5 Cold storages B C N/A No Yes TOMATO PLANT INVEST LLC SME 60 1 280 Greenhouse B C N/A No Yes Askarov Narimon FARMING ENTERPRISE SME 60 546,4 Greenhouse B C N/A No Yes Navbahor Fayz Export LTD SME 84 340,0 Greenhouse B C N/A No Yes BAXT HARAKAT MEVALARI LTD SME 60 620,3 Greenhouse B C N/A No Yes Processing of agricultural JIZZAKH LEADER FOOD LTD SME 60 780,0 B C N/A No Yes products and cold storages Processing of TASHABUS DO'RMON SME 60 267,7 agricultural B C N/A No Yes FARMING ENTERPRISE products PISKENT PARRANDA LTD SME 60 2 320 Greenhouse B C N/A No Yes Sharq Yulduz Fayz LTD SME 60 1 095,0 Greenhouse B C N/A No Yes Sunday Busniess Group LTD SME 60 1 210,0 Greenhouse B C N/A No Yes Intensive Zomin Meva Logistika LTD SME 60 5 000,0 garden and B C N/A No Yes Cold storages Processing of Mushtari Oqdaryo LTD SME 60 3 181,0 agricultural B C N/A No Yes products Shirin Agro Nur LTD SME 60 567,8 Greenhouse B C N/A No Yes Processing of agricultural Farma Servis LTD SME 60 932,8 B C N/A No Yes products and Cold storages Refrigeration Eshnazar Invest LTD SME 60 210 truck C C N/A No Yes Processing of Master Global Plus LTD SME 60 4 878,1 agricultural B C N/A No Yes products Intensive Toshkentvino kombinati SME 60 685,9 garden С C N/A No Yes Fresh Fruits Export LTD SME 60 635 Cold storages B C N/A No Yes “Diyorbek Zamonbek”LLC SME 60 254,9 Cold storages B C N/A No Yes Тара ELIT KARTON BOKS SME 500,0 упаковка и C C N/A NO Yes др. Agricultural "TOSHKENTVANO " SME 60 685,9 machinery C C N/A NO Yes technology “MAKS BUILDING INDUSTRY” SME 60 415,0 Cold storage B C N/A NO Yes AZIMJON NURIDDIN SAVDO SME 60 123,0 Cold storage B C N/A NO Yes SERVIS LLC SME Processing N/A ARAMATI BAGDADA PE 60 600 and storing frui B C NO Yes and vegetables SME N/A OLTIARIQ AGRO FAYZ LLC 60 198,6 Cold storage B C NO Yes SME N/A ECO EXPORT TRADE LLC 60 901,5 Cold storage B C NO Yes SME N/A GRAND DIAMOND FRUITS 60 500 Cold storage B C NO Yes SME N/A MIR GRANITA 60 486,5 Cold storage B C NO Yes YUKSALISH CHORVA SME N/A 60 101,4 Cold storage B C NO Yes SAHOVATI FE GOLDEN FRUIT PRODUCTION SME N/A 60 117 Greenhouse B C NO Yes FE 30 SME N/A AGRO EXPORT BARAKA LLC 84 2 000 Greenhouse B C NO Yes UZUN MEVA SABZAVOT SME N/A 60 185 Cold storage B C NO Yes XOLODILNIK LLC KOSONSOY SERHOSIL SME Intensive N/A 84 4 632 B C NO Yes INTEVSIV BOGLARI LLC garden ALP JAVOKHIR JAVLONBEK SME N/A 84 1 000 Greenhouse B C NO Yes LLC ISLOMBEK FIRDAVS AGRO SME N/A 72 326,7 Greenhouse B C NO Yes LLC

JSCB «Uzpromstroybank» 129 800, LLC”Emir parranda” SME 60 0 Cold storage B C N/A No Yes Processing of 1 000 00 LLC “Xorazm qovunlari” SME 60 agricultural B C N/A No Yes 0,0 products 193 256, LLC “Sarkor quruvchi” SME 60 0 Cold storage B C N/A No Yes 2 000 00 LLC “Zarafshon Jasur Navoiy” SME 84 0,0 Greenhouse B C N/A No Yes 440 000, LLC “Kogon mega trans” SME 84 0 Greenhouse B C N/A No Yes Processing of 710 200, agricultural LLC “Narpay Optimum” SME 84 B C N/A No Yes 0 products and cold storage 535 000, LC “Lider best tomato” SME 60 Greenhouse B C N/A No Yes 0 LLC “AR Logistics Vegetables 499 440, Fruits” SME 60 5 Greenhouse B C N/A No Yes Greenhouse 1 500 00 LLC “Surxon Kombinati” SME 84 and cold B C N/A No Yes 0,0 storage Processing of 300 000, LLC “Indigo trade” SME 72 agricultural B C N/A No Yes 0 products 296 150, LLC “Isroil Ismoil Xamkor” SME 60 0 Cold storage B C N/A No Yes SME 513 930 N/A ООО "Porlok ostona agrofirmasi " 60 Greenhouse B С No Yes ,0 SME 256 870 N/A ООО “Express Terminal Savdo” 60 Cold storage B С No Yes ,0 SME 98 430, Processing of N/A ООО “Urgut Marvaridi” 36 agricultural B С No Yes 0 products ЧП "ASLIDIN ABDUXOLIK SME 450 000 N/A 60 Cold storage B С No Yes 2005" ,0 SME 390 585 N/A ООО “Kitob agroplast” 60 Cold storage B С No Yes ,0 SME 150 000 N/A ООО “Kitob texavtomatika” 48 Cold storage B С No Yes ,0 SME 4 215 1 Greenhouse N/A ООО “ Karmana Agrotreding” 120 B С No Yes 99,47 ООО МТП SME 976 000 Greenhouse N/A 84 B С NO Да "AVTOMOBILCHIА" ,0 SME 498 750 N/A ООО "Diamond Travel" 60 Cold storage B С NO Да ,0 31

Annex 1: Site photographs 1. «Zafarjon Jasur Navoiy» Navoiy region 2. «Shaxruza Diyor Navoiy» Navoiy region

Agrochemical storage chemicals and minerals inside the greenhouse

«Sunday Bussines group” chemicals and minerals inside the greenhouse

LLC Avtomobilchi LLC «Sharq Yulduzi Fayz»

Construction and domestic garbage in project site

Qiziriq himiya uqit «Muhammad Mironshokh»

Construction and domestic garbage in project sitе chemicals and minerals inside the greenhouse

Some photos of regional sub-project

Yoqdu Fayz Bogdorchilik warehouse for chemicals

«Grand Diamond Fruits» Andijon Un

LLC “Agro Trade “ warehouse for chemicals

ANNEX 2. Mission photos 1-8 July

Meeting with PFI in Namangan region

Documentation

Annex 3.

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

1. Please provide responses to the questions below. Please include additional sheets or attachments as required to provide details on questions that have been answered Yes. The Bank is required to submit the annual performance report to RRA.

Name of the Financial JSCB “Uzpromstroybank” Institution Completed by (name): Ramazanov Lazizbek Ismailovich Meneger ESMS of JSCB Position in organization: Date: 31.12.2019 “Uzpromstroybank”

A. Portfolio Information

Report Covering Period:

From:01.01.2019 To:01.12.2019

2. For the reporting period, please provide the following information about your portfolio where applicable:

B. Business Lines

Total exposure Description outstanding for most Average loan (or Product line Loan or other types of financial products recent transaction) size Microfinance for individuals FY end (US$) (US$) Loans or other financial products for Microfinance 284 585 685,40 361 932 768,59 individuals Small Loans or other financial products for 14 814 832,82 16 487 511,02 business individuals Long term: Transactions with tenor greater than 12 months 38

Any lending, leasing or other financial assistance to any corporate or legal entity Microfinance 33 927 935,4 53 962 273,61 other than an individual, with individual transactions less than $50,000 Any lending, leasing or other financial Small assistance to any corporate or legal entity 71 234 432,98 109 479 802,51 business other than an individual, with individual transactions less than $300,000 Other Other (if Please describe 2 139 915 124,81 5 036 453 712,81 applicable) Safeguard Any category outstanding environmental Subpro-ject Type of loan Tenor and IR and39 IP Value of using ADB SME/ of loan Industry issues during Name of Sub-project exposure En I funds Trade (mont Sector* IP reporting (US$) v R finance hs) period and (yes/no) actions taken to address the issues Horticulture N/ No Yes LLC "Emir Parranda" MSB 60 90 860,0 (refrigerator В С A ) Horticulture (processing MSB 957 N/ No Yes LLC "Khorazm Kovunlari" 60 of В С 528,65 A agricultural products) Horticulture MSB 150 N/ No Yes LLC "Sarkor Kuruvchi" 60 (refrigerator В С 026,81 A ) Horticultural LLC "Zafarzhon Zhasur MSB 2 000 N/ No Yes 84 (greenhous В С Navoiy" 000,0 A e) Horticultural MSB N/ No Yes LLC "Kogon Mega Trans" 84 440 000,0 (greenhous В С A e) Horticulture MSB 710 N/ No Yes LLC "Narpay Optimum" 84 (refrigerator В С 200,00 A ) Horticultural MSB N/ No Yes PE "Leader Best Tomato" 60 535 000,0 (greenhous В С A e) Horticultural LLC "AR Logistics MSB N/ No Yes 60 499 440,5 (greenhous В С Vegetables Fruits" A e) Horticultural MSB 1 500 N/ No Yes LLC "Surkhon Kombinati" 84 (greenhous В С 000,0 A e) Horticulture (processing MSB N/ No Yes LLC "Indigo Trade" 72 300 000,0 of В С A agricultural products) Horticulture MSB 295 N/ No Yes LLC "Isroil Islom Hamkor" 60 (refrigerator В С 845,77 A ) Horticultural LLC "Porloқ oston MSB N/ No Yes 60 513 930,0 (greenhous B С agrofirmasi" A e) Horticulture LLC “Express Terminal MSB N/ No Yes 60 256 870,0 (refrigerator B С Savdo” A ) Horticulture (processing MSB N/ No Yes LLC “Urgut Marvaridi” 36 98 430,0 of B С A agricultural products) Horticulture PE "Asliddin Abduholik MSB N/ No Yes 60 450 000,0 (refrigerator B С 2005" A ) 40

Horticulture MSB N/ No Yes LLC “Kitob Agroplast” 60 390 585,0 (refrigerator B С A ) Horticulture MSB N/ No Yes LLC “Kitob Tehavtomatika” 48 150 000,0 (refrigerator B С A )

Horticultural LLC “Karmana MSB 4 215 199, N/ No Yes 120 (greenhous B С Agrotrading” 47 A e) Horticultural MSB N/ No Yes LLC “Avtomobilchi” 84 976 000,0 (greenhous B С A e) Horticulture MSB N/ No Yes ООО "Diamond Travel" 60 498 750,0 (refrigerator B С A )

C. Exposure by Horticulture Sectors

3. Please provide an indicative percentage of total Innovation to horticulture modernization loan portfolio per subcomponents:

% Horticulture Value Chain Industrial Sector Develoment Project Portfolio Cold storages 29% Modern greenhouse complex 55% Tree seedlings and drip irrigation 2,5% Equipment for processing and packaging (logistics) 11% Equipment for the production of vegetable oil 2,5%

{Note: Please attach environmental and social audit or due diligence reports and environmental and social monitoring reports for each Project Company, if available}

4. If engaged in long-term small business finance, please provide information on all loans with: (i) tenor longer than 12 months; and (ii) maximum $5000,000 loan size.

Note: Env = Environment, IR = Involuntary Resettlement, IP = Indigenous Peoples.

D. Environmental and Social Management System (ESMS)

5. REQUIREMENT: (1) FOR EXISTING SUBPROJECTS: ATTACHMENTS OF MONITORING REPORTS OR REPORT ON DISCHARGE PERMITS; AND

(2) FOR NEWLY APPROVED SUBPROJECTS: ATTACHMENTS OF ZVOS APPROVAL.

Policies & Processes Yes/No Has your organization developed and Yes implemented an ESMS? YES

If there is an ESMS already in place, have there been any updates to the ESMS or policy No and procedures adopted by your organization - during the reporting period?

Has senior management signed off on the No updated policy/procedure? -

The Bank is responsible for the implementation of the Bank's Environmental and Social Risk Management Policy. Director of the Small Business Lending Department O. Toshev, for the implementation of the Management Procedure

Has your organization appointed staff tasked environmental and social Yes to implement the ESMS? The risks for the implementation of the project “Development of the value chain in the Fruit and Vegetable Sector” using the funds of the Asian Development Bank are answered by the Head of the Financing Department using funds raised under the guarantee of the Government and other other funds L. Ramazanov Please give details of any transactions rejected due to environmental and/or social No - concerns.

Please state any difficulties and/or constraints In a rare case, it is difficult to determine

related to the implementation of the ESMS. which category of environmental risk a project belongs to.

Please describe how you ensure that your The work of companies conducting our subproject companies and their subprojects subproject and their subprojects is ensured in are operated in compliance with the national accordance with SPSU that meets the laws and regulations and applicable ADB’s requirements of national legislation, as well requirements. as established requirements of ADB.

