47305-002: Horticulture Value Chain Development Project

Environmental Monitoring Report

Annual Report December 2017

Uzbekistan: Horticulture Value Chain Development Project

Prepared by the Rural Restructuring Agency, Republic of Uzbekistan for the Asian Development Bank.

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.

ANNUAL SAFEGUARD MONITORING REPORT

Project Number: 3471-UZB (SF) Reporting period: April - December 201 7

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

Prepared by: Sayfullo Gaibullaev Rural Restructuring Agency (RRA) Tashkent, Uzbekistan

For: ADB

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

February 2018 ABBREVIATIONS

ADB – Asian Development Bank CAR – Capital adequacy ratio CBU – Central Bank of Uzbekistan ESMS – Environmental and social management system HVCDP – Horticulture Value Chain Development Project 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 RRP – Report and Recommendations to the President of ADB SEE – State Environmental Expertise SLA – Subsidiary Loan Agreement EIS – Environmental Impact Statement

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...... 5 Part II Environmental issues ...... 6 2.1. Environmental issues in the previous 12 months...... 6 2.2. Explanations of instances in which environmental standards or guidelines were exceeded or environmental incidents happened ...... 6 2.3. Required recommendations...... 6 Part III: Compliance with ADB’s Social Protection Requirements and ADB’s Prohibited Investment Activities List ...... 7 3.1. Provide assessment on these two sets of requirements...... 7 3.2. A brief description of the taken measures...... 8 Part IV: ESMS operations (for PFIs which are financing B-category subprojects) ...... 8 4.1. A brief description of the effectiveness of the ESMS within 12 months...... 8 4.2. Specific data on the following activities is recommended ...... 9 Part V: Conclusion and action plan ...... 9 5.1. Conclusions...... 9 5.2. Action plan for the next reporting period...... 10 Annexes ...... 11

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, agro-processing 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. 1.2. Summary of activities and project progress during the previous 12 months. 2. In the course of project implementation, 124 subprojects were financed within 12 months. All subprojects underwent preliminary environmental screening by the PFIs strictly following the Environmental and social management system (ESMS) procedures of which 121 are classified as "B" and the remaining 3 subprojects are classified as "C" according to the legislation of the Republic of Uzbekistan in the field of environmental protection and ADB's requirement. Summary table of activities and project progress during the reporting period is given in the Table 1.

3. For each sub-project, a State Environmental Expertise (SEE) was carried out (State Environmental Expertise) on the basis of a draft EIS (Environmental Impact Statement) and obtained approve 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.

4. Monitoring and reporting of the implementation of safeguards requirements and procedures within the established ESMS will be prepared by PFIs. The PFIs’ quarterly progress reports will include status of compliance with safeguards covenants. The PFIs will 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) will submit to ADB annual Safeguard Monitoring reports (Appendix 9 of the ESMS) by mid-February of the following calendar year.

5. The first 3 subprojects from each PFIs were checked by RRA and agreed with ADB. The remaining subprojects will be checked by the RRA during the liquidation of advances.

Table 1: Summary of activities and project progress during 12 months ESMS Number of sub-loans by № PFIs Sub-loan amount approval environmental categories (million USD $) date B C Total 1 JSICB «Ipak Yuli» 24.05.2017 8 - 8 9,800 2 PJSCB «DAVR BANK» 15.05.2017 2 - 2 1,718 3 JSCB «Turonbank» 25.05.2017 6 1 7 10,000 4 JSCB «Hamkorbank» 29.05.2017 8 - 8 2,615 5 JSCB «Asaka bank» 30.05.2017 37 - 37 46,733 6 JSCMB «Ipoteka bank» 25.05.2017 19 - 19 10,831 7 National Bank of Uzbekistan for Foreign 26.05.2017 30 2 32 40,894 Economic Activities 8 JSCB «Uzpromstroybank» 30.05.2017 11 - 11 7,604

Total 120 3 124 130.194 1.3. Project organization and environmental management team, including organizational relationships with PFIs, sub-borrowers etc.

6. The Rural Restructuring Agency (RRA) is the executing agency. A project management office (PMO) created under the existing organization of RRA. The PMO is responsible for monitoring the project implementation, including training, capacity development, and providing technical support to PFIs. To enhance capacity of the RRA, in PMO included in-house staff of RRA, including Environmental specialist, and contracted experts to save the cost. In each PFI established a project implementation unit (PIU) under its existing structure to oversee the implementation of the credit line activities at the respective PFI. The project organization chart is in Figure 1. Figure 1: Project Organization Chart

Loan Agreement between ADB ADB and MOF MOF and RRA CWER under PMO under CWRD RRA Project Agreement between ADB and RRA for project management and RRA’s obligations to monitor implementation of PFI relending

During implementation PFIs submit to ADB through RRA: (1) quarterly progress report; Subsidiary Loan Project (2) annual audited financial statements and audited Annual Agreements Agreements Statement of Utilization of Funds; (3) annual reports on safeguards compliance

PIU

Asaka Bank, Davr Bank, Hamkorbank Ipak Yuli Bank, Ipoteka Bank, National Bank of Uzbekistan, Turon Bank, Uzpromtroibank, plus other financial institutions (subject to further accreditation and availability of funds at time of accreditation)

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.

Source: Asian Development Bank.

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.

7. During the project implementation period, within 12 months, PFIs did not face to significant environmental problems for each sub-project. 2.2. Explanations of instances in which environmental standards or guidelines were exceeded or environmental incidents happened

8. During ADB review mission conduced on 5-9 February 2018 in cooperation with RRA it was implemented the inspection of the sub-project of JV Agrofirm "Bulungur-Sandvik" LTD, it was find out that waste from the tops of vegetable processing is stored in an open area, which was detected as a source of unpleasant odor around the territory of the subproject. However, as stated by the PFI, during the monitoring of the site, conducted by the staff of PFI at the end of 2017, no environmental issues such abovementioned were detected. Recommendations to resolve abovementioned environmental issues are indicated in paragraph 12.

9. While visiting the "ANDIJON EXPORT AND IMPORT BUSINESS SOLUTIONS" processing unit for processing mung beans, it was found out that workers were not following the safety procedures associated with noise and dust generated during the operation.

10. While visiting the greenhouse farm LLC "Sabo Hamkor" also was found out that the workers were not equipped with personal protective equipment for installation work at height.

11. Prior to the implementation of any type of activity in the field of horticulture production, ESMS manager of each certain PFI’s informed one by one all beneficiaries of the sub-projects 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. Complaints from nearby residential populations were not received. Environmental inspections are carried out by specialists of the district department for ecology and environmental protection. During the monitoring, the PFIs also checked the current environmental state of the sub-projects.

2.3. Required recommendations.

12. To prevent this it was recommended to JV Agrofirm "Bulungur-Sandvik" LTD to temporary storage the vegetable residual waste in closed containers or indoors before being removed from the territory.

13. To avoid this, it was recommended that "ANDIJON EXPORT AND IMPORT BUSINESS SOLUTIONS" LLC to equip workers with personal protective equipment such as a respiratory mask and anti-noise earphones.