Please give details of any material social and

environmental issues associated with clients during the reporting period. Did not occur 42

In case the existing ESMS is not fully functional, what is the action plan being The current SPSU is fully functional implemented by your organization?

Capacity Yes/No Please provide the name and contact information of the Environmental/Social Acting Director of the Small Business Officer or Coordinator who has the overall Yes Lending Department - responsibility for the implementation of the O. Toshev, ESMS. Tel +998 (71) 120-45-52

Head of the department of financing at the Please provide current staffing of other core expense of funds raised under the guarantee ESMS persons in the organization involved Yes of the Government and other funds - L. with ESMS implementation. Ramazanov Tel +998 (71) 120-45-64 The costs of the implementation of SPSU What was the budget allocated to the ESMS were allocated to the salaries of employees No and its implementation during the year? involved in the implementation of SPSU. Other expenses are payable as required. Monitoring Yes/No Monitoring is carried out by the employees of the Bank’s regional branches who financed Do you receive environmental and social the project together with the project initiators. monitoring reports from subproject No It is worth noting that the heads of lending to companies that you finance? legal entities of each regional branch were appointed responsible persons responsible for the implementation of SPSU

During the monitoring process, the implementation of the measures provided for in the environmental management plan is checked, that is, the implementation of the Do you check for ongoing compliance of your ADB national norms and requirements is subproject companies with national regulation Yes checked in this way. In addition, according to and any other requirements? the current legislation, the units of the Committee on Ecology and Environmental Protection monitor the implementation of the requirements of the conclusion of the state eco-examination.

Please describe how you monitor the In practice, monitoring of environmental and subproject company and their subproject’s No social impact issues will be carried out by social and environmental performance. bank employees. The Bank will monitor environmental and social impact issues on 43

which the equipment is fully delivered.

Upon departure to the facility, the Bank Do you require the subproject owner to Clerk, responsible for monitoring the submit to you evidence of compliance with subproject when leaving the facility, is Yes required environmental and social approvals required to verify the implementation of and permits for the subprojects. mitigation measures specified in the environmental management plan.

Please provide details of any accidents/ litigation/complaints/regulatory notices and fines:

- Any incidents of non-compliance with the applicable Environmental and Social No Requirements

- Covenants/conditionalities imposed

by the Financial Institution to the subproject company as a result of any non-compliance

Reporting Yes/No According to the adopted SPSU, based on the results of the monitoring, if the borrower has Is there an internal process to report on social failed to comply with the requirements for and environmental issues to senior Yes compliance with protective measures for management? environmental protection, the employee is obliged to inform the SPSU Manager about this to take appropriate measures.

Do you prepare any social and environmental reports: - For other multilateral agencies

- Other stakeholders No For ADB

- E&S reporting in the Report

Sustainability reports

Activities on ADB’s Prohibited Investment Activities List If any, please indicate the dollar percentage of loans or investments out of your total Not available outstanding exposure provided to clients who are substantially involved in ADB’s Prohibited 44

Investment Activities List (Refer to page 122 of SPS).

If the percentage is not zero, please explain these exposures and any steps that have been taken to reduce such exposure.

E. Category “B” Subprojects Using ADB Funds

The Bank was not funding the projects category "b" at the expense of the ADB

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

(To be submitted by the Bank to UZAIFSA)

6. Please provide responses to the questions below. Please include additional sheets or attachments as required to provide details on questions that have been answered Yes. The Bank is required to submit the annual performance report to UZAIFSA.

Name of the Financial JSCMB “Ipoteka bank” Institution Completed by (name): Boltaev Sherzod Position in Head of Divison Date: 14.01.2020 organization:

F. Portfolio Information Report Covering Period: From: 01.01.2019 To: 31.12.2019

7. For the reporting period, please provide the following information about your portfolio where applicable:

G. Business Lines Product Description Total exposure Average loan (or line outstanding for transaction) most recent FY size (US$) end (US$)

Microfinance Loans or other financial products 0 0% for individuals Small Loans or other financial products 0 0% business for individuals Long term: Transactions with tenor greater than 12 months Microfinance Any lending, leasing or other 0 0 financial assistance to any corporate or legal entity other than an individual, with individual transactions less than $50,000 Any lending, leasing or other 30 479 000 100% financial assistance to any corporate or legal entity other than Small an individual, with individual business transactions less than $300,000 Other Other (if Please describe applicable)

H. Exposure by Horticulture Sectors 8. Please provide an indicative percentage of total Innovation to horticulture modernization loan portfolio per subcomponents:

Industrial Sector % Horticulture Value Chain Develoment Project Portfolio

Intensive garden 3% Modern greenhouse complex 65% Regrigirated store 17% Equipment for processing of agriculture products 15%

{Note: Please attach environmental and social audit or due diligence reports and environmental and social monitoring reports for each Project Company, if available} 46

9. If engaged in long-term small business finance, please provide information on all loans with: (i) tenor longer than 12 months; and (ii) maximum $5 000,000 loan size. Any Sub outstand pro- ing ject Safeguard environ usin category mental g and IR ADB Type of and IP fund loan Tenor of Value of issues s SME/ Industry Name of Subpro-ject loan exposur during trade Sector* (months) e (US$) reportin finance g period ) and (yes/ Env IR IP actions no) taken to address the issues Agricultural N/ JV "Nisi Multifruits Trade" credit 60 B C No Yes 667.0 processing A N/ "Dilrabo-94" LLC credit 60 cold storages B C No Yes 156.2 A "Jamshid Javohir Agrotexservis" N/ credit 60 greenhouse B C No Yes LLC 450.0 A N/ «NAVOIYAGRO» LLC credit 84 greenhouse B C No Yes 1,500.0 A N/ "Suvon Omonturdi" PE credit 60 cold storages B C No Yes 200.0 A N/ "Фаровон Термиз Чорва" LLC credit 60 cold storages B C No Yes 250.0 A Dryer fruits N/ "Dil shams qamar" LLC credit 60 and B C No Yes 265.9 A vegetables N/ «Ozodbek -Servis» LLC credit 60 Greenhouse B C No Yes 390.0 A N/ "Marokand agro invest" Farming credit 84 Garden B C No Yes 992.6 A "Pastdarg'om Erkin Sabzavotlari" N/ credit 60 Greenhouse B C no Yes Farming 1,000.0 A N/ "Platina Parnik Servis" LLC credit 60 Greenhouse B C no Yes 500.0 A "TASHKENT TRUST TRADE" N/ credit 48 cold storages B C no Yes LLC 250.0 A N/ "Qiziriq ximiyaviy ugit" LLC credit 60 cold storages B C no Yes 244.7 A Greenhouse N/ «PERFECT LOGISTICS» LLC credit 60 and cold B C no Yes 1,090.8 A storages Production of N/ «Miller Grand Kapital» PE credit 60 B C no Yes 948.5 beverages A Manufacture N/ “Ravshan Yodik Production” LLC credit 60 carton boxes B C no Yes 500.3 A for fruits N/ «Mirzahamdeov Ravshan» PE credit 60 cold storages B C no Yes 250.0 A N/ "Turkiston Mirishkorlari" LLC credit 60 cold storages B C no Yes 376.8 A "Yogdu Fayz bogdorchilik" N/ credit 60 cold storages B C no Yes Farming 798.5 A 47

N/ “Fayzli Ummon" LLC credit 60 cold storages B C no Yes 168.7 A *Please use the sectors listed in the earlier table or any standard classification. Note: Env = Environment, IR = Involuntary Resettlement, IP = Indigenous Peoples.

I. Environmental and Social Management System (ESMS)

10. REQUIREMENT: (1) FOR EXISTING SUBPROJECTS: ATTACHMENTS OF MONITORING REPORTS OR REPORT ON DISCHARGE PERMITS; AND (2) FOR NEWLY APPROVED SUBPROJECTS: ATTACHMENTS OF ZVOS APPROVAL. Policies & Processes Yes/No Has your organization developed and Yes In connection with the implemented an ESMS? implementation of the ADB project №3471-UZB/3673-UZB: Horticulture Value Chain Development, the Management Board of JSCMB "Ipotekabank" approved the ESMS Procedures for implementation of the above Project on 24th May 24, 2017. Copies in Russian and English are attached. If there is an ESMS already in place, have No there been any updates to the ESMS or policy and procedures adopted by your organization during the reporting period? Has senior management signed off on the Yes As indicated in the paragraphs updated policy/procedure? above, the internal documents of the bank on ESMS were approved by the Supervisory Board and the Management Board of the Bank. Has your organization appointed staff Yes The Bank appointed Mr.Sherzod tasked to implement the ESMS? Boltaev tasked to implement the ESMS. As well there are responsible for implementation ESMS from in every branch is head of credit divisions. (High education). Please give details of any transactions Before financing project, specialist of rejected due to environmental and/or ESMS ll check eligibility for project social concerns. for category for requirements of ADB. For example we rejected to finance: - not relating holticulture sphere like livestock projects. Our client wants to organize cold storages for beef, chicken and frozen fishes. Cant prove to storage only fruits and vegetables. - To buy transports. We checked that he is going to use this kind of transport only for livestock business. - To produce beer from wheet. 48

Please state any difficulties and/or Sometimes there are some constraints related to the implementation misunderstandings and difficulties to of the ESMS. categorize some sub projects in requirement ADB. Please describe how you ensure that your Every sub projects should accord subproject companies and their natioanal laws and norms, as well subprojects are operated in compliance requirements ADB. with the national laws and regulations and applicable ADB’s requirements. Please give details of any material social No There are no questions during period and environmental issues associated with of report. clients during the reporting period. In case the existing ESMS is not fully Current ESMS is functional functional, what is the action plan being implemented by your organization? Capacity Yes/No Please provide the name and contact Sherzod Boltaev, Head of information of the Environmental/Social Department, Officer or Coordinator who has the overall [email protected] responsibility for the implementation of the ESMS. Please provide current staffing of other Yes State committee on Ecology and core ESMS persons in the organization environmental protection. State involved with ESMS implementation. sanitary epidemiology service of the Republic of Uzbekistan. What was the budget allocated to the At the expense of salary. If there is ESMS and its implementation during the any business trips on regarding year? ESMS, bank ll pay for this expenses. Monitoring Yes/No Do you receive environmental and social Yes After financing subprojects, there monitoring reports from subproject will be done monitoring ecology companies that you finance? and social questions according to appendix 6, Procedures on Environmental and Social Management for “Horticulture Value Chain Development” project financed by Asian Development Bank. Beside of this, staff will check requirements of ADB. Do you check for ongoing compliance of Yes In process monitoring, checking your subproject companies with national whether doing national law norms regulation and any other requirements? and requirements ADB. Please describe how you monitor the The sub-project coordinator monitors subproject company and their subproject’s the site visits and on the basis of the social and environmental performance. supporting documents, monitoring is carried out, the sub-project initiator fulfills all the obligations to implement the current requirements for environmental protection measures prescribed in the EIS and in the 49

conclusion of the state environmental review.

Do you require the subproject owner to Yes The initiator of the subproject submit to you evidence of compliance with submits to the ESMS Coordinator the required environmental and social supporting documents for approvals and permits for the subprojects. compliance with the necessary environmental and social approving documents and permits, on the basis of which the ESMS coordinator monitors and provides the ESMS Manager for further reporting on ESMS.

Please provide details of any accidents/ No There is no any notices and fines. litigation/complaints/regulatory notices and fines: - Any incidents of non-compliance with the applicable Environmental and Social Requirements - Covenants/conditionalities imposed by the Financial Institution to the subproject company as a result of any non-compliance Reporting Yes/No Is there an internal process to report on Yes Credit and environmental policies social and environmental issues to senior have been approved. Based on the management? policy during the quarterly monitoring of credit lines, environmental monitoring is also conducted. All project monitoring reports are submitted to the bank branch manager. Do you prepare any social and No environmental reports: - For other multilateral agencies - Other stakeholders - E&S reporting in the Report Sustainability reports

Activities on ADB’s Prohibited Investment Activities List If any, please indicate the dollar percentage of loans or investments out of your total outstanding exposure provided to clients who are substantially involved in ADB’s 0% Prohibited Investment Activities List (Refer to page 122 of SPS). If the percentage is not zero, please explain these exposures and any steps that have been taken to reduce such exposure.