14. It was recommended that workers of “Sabo Hamkor” LLC comply with safety regulations. 15. There were no any exceedances in the frame of established norms for the current subprojects, because according to the results of the state environmental review all subprojects received a positive approval of the State Environmental Expertise.

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.

16. 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 protective measures were carried out.

During of the project implementation, PFI specialists conducted a preliminary analysis (screening) of each sub-project with respect to social safeguard measures. Prior to approval, subprojects were screaned according to the following questions:

Involuntary Resettlement Impact Checklist

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?

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)? 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.

PFIs specialists before approving any sub-project discussed, explained and clarified to the subprojects owners of all 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.

17. All requirements are implemented based on the documents of the ESMS. Implementation of corrective actions was not required.

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.

18. According to paragraph 5 of Schedule 2 of 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. In this regard all PFIs have established ESMS and designated ESMS managers and coordinators. However, due to turnover of staff of PFIs, it is needed to conduct training for credit specialists of PFIs, who are reviewing ADB subloans. In this regard RRA is organizing in Tashkent from 26 February to 3 March training for staff of PFIs in regional branches. 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. In tables 2 and 3 indicated summary of extended subloans using ADB funds within the Horticulture Value Chain Development Project (HVCDP).

Table 2: Quantity of the total portfolio of innovations for the modernization of gardening by subcomponents

Number of Subprojects

Purchase of Modern Processing of Modern № PFIs Intense Manufacture of agricultural refrigeration horticulture greenhouse Total garden packaging machinery storage products complexes and transport 1 NBU 10 2 7 12 1 32 2 Asaka bank 13 3 5 16 37 3 UzPSB 4 2 5 11 4 Ipoteka bank 8 1 3 6 1 19 5 Ipak Yuli bank 3 1 1 3 8 6 Turon bank 2 2 2 1 7 7 Hamkorbank 3 1 1 3 8 8 Davr bank 1 1 2 Total 43 8 22 48 1 2 124

Table 3: Indicative percentage of total Innovation to horticulture modernization loan portfolio per subcomponents

% of Innovation to horticulture modernization loan portfolio (ADB)

Purchase of Modern Processing of Modern № PFIs Intense Manufacture of agricultural refrigeration horticulture greenhouse Total (%) garden packaging machinery storage products complexes and transport 1 NBU 10 - 25 50 - 15 100 2 Asaka bank 64 3 16 17 - - 100 3 UzPSB 17 - 29 54 - - 100 4 Ipoteka bank 34 9 22 35 - - 100 5 Ipak Yuli bank 13.5 27.4 6.1 53 - - 100 6 Turon bank 2.9 - 37.1 10 - 50 100 7 Hamkorbank 20.36 26.42 9.56 43.66 - 100

8 Davr bank - - 81 19 - - 100

4.2. Specific data on the following activities is recommended

• Site inspections and audits. Currently, out of 124 financed subprojects, 50% have been inspected, due to not arriving of the equipment to the territory of Uzbekistan for the remaining subprojects.

• Noncompliance case. During the review of the subprojects, it was revealed that there are some issues related to the unpleasant odor from waste storage, safety techniques to the three sub-projects. Each subproject was provided with the recommendations on methods of storing waste and observing safety regulations.

• Corrective action plans. No corrective action plans were required

• Consultation and complaints. 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 complaints were received. Part V: Conclusion and action plan 5.1. Conclusions.

19. The annual report on the monitoring of protective 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, during the implementation of the project, 124 subprojects were financed during 12 months. 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, within 12 months, PFI did not faced to significant environmental problems for each sub-project.

20. PFIs provided annual reports to RRA 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. For the resolution of environmental issues, the annual reports have provided assistance from the specialists of RRA.

21. 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.

5.2. Action plan for the next reporting period.

22. Compliance of the PFIs to project agreement covenants will be 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 RRA) should help monitor PFIs’ training, also providing assistance 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 compilation of the annual report on ESMS. If necessary, provide assistance to PFIs and beneficiaries of environmental and social issues. Table 4: The monitoring action plan of the Environmental Specialist of the PFIs

Actions PFIs Issues Responsibility Time required No issues JSICB «Ipak Yuli» Not required - - received PJSCB «DAVR No issues Not required - - BANK» received JSCB No issues Not required - - «Turonbank» received JSCB No issues Not required - - «Hamkorbank» received Frequently Deputy Chairman of the JSCB «Asaka changes of ESMS trainings Board 2018.Q2 bank» responsible for new staff staff JSCMB “Ipoteka Enhancing the Participate in Deputy Chairman of the 2018.Q2 bank” qualification ESMS training Board National Bank of Frequently Uzbekistan for changes of ESMS trainings Deputy Chairman of the 2018.Q2 Foreign Economic responsible for new staff Board Activities staff Frequently JSCB changes of ESMS trainings Deputy Chairman of the 2018.Q2 “Uzpromstroybank” responsible for new staff Board staff

Table 5: The monitoring action plan of the Environmental Specialist of the RRA

Region №

March April May June July August September October November December 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

23. Sayfullo Gaibulloev, environmental specialist of the RRA, will carry out monitoring according to the ESMS during the next reporting period January 2018 – February 2019.

Annexes • Annual ESMS performance reports by PFIs. Table 5: Information on all loans

Any Safeguard outstan category ding environ mental and IR and IP Type of Value Sub- Tenor issues loan of project of Industry during (large exposur using Name of Sub-project loan Sector reporti corporate/ e ADB (mont ng SME/trade (thousa Env IR IP funds hs) period finance) nd US$) (yes/no) and actions taken to address 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 53 B C N/A No Yes 5 garden "HOJI GADOYBOY OTA" SME 83 1 000,0 Greenhouse B C N/A No Yes FARMING ENTERPRISE "BAYTQO`RGON-ARIPOV Refrigerated SME 59 991,25 B C N/A No Yes XAITVOY" рр аиги store Equipment for processing 46 595,0 "MAX POWER" LTD SME of agriculture B C N/A No Yes products (drying) 62 195,545 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