J. Category “B” Subprojects Using ADB Funds 11. Please provide information about all new subprojects using ADB loan funding approved during this reporting period. N/A 50

Annual report of PJSCB “DAVR BANK” on the environmental and social performance (as of January. 01, 2020)

1. Please provide the answers to the questions below. Please include additional sheets or attachments as needed to provide detailed information on matters for which the answers are in the affirmative. Bank must submit an annual report on the implementation to ADB

Name of Financial Institution PJSCB “DAVR BANK” Completed specialist (full name): - 51

Head of Project Date: January. 01, Position in the organization: Implementation 2020 Group

A. Information on the portfolio

The period of coverage of the report: From: Till: Jan. 01, 2019 Dec. 31, 2019

2. Please provide the following information about your portfolio, where applicable in the reporting period:

B. Type of activity

The overall effect Average loan size issued at the end of the Product line Description (or transaction) (in last fiscal year (in US$) US$)

Loans and other financial Micro financing 36 610 832,28 1 576,23 products for physical entities

Loans and other financial Small business products for physical entities 3 117 077,65 7 549,28 and individual entrepreneurs

Long term: Transactions for a period longer than 12 months

Any lending, leasing and other financial support to corporate Micro financing entities or entities, that are not 16 587 775,52 6 737,52 individuals, deal with less than 45 000 US dollars

Any lending, leasing and other financial support to corporate Small business entities or entities, that are not 22 424 876,95 104 789,14 individual, deal with less than 300 000 US dollars

Other 52

Any lending, leasing and other financial support to corporate Other (if applicable) entities or entities, that are not 19 607 658,14 676 126,14 individual, deal with more than 300 000 US dollars

C. Impacton on the horticulture 3. Please provide the estimated percentage of the total loan portfolio of horticulture: % of the loan portfolio of horticulture value Industry Sector chain development project Fruit seedlings 14

Vegetable seeds 0

Refrigeration warehouses 0 Technological line for drying fruits and 42 vegetables processing line for mung beans 0

Packaging equipment 0

Greenhouse 44 Note: Please attach environmental and social audits or expert reports, test reports on environmental and social risks for each project of the company, subject to availability.

4. If there is a long-term financing of horticulture, please provide information on all loans to: (I) for a period longer than 12 months; and (II) the sum of the loan is not more than 5 000 000 US dollars.

Any The outstanding project is Protection environmen due to the Category Value Value (US$) (US$) (Small (Small project project Sector* Sector* impacts impacts months) months) Industry Industry tal and IR line of the Loan type type Loan Business / Business Name of the the of Name

Loan term (in (in term Loan and IP Asian Trade Finance) Trade 53

issues Developm during the ent Bank period of (yes / no) drafting the reports and IP IP IR IR actions ENV ENV taken to address issues

JV Agrofirm Small 60 Horti “Bulungur- 1 383 000 B C N/A No Yes Business months culture Sandvik” LTD “Royal Roses” Small 37 334 Horti B C N/A No Yes LLC Business months 946.50 culture "ORGANIK Small 60 1 160 000. Horti GREEN B C N/A No Yes Business months 00 culture FOOD" LLC * Please use a sector listed in the preceding table or any standard classification Note: Env = Environment, IR = displacement, IP = Indigenous Peoples.

D. Environmental and Social Management System (ESMS) 5. Requirements: (1) for existing projects: investment monitoring reports or documents for issuing permits for discharges; and (2) for newly approved projects: the attachment of the approved ZVOS.

Policies and Processes Yes/No Does your organization have Submitted Yes developed and feasible ESMS? If ESMS already there, whether any New procedure was approved on additions and changes made to or 15.05.2017 for ESMS, a copy was received from your organization's No submitted. policies and procedures during the reporting period? Does management signed an updated Management has not signed an No policy / procedure? updated policy Does your organization assigned Mahmudov Gayrat personnel, which tasked with the Yes Head of Project Implementation Group implementation of ESMS? Provide details of any transactions Several subprojects were rejected rejected due to environmental and / or Yes according to ZVOS category and social problems. equipment's Country of origin Please indicate any difficulties and / There was not any difficulty regarding to or restrictions related to the No implementation of ESMS. implementation of ESMS. 54

It should describe what was All subprojects which refinanced by ADB confirmed that the companies and were screened by following steps: their projects operate in accordance • in accordance with the list of prohibited with laws and regulations and meet investment activities; the requirements of ADB. Yes • according to the list of control questions for environmental screening; • According to the screening list for compliance with ADB's social risk measures Please describe in detail any of the During refinancing subprojects, ESMS materials on the social and managers deeply learned all stages of environmental risks regarding No environmental and social risks and did customers for the period. not find any seriously risks which can influence to environment and social. If the existing ESMS is not fully Existing ESMS approved fully functional, which action plans are No functional approved in your organization? Capabilities Yes/No Please provide the name and contact Mahmudov Gayrat Mazbudovich information of the manager or the Head of Project Implementation Group Environmental Protection Tel num: +998712070909 (internal numb Yes Environment Coordinator / social 123) protection, which is the main responsible for the implementation / Present staff schedule of the Every quarter PJSCB “DAVR BANK” organization and staff involved in the ESMS managers organizes seminars for implementation of ESMS. credit officers in order to give correct Yes perception to initiators of subprojects and implement monitoring while refinancing projects What is a budget for the Budget is not allocated implementation of ESMS during the No year? Monitoring Yes/No Are you getting the environmental Monitoring managers of the bank fills the and social monitoring reports from act-“Typical area monitoring form” during the companies whose projects were refinancing for sub-projects of ADB. Yes financed? Moreover, every year monitoring managers make cite visiting monitoring of refinanced sub-projects Are the company projects constantly Once a year, sub-projects are monitored by checked for compliance with laws and Yes monitoring officer. other requirements? Please describe how you are checking With access to the site, monitoring the project of the company, social and Yes manager fills the act-“typical area monitoring form” after refinanced 55 environmental performance of the subproject. This year, a visit was made project. to the place of all sub-projects Is the project initiator requested to The subproject initiator requested to get provide verification for compliance Conclusion of State committee for with the required environmental and Nature protection (ZVOS) social agreements and project approvals? Please provide information on any During researching environmental and incidents / litigation / complaints / social risks of sub-projects there was legal requirements and fines: not any incident, ligation and - Cases of non-compliance with complaints. applicable environmental and social No protection; Covenants / conditionality imposed by the financial institution on the project of the company as a result of any non-compliance Reporting Yes /No Is there an internal process to inform During the processing of documents, management on the environmental specialist of the credit department gives and social protection? a conclusion on approval of the project for refinancing, as well as on environmental and social checklist screening. After financing, every year Yes with the access to the site, the project will be monitored and environmental and social checklist will be completed by the monitoring department manager and the Bank's management will be informed about monitoring results. Do you prepare any reports on social PJSCB “DAVR BANK” does not and environmental protection: prepare any reports on social and - Other multilateral agencies environmental protection to other No - Other interested parties agencies. - Statements of E & S on the report on sustainable development Activity on the list of prohibited investment activities ADB If any, please specify dollar No 0% equivalent of loans in percentage or investments of the total portfolio to customers who, in fact, fall into the list of prohibited investment activities ADB (Page 122 environmental policy). If the percentage is not zero, please No 0% explain these effects and any steps 56 that would be taken to reduce such exposure.

E. Projects category "B" using ADB funds

6. Provide information on all new projects, debt financing by ADB funds approved during the reporting period. N/A

ANNUAL REPORT ON EFFECTIVENESS OF IMPLEMENTATION OF ECOLOGICAL AND SOCIAL MEASURES

Name of financial institution JSCB Turonbank

Filled in (name): Muminov Tahir

Position in organization: Specialist Date: 12 . 02 .20 20

A. Portfolio Information Period covered by the report:

From: 01/01/2019 9 g. Until: 31 .12.20 19 g.

1. Provide the following information for the reporting period about your loan portfolio, when applicable

B. Activity

Products Description Total outstanding debt Average loan size at the end of the last (or operations) available f.g. (thousand dall. (thousand dall. USA) USA) Microfinance Loans or other financial products for 30 269 , 4 2 , 0 individuals Small business Loans or other financial products for 12,290 , 4 1 , 4 individuals Long-term operations : on surgery with a validity period of more than 12 months Any lending, leasing and other financial assistance to any corporate or legal entity, except for the Microfinance 31 600 , 2 10 , 2 individual, with the volume of individual transactions of less than 50 000 dollars. US Any lending, leasing and other financial assistance to any corporate or legal entity, with the exception of Small business 59 149 , 5 124.14 the individual, with the volume of individual transactions 300 000 dollars. US Other Other (if Factoring 204 , 9 34 , 2 available) Any lending, leasing and other financial assistance to any corporate or legal entity, except for the 314 507 , 3 1,443.28 individual, with the volume of separate operations over 300 000 dollars. US Total 448 0 21.7 16 , 3

C. Debt by fruit and vegetable sectors 2. Indicate the approximate percentage of total innovation for the loan portfolio for the modernization of the fruit and vegetable by subcomponents:

Industrial sector % of innovations within the loan portfolio for the modernization of horticulture (ADB) Purchase of equipment I have for the greenhouse farming 77 % Purchase of processing equipment 10% Purchased tion equipment for the refrigeration chamber 8 % Creating an intense garden 4% Agrology 0.5% Grape 0.5%

3. If you participate in long-term financing schemes for small businesses in the horticulture sector , please provide information on all loans: ( i ) whose term exceeds 12 months; ( ii ) whose size is a maximum of 5,000 thousand . d all. USA.

Any Safeguard outstanding environmenta Sub- Value of category l and IR and project Type of Tenor of exposure(th Industry IP issues using Name of Sub-project loanSME/tr loan(mon during ousand Sector ADB ade finance) ths) reporting US$) period and funds(ye Env IR IP actions taken s/no) to address the issues ООО "Sarbon Asl Savdo" longtermcredit 72 440 horticulture B no no No Yes LLC TEKHCHORVASERVIS longtermcredit 84 564 horticulture B no no No Yes LLC SHURCHI MEBEL longtermcredit 60 98,6 horticulture В no no No Yes FE NUROBOD longtermcredit 60 185 horticulture B no no No Yes JV LLC EAST-WEST SURXON longtermcredit 84 312,4 horticulture B no no No Yes LLC AGROVER longtermcredit 120 5000 horticulture C no no No Yes LLC O'ZMATBAA TA'MINOT longtermcredit 120 3400 horticulture В no no No Yes Total 7 10 000

D. Environmental and Social Management System (SPSU)

4. REQUIREMENT: ( 1) FOR FURTHER SUBPROJECTS: ATTACHED MONITORING REPORTS OR PERMIT ISSUANCE REPORT; (2) FOR NEWLY APPROVED SUBPROJECTS: ATTACHED DOCUMENT ON APPROVAL OF THE ZVOS.

Policies and processes Well no Does your organization have developed and To describe I instrument on SPSU to Yes implemented SPSU? this report attached Is there an existing SPSU, has this system been updated or the policies and procedures adopted by your organization for the reporting period? Not

Has senior management signed updated policy / Not procedure documents? 59

Naz start your organization 2 UECD coordinators and 20 UECD persons from respectively for the implementation Yes coordinators from bank branches of SPSU? Provide details of any operations rejected due to concerns about environmental and / or social Not issues. Indicate any difficulties and / or limitations Submission of reports on the ADB Yes associated with the implementation of SPSU. project in a foreign language Describe how you will ensure the work of On the basis of the credit in the companies conducting your sub - project and contract in and under the laws of the their sub - projects in accordance with national Republic of Uzbekistan the borrower laws and regulations, as well as established is obliged to fulfill all obligations on requirements of ADB. the implementation of existing requirements for environmental protection measures Report any significant social and environmental issues related to customers that arose during the Not reporting period. If the current SPSU is not fully functional, what Not will be the action plan of your organization? Potential Well no Provide the name and contact details of the specialist or environmental / social Khamraev Zukhriddin (tel: At all trainings conducted by ARSP coordinator who has overall responsibility for the 202 - 01 - 01 ext. 160 ) and ADB implementation of the MPS. Provide the names of other actors in the Dustov Alisher The Bank holds training organization responsible for SPSU and (tel: 202 - 01 - 01 seminars for branch specialists in participating in the implementation of this ext. 159 ) each quarter of the year . system. What was the budget allocated to SPSU and its The sum of n eznachiteln th , as implementation during the year? the coordinator of UESR are active professionals bank branch Monitoring Well no Do you receive reports on monitoring environmental and social issues from the Yes supporting documents attached companies that sponsor subprojects funded by you? Do you check the level of current implementation According to the legislation of the by the company conducting your subproject, Republic of Uzbekistan, the national standards and any other requirements? implementation of national standards and any Yes other environmental requirements is controlled by state bodies . The Bank monitors the project to implement their mitigation measures. Describe how you monitor the companies Coordinator of the subproject is responsible for your subproject and the social and carried out on-site monitoring of the environmental indicators of their subproject. object space and to base e acknowledging x document s Yes being monitored, studied performing initiated subproject implementation of all obligations under the existing requirements for environmental protection measures, spelled out in 60

the EIS and in the conclusion of the state ecological expertise. Do you require the initiator of the subproject to The initiator of the subproject is the provide you with confirmation of compliance Coordinator UESR evidence of with the necessary environmental and social compliance with the required approving documents and permits for environmental and social approving subprojects? Yes documents and permits, to base e which UESR Coordinator monitors and provides managers UESR for dalneyschem formation of SPSU reporting. Provide details of any accidents / litigation / complaints / regulatory notices and fines: - any cases of non-compliance with applicable environmental and social requirements - mandatory conditions / counter conditions put Not forward by the financial organization in relation to the company conducting the subproject as a result of any non-compliance with the requirements Reporting Well no Is there a procedure adopted by the organization There is a position of the department according to which it is necessary to report on in charge of international credit social and environmental issues to senior lines. On the basis of th position management? Yes manager UESR collects all project reporting coordinator UESR quarterly and provides the bank's management . Are you preparing any social and environmental reports: - for other multilateral institutions AKB Turonbank social and - other interested parties Not environmental reports provided only - as part of environmental and social by ADB reporting Sustainability Reports

Activities listed in ADB's List of Prohibited Investment Activities If any, indicate the dollar denominated percentage of loans or investments from the outstanding receivables of your customers that essentially fall under the ADB's List of 0 % Prohibited Investment Activities (see page 122 of the ADB Safeguards Policy Statement). If the percentage is not zero, explain these debts, as well as There is no loan that essentially falls under the “List of any steps that have been taken to reduce them. prohibited investment activities” by ADB

E. Category B subprojects that use ADB funds .

5. Provide information on all new subprojects using ADB loan financing that were approved during this reporting period.

N/A

HORTICULTURE: PFI’s ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

(To be submitted by PFIs to RRA)

12.