MUATTAROVLAR Refrigerated 58 146,6 MAHSULOTLARI ХУУ SME store B C N/A No Yes ХА PJSCB «DAVR BANK» Small Processing of JV Agrofirm “Bulungur-Sandvik” 1 383,0 Business 60 agricultural B C N/A No Yes LTD products Small 334,946. “Royal Roses” LLC Business 37 Greenhouse B C N/A No Yes 5 JSCB «Turonbank» Long term "Sarbon Asl Savdo" LTD. 72 440 Greenhouse B C N/A No Yes credit Long term “Texchorvaservis” LTD. 84 393 Greenhouse B C N/A No Yes credit Commercial firm of manufacturing Long 60 490 Cold storage B C N/A No Yes “Shurchi Mebel” termcredit 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” LTD SME 84 641,5 Greenhouse B C N/A No Yes Intensive “Baxt Imkon Rivoj Chorvasi” farm SME 60 691,0 B C N/A No Yes garden Processing of “Andijon-Un” LTD SME 84 250,0 agricultural B C N/A No Yes products “Rukhshabod Agro Sahovat” LTD SME 72 350,0 Greenhouse B C N/A No Yes “Navoiy Aziya Trans Servis” PE SME 120 150,0 Greenhouse B C N/A No Yes “Temir Tulagan Boglari” farm SME 84 99,6 Cold storage B C N/A No Yes “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 JSCB «Asaka bank» Long term LLC «Mangit Invest Plys» 60 477,0 Greenhouse C N/A No Yes credit В Dried Long term PE «Poytug' Barkamol Qurilish» 84 494,2 agricultural C N/A No Yes credit В products Dried Long term LLC «Barkamol Avlod Qalqoni» 84 446,4 agricultural C N/A No Yes credit В products Dried Long term LLC «Asl Meva Invest» 84 100,0 agricultural C N/A No Yes credit В products Dried Long term PE «Bunyod servis lyuks» 84 650,0 agricultural C N/A No Yes credit В products Long term LCC «Sabo Hamkor» 60 1 502,2 Greenhouse C N/A No Yes credit В Dried «Andijon export and import Long term 60 316,4 agricultural C N/A No Yes business solutions» credit В products Long term Greenhouse LLC «Jondor Qurilish Invest» 60 1 998,8 C N/A No Yes credit and cold store В Long term LLC «Eltek Eksk lyuziv» 60 450,0 Greenhouse C N/A No Yes credit В Farm Enreprise «Uktam Buston Long term 84 450,0 Greenhouse C N/A No Yes Saxovati» credit В The production of Long term LLC «Gala River» 60 1 100,0 wine and C N/A No Yes credit В concentrated grape juice Long term LLC «Grand Bukhara agro» 84 2 000,0 Greenhouse C N/A No Yes credit В Long term LLC «Kongres Baraka Agro» 250,0 Greenhouse C N/A No Yes credit 60 В Long LLC «Mo’jiza agro service» 60 960,0 Greenhouse C N/A No Yes termcredit В Long term LLC «Kelajak ta’mir savdo service» 60 180,0 Greenhouse C N/A No Yes credit В Dried Long term «Botir Isaev» Farm Enterpise 60 280,0 agricultural C N/A No Yes credit В products Long LLC «Apple Universal Service» 84 700,0 Greenhouse C N/A No Yes termcredit В «Ochilov Javoxir Uzum Bog» Farm Long term 60 386,0 Greenhouse C N/A No Yes Enterpise credit В LLC «Samarkand Temir Beton Long term 60 546,4 Greenhouse C N/A No Yes Konstruktsiya» credit В Dried «Urgut Elektro Service» Farm Long 84 225,6 agricultural C N/A No Yes Enterpise termcredit В products Long term LLC «Shohjahon Bobur Boglari» 60 580,0 Greenhouse C N/A No Yes credit В Dried Long term «Intensiv gold fruit» Farm Enterpise 84 1 810,0 agricultural C N/A no Yes credit В products Long PE LLC «Sirdarinskiy Bereg» 60 5 000,0 Greenhouse C N/A No Yes termcredit В Long term LLC «Mirzaobod Universal Trade» 60 5 000,0 Greenhouse C N/A No Yes credit В Long term LLC «Xoji Bohodirhon ota» 84 1 000,0 Greenhouse C N/A No Yes credit В Dried Long LLC «Nulu Fayz Imkon» 60 325,0 agricultural C N/A No Yes termcredit В products Dried Long term «Surhon obi hayot» Farm Enterpise 84 5 000,0 agricultural C N/A No Yes credit В products «Ezgulik Sari Agro» Farm Long term 60 1 970,0 Greenhouse C N/A No Yes Enterpise credit В Long Intensive LLC «Riv Makon» 60 897,0 C N/A No Yes termcredit garden В Dried Long term LLC «Muh Plast Service» 60 493,0 agricultural C N/A No Yes credit В products Dried Family enterprise «Nodira Diyor Long term 60 150,0 agricultural C N/A No Yes Mevalari» credit В products Dried Long LLC «Zimniy Sad» 84 3 167,9 agricultural C N/A No Yes termcredit В products Dried Long term LLC «Chodak Sardor farm servis» 60 390,0 agricultural C N/A No Yes credit В products Dried Long term LLC «Yozavon Marvaridi» 60 118,0 agricultural C N/A No Yes credit В products Long LLC «Ali Kushchi Agro export» 60 1 092,8 Greenhouse C N/A No Yes termcredit В Long term Intensive LLC «Sag Agro» 120 4 750,0 C N/A No Yes credit garden В Long Intensive LLC «Sag Agro Bulung'ur» 120 1 924,0 C N/A No Yes termcredit garden В JSCMB «Ipoteka bank» Agricultural JV "Nisi Multifruits Trade" SME 60 667 C N/A No Yes processing В "Dilrabo-94" LLC SME 60 156,2 Cold storages В C N/A No Yes "Jamshid Javohir Agrotexservis" SME 60 450 Greenhouse C N/A No Yes LLC В «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 C N/A No Yes garden В "Pastdarg'om Erkin Sabzavotlari" SME 60 1000 Greenhouse C N/A No Yes Farming В "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 C N/A No Yes beverages В 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 National Bank of Uzbekistan for Foreign Economic Activities Muhammad Mironshoh LTD SME 60 760 Greenhouse B C N/A No Yes Processing of Agroo 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 SME 60 698 Cold storages B C N/A No Yes INDUSTRIES 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 SME 60 198 Cold storages B C N/A No Yes MEVALARI LTD SHAHRUZA DIYOR NAVOIY SME 60 498 Greenhouse B C N/A No Yes LTD 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 SME 60 546,4 Greenhouse B C N/A No Yes ENTERPRISE Navbahor Fayz Export LTD SME 84 340,0 Greenhouse B C N/A No Yes BAXT HARAKAT MEVALARI SME 60 620,3 Greenhouse B C N/A No Yes LTD 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 C C N/A No Yes truck 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 C N/A No Yes garden Fresh Fruits Export LTD SME 60 635 Cold storages B C N/A No Yes JSCB «Uzpromstroybank» 129 800, LLC”Emir parranda” SME 60 Cold storage B C N/A No Yes 0 1 000 00 Processing of LLC “Xorazm qovunlari” SME 60 B C N/A No Yes 0,0 agricultural products 193 256, LLC “Sarkor quruvchi” SME 60 Cold storage B C N/A No Yes 0 2 000 00 LLC “Zarafshon Jasur Navoiy” SME 84 Greenhouse B C N/A No Yes 0,0 440 000, LLC “Kogon mega trans” SME 84 Greenhouse B C N/A No Yes 0 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, SME 60 Greenhouse B C N/A No Yes Fruits” 5 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 Cold storage B C N/A No Yes 0

Appendix 7

HORTICULTURE:

PFI’s ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

(To be submitted by PFIs to RRA)

Name of the Financial JSICB “Ipak Yuli” Institution

Completed by (name): T.Mahkamov

Position in organization: ESMS Manager of JSICB “Ipak Yuli” Date: 20.12.2017

A. Portfolio Information

Report Covering Period: 1 year

From: from 01.01.2017 To: 20.12.2017

1. 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 12 621 549 2 797 individuals

Small Loans or other financial products for 23 597 661 7 205 business individuals

Long term: Transactions with tenor greater than 12 months

Microfinance Any lending, leasing or other financial 26 820 413 7 694 assistance to any corporate or legal entity other than an individual, with individual transactions less than $50,000

Appendix 7 Any lending, leasing or other financial 38 532 887 88 176 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 140 918 383 applicable) clients (tenor less than 12 monts) and long- term transaction (tenor greater than 12 months) with corporate clients of more than $300,000.

C. Exposure by Horticulture Sectors

2. 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. 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.

Subpr Safe Safeg Safeg o-ject Tenor guar uard uard using of Value of d catego catego ADB Name of Subproject loan exposure(U Industry sector cate ry ry funds (mont S$) gory hs) IR IP Env (yes/n o) MChJ "ASL TABIAT BOG'LARI" 119 3 600 000 Greenhouse В C N/A Yes OOO "ECO AGRO CHROMOS" 53 2 690 605 Intensive garden В C N/A Yes "INTER AGRO ЧЖ клиди Seedlings, STAR" - 66 1 896 608 C N/A No оилик лилик Refrigerated store В ужлии

Appendix 7

OOO "G''AZALKENT QURILISH 120 1 455 922 Greenhouse C N/A No MOLLARI" В Equipment for processing MCHJ "TOXIR" 46 1 400 000 C N/A No agricultural В products (drying) OXALIK OLTIN BOGI MEVASI MCHJ 114 1 000 000 Refrigerated store В C N/A No Drip irrigation MUSHTARI-OQDARYO MCHJ 76 1 000 000 C N/A No system В "рOJI GADOYBOY OTA" 83 1 000 000 Greenhouse В C N/A Yes "BAYTQO`RGON-ARIPOV 59 991 250 Refrigerated store В C N/A Yes XAITVOY" ее ужлии MCHJ QURILISH INDUSTRIYA 66 991 000 Greenhouse C N/A No XAJMLI UY-JOY В MCHJ "GOLDEN APPLE 118 987 500 Refrigerated store C N/A No TASHKENT" В "SABINA SAVDO ELIT" 75 789 717 Refrigerated store В C N/A No ъулияти екл жият Equipment for processing of "MAX POWER" MCHJ 46 595 000 C N/A Yes agriculture В products (drying) К "Qora Bayir Savdo" 54 582 024 Refrigerated store В C N/A No Specialized 53 498 020 C N/A No ООО "GREEN ORGANICS" equipment В "SOFT-CLEAR-WATERS" Organization of 65 440 600 В C N/A No ъулияти екл жияти intensive garden MCHJ "FROZEN PRODUCTS" 70 387 333 Refrigerated store В C N/A No Specialized 54 371 250 C N/A No AнROSIAB MEVA ООО equipment В "BAXMAL TOG'BOG'LARI" 58 360 000 Refrigerated store В C N/A No ъулияти екл жияти MCHJ UZAGROTEK GROUP 62 195 545 Greenhouse В C N/A Yes ООО "ARCрIE ASIA TRADE" 53 189 900 Other В C N/A No Specialized -NEGTAR 65 189 027 C N/A No ООО KESр equipment В MCHJ "AKZAR SAVDO Specialized 52 184 275 C N/A No SAMARKAND" equipment В SAGDIYANA FORM MChJ 58 181 000 Refrigerated store В C N/A Yes Specialized MCHJ INTIZOM AGRO 60 166 927 C N/A No equipment В SIYOB SHAVKAT ORZU ее 83 148 224 Seedlings В C N/A No ужлии MUATTAROVLAR MAHSULOTLARI 58 146 600 Refrigerated store В C N/A Yes КООА MCHJ TBS GROUP 61 141 029 Seedlings В C N/A No FERMER XO`JALIGI "AVANGARD- 59 134 400 Refrigerated store C N/A No SHNZ" В

Appendix 7

"MURODBEK PLUS" ъулияти 37 50 000 Refrigerated store В C N/A No екл жияти MCHJ "NSA AGRO Drip irrigation 67 49 408 C N/A No DEVELOPMENT" system В К "Qora Bayir Savdo" 55 40 430 Refrigerated store В C N/A No Specialized 67 39 550 C N/A No ООО "AGRO PрARM GROUP" equipment В ЧЖ клиди "INTER AGRO STAR" оилик-лилик 66 35 821 Other В C N/A No ужлии Specialized -NEGTAR 36 31 168 C N/A No ООО KESр equipment В "JAHONGIR BAXT PLUS" MCHJ 38 28 571 Refrigerated store В C N/A No "ROMITAN-NAVOIY SAVDO" 32 23 469 Greenhouse В C N/A No ъулияти екл жияти "SANJAR-NAVOIY" ъулияти 32 17 910 Greenhouse В C N/A No екл жияти SOLIXON BONU ABDULLOX /К 33 14 761 Other В C N/A No MCHJ TBS GROUP 15 13 958 Biofertilizer В C N/A No Specialized "Bog`i Jahon Mevasi" 32 12 301 C N/A No ЧЖ equipment В SOLIXON BONU ABDULLOX /К 33 10 410 Seedlings В C N/A No "Mao Agro нar" ЧЖ 17 9 264 Seedlings В C N/A No Specialized 36 8 646 C N/A No "Mao Agro нar" ЧЖ equipment В "NAVOIY METAL MASH" 17 8 235 Greenhouse В C N/A No ъулияти екл жияти "NE`MATJON OLMALARI" ее 36 7 335 Greenhouse В C N/A No ужлии "SANJAR-NAVOIY" ъулияти 34 4 941 Greenhouse В C N/A No екл жияти ООО "AGRO PрARM GROUP" 36 2 470 Seedlings В C N/A No "BAXMAL TOG`BOG`LARI" 36 2 275 Seedlings В C N/A No ъулияти екл жияти Я улкуо жо Specialized 36 2 151 В C N/A No уоджо ули equipment Parvoz-Quvoch ее Specialized 36 1 661 В C N/A No ужлии equipment "BAXMAL TOG`BOG`LARI" 36 1 235 Seedlings В C N/A No ъулияти екл жияти Specialized 36 791 C N/A No д Адуло equipment В

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

Appendix 7 D. Environmental and Social Management System (ESMS)

4. 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 On April 15th, 2013, the Bank's implemented an ESMS? Supervisory Council approved the Regulation “On the environmental and social risk management system” of the JSICB "Ipak Yuli". On September 13th, 2016, the Supervisory Council of the Bank approved the Policy “On the environmental and social risks management of JSICB "Ipak Yuli". According to the above-mentioned documents, all projects considered by the bank for financing must comply with the requirements of ESMS. In connection with the implementation of the ADB project 3471-UZB: Horticulture Value Chain Development, the Management Board of JSICB "Ipak Yuli" approved the ESMS Procedures for implementation of the above Project on 24th May 24, 2017. Copies are attached. If there is an ESMS already in place, have there ?? As mentioned in the above paragraph, been any updates to the ESMS or policy and the Bank has implemented ESMS since procedures adopted by your organization April 15th, 2013. during the reporting period? During the reported period with consideration of the pecularities of the ADB project 3471-UZB: Horticulture Value Chain Development, ESMS procuderes were adopted for implementation of this particular project. Has senior management signed off on the Yes As indicated in the paragraphs above, updated policy/procedure? 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 tasked Yes In order to implement the ESMS, the to implement the ESMS? ESMS Manager and the ESMS Coordinator were appointed in the Bank's head office. In the branch offices,