Name of the Financial Institution JSICB “Ipak Yuli”

Completed by (name): S.Nigmatullaev

Position in organization: ESMS Coordinator of JSICB “Ipak Date: 13.01.2020 Yuli”

A. Portfolio Information

Report Covering Period: 1 year

From: 01.01.2019 To: 31.12.2019

13. Information about loan portfolio of the Bank for the reporting period:

B. Business Lines

Product line Description Total exposure Average loan outstanding for (or transaction) most recent size (US$) FY end

(US$)

Microfinance Loans or other financial products for 28 058 409 7 187 individuals with individual transactions less than $50,000

Small Loans or other financial products for 3 322 570 77 269 business individuals with individual transactions less than $300,000 63

Long term: Transactions with tenor greater than 12 months

Microfinance Any lending, leasing or other financial 34 114 034 11 671 assistance to any corporate or legal entity other than an individual, with individual transactions less than $50,000

Any lending, leasing or other financial 64 189 513 117 863 assistance to any corporate or legal entity Small other than an individual, with individual business transactions less than $300,000

Other

Other (if Shor-term transactions with corporate 87 529 019 71 335,79 applicable) clients (tenor less than 12 monts)

and long-term transaction (tenor greater than 12 months) with corporate clients of 116 006 188 920 684 more than $300,000.

C. Exposure by Horticulture Sectors

3.1 Indicative percentage of industrial sectors for the project financed under ADB Loan 3471-UZB: Horticulture Value Chain Development Project:

Industrial Sector % Horticulture Value Chain Develoment Project Portfolio

Intensive garden 27,4% Modern greenhouse complex 53,0% Regrigirated store 13,5%

Equipment for processing of agriculture products 6,1%

{Note: Please attach environmental and social audit or due diligence reports and environmental and social monitoring reports for each Project Company, if available}

3.2 Indicative percentage of industrial sectors for the project financed under ADB Loan 3673(COL)-UZB: Horticulture Value Chain Development Project:

Industrial Sector % Horticulture Value Chain Develoment Project Portfolio

Modern greenhouse complex 100%

4 Information on all loans with: (i) tenor longer than 12 months; and (ii) maximum $5,000,000 loan size:

Any outstanding environmental and IR and IP issues during reporting period and actions taken to address the issues – For all projects there are not outstanding environmental and IR and IP issues. Please see attachment 1.

*Please use the sectors listed in the earlier table or any standard classification. Note: Env = Environment, IR = Involuntary Resettlement, IP = Indigenous Peoples.

D. Environmental and Social Management System (ESMS)

5 REQUIREMENT: (1) FOR EXISTING SUBPROJECTS: ATTACHMENTS OF MONITORING REPORTS OR REPORT ON DISCHARGE PERMITS; AND

(2) FOR NEWLY APPROVED SUBPROJECTS: ATTACHMENTS OF ZVOS APPROVAL.

Activities on ADB’s Prohibited Investment Activities List If any, please indicate the dollar percentage of loans or investments out of your total outstanding exposure provided to clients who 0% are substantially involved in ADB’s Prohibited Investment Activities List (Refer to page 122 of SPS).

If the percentage is not zero, please explain these exposures and any steps that have been taken to reduce such exposure.

E. Category “B” Subprojects Using ADB Funds

Information about all new subprojects using ADB loan funding approved during this reporting period (Under the ADB loan 3673(COL)-UZB: Horticulture Value Chain Development Project

N/A 66

Appendix 7

PFI’s ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

(To be submitted by PFIs to RRA)

14. Please provide responses to the questions below. Please include additional sheets or attachments as required to provide details on questions that have been answered Yes. The PFI is required to submit the annual performance report to RRA.

Name of the Financial JSCB Hamkorbank Institution

Completed by (name): Avazbek Fazliev

Position in Head of sector for Date: 15.01.2020 organization: environmental assessment and monitoring

K. Portfolio Information

Report Covering Period:

From: To:

01.01.2019 01.12.2019

15. For the reporting period, please provide the following information about your portfolio where applicable:

L. Business Lines

Product line Description Total exposure Average loan outstanding for (or transaction) most recent size (US$) FY end

(US$)

Microfinance Loans or other financial products for individuals 67

141 973 896 794

Small Loans or other financial products 3 975 890 1 094 business for individuals

Long term: Transactions with tenor greater than 12 months

Microfinance Any lending, leasing or other financial assistance to any corporate or legal entity other than 136 927 999 9 343 an individual, with individual transactions less than $50,000

Any lending, leasing or other financial assistance to any corporate or legal entity other than 97 670 132 101 213 Small an individual, with individual business transactions less than $300,000

Other

Other (if Please describe applicable)

M. Exposure by Horticulture Sectors

16. Please provide an indicative percentage of total Innovation to horticulture modernization loan portfolio per subcomponents:

Industrial Sector % of Innovation to horticulture modernization loan portfolio

For purchasing of fruit seedlings, vegetable seeds for greenhouses, vegetable, melon and legume seeds and system installation of drip irrigation 47% systems.

Purchase specialized equipment and attachments and cold rooms, greenhouses and processing equipment, processing and packaging 33%

Purchasing of cold storages, energy-efficient greenhouses and processing and packaging 20% equipment

{Note: Please attach environmental and social audit or due diligence reports and environmental and social monitoring reports for each Project Company, if available}

17. If engaged in long-term small business finance, please provide information on all loans with: (i) tenor longer than 12 months; and (ii) maximum $5000,000 loan size.

Name of Type of Tenor of Value of Industry Safeguard Any Subpro- Subpro- loan loan exposure Sector* category outstanding ject ject environmental using SME/trade (months) (US$) and IR and IP ADB finance) issues during funds Env IR IP reporting period and actions taken to address the (yes/no) issues

“Nukus Universa l Bazasi” SME 84 524,9 Trade B none Yes LTD

“Baxt B Imkon SME 60 cattle- None Yes Rivoj 592,2 Chorvasi breeding ” farm

“Andijon- B Un” LTD 212,8 SME 84 Trade None Yes

“Rukhsh B abod SME 72 fruit and None Yes Agro 311,1 Sahovat” vegetabl LTD e

“Navoiy B Aziya SME 120 freight None Yes Trans 140,6 Servis” services PE

“Temir B Tulagan Boglari” SME 84 90,5 Farm None Yes farm

“Usta B Salimhoji 182,2 ” PE SME 84 Trade None Yes 69

“Fursat B Mahorat” 232,7 PE SME 120 Trade None Yes

“Shamat B on Brok Treyd” SME 60 188,5 productio None Yes LTD ns

“Jasur” B farm SME 60 34,4 cattle- None Yes breeding

“Sulton fruit and B bobo” 134,9 vegetabl farm SME 60 e None Yes

“Best B Butter Producti SME 120 68,7 productio None Yes on” PE ns

“Baraka B Meva SME 84 Trade None Yes Sanoat 349,9 Servis” LTD

“Baraka B Meva SME 84 Trade None Yes Sanoat 244,5 Servis” LTD

“Yonariq fruit and B Davr vegetabl Istiqboli” SME 60 53,8 e None Yes LTD

“Bogi fruit and B Saryon” 36,6 vegetabl LTD SME 84 e None Yes 70

“Agroelit fruit and B Parkent” 835,9 vegetabl LTD SME 84 e None Yes

“Abduma B lik SME 84 Trade None Yes Baraka 118,1 Savdo” LTD

Qarshi B makhsus sanoat SME 84 Construc None Yes qurilish 124,6 tion tamir LTD

*Please use the sectors listed in the earlier table or any standard classification. Note: Env = Environment, IR = Involuntary Resettlement, IP = Indigenous Peoples.

N. Environmental and Social Management System (ESMS)

18. REQUIREMENT: (1) FOR EXISTING SUBPROJECTS: ATTACHMENTS OF MONITORING REPORTS OR REPORT ON DISCHARGE PERMITS; AND

(2) FOR NEWLY APPROVED SUBPROJECTS: ATTACHMENTS OF ZVOS APPROVAL. Policies & Processes Yes/No Has your organization developed and If yes, please attach a copy of the implemented an ESMS? ESMS to this report. Yes

If there is an ESMS already in place, have there been any updates to the If yes, please provide a copy of the ESMS or policy and procedures adopted Yes updates including dates and by your organization during the reporting reasons for the same. period?

Has senior management signed off on If yes, please provide the date and internal communication indicating 71 the updated policy/procedure? Yes the same.

Has your organization appointed staff Coordinator for compliance with tasked to implement the ESMS? environmental regulations – Yes A.Fazliev - Head of sector for environmental assessment and monitoring. He has 17 years experience in banking and MSME finance, bachelor’s degree. Please give details of any transactions rejected due to environmental and/or social concerns. No

Please state any difficulties and/or constraints related to the implementation of the ESMS. No

Please describe how you ensure that your subproject companies and their We demand the conclusion of local subprojects are operated in compliance Yes environmental expertise. Conduct with the national laws and regulations monitoring and in case violations and applicable ADB’s requirements. are identified loan is suspended. Precautionary measures are undertaken, which are described in the contract. Please give details of any material social and environmental issues associated with clients during the reporting period. No

In case the existing ESMS is not fully functional, what is the action plan being implemented by your organization? No

Capacity Yes/No Please provide the name and contact Coordinator for compliance with information of the Environmental/Social environmental regulations – Yes Officer or Coordinator who has the overall A.Fazliev - Head of sector for responsibility for the implementation of environmental assessment and the ESMS. monitoring. Uzbekistan, 170119 Andijan, 85 Babur st. tel: +998 78 2980696 (1125) mob: +998 90 2530690 [email protected] 72

Training: 24/06/2019 ADB: training for ESMS; 25-29/06/2019 FMO: training for ESMS in Tbilisi; 18/11/2019 World Bank: training for ESMS;

Please provide current staffing of other All front and Back office staff was core ESMS persons in the organization trained on-site in the branches to yes involved with ESMS implementation. comply with environmental policies. Head of front office is the focal point for the environment compliance at branches What was the budget allocated to the In our Bank the budget for the ESMS and its implementation during the training not allocated. Trainings are No year? organized as per reports and as per plan of study Monitoring Yes/No Do you receive environmental and social monitoring reports from subproject companies that you finance? No

Do you check for ongoing compliance of We check our clients in compliance your subproject companies with national with national regulation and chek regulation and any other requirements? Yes their activity according to our ESMS policy Please describe how you monitor the After the loan’s disbursement we subproject company and their monitor the activities of clients once subproject’s social and environmental Yes every 6 or 12 months according to performance. our ESMS policy

Do you require the subproject owner to submit to you evidence of compliance with required environmental and social No approvals and permits for the subprojects.

Please provide details of any accidents/ litigation/complaints/regulatory notices and fines: No

- Any incidents of non-compliance with 73

the applicable Environmental and Social Requirements

- Covenants/conditionalities imposed

by the Financial Institution to the subproject company as a result of any non-compliance

Reporting Yes/No Is there an internal process to report on Report is provided monthly for social and environmental issues to senior mamagement: management? Yes 1. The report of the monitoring in the branches 2. The report of the managar’s conclusions for financial projects

Do you prepare any social and environmental reports: - For other multilateral agencies No

- Other stakeholders

- E&S reporting in the Report

Sustainability reports

Activities on ADB’s Prohibited Investment Activities List If any, please indicate the dollar percentage of loans or investments out of your total outstanding exposure provided to clients who 0,4% are substantially involved in ADB’s Prohibited (production of or trade in alcoholic Investment Activities List (Refer to page 122 beverages) of SPS).

If the percentage is not zero, please explain these exposures and any steps that have been taken to reduce such exposure.

O. Category “B” Subprojects Using ADB Funds

19. Please provide information about all new subprojects using ADB loan funding approved during this reporting period. 74

Name of Subproject Company: “Jasur” farm

Subproject location: Samarkand region, Samarkand district, Kulbapayon MFY

Horticulture sector: Cold storage

Value of exposure (US$ ): 34 412,00

Was any environmental and social due We check our clients in compliance with diligence undertaken by your organization? national regulation and chek their activity according to our ESMS policy

Any environmental assessment report or audit No reports reviewed by your organization?

What were the main environmental issues We check our clients in compliance with associated with this subproject that were national regulation and chek their activity identified through due diligence conducted by according to our ESMS policy (in ESMS your organization, and how were the issues policy in more detail described process dealt with (i.e., outcome of due diligence)? analysis of clients)

Did you discuss with the subproject owner the Yes, we discuss with the owner all our applicable environmental and social safeguard check questions. requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable Yes ADB safeguard requirements?

Have there been any recorded incidents of No non-compliance or requests for corrective actions?

Have there been any grievances or complaints No lodged on the subproject by any affected person or concerned stakeholder?

Name of Subproject Company: “Baraka Meva Sanoat Servis” LTD

Subproject location: Namangan region, Chust district, Chust KFY

Horticulture sector: Gardening

Value of exposure (US$ ): 349 967,00

Was any environmental and social due We check our clients in compliance with diligence undertaken by your organization? national regulation and chek their activity according to our ESMS policy

Any environmental assessment report or audit No reports reviewed by your organization?

Did you discuss with the subproject owner the Yes, we discuss with the owner all our applicable environmental and social safeguard check questions. requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable Yes ADB safeguard requirements?

Have there been any recorded incidents of No non-compliance or requests for corrective actions?

Have there been any grievances or complaints No lodged on the subproject by any affected person or concerned stakeholder?

Name of Subproject Company: “Qarshi makhsus sanoat qurilish tamir” LTD 76

Subproject location: Kashkadarya region, Karshi city, Aralovul MFY Horticulture sector: Cold storage

Value of exposure (US$ ): 124 608,00

Was any environmental and social due We check our clients in compliance with diligence undertaken by your organization? national regulation and chek their activity according to our ESMS policy

Any environmental assessment report or audit No reports reviewed by your organization?

Did you discuss with the subproject owner the Yes, we discuss with the owner all our applicable environmental and social safeguard check questions. requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable Yes ADB safeguard requirements?

Have there been any recorded incidents of No non-compliance or requests for corrective actions?

Have there been any grievances or complaints No lodged on the subproject by any affected person or concerned stakeholder?

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

20. Please provide responses to the questions below. Please include additional sheets or attachments as required to provide details on questions that have been answered Yes. The Bank is required to submit the annual performance report to RRA. Name of the Financial JSCB “Asaka bank” Institution 77

Completed by (name): Position in organization: Head of Unit Date: 01.02.2020

P. Portfolio Information

Report Covering Period: From: 01.01.2019 To: 01.12.2019

21. For the reporting period, please provide the following information about your portfolio where applicable:

Q. Business Lines

Total exposure Average loan (or outstanding for most Product line Description transaction) size recent FY (thousand US$) end(thousand US$) Loans or other financial products for Microfinance 347 336 816,0 3 179.0 individuals Loans or other financial products for Small business 4 809.0 7 387.0 individuals Long term: Transactions with tenor greater than 12 months Any lending, leasing or other financial

assistance to any corporate or legal Microfinance 39 263 053.83 11 992.8 entity other than an individual, with

individual transactions less than $50,000 Any lending, leasing or other financial assistance to any corporate or legal 2 279 072 364 1 832 051.0 Small business entity other than an individual, with

individual transactions less than $300,000 Other Factoring Any crediting, leasing or other financial Other (if assistance to any corporate or legal applicable) entity, with the exception of an individual, with a separate transaction amount of more than $ 300,000

R. Exposure by Horticulture Sectors

22. Please provide an indicative percentage of total Innovation to horticulture modernization loan portfolio per subcomponents: % Horticulture Value Chain Develoment Industrial Sector Project Portfolio Intensive garden 3% Modern green house complex 17% Cold storages 64% 78

% Horticulture Value Chain Develoment Industrial Sector Project Portfolio Equipment for processing of agriculture products 17%

23. If engaged in long-term small business finance, please provide information on all loans with: (i) tenor longer than 12 months; and (ii) maximum $5000000 loan size. (Sub-project using ADB funds) Any outstanding environmental Sub- Type of Value of Safeguard and IR and IP project Tenor of loanSME exposure category issues during using Name of Sub-project loan Industry Sector reporting period /trade (thousand ADB (months) and actions finance) US$) taken to funds Env IR IP address the (yes/no) issues long-term LLC «Mangit Invest Plys» credit 60 477,00 Greenhouse В C N/A no yes long-term Dried agricultural PE «Poytug' Barkamol Qurilish» credit 84 494,20 products В C N/A no yes long-term Dried agricultural LLC «Barkamol Avlod Qalqoni» credit 84 446,40 products В C N/A no yes long-term Dried agricultural LLC «Asl Meva Invest» credit 84 100,00 products В C N/A no yes long-term Dried agricultural PE «Bunyod servis lyuks» credit 84 650,00 products В C N/A no yes long-term LCC «Sabo Hamkor» credit 60 1 502,20 Greenhouse В C N/A no yes LLC «Andijon export and import long-term Dried agricultural business solutions» credit 60 316,40 products В C N/A no yes long-term LLC «Jondor Qurilish Invest» credit 60 1 998,80 Greenhouse В C N/A no yes long-term LLC«Eltek Eksklyuziv» credit 60 450,00 Greenhouse В C N/A no yes Farm Enreprise «Uktam Buston long-term Saxovati» credit 84 450,00 Greenhouse В C N/A no yes The production of wine and long-term concentrated LLC «Gala River» credit 60 1 082,80 grape juice В C N/A no yes long-term LLC «Grand Bukhara agro» credit 84 2 000,00 Greenhouse В C N/A no yes long-term LLC «Kongres Baraka Agro» credit 60 250,00 Greenhouse В C N/A no yes long-term LLC «Mo’jiza agro service» credit 60 960,00 Greenhouse В C N/A no yes long-term LLC «Kelajakta’mirsavdo service» credit 60 180,00 Greenhouse В C N/A no yes long-term Dried agricultural Farm Enterpise «BotirIsaev» credit 60 280,00 products В C N/A no yes long-term LLC «Apple Universal Service» credit 84 700,00 Greenhouse В C N/A no yes Farm Enterpise «Ochilov Javoxir long-term Uzum Bog» credit 60 386,00 Greenhouse В C N/A no yes LLC «Samarkand Temir Beton long-term Konstruktsiya» credit 60 539,40 Greenhouse В C N/A no yes 79

«Urgut Elektro Service» Farm long-term Dried agricultural Enterpise credit 84 225,60 products В C N/A no yes long-term LLC«Shohjahon Bobur Boglari» credit 60 580,00 Greenhouse В C N/A no yes «Intensiv gold fruit» Farm long-term Dried agricultural Enterpise credit 84 1 749,82 products В C N/A no yes long-term PE LLC «Sirdarinskiy Bereg» credit 60 5 000,00 Greenhouse В C N/A no yes long-term LLC «Mirzaobod Universal Trade» credit 60 5 000,00 Greenhouse В C N/A no yes long-term LLC «Xoji Bohodirhon ota» credit 84 1 000,00 Greenhouse В C N/A no yes long-term Dried agricultural LLC «Nulu Fayz Imkon» credit 60 325,00 products В C N/A no yes «Surhon obi hayot» Farm long-term Dried agricultural Enterpise credit 84 5 000,00 products В C N/A no yes «Ezgulik Sari Agro» Farm long-term Enterpise credit 60 1 970,00 Greenhouse В C N/A no yes long-term LLC«Riv Makon» credit 60 449,50 Intensive garden В C N/A no yes long-term Dried agricultural LLC«Muh Plast Service» credit 60 493,00 products В C N/A no yes Family enterprise «Nodira Diyor long-term Dried agricultural Mevalari» credit 60 150,00 products В C N/A no yes long-term Dried agricultural LLC«Zimniy Sad» credit 84 3 167,90 products В C N/A no yes

S. Environmental and Social Management System (ESMS)Requirement:

Policies & Processes Yes/No Has your organization developed and Being attached a copy of the ESMS to this Yes implemented an ESMS? report. If there is an ESMS already in place, have there been any updates to the ESMS or policy No and procedures adopted by your organization during the reporting period? Has senior management signed off on the No updated policy/procedure?

Has your organization appointed staff tasked 22 ESMScoordinators from branches of the Yes to implement the ESMS? bank

Please give details of any transactions rejected due to environmental and/or social No concerns. Please state any difficulties and/or constraints Delivering reports on the ADB project in Yes related to the implementation of the ESMS. english language On the basis of the loan agreement and in Please describe how you ensure that your accordance with the legislation of the subproject companies and their subprojects Republic of Uzbekistan, the borrower is Yes are operated in compliance with the national obliged to fulfill all obligations to implement laws and regulations and applicable ADB’s the current requirements for environmental requirements. protection measures Please give details of any material social and No 80 environmental issues associated with clients during the reporting period. In case the existing ESMS is not fully functional, what is the action plan being No implemented by your organization? Capacity Yes/No Please provide the name and contact information of the Environmental/Social Officer or Coordinator who has the overall Yes Head of Unit: Bozorov M; responsibility for the implementation of the ESMS.

Please provide current staffing of other core Yes ESMS persons in the organization involved Head of Unit: Bozorov M; with ESMS implementation. What was the budget allocated to the ESMS ESMScoordinatorsare the current specialists and its implementation during the year? of the branch of the bank Monitoring Yes/No Do you receive environmental and social monitoring reports from subproject companies After having been financed the project, that you finance? environmental and social issues are presented in a monitored way due to the Annex 6 of the ESMS Procedures for the ADB Loan 3471-Uzb "Horticulture Value Chain Yes Development Project". Monitoring is completed according to the provided list of questions. Besides that, the Bank's monitoring officer checks the implementation of the Environmental Management Plan of the project.

According to the legislation of the Republic of Uzbekistan, the implementation of national Do you check for ongoing compliance of your standards and any other environmental Yes subproject companies with national regulation requirements is controlled by state bodies. and any other requirements? The Bank monitors the project to implement their mitigation measures.

Thecoordinator of the sub-project monitors fills appendix 6,and on the basis of supporting Please describe how you monitor the documents, monitoring is carried out, the sub- subproject company and their subproject’s Yes project initiator fulfills all obligations to social and environmental performance. implement the current requirements for environmental protection measures prescribed in the EIS and in the conclusion of the state environmental review.

The initiator of the subproject submits to the Do you require the subproject owner to submit Coordinator of the ESMS a confirmation of to you evidence of compliance with required compliance with the necessary environmental Yes environmental and social approvals and and social approvals and permits, on the permits for the subprojects. basis of which the coordinator of the ESMS monitors and provides the Manager of the ESMS for further reporting on ESMS. Please provide details of any accidents/ No 81 litigation/complaints/regulatory notices and fines: - Any incidents of non-compliance with the applicable Environmental and Social Requirements - Covenants/conditionalities imposed by the Financial Institution to the subproject company as a result of any non-compliance Reporting Yes/No Is there an internal process to report on social Due to the adopted procedure, based on the and environmental issues to senior results of the monitoring if the the management? requirements for compliance with environmental protection measures were Yes failed by the borrowers, manager of the ESMS collects all project reports from the coordinators of the ESMS and provides the management of the bank quarterly Do you prepare any social and environmental reports: Social and environmental reports are - For other multilateral agencies provided only to ADB No - Other stakeholders - E&S reporting in the Report Sustainability reports

Activities on ADB’s Prohibited Investment Activities List

If any, please indicate the dollar percentage of loans or investments out of your total outstanding exposure provided to clients who are substantially involved in 0 % ADB’s Prohibited Investment Activities List (Refer to page 122 of SPS). If the percentage is not zero, please explain these There is no credit that essentially falls under the exposures and any steps that have been taken to "List of prohibited types of investment activities" of reduce such exposure. ADB T. Category “B” Subprojects Using ADB Funds

24. Please provide information about all new subprojects using ADB loan funding approved during this reporting period. Name of Subproject Company: LLC«Mangit Invest Plys» Republic of Karakalpak, Mangit city,Amudarya Subproject location: district, Samarkand street 24 Organization of a greenhouse farm for growing Horticulture sector: agricultural products Value of exposure (US$ ): $ 477 000,0 Held. The coordinator of the sub-project carried Was any environmental and social due diligence out particular preliminary analysis and on the undertaken by your organization? basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit reports Yes. The Bank examined the ZVOS and the reviewed by your organization? conclusions of the state environmental review.