Appendix 7 the heads of lending departments are appointed as regional ESMS managers (15 regional ESMS managers). Also all employees of the Bank's lending divisons are involved in the implementation of ESMS. Loan officers apply procedures for managing environmental and social risks when considering every project financed by the Bank. They ensure compliance with protective measures for environmental and social issues, and if required, ensure the availability of environmental documents for each decision on granting a loan. Moreover, the staff of the Loan Portfolio Monitoring department carry out monitoring on the fulfillment of the ESMS obligations by the borrower after granting loan. All the above-mentioned staff are trained and have knowledge about ESMS procedures of the Bank. The head of the Risk-Management department Tursun Makhkamov is the ESMS Manager of the JSICB "Ipak Yuli". T. Makhkamov received Master’s degree in International Economic Relations from the University of World Economy and Diplomacy. He has been working in the banking sector since 2000 and has experience of working in loan division of the Bank, and as head of the branch office of the Bank. At present he is the head of the Risk Management Department of the Bank. Dinara Nurmukhamedova is ESMS coordinator of the Bank. D. Nurmuhamedova graduated from the International Law Faculty of the University of World Economy and Diplomacy (Bachelor). She received LLM degree from Kyushu University (Japan). She also graduated from the Tashkent Finance Institute (bachelor degree in accounting and audit). She has been working in the banking sector since 2004 and has experience of working in the legal department, loan department and risk management department of the

Appendix 7 bank. She received training and was granted a certificate at the ADB seminar on the implementation of the environmental and social management system for financial intermediaries in Uzbekistan (2017). Please give details of any transactions rejected Yes Some examples from the Bank’s practice due to environmental and/or social concerns. when the Bank rejected transactions due to environmental and / or social concerns: - The client brought a contract for the purchase of slate, but could not provide information about percent of asbestos contained in the slate; - B category was assigned to the project, however the client did not bring the required documents (state expertise conclusion, etc.); - the client applied for funding the project of a poultry farm with more than 40 thousand hens. Please state any difficulties and/or constraints Yes Sometimes there are difficulties in related to the implementation of the ESMS. determining which category of environmental risk the project belongs to. Please describe how you ensure that your Financing of projects by the bank subproject companies and their subprojects are (project evaluation, financing and operated in compliance with the national laws monitoring) is carried out in accordance and regulations and applicable ADB’s with the procedure stipulated in the requirements. "ESMS procedures for ADB Loan 3471- UZB: Horticulture Value Chain Development Project", the implementation of which ensures that the subproject complies with national laws and regulations, and the requirements of ADB. During the monitoring it is checked that the borrower meets the ESMS requirements in accordance with the national standards and the requirements of ADB. In addition, according to the local legislation the divisions of the Committee on Ecology and Environmental Protection monitor

Appendix 7 compliance with the requirements stated in the State Expert Examination Conclusion by enterprises. Please give details of any material social and n/a environmental issues associated with clients during the reporting period.

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

Capacity Yes/No Please provide the name and contact Yes ESMS Manager – Tursun Makhkamov information of the Environmental/Social Tel. No. +998 (71) 140-78-04 Officer or Coordinator who has the overall Email: [email protected] responsibility for the implementation of the ESMS. ESMS Coordinator – Dinara Nurmukhamedova Tel. No. +998 (71) 140-69-43 Email: [email protected]

She participated and received Certificate at the ADB’ seminar for the implementation of the environmental and social management system for financial intermediaries in Uzbekistan, held on November 23-24, 2017.

Please provide current staffing of other core Yes M. Safarov – Head of Investment Project ESMS persons in the organization involved Financing Department with ESMS implementation. Sh.Mamatov – Head of Investment Monitoring and Coordination Division. Sh. Mamatov participated at the seminar conducted by the Rural Enterprise Development Agency on ESMS procedure for ADB loan 3471-UZB- Horticulture Value Chain Development Project.

What was the budget allocated to the ESMS Yes Salaries of employees involved in the and its implementation during the year? implementation of ESMS. Other costs are payable as required. Monitoring Yes/No

Appendix 7 Do you receive environmental and social Yes After financing of the project, monitoring reports from subproject companies environmental and social issues are that you finance? monitored in accordance with the Annex 6 of the ESMS Procedures for the ADB Loan 3471-Uzb "Horticulture Value Chain Development Project". Monitoring is carried out according to the provided list of questions. Also, the Bank's monitoring officer checks the implementation of the Environmental Management Plan of the project.

Do you check for ongoing compliance of your Yes When completing Annex 5 (Analysis of subproject companies with national regulation the environmental impact of the project and any other requirements? and the preparation of the Environmental Management Plan), the requirements for mitigation measures prescribed in the Conclusion of the State Committee on Ecological and Environmental Protection are considered. When monitoring is carried out, implementation of the activities envisaged in the environmental management plan is verified, thus implementation of the national rules and ADB’s standards is checked. Also, according to the local legislation, the divisions of the Committee on Ecology and Environmental Protection carriy out monitoring on implementation of the requirements, envisioned in the Conclusion of the State Committee on Ecology and Environmental Protection by enterprese. Please describe how you monitor the Yes Under the ADB loan 3471-UZB: subproject company and their subproject’s Horticulture Value Chain Development social and environmental performance. Project the Bank approved 9 project for the total amount of 10 million USD. As of today, 8 project for the total amount of 9.8 million USD have been financed. The equipment of 4 projects has been already delivered. The equipment of other 4 projects is being shipped by not delivered yet.

Accordingly, at present, the bank conducted monitoring on environmental and social impacts for 4 projects, for

Appendix 7 which the equipment was completely delivered.

After financing was made for the subprojects, the loan files were transferred from the Investment Project Financing Department to the Loan Monitoring Department. After familirization with environmental and social protection documents the monitoring specialist during sight visit filled annex 6 (Act of Monitoring of environmental and social impact of the subproject). The monitoring specialist also checked implementation of environmental management plan.

Monitoring of environmental/social issues for the above mentioned subprojects was conducted as soon as equipment was delivered at stage of construction (installation) of the project. The next monitoring will be done at operation stage of the project.

The frequency of monitoring is not less than once every 6 months.

Do you require the subproject owner to submit Yes The Environmental Management Plan is to you evidence of compliance with required completed in accordance with Annex 5 environmental and social approvals and of the ESMS Procedures for ADB Loan permits for the subprojects. 3471-UZB: Horticulture Value Chain Development Project. It takes into account the impacts identified in ZVOS report and mitigation measures prescribed in the Conclusion of the State Committee on Ecology and Environmental Protection.

The monitoring officer at the site visit is required to verify the implementation of the mitigation measures specified in the environmental management plan.

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

- Any incidents of non-compliance with the applicable Environmental and Social

Appendix 7 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 Yes According to the adopted procedure, and environmental issues to senior based on the results of the monitoring, if management? the borrower fails to meet the requirements for compliance with environmental protection measures, the monitoring specialist must notify the ESMS Manager for taking appropriate measures.