What were the main environmental issues associated This project falls under the category 3, according with this subproject that were identified through due to the Conclusion of State Ecological Expertise diligence conducted by your organization, and how and in compliance with Decree of Cabinet of 82 were the issues dealt with (i.e., outcome of due Ministers №491 dated 31/12/2001. diligence)? By the result of inspection of this project it is revealed that there will be generated industrial and consumption waste, which are formed within a year, such as waste of tops of vegetables, waste of the used polyethylene film, waste of the rejected boxes, waste of worn-out bags, fluorescent lamps. As the technology of energy and resource efficient greenhouse doesn’t imply planting of seedlings into the ground and implies the use of hydroponics, there will be no pollution of soil and cultivation of land. The greenhouse will be operated with natural gas, which can help to avoid emission of air polluting substances in large volumes. As this environment-friendly technology is designated to save resources, chemical fertilizers will be used in limited volumes through a drip irrigation system, which also saves water resources provided from the planned artesian well. Also short-term influence in the atmosphere of inorganic dust when carrying out construction works of an object is expected, the project has provided dust suppression of the working platform. For each type of waste the place and conditions for temporary storage at the site territory as well as further movement of waste has been determined. In particular, consumption residual shall be submitted to specialized enterprises for utilization. Used mercury lamps shall be submitted to specialized companies for demercuration Did you discuss with the subproject owner the applicable environmental and social safeguard Yes.Bank specialists discussed, explained and requirements and their implementation? clarified to the subproject owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints lodged No by this time there were no complaints on the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: LLC «Poytug' Barkamol Qurilish» Subproject location: Andijan cityNavoiy street 46 Horticulture sector: Organization of drying of agricultural products Value of exposure (US$ ): $ 494 211,0 83

Held. The coordinator of the sub-project carried Was any environmental and social due diligence out a check-out at the site of the site and on the undertaken by your organization? basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit reports Yes. The Bank examined the ZVOS and the reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues associated Producing of construction and household waste. with this subproject that were identified through due The initiator of the project was instructed to take diligence conducted by your organization, and how the waste to specially remote places were the issues dealt with (i.e., outcome of due The main waste is produced by the procedures diligence)? as washing, cleaning, polishing, sorting, dehydration and others. Therefore, it may lead to a generation of wastewater, which will be discharged to the central sewage system, with the subsequent dumping into the region sewerage. Production operations can cause appearing generated solid and household wastes, which ought to be collected and disposed to the special landfill. Food waste generated is planned to be utilized for cattle feed. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard presented the clarification to the subproject requirements and their implementation? owner all the requirements regarding the environmental and social safeguard in order to accomplish during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints lodged No, by this time there were no complaints on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Barkamol Avlod Qalqoni» Subproject location: Region of AndijanAsaka district МСГ Yangiobod Horticulture sector: Organization of drying of agricultural products with annual capacity of 1800 tonness Value of exposure (US$ ): 446 400,0 Held. The coordinator of the sub-project carried Was any environmental and social due diligence out a check-out at the site of the site and on the undertaken by your organization? basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit reports Yes. The Bank examined the ZVOS and the reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues associated - Producing of construction and household with this subproject that were identified through due waste. The initiator of the project was instructed diligence conducted by your organization, and how to take the waste to specially remote places were the issues dealt with (i.e., outcome of due The main waste is produced by the procedures diligence)? as washing, cleaning, polishing, sorting, 84

dehydration and others. Therefore, it may lead to a generation of wastewater, which will be discharged to the central sewage system, with the subsequent dumping into the region sewerage. Production operations can cause appearing generated solid and household wastes, which ought to be collected and disposed to the special landfill. Food waste generated is planned to be utilized for cattle feed. Did you discuss with the subproject owner the Yes. Bank specialists discussed, explained and applicable environmental and social safeguard presented the clarification to the subproject requirements and their implementation? owner all the requirements regarding the environmental and social safeguard in order to accomplish during the implementation of project. Does the subproject comply with applicable Yes,it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes,according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No,there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints lodged No,by this time there were no complaints on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Asl Meva Invest » Subproject location: Region of AndijanBo'z districtA.Ikramov street Horticulture sector: Organization of drying of agricultural products with annual capacity of 400tonnes Value of exposure (US$ ): 100 000,0 Held. The coordinator of the sub-project carried out a check-out at the site of the site and on the Was any environmental and social due diligence basis of supporting documents on protective undertaken by your organization? measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues - Producing of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. The main waste is produced by (i.e., outcome of due diligence)? the procedures as washing, cleaning, polishing, sorting, dehydration and others. Therefore, it may lead to a generation of wastewater, which will be discharged to the central sewage system, with the subsequent dumping into the region sewerage. Production operations can cause appearing generated solid and household wastes, which ought to be collected and disposed to the special landfill. Food waste is planned to be utilized for cattle feed.

Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and 85 applicable environmental and social safeguard presented the clarification to the subproject requirements and their implementation? owner all the requirements regarding the environmental and social safeguard in order to accomplish during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. ,Have there been any grievances or complaints No,by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: PE «Bunyod servis lyuks» Subproject location: Region of Andijan,Asaka districtKujgan streetNavoiy Horticulture sector: Organization of drying of agricultural products with annual capacity of 1116 tonnes Value of exposure (US$ ): 650 000,0 Held. The coordinator of the sub-project carried Was any environmental and social due diligence out a check-out at the site of the site and on the undertaken by your organization? basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes. It was discussed, explained and clarified to applicable environmental and social safeguard the subproject owner by the bank specialists requirements and their implementation? with all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes,according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No,there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No,by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Sabo Xamkor» Region of Andijan, city of Andijan, Babur street Subproject location: 73. 86

Organization of a greenhouse farm for growing Horticulture sector: agricultural products such as vegetables and bananas with 3 hectares Value of exposure (US$ ): 1 314 390,0 Held. Particularly there were undertaken preliminary analyses of environmental impact Was any environmental and social due diligence (ecological screening), social safeguards undertaken by your organization? screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: «Andijon export and import business solutions» Subproject location: Region of Andijan, Paxtaobod district Nodirabegim Horticulture sector: Organization of drying agricultural products Value of exposure (US$ ): 316 400,0 Held. The coordinator of the sub-project carried Was any environmental and social due diligence out a check-out at the site of the site and on the undertaken by your organization? basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Due to the screening the process, there are associated with this subproject that were identified occurred formation of construction, household, through due diligence conducted by your economic, and food waste. The initiator of the organization, and how were the issues dealt with project was instructed to take the waste to (i.e., outcome of due diligence)? specially remote places. Did you discuss with the subproject owner the Yes. It was discussed, explained and clarified to applicable environmental and social safeguard the subproject owner by the bank specialists requirements and their implementation? with all the requirements regarding the 87

environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No,there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No,by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Jondor Qurilish Invest» Subproject location: Buhara region, Jondor city, F.Hudjaev street. 20 Organization of a greenhouse farm for growing Horticulture sector: agricultural products Value of exposure (US$ ): 1 998 756,0 Held. Particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. , Does the subproject comply with applicable Yes it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Eltek Eksk lyuziv» Subproject location: Buhara region, Buhara city, Namozgox street. 92/7 Horticulture sector: Organization of a greenhouse farm for growing 88

agricultural products Value of exposure (US$ ): 450 000,0 Yes, particularly there were undertaken preliminary analyses of environmental impact Was any environmental and social due diligence (ecological screening), social safeguards undertaken by your organization? screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues By the result of inspection of this project it is associated with this subproject that were identified revealed that there will be generated industrial through due diligence conducted by your and consumption waste, which are formed within organization, and how were the issues dealt with a year, such as waste of tops of vegetables, (i.e., outcome of due diligence)? waste of the used polyethylene film, waste of the rejected boxes, waste of worn-out bags, fluorescent lamps. As the technology of energy and resource efficient greenhouse doesn’t imply planting of seedlings into the ground and implies the use of hydroponics, there will be no pollution of soil and cultivation of land. The greenhouse will be operated with natural gas, which can help to avoid emission of air polluting substances in large volumes. As this environment-friendly technology is designated to save resources, chemical fertilizers will be used in limited volumes through a drip irrigation system, which also saves water resources provided from the planned artesian well. Also short-term influence in the atmosphere of inorganic dust when carrying out construction works of an object is expected, the project has provided dust suppression of the working platform. For each type of waste the place and conditions for temporary storage at the site territory as well as further movement of waste has been determined. In particular, consumption residual shall be submitted to specialized enterprises for utilization. Used mercury lamps shall be submitted to specialized companies for demercuration. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance 89 compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: PE «Uktam Buston Saxovati» Subproject location: Buhara region, Bukhara city, Otbozor Horticulture sector: Organization of a greenhouse farm for growing agricultural products for 1,13 years Value of exposure (US$ ): 450 000,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues By the result of inspection of this project it is associated with this subproject that were identified revealed that there will be generated industrial through due diligence conducted by your and consumption waste, which are formed within organization, and how were the issues dealt with a year, such as waste of a tops of vegetables, (i.e., outcome of due diligence)? waste of the used polyethylene film, waste of the rejected boxes, waste of worn-out bags, fluorescent lamps. As the technology of energy and resource efficient greenhouse doesn’t imply planting of seedlings into the ground and implies the use of hydroponics, there will be no pollution of soil and cultivation of land. The greenhouse will be operated with natural gas, which can help to avoid emission of air polluting substances in large volumes. As this environment-friendly technology is designated to save resources, chemical fertilizers will be used in limited volumes through a drip irrigation system, which also saves water resources provided from the planned artesian well. Also short-term influence in the atmosphere of inorganic dust when carrying out construction works of an object is expected, the project has provided dust suppression of the working platform. For each type of waste the place and conditions for temporary storage at the site territories as well as further movement of waste have been determined. In particular, consumption residual shall be submitted to specialized enterprises for utilization. Used mercury lamps shall be submitted to specialized companies for demercuration. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply 90

with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Gala River» Subproject location: Buhara region, Buhara city, Furkhat street, 5 Horticulture sector: On the organization of the enterprise for the production of wine and concentrated grape juice Value of exposure (US$ ): 1 082 800,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues In the technological process, waste will be associated with this subproject that were identified formed in the form of combat scraps, skin, grape through due diligence conducted by your seeds, used mineral materials (betonies, organization, and how were the issues dealt with diatomite, and perlite), waste paper, spent (i.e., outcome of due diligence)? fluorescent lamps, food residues and solid waste. The pressing, grape seeds and waste of the crests, along with the remainder of the food, are given to farmers for feeding cattle, waste paper - to recyclable materials. Spent fluorescent lamps will be surrendered for demercurization. The used mineral materials and solid waste are transported to the landfill for solid waste. Did you discuss with the subproject owner the Yes,Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. 91 concerned stakeholder?

Name of Subproject Company: LLC «Grand Bukhara argo» Subproject location: Buhara region, Kogon street ССГ Turkunda Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 2 000 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have therebeen any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Congress Bukhara agro» Subproject location: Bukhara region, Kogon street ССГ Turkunda Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 250 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially 92 organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes,according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Mojiza agro sanoat service» Subproject location: Namangan region Yankurgan district korapolvonstreet Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 960 000,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. , Does the subproject comply with applicable Yes it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise, Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder? 93

Name of Subproject Company: LLC «Kelajak tamir savdo service» Subproject location: Namangan city, Sharshara street. House 60 Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 180 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues By the result of inspection of this project it is associated with this subproject that were identified revealed that there will be generated industrial through due diligence conducted by your and consumption waste, which are formed within organization, and how were the issues dealt with a year, such as waste of a tops of vegetables, (i.e., outcome of due diligence)? waste of the used polyethylene film, waste of the rejected boxes, waste of worn-out bags, fluorescent lamps. As the technology of energy and resource efficient greenhouse doesn’t imply planting of seedlings into the ground and implies the use of hydroponics, there will be no pollution of soil and cultivation of land. The greenhouse will be operated with natural gas, which can help to avoid emission of air polluting substances in large volumes. As this environment-friendly technology is designated to save resources, chemical fertilizers will be used in limited volumes through a drip irrigation system, which also saves water resources provided from the planned artesian well. Also short-term influence in the atmosphere of inorganic dust when carrying out construction works of an object is expected, the project has provided dust suppression of the working platform. For each type of waste the place and conditions for temporary storage at the site territories as well as further movement of waste have been determined. In particular, consumption residual shall be submitted to specialized enterprises for utilization. Used mercury lamps shall be submitted to specialized companies for demercuration. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary 94 safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: «Botir Isayev» Subproject location: Namangan region, Namangan district. Irvodon Horticulture sector: Organization of drying agricultural products Value of exposure (US$ ): 275 530,0 Held. The coordinator of the sub-project carried Was any environmental and social due diligence out a check-out and on the basis of supporting undertaken by your organization? documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues While the conduction of screening and due to the associated with this subproject that were identified process, Formation of construction, household, through due diligence conducted by your economic, food waste are occured. The initiator organization, and how were the issues dealt with of the project was instructed to take the waste to (i.e., outcome of due diligence)? specially remote places. Did you discuss with the subproject owner the Yes,Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes,it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes,according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No,there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No,by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Apple Universal Service» Subproject location: Samarkhand region, Pastirgan district, selo bolti ali Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 700 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. 95

Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: «Ochilov Javoxir Uzum Bog» Farm enterprise Subproject location: Samarkhand region, Pastirgan district, selo Namuna Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 386 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes, documents on this project, such as Project reports reviewed by your organization? of ZVOS (environmental assessment report) and Conclusion of State Ecological Expertise under the State Committee on Ecology and Environmental Protection, were inspected by credit expert and ESMS coordinator.. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. 96

Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Samarkand Temir Beton Konstruktsiya» Subproject location: Samarkhand region, Okdarya district. Hamraev street Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 546 400,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues By the result of inspection of this project it is associated with this subproject that were identified revealed that there will be generated industrial through due diligence conducted by your and consumption waste, which are formed within organization, and how were the issues dealt with a year, such as waste of tops of vegetables, (i.e., outcome of due diligence)? waste of the used polyethylene film, waste of the rejected boxes, waste of worn-out bags, fluorescent lamps. As the technology of energy and resource efficient greenhouse doesn’t imply planting of seedlings into the ground and implies the use of hydroponics, there will be no pollution of soil and cultivation of land. The greenhouse will be operated with natural gas, which can help to avoid emission of air polluting substances in large volumes. As this environment-friendly technology is designated to save resources, chemical fertilizers will be used in limited volumes through a drip irrigation system, which also saves water resources provided from the planned artesian well. Also short-term influence in the atmosphere of inorganic dust when carrying out construction works of an object is expected, the project has provided dust suppression of the working platform. For each type of waste the place and conditions for temporary storage at the site territories as well as further movement of waste have been determined. In particular, consumption residual shall be submitted to specialized enterprises for utilization. Used mercury lamps shall be 97

submitted to specialized companies for demercuration. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: PE «Urgut electro service» Subproject location: Samarkhand region, Urgut district. Ilonli street Horticulture sector: Organization of drying agriculture products Value of exposure (US$ ): 225 606,0 Held. The coordinator of the sub-project carried Was any environmental and social due diligence out a check-out at the site of the site and on the undertaken by your organization? basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes, documents on this project, such as Project reports reviewed by your organization? of ZVOS (environmental assessment report) and Conclusion of State Ecological Expertise under the State Committee on Ecology and Environmental Protection, were inspected by credit expert and ESMS coordinator. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes. Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes,it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes,according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No,there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No,by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder? 98

Name of Subproject Company: LLC «Shokhjakhon Bobur boglari» Subproject location: Samarkhand region, Samarkhand district Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 580 000,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes, documents on this project, such as Project reports reviewed by your organization? of ZVOS (environmental assessment report) and Conclusion of State Ecological Expertise under the State Committee on Ecology and Environmental Protection, were inspected by credit expert and ESMS coordinator. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: «Intensiv gold fruit» Farm enterprise Subproject location: Samarkhand region, Urgut district, Agro firm Dekhon obod Horticulture sector: Organization of drying agricultural products Value of exposure (US$ ): 1 749 600,0 Was any environmental and social due diligence Held. The coordinator of the sub-project undertaken by your organization? completed a check-out and on the basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project 99 through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: PE LLC «Sirdarinskiy Bereg» Subproject location: Sirdarya region, Saykhunobod district. Yoshlik Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 4 900 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes, documents on this project, such as Project reports reviewed by your organization? of ZVOS (environmental assessment report) and Conclusion of State Ecological Expertise under the State Committee on Ecology and Environmental Protection, were inspected by credit expert and ESMS coordinator. What were the main environmental issues By the result of inspection of this project it is associated with this subproject that were identified revealed that there will be generated industrial through due diligence conducted by your and consumption waste, which are formed within organization, and how were the issues dealt with a year, such as waste of a tops of vegetables, (i.e., outcome of due diligence)? waste of the used polyethylene film, waste of the rejected boxes, waste of worn-out bags, fluorescent lamps. As the technology of energy and resource efficient greenhouse doesn’t imply planting of seedlings into the ground and implies the use of hydroponics, there will be no pollution of soil and cultivation of land. The greenhouse will be operated with natural gas, which can help to avoid emission of air polluting substances in large volumes. As this environment-friendly technology is designated to save resources, chemical fertilizers will be used in limited volumes through a drip irrigation system, which 100

also saves water resources provided from the planned artesian well. Also short-term influence in the atmosphere of inorganic dust when carrying out construction works of an object is expected, the project has provided dust suppression of the working platform. For each type of waste the place and conditions for temporary storage at the site territories as well as further movement of waste have been determined. In particular, consumption residual shall be submitted to specialized enterprises for utilization. Used mercury lamps shall be submitted to specialized companies for demercuration. Did you discuss with the subproject owner the Yes Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Asl Meva Invest» Subproject location: Andijan region, Buzsom district. A.Ikramov street Horticulture sector: Organization of drying agricultural products with annual capacity of 400tonnes Value of exposure (US$ ): 100 000,0 Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check-out and on the basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes,Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. 101

Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes,according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Mirzaobod Universal Trade» Subproject location: Sirdarya region, Mirzaabad district Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 4 900 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues associated with this subproject that were identified Formation of construction, household, through due diligence conducted by your economic, food waste. The initiator of the project organization, and how were the issues dealt with was instructed to take the waste to specially (i.e., outcome of due diligence)? remote places. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Xoji Bakhodirxon Ota» Subproject location: Sirdarya region, Xovos district Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 1 000 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental impact 102 undertaken by your organization? (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues By the result of inspection of this project it is associated with this subproject that were identified revealed that there will be generated industrial through due diligence conducted by your and consumption waste, which are formed within organization, and how were the issues dealt with a year, such as waste of tops of vegetables, (i.e., outcome of due diligence)? waste of the used polyethylene film, waste of the rejected boxes, waste of worn-out bags, fluorescent lamps. As the technology of energy and resource efficient greenhouse doesn’t imply planting of seedlings into the ground and implies the use of hydroponics, there will be no pollution of soil and cultivation of land. The greenhouse will be operated with natural gas, which can help to avoid emission of air polluting substances in large volumes. As this environment-friendly technology is designated to save resources, chemical fertilizers will be used in limited volumes through a drip irrigation system, which also saves water resources provided from the planned artesian well. Also short-term influence in the atmosphere of inorganic dust when carrying out construction works of an object is expected, the project has provided dust suppression of the working platform. For each type of waste the place and conditions for temporary storage at the site territories as well as further movement of waste have been determined. In particular, consumption residual shall be submitted to specialized enterprises for utilization. Used mercury lamps shall be submitted to specialized companies for demercuration. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder? 103

Name of Subproject Company: LLC «Nulu Fayz Imkon» Subproject location: Surkhandarya region, Sariosiyo district, Uzbekistan street Horticulture sector: Organization of drying agricultural Value of exposure (US$ ): 325 000,0 Was any environmental and social due diligence Held.Particularly there was undertaken undertaken by your organization? preliminary analysis of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: «Surxan obi hayat» Subproject location: Surkhandarya region, Termez city, Yangiyer street Horticulture sector: Organization of drying agricultural products Value of exposure (US$ ): 5 000 000,0 Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check-out at the site of the site and on the basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes,Bank specialists discussed, explained and 104 applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes,according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No,there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No,by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: «Ezgulik Sari Agro» Subproject location: Tashkent region, Kibray district, Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 1 970 000,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes. Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints Noby this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Mux plast service» Subproject location: Fergana region, Toshlaq district, ogaxiy street, house 137 105

Horticulture sector: Organization of drying agricultural products Value of exposure (US$ ): 493 000,0 Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check-out at the site of the site and on the basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints Noby this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: Joint Venture «Nodira Diyor Mevalari» Subproject location: Fergana region, Oliariq district, Furkhat street house 19 Horticulture sector: Organization of drying agricultural products Value of exposure (US$ ): 150 000,0 Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check and on the basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise 106

Name of Subproject Company: LLC «Zimniy sad» Subproject location: Fergana region, Dangar district, selo Chinaabad Horticulture sector: Organization of a greenhouse farm for growing agricultural products Value of exposure (US$ ): 3 167 900,0 Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check-out at the site of the site and on the basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise Does the subproject comply with applicable ADB Yes according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Chodak Sardor farm servis» Subproject location: Fergana region, Tashlaq district, Navoiy street, house 16 Horticulture sector: Organization of drying agricultural products Value of exposure (US$ ): 390 000,0 Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check and on the basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the 107 reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes. Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, bank specialists discussed, explained and government requirements? clarified to the subproject owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable ADB Yes, it complies, as evidenced by the positive safeguard requirements? Conclusion of State Ecological Expertise. Have there been any recorded incidents of non- No, according to the results of preliminary compliance or requests for corrective actions? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any grievances or complaints No, there were no incidents of non-compliance lodged on the subproject by any affected person or observed. concerned stakeholder?

Name of Subproject Company: LLC «Yozavon Marvaridi» Subproject location: Fergana region, Yezvon district, Mustakillik street, house 5 Horticulture sector: Organization of drying agricultural products Value of exposure (US$ ): 118 000,0 Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check-out at the site of the site and on the basis of supporting documents on protective measures and an environmental management plan was developed. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance 108 compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC«Ali Kushchi agro export» Subproject location: Xorezm region, Xazarasp district, G.Gulam street 101 Horticulture sector: Organization of a greenhouse farm for growing agricultural products for 2,6 years Value of exposure (US$ ): 1 092 800,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Riv Makon» Subproject location: Samarkhand region, Samarkhand district, Ulugbekh Horticulture sector: Organization of gardening Value of exposure (US$ ): 449 480,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the 109 reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues According to the Conclusion of State Ecological associated with this subproject that were identified Expertise this project falls under the 4th category through due diligence conducted by your in compliance with Decree of Cabinet of organization, and how were the issues dealt with Ministers #491 dated 31/12/2001. However, (i.e., outcome of due diligence)? because of large scale of operation, namely intensive gardening in 93 hectares and by the results of conducted preliminary environmental and social impacts analyzes and safeguard due diligence report specialists of the bank assigned to the project category B on environmental impact and category C on involuntary resettlement impact. There were no serious issues observed within this project, as the technology of intensive gardening itself means the economy and saving of resources. However, other factors with less considerable impact and consequences, such as intensive cultivation of land, which may lead to the change in landscape, occurrence of household and construction waste in minor volumes, use of chemical fertilizers, which may cause soil pollution, possible stagnation of water and others were also studied. By the end of inspection, there were held explanatory talks with project initiators, during which it was clarified that minor household and construction wastes occurring within a project will be collected to a special metal container and utilized in specially designated places, only permitted types of chemical fertilizers will be used in an economical manner and limited amounts through a drip irrigation system, which also help to avoid water stagnation. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Sag Agro» Subproject location: Samarkhand region, Jomboy district, selo Navbahor 110

Horticulture sector: Organization of gardening Value of exposure (US$ ): 4 750 000,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analysis of environmental impact (ecological screening), social safeguards screening, safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues According to the Conclusion of State Ecological associated with this subproject that were identified Expertise this project falls under the 4th category through due diligence conducted by your in compliance with Decree of Cabinet of organization, and how were the issues dealt with Ministers #491 dated 31/12/2001. However, (i.e., outcome of due diligence)? because of large scale of operation, namely intensive gardening in 93 hectares, and by the results of conducted preliminary environmental and social impacts analyzes and safeguard due diligence report specialists of the bank assigned to the project category B on environmental impact and category C on involuntary resettlement impact. There were no serious issues observed within this project, as the technology of intensive gardening itself means the economy and saving of resources. However, other factors with less considerable impact and consequences, such as intensive cultivation of land, which may lead to the change in landscape, occurrence of household and construction waste in minor volumes, use of chemical fertilizers, which may cause soil pollution, possible stagnation of water and others were also studied. By the end of inspection, there were held explanatory talks with project initiators, during which it was clarified that minor household and construction wastes occurring within a project will be collected to a special metal container and utilized in specially designated places, only permitted types of chemical fertilizers will be used in an economical manner and limited amounts through a drip irrigation system, which also help to avoid water stagnation. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB 111

safeguard requirements. Have there been any recorded incidents of non- No,there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Sag Agro Bulung'ur» Subproject location: Samrkhand region, Bulungur district, Urta buloq street Horticulture sector: Organization of gardening Value of exposure (US$ ): 1 924 000,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analysis of environmental impact (ecological screening), social safeguards screening, safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues According to the Conclusion of State Ecological associated with this subproject that were identified Expertise this project falls under the 4th category through due diligence conducted by your in compliance with Decree of Cabinet of organization, and how were the issues dealt with Ministers #491 dated 31/12/2001. However, (i.e., outcome of due diligence)? because of large scale of operation, namely intensive gardening in 93 hectares, and by the results of conducted preliminary environmental and social impacts analyzes and safeguard due diligence report specialists of the bank assigned to the project category B on environmental impact and category C on involuntary resettlement impact. There were no serious issues observed within this project, as the technology of intensive gardening itself means the economy and saving of resources. However, other factors with less considerable impact and consequences, such as intensive cultivation of land, which may lead to the change in landscape, occurrence of household and construction waste in minor volumes, use of chemical fertilizers, which may cause soil pollution, possible stagnation of water and others were also studied. By the end of inspection, there were held explanatory talks with project initiators, during which it was clarified that minor household and construction wastes occurring within a project will be collected to a special metal container and utilized in specially designated places, only permitted types of chemical fertilizers will be used in an economical manner and limited amounts through a drip irrigation system, which also help to avoid water stagnation. 112

Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Name of Subproject Company: LLC «Agro Eksport» Subproject location: Jizzakh region, Sh.Rashidov district, Horticulture sector: Organization of a greenhouse farm for growing agricultural products for 2,0 ha Value of exposure (US$ ): 900 000,0 Was any environmental and social due diligence Held. Particularly there were undertaken undertaken by your organization? preliminary analyses of environmental impact (ecological screening), social safeguards screening, and safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator. Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the reports reviewed by your organization? conclusions of the state environmental review. What were the main environmental issues Formation of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the project through due diligence conducted by your was instructed to take the waste to specially organization, and how were the issues dealt with remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained and applicable environmental and social safeguard clarified to the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of project. Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, according to the results of preliminary safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements. Have there been any recorded incidents of non- No, there were no incidents of non-compliance compliance or requests for corrective actions? observed. Have there been any grievances or complaints No, by this time there were no complaints lodged on the subproject by any affected person or received. concerned stakeholder?