The ESMS Manager should provide timely reports on the implementation of ESMS policies and procedures to the Management Board and interested parties of the Bank.

Do you prepare any social and environmental Yes Yes, prepared for Netherlands reports: Development Finance Company (FMO) - 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 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.

Appendix 7 E. Category “B” Subprojects Using ADB Funds

5. Information about all new subprojects using ADB loan funding approved during this reporting period.

E.1 Information about subproject "Eco Agro Chromos" LLC

Name of Subproject Company: "Eco Agro Chromos" LLC

Subproject location: Qibray district, Tashkent province

Horticulture sector: Intensive gardening (peach, cherry, apricot, pear)

Value of exposure (US$ ): 2,690,605.02 US Dollars

Was any environmental and social due Yes, particularly there were undertaken diligence undertaken by your preliminary analysis of environmental impact organization? (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 Yes, documents on this project, such as Project of audit reports reviewed by your ZVOS (environmental assessment report) and organization? Conclusion of State Ecological Expertise under the State Committee on Ecology and Environmental Protection, were inspected by credit expert (Kuliyeva N.) and ESMS coordinator.

What were the main environmental issues According to the Conclusion of State Ecological associated with this subproject that were Expertise this project falls under the 4th category identified through due diligence in compliance with Decree of Cabinet of conducted by your organization, and how Ministers #491 dated 31/12/2001. However, were the issues dealt with (i.e., outcome of because of large scale of operation, namely due diligence)? 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.

Appendix 7 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 Yes. Bank specialists discussed, explained and the applicable environmental and social clarified to the subproject owner all the safeguard requirements and their requirements regarding the environmental and implementation? social safeguard that him/she should comply with during the implementation of project.

Does the subproject comply with Yes, it complies, as evidenced by the positive applicable government requirements? Conclusion of State Ecological Expertise.

Does the subproject comply with Yes, according to the results of preliminary applicable ADB safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements.

Have there been any recorded incidents of No, there were no incidents of non-compliance non-compliance or requests for corrective observed. actions?

Have there been any grievances or No, by this time there were no complaints complaints lodged on the subproject by received. any affected person or concerned stakeholder?

E.2 Information about sub-project “Max-Power” LLC

Name of Subproject Company: "Max Power" LLC

Subproject location: Tashkent city, Xamza district, Axsikat street,

Appendix 7 house 176.

Horticulture sector: Drying line for fruits and vegetables

Value of exposure (US$ ): 595,000.00 US Dollars

Any environmental assessment report or Yes, documents on this project, such as Projetc of audit reports reviewed by your ZVOS (environmental assessment report) and organization? Conclusion of State Ecological Expertise under the State Committee on Ecology and Environmental Protection, were inspected by credit expert (Yuldashbaev A.) and ESMS coordinator

What were the main environmental issues During the conduction of screening and due associated with this subproject that were diligence, main issues studied were generation of identified through due diligence production waste and waste water, as the conducted by your organization, and how technological process itself means use of much were the issues dealt with (i.e., outcome of water and generation of food wastes, namely it due diligence)? contains such 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 city sewerage. Water will be taken from central water supply system. Production waste, formed at primary sink of raw materials, after cleaning in a horizontal settler will go to sewer chains of the enterprise with the subsequent dumping into the city sewerage. As no construction works are planned, there will not occur construction waste. However, as a result of production operations there will be 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.

Appendix 7 Did you discuss with the subproject owner Yes. Bank specialists discussed, explained and the applicable environmental and social clarified to the subproject owner all the safeguard requirements and their requirements regarding the environmental and implementation? social safeguard that him/she should comply with during the implementation of project.

Does the subproject comply with Yes, it complies, as evidenced by the positive applicable government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of No, there were no incidents of non-compliance non-compliance or requests for corrective observed. actions?

Have there been any grievances or No, by this time there were no complaints complaints lodged on the subproject by received. any affected person or concerned stakeholder?

E3 Information about sub-project “Uzagrotek Group”

Name of Subproject Company: "UZAGROTEK GROUP" LLC

Subproject location: Tashkent province, Qibray district, Oq-qovoq QFI, Darkhan mahalla.

Horticulture sector: Growing vegetables in greenhouse (mostly tomatoes and cucumbers)

Value of exposure (US$ ): 195,544.98 US Dollars

Any environmental assessment report or Yes, documents on this project, such as Project of audit reports reviewed by your ZVOS (environmental assessment report) and Conclusion of State Ecological Expertise under

Appendix 7 organization? the State Committee on Ecology and Environmental Protection, were inspected by credit expert (Yuldashbaev A.) and ESMS coordinator

What were the main environmental issues This project falls under the category 3, according associated with this subproject that were to the Conclusion of State Ecological Expertise identified through due diligence and in compliance with Decree of Cabinet of Ministers 491 dated 31/12/2001. conducted by your organization, and how № By the result of inspection of this project it is were the issues dealt with (i.e., outcome of revealed that there will be generated industrial and due diligence)? consumption waste, which are formed within a year, such as waste of a 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 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 Yes. Bank specialists discussed, explained and the applicable environmental and social clarified to the subproject owner all the safeguard requirements and their requirements regarding the environmental and implementation? social safeguard that him/she should comply with during the implementation of project.

Does the subproject comply with Yes, it complies, as evidenced by the positive applicable government requirements? Conclusion of State Ecological Expertise.

Appendix 7 Does the subproject comply with Yes, according to the results of preliminary applicable ADB safeguard requirements? analyzes, screening and safeguard due diligence this project complies with ADB safeguard requirements.

Have there been any recorded incidents of No, there were no incidents of non-compliance non-compliance or requests for corrective observed. actions?

Have there been any grievances or No, by this time there were no complaints complaints lodged on the subproject by received. any affected person or concerned stakeholder?

E4 Information about sub-project “Asl Tabiat Boglari”

Name of Subproject Company: "Asil Tabiat Bog’lari" LLC

Subproject location: Tashkent province, Yukori-Chirchik district, Iyk- Ota MFY.

Horticulture sector: Growing vegetables in greenhouse (mostly tomatoes and cucumbers)

Value of exposure (US$ ): 4,000,000.00 US Dollars

Was any environmental and social due Yes, particularly there were undertaken diligence undertaken by your preliminary analysis of environmental impact organization? (ecological screening), social safeguards screening, suggested outline of safeguard due diligence briefing note during review. Review of safeguard documents and field visits were conducted by credit expert and ESMS coordinator.

What were the main environmental issues This project falls under the category 3, according associated with this subproject that were to the Conclusion of State Ecological Expertise

Appendix 7 identified through due diligence and in compliance with Decree of Cabinet of conducted by your organization, and how Ministers #491 dated 31/12/2001. were the issues dealt with (i.e., outcome of due diligence)? In the course of activity of this object, the formation of 10 types of waste is expected. It is such waste as a worn-out polyethylene film, waste of vegetables, waste of rags, waste of food, waste of a sub-standard wooden container, waste paper, waste from cleaning of the territory and also used mercury lamps.

The initiator of project was informed that all those types of wastes should be collected in special metal containers and utilized in special designated places, as it was also prescribed in Conclusion of State Ecological Expertise.

For each type of waste the place and conditions for temporary storage at the site territory 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.

The technology of this greenhouse is very environment-friendly and can avoid many factors with serious consequences and impacts on environment. For instance, the use of hydroponics will avoid from cultivation of land to plant seeds and soil pollution by fertilizers, use of drip irrigation system will save water resources provided from the planned artesian well, economical boilers use less natural gas, which reduces of emission of air pollutants.

As most projects include construction works to some extent, there will be also such wastes within this project, which have to be utilized accordingly.

Appendix 7 Does the subproject comply with Yes, it complies, as evidenced by the positive applicable government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of No, there were no incidents of non-compliance non-compliance or requests for corrective observed. actions?

Have there been any grievances or No, by this time there were no complaints complaints lodged on the subproject by received. any affected person or concerned stakeholder?

E5. Information about subproject “Sogdiana Form” LLC

Name of Subproject Company: " SAGDIYANA FORM” LLC

Subproject location: Qashqadaryo province, Shahrisabz district, KFI Qutchi, Qutchi village

Horticulture sector: Storage of fruits and vegetables in cold rooms

Value of exposure (US$ ): 181,000.00 US Dollars

What were the main environmental issues At the stage of implementation of this project, and associated with this subproject that were during construction works, possible emissions of identified through due diligence dust, construction debris, garbage will be

Appendix 7 conducted by your organization, and how immediately utilized in specially allocated places. were the issues dealt with (i.e., outcome of due diligence)? During construction works, emissions of dust from cement of inorganic origin, oxide threw, oxide of manganese and carbon oxide to the atmosphere are high likely to take place. Pollutants will be released into the atmosphere in a chaotic manner.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (permitted) volume.

The formed utility fluids are to be taken away in the concreted moisture-proof cesspool, with further export of drains by means of cesspool cars on the next treatment facilities. For prevention of reproduction of pathogenic microbes and bacteria, the cesspool needs to be disinfected periodically.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with Yes, it complies, as evidenced by the positive applicable government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of No, there were no incidents of non-compliance non-compliance or requests for corrective observed. actions?

Have there been any grievances or No, by this time there were no complaints complaints lodged on the subproject by received. any affected person or concerned stakeholder?

Appendix 7

E6 Information about subproject “Muattarovlar Mahsulotlari”

Name of Subproject Company: "MUATTAROVLAR MAHSULOTLARI" PE

Subproject location: Javonobod mahalla, Kulbaipoyon village, Samarkand District, Samarkand Province

Horticulture sector: Storage of fruits and vegetables in cold rooms

Value of exposure (US$ ): 146,600.00 US Dollars

Was any environmental and social due Yes, in particular, there were carried out analysis diligence undertaken by your of environmental impact (ecological screening), organization? as well as social safeguards screening, safeguard due diligence briefing note during review. Review of safeguard documents and field visits had been conducted by credit expert and ESMS coordinator.

Any environmental assessment report or Yes, project documents as Project of ZVOS audit reports reviewed by your (environmental assessment report) and organization? Conclusion of State Ecological Expertise under the State Committee on Ecology and Environmental Protection, were inspected by credit expert (Mamatov Sh.) and ESMS coordinator.

• category B on environmental impact • category C on involuntary resettlement impact.

Appendix 7 compliance with all ecological standards. These topics were discussed in explanatory talks conducted with project owners. It was then clarified that project owners must execute the project following all required rules and standards. Apart from that, the volumes of waste generation and methods of dealing with them were identified and carefully discussed.

During construction works, emissions of dust from cement of inorganic origin, oxide threw, oxide of manganese and carbon oxide to the atmosphere are high likely to take place. Pollutants will be released into the atmosphere in a chaotic manner.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Did you discuss with the subproject owner Yes. Bank inspectors carefully discussed with the the applicable environmental and social subproject owner all the requirements regarding safeguard requirements and their the environmental and social safeguard that he/she implementation? should follow during the implementation of project.

Does the subproject comply with Yes, it does, as witnessed by the positive applicable government requirements? Conclusion of State Ecological Expertise.

Does the subproject comply with Yes, as the results of preliminary analyzes shows, applicable ADB safeguard requirements? screening and safeguard due diligence this project complies with ADB safeguard requirements.

Have there been any recorded incidents of No, there were no incidents of non-compliance non-compliance or requests for corrective observed. actions?

Have there been any grievances or No, by this time there were no complaints complaints lodged on the subproject by received. any affected person or concerned stakeholder?

Appendix 7

E7 Information about subproject “Baytqo’rgo’n Aripov Xayitvoy”

Name of Subproject Company: "Baytqo’rg’on-Aripov Xaitvoy" FE

Subproject location: Baytkurgan QFY, Qibray district, Tashkent province

Horticulture sector: Storage of fruits and vegetables in cold rooms.

Value of exposure (US$ ): 991 250.00 US Dollars

• category B on environmental impact • category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the

Appendix 7 boiler room, kitchen and by the alkaline battery charging area. o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report). o generated domestic sewage

The methods of dealing with above-mentioned issues were brought at the post-review meeting and critically discussed with project owners. Generated domestic sewage is to be flown to the nearby sewer which was agreed and mentioned in Project of ZVOS (environmental assessment report). All above mentioned issues require from project owners to work carefully and in compliance with all ecological standards. It was then clarified that project owners must execute the project following all required rules.

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with Yes, it does, as witnessed by the positive

Appendix 7 applicable government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of No, there were no incidents of non-compliance non-compliance or requests for corrective observed. actions?

Have there been any grievances or No, by this time there were no complaints complaints lodged on the subproject by received. any affected person or concerned stakeholder?

E8. Information about subproject “HOJI GADOYBOY OTA”

Name of Subproject Company: "HOJI GADOYBOY OTA" PE

Subproject location: Khavast district, Sirdarya province

Horticulture sector: Growing vegetables in greenhouse (mostly tomatoes and cucumbers)

Value of exposure (US$ ): 1,000,000.00 US Dollars

What were the main environmental issues According to the Conclusion of State Ecological associated with this subproject that were Expertise, this project falls under the category 4 in identified through due diligence compliance with Decree of Cabinet of Ministers

Appendix 7 conducted by your organization, and how #491 dated 31/12/2001. However, in the course of were the issues dealt with (i.e., outcome of study carried out in greenhouse agriculture, and as due diligence)? the results of conducted preliminary environmental and social impacts analyzes, as well as safeguard due diligence report, bank inspectors assigned to this project the following categories:

• category B on environmental impact • category C on involuntary resettlement impact.

By the end of all review works done, explanatory briefings with project initiators were conducted, main objective of which was making sure that minor construction wastes occurring during the execution part of the project will be collected to a special metal containers and further utilized in permitted areas. Moreover, the promiscuous use of water, land and contamination of underground water issues were also brought up and critically discussed.

In the course of activity of this object, the formation of 10 types of waste is expected. It is such waste as a worn-out polyethylene film, waste of vegetables, waste of rags, waste of food, waste of a sub-standard wooden container, waste paper, waste from cleaning of the territory and also used mercury lamps.