Sub-projects of the category “C”in which are usedfromADB funds. 113

the amount The Initiator of Sub- The locationof The goal of The basis for classifying a sub- № of the sub- loan Sub-project sub-project project into category "C" project (thousa nd US $)

114

Appendix 7

ANNUAL REPORT OF JSC “NATIONAL BANK FOR FOREIGN ECONOMIC ACTIVITY OF THE REPUBLIC OF UZBEKISTAN” ON EFFICIENCY OF IMPLEMENTATION OF ECOLOGICAL AND SOCIAL MEASURES

25. Please provide responses to the questions below. Please include additional sheets or attachments as required to provide details on questions that have been answered Yes. The Bank is required to submit the annual performance report to RRA.

Name of the Financial JSC “NATIONAL BANK FOR FOREIGN ECONOMIC Institution ACTIVITY OF THE REPUBLIC OF UZBEKISTAN”

Completed by (name): Khalilov Nurali Position in organization: Chief specialist Date: 20.01.2020

U. Portfolio Information

Report Covering Period:

From: 01.01.2019 To: 31.12.2019

26. For the reporting period, please provide the following information about your portfolio where applicable: 115

V. Business Lines

Total exposure Description outstanding for most Average loan (or Product line Loan or other types of financial products for recent transaction) size Microfinance individuals FY end (thousand US$) (thousand US$)

Microfinance Loans or other financial products for individuals 477 647,4 2,3

Small business Loans or other financial products for individuals 11 675,1 6,5

Long term: Transactions with tenor greater than 12 months Any lending, leasing or other financial assistance to any corporate or legal entity other Microfinance 82 693,53 11,03 than an individual, with individual transactions less than $50,000 Any lending, leasing or other financial assistance to any corporate or legal entity other Small business 192 821,0 87,2 than an individual, with individual transactions less than $300,000 Other Any crediting, leasing or other financial assistance to any corporate or legal entity, with Other (if applicable) 5 013 474,7 2 678 the exception of an individual, with a separate transaction amount of more than $ 300,000

W. Exposure by Horticulture Sectors

27. Please provide an indicative percentage of total Innovation to horticulture modernization loan portfolio per subcomponents:

% of Innovation to horticulture Industrial Sector modernization loan portfolio

For processing fruits and vegetables 28,5% For creating intensive garden 32,8% Purchase of energy efficient greenhouses 23,9% Purchase of refrigerators 14,8% 116

% of Innovation to horticulture Industrial Sector modernization loan portfolio

Total 100%

{Note: Please attach environmental and social audit or due diligence reports and environmental and social monitoring reports for each Project Company, if available} 28. If engaged in long-term small business finance, please provide information on all loans with: (i) tenor longer than 12 months; and (ii) maximum $5 000 000 loan size.

Any outstanding Safeguard category environmental and IR and IP Subproject Type of loan Tenor of Value of Industry issues during using ADB Name of Sub-project SME/Trade loan exposure Sector* reporting period funds finance (months) (thousand US$) and actions (yes/no) Env. IR IP taken to address the issues

Purchase of SME energy «Sharq Yulduzi Fayz» LLC 84 1 095,0 B C N/A NO YES efficient greenhouses Purchase of «Sunday Business Group» SME energy 60 1 210,0 B C N/A NO YES LLC efficient greenhouses

«Xazorbog' Shirin SME Purchase of 60 198,0 B C N/A NO YES Mevalari» LLC refrigerators

"GOLDEN FRUIT SME Purchase of 60 117,0 B C N/A NO YES PRODUCTION" LLC refrigerators

For «MUSAFFO IQLIM SME processing 60 1 992,0 B C N/A NO YES SERVIS» LLC fruits and vegetables "KOSONSOY SERHOSIL For creating SME INTEVSIV 120 4 632,0 intensive B C N/A NO YES BOGlARI" LLC garden For «MUSHTARIY SME processing 120 3 181,0 B C N/A NO YES OQDARYO» LLC fruits and vegetables

117

118

Purchase of "ALP JAVOHIR SME energy 60 1 000,0 B C N/A NO YES JAVLONBEK" LLC efficient greenhouses Purchase of "ISLOMBEK FIRDAVS SME energy 72 395,0 B C N/A NO YES AGRO" LLC efficient greenhouses For «Jizzakh Leader Food» SME processing 84 780,0 B C N/A NO YES LLC fruits and vegetables Purchase of «Aziz Agro Imkon Sanoat» SME energy 60 579,8 B C N/A NO YES LLC efficient greenhouses Purchase of SME energy «Chashma Tomchi» LLC 60 598,5 B C N/A NO YES efficient greenhouses For creating intensive «ZOMIN MEVA SME garden and 60 5 000,0 B C N/A NO YES LOGISTIKA» LLC processing fruits and vegetables

SME Purchase of «Аlisher Kipshak» LLC 60 306,1 B C N/A NO YES refrigerators

SME Purchase of «M-G’ulom» LLC 60 198,5 B C N/A NO YES refrigerators 119

SME Purchase of «Kungrad Vek Stroy» LLC 60 199,9 B C N/A NO YES refrigerators

Purchase of «Navbahor fayz export" SME energy 84 340,0 B C N/A NO YES LLC efficient greenhouses Purchase of «Шахруза Диёр Навоий» SME energy 60 498,0 B C N/A NO YES LLC efficient greenhouses Purchase of SME energy «Shirin Agro Nur» LLC 84 567,8 B C N/A NO YES efficient greenhouses Purchase of refrigerators SME and «Farma Servis» LLC 60 932,8 B C N/A NO YES processing fruits and vegetables

«Kristall - Fuyun SME Purchase of 108 698,0 B C N/A NO YES Industries» JV LLC refrigerators

Purchase of "AGRO EXPORT SME energy 84 2 000,0 B C N/A NO YES BARAKA" LLC efficient greenhouses

SME Purchase of «Eshnazar Invest» LLC 36 210,0 B C N/A NO YES refrigerators

For «AGROPROCESSING SME 84 4 656,0 processing B C N/A NO YES GROUP» LLC fruits and 120

vegetables

Purchase of «Muhammad SME energy 60 760,0 B C N/A NO YES Mironshokh» FE efficient greenhouses For SME processing «Agro Feed» LLC 84 3 386,0 B C N/A NO YES fruits and vegetables

"UZUN MEVA SABZAVOT SME Purchase of 60 185,0 B C N/A NO YES XOLODILNIK" LLC refrigerators

For SME processing «Master Global Plus» LLC 84 4 878,1 B C N/A NO YES fruits and vegetables Purchase of «Tomatto Pant Invest» SME energy 84 1 280,0 B C N/A NO YES LLC efficient greenhouses Purchase of «PISKENT PARRANDA» SME energy 60 2 320,0 B C N/A NO YES LLC efficient greenhouses Purchase of "AGRO SIFAT LOGISTIC" SME energy 84 717,0 B C N/A NO YES LLC efficient greenhouses

"MAX BUILDING SME Purchase of 60 415,0 B C N/A NO YES INDUSTRY" LLC refrigerators 121

"YUKSALISH CHORVA SME Purchase of 60 101,4 B C N/A NO YES SAHOVATI" FE refrigerators

"AZIMJON NURIDDIN SME Purchase of 84 123,0 B C N/A NO YES SAVDO SERVIS" LLC refrigerators

"GRAND DIAMOND SME Purchase of 84 500,0 B C N/A NO YES FRUITS" LLC refrigerators

"OLTIARIQ AGRO FAYZ" SME Purchase of 60 198,6 B C N/A NO YES LLC refrigerators For SME processing "ARAMATI BAGDADA" PE 60 600,0 B C N/A NO YES fruits and vegetables

SME Purchase of «MIR GRANITA» PE 72 486,5 B C N/A NO YES refrigerators

"ECO EXPORT TRADE" SME Purchase of 60 901,5 B C N/A NO YES LLC refrigerators

Purchase of «АSKAROV NORIMON» SME energy 84 546,4 B C N/A NO YES FE efficient greenhouses Purchase of «BAXT HARAKAT SME energy 84 620,3 B C N/A NO YES MEVASI» LLC efficient greenhouses For «TASHABBUS SME 60 267,8 processing B C N/A NO YES DO’RMON» FE fruits and 122

vegetables

«ОZОDBEK SME Purchase of 84 120,0 B C N/A NO YES АZАMATBEK» FE refrigerators

«FRESH FRUITS SME Purchase of 84 635,0 B C N/A NO YES EXPORT» FE refrigerators

«OLCHAZOR IMPEX» JV SME Purchase of 60 1 988,0 B C N/A NO YES LLC refrigerators

SME Purchase of «GABO» LLC 60 165,0 B C N/A NO YES refrigerators

For "ELIT CARTON BOX" SME processing 60 500,0 B C N/A NO YES LLC fruits and vegetables

«DIYORBEK SME Purchase of 60 254,9 B C N/A NO YES ZAMONBEK» LLC refrigerators

*Please use the sectors listed in the earlier table or any standard classification. Note: Env = Environment, IR = Involuntary Resettlement, IP = Indigenous Peoples. Policies & Processes Yes/No Has your organization developed and Yes - implemented an ESMS? If there is an ESMS already in place, have there been any updates to the ESMS or policy and procedures No - adopted by your organization during the reporting period? Has senior management signed off on No - the updated policy/procedure? The coordinators, that is, the heads of the Has your organization appointed staff credit department in the branches are Yes tasked to implement the ESMS? responsible for monitoring the implementation of the requirement of ESMS. Please give details of any transactions rejected due to environmental and/or No - social concerns. Please state any difficulties and/or constraints related to the No implementation of the ESMS. We require customers to obtain a state Please describe how you ensure that environmental review. If during the analysis or your subproject companies and their monitoring of the client’s activities we notice subprojects are operated in compliance shortcomings, then, as necessary, we include with the national laws and regulations work to eliminate these shortcomings in the and applicable ADB’s requirements. loan agreement. Please give details of any material social and environmental issues

associated with clients during the Not occured reporting period. In case the existing ESMS is not fully functional, what is the action plan being Active ESMS is considered as totally functional implemented by your organization? Capacity Yes/No Please provide the name and contact information of the Environmental/Social Head of Loan Department B.Mirdovidov. Officer or Coordinator who has the Yes Call: +998(78) 147-15-32 overall responsibility for the implementation of the ESMS. All employees of the credit departments of branches are trained throughout the year Please provide current staffing of other according to the ESMS policy. The heads of core ESMS persons in the organization Yes credit departments in the branches are the involved with ESMS implementation. coordinators for monitoring the work of ESMS in the branches What was the budget allocated to the Our bank does not allocate a budget for ESMS and its implementation during No seminars. Workshops are organized according the year? to the schedule of workshops.

Monitoring Yes/No Do you receive environmental and social monitoring reports from No subproject companies that you finance?

Do you check for ongoing compliance We check our customers in compliance with of your subproject companies with the laws of the Republic of Uzbekistan, and Yes national regulation and any other check their activity in compliance with the requirements? requirements of our policy ESMS. Please describe how you monitor the All projects are monitored once every 6 subproject company and their months and once every 12 months, in subproject’s social and environmental accordance with the ESMS policy. performance. Do you require the subproject owner to submit to you evidence of compliance with required environmental and social No approvals and permits for the subprojects. Please provide details of any accidents/ litigation/complaints/regulatory notices and fines: - Any incidents of non-compliance with the applicable Environmental and Social Requirements No - Covenants/conditionalities imposed

by the Financial Institution to the subproject company as a result of any non-compliance Reporting Yes/No The following reports are submitted to Is there an internal process to report on management on a quarterly basis: social and environmental issues to 1. Branch monitoring report senior management? 2. Report on the conclusion of the financial project manager Do you prepare any social and environmental reports: - For other multilateral agencies

- Other stakeholders No

- E&S reporting in the Report

Sustainability reports X. Environmental and Social Management System (ESMS)

29. REQUIREMENT: (1) FOR EXISTING SUBPROJECTS: ATTACHMENTS OF MONITORING REPORTS OR REPORT ON DISCHARGE PERMITS; AND

(2) FOR NEWLY APPROVED SUBPROJECTS: ATTACHMENTS OF ZVOS APPROVAL.

Activities on ADB’s Prohibited Investment Activities List If any, please indicate the dollar percentage of loans or investments out of your total outstanding exposure provided to Not available clients who are substantially involved in ADB’s Prohibited Investment Activities List (Refer to page 122 of SPS).

If the percentage is not zero, please explain these exposures Not available and any steps that have been taken to reduce such exposure.

Y. Category “B” Subprojects Using ADB Funds

The Bank was not funding the projects category "b" at the expense of the ADB.

6. Please provide information about all new subprojects using ADB loan approved during this reporting period N/A