The technology of this greenhouse is very

Appendix 7 environment-friendly and can avoid many factors with serious consequences and impacts on environment. For instance, the use of hydroponics will avoid from cultivation of land to plant seeds and soil pollution by fertilizers, use of drip irrigation system will save water resources provided from the planned artesian well, economical boilers use less natural gas, which reduces of emission of air pollutants.

Does the subproject comply with Yes, it does, as witnessed by the positive applicable government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of No, there were no incidents of non-compliance non-compliance or requests for corrective observed. actions?

Have there been any grievances or No, by this time there were no complaints complaints lodged on the subproject by received. any affected person or concerned stakeholder?

Annual report of PJSCB “DAVR BANK” on the environmental and social performance (as of Dec. 01, 2017)

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): Abubakirov Nuritdin Saydiganiyevich Head of risk Position in the organization: Date: Dec. 18, 2017 management division

A. Information on the portfolio

The period of coverage of the report: From: Till: Jan. 01, 2017 Dec. 01, 2017

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

B. Type of activity

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

Loans and other financial products for Micro financing 6 380 864,44 595,01 physical entities

Loans and other financial products for Small business physical entities and individual 1 021 349,23 5 836,28 entrepreneurs

Long term: Transactions for a period longer than 12 months

Any lending, leasing and other financial support to corporate entities Micro financing 12 430 984,52 7 887,68 or entities, that are not individuals, deal with less than 45 000 US dollars

Any lending, leasing and other financial support to corporate entities Small business 9 829 117,66 93 610,64 or entities, that are not individual, deal with less than 300 000 US dollars Other

Any lending, leasing and other financial support to corporate entities Other (if applicable) 5 964 249,59 542 204,51 or entities, that are not individual, deal with more than 300 000 US dollars

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

Fruit seedlings 0

Vegetable seeds 0

Refrigeration warehouses 0

Technological line for drying fruits and vegetables 81%

processing line for mung beans 0

Packaging equipment 0

Greenhouse 19% 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 Protection outstanding environmen

Category tal and IR The and IP project is

issues due to the

e project during the line of the period of Asian Value (US$) Sector* impacts Industry Finance) drafting the Developm

IR reports and ent Bank ENV Name of th

Loan term (in months) (in term Loan actions (yes / no) taken to

Loan type (Small Business / Trade Trade / Business (Small type Loan address issues JV Agrofirm “Bulung Small 60 1 383 00 Horti B C N/A No Yes ur- Business months 0 culture Sandvik” LTD “Royal Small 37 334 Horti Roses” B C N/A No Yes Business months 946.50 culture 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 15.05.2017 additions and changes made to or for ESMS, a copy was submitted. received from your organization's No policies and procedures during the reporting period? Does management signed an updated Management has not signed an updated No policy / procedure? policy Does your organization assigned Abubakirov Nuriddin personnel, which tasked with the Head of Risk management division implementation of ESMS? Yes Gofurov Doniyor Deputy Head of the Credit division - Head of the Project implementation unit. Provide details of any transactions Several subprojects were rejected according rejected due to environmental and / or Yes to ZVOS category and equipment's Country social problems. of origin. Please indicate any difficulties and / or There was not any difficulty regarding to restrictions related to the No implementation of ESMS. implementation of ESMS. It should describe what was confirmed All subprojects which refinanced by ADB that the companies and their projects were screened by following steps: operate in accordance with laws and • in accordance with the list of prohibited regulations and meet the requirements investment activities; Yes of ADB. • 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 not customers for the period. find any seriously risks which can influence to environment and social issues. If the existing ESMS is not fully Existing ESMS approved fully functional. functional, which action plans are No approved in your organization? Capabilities Yes/No Please provide the name and contact Abubakirov Nuriddin information of the manager or the Head of Risk management division Environmental Protection Tel num: +998712070909 (internal numb Yes Environment Coordinator / social 120) protection, which is the main Gofurov Doniyor responsible for the implementation / 4

Deputy Head of the Credit division - Head of the Project implementation unit.

Participated in trainings: Promoting adaptation and implementation of environmental and social management system for financial intermediaries which held on November 23-24, 2017 by ADB. Present staff schedule of the Every month 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 and Monitoring manager of the bank fills the act- social monitoring reports from the “Typical area monitoring form” during Yes companies whose projects were refinancing for subprojects of ADB. financed? Are the company projects constantly Every six months, the project is monitored checked for compliance with laws and Yes by monitoring officer. other requirements? Please describe how you are checking With access to the site, monitoring manager the project of the company, social and fills the act-“typical area monitoring form” environmental performance of the Yes after refinanced subproject. This year, a visit project. was made to the place of JV "BULUNGUR- SANDVIK”. Is the project initiator requested to The subproject initiator requested to get provide verification for compliance Conclusion of State committee for Nature with the required environmental and Yes protection (ZVOS). social agreements and project approvals. Please provide information on any During researching environmental and social incidents / litigation / complaints / legal risks of subprojects there was not any requirements and fines: incident, ligation and complaints. - Cases of non-compliance with 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 and Yes specialist of the credit department gives a social protection? conclusion on approval of the project for 5

refinancing, as well as on environmental and social checklist screening. After financing, every six months with the access to the site, the project is monitored and environmental and social checklist is completed by the monitoring department manager and the Bank's management is informed about monitoring results. Do you prepare any reports on social PJSCB “DAVR BANK” does not prepare and environmental protection: any reports on social and environmental - Other multilateral agencies protection to other agencies. No - Other interested parties - Statements of E & S on the report on sustainable development Activity on the list of prohibited investment activities ADB If any, please specify dollar equivalent No 0% 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 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.

The name of the project company: JV Agrofirm “Bulungur-Sandvik” LTD Location of the project: Republic of Uzbekistan,Samarkand region, Bulungur district, Dustlik street Branch: PJSCB “DAVR BANK” Yakkasaroy branch

The volume of investments (in US $): 1 383 000,00 Protection classification: Environment:“B” Involuntary Resettlement: “C” Indigenous peoples:“N/A” Did your organization conducted legal due Yes diligence of environmental and social protection Environmental Screening Checklist and Social Safeguards Screening Checklists were attached Other reports of environmental assessment or Yes audit reports reviewed by your organization Conclusion of State committee for Nature protection (ZVOS) 6

What are the major environmental problems No associated with this project, which were identified during the examination carried out in your organization, how these issues were addressed (ie, the result of expertise)? Did you discuss with initiator of the project Yes applicable requirements for environmental and social protection and their implementation? Does the project suit to the applicable Yes requirements of the legislation of Uzbekistan? Does the project suit to the current protection Yes requirements of the ADB? Were there any documented cases of non- No compliance or requests for corrective action? Were there any complaints or claim on the draft submitted by any injured person or an interested No party?

The name of the project company: “RoyalRoses” LLC Location of the project: Tashkent region, Qibray District, Zebiniso street, 26th block, 23rd flat Branch: PJSCB “DAVR BANK” Operationaldivision (branch) The volume of investments (in US $): 334 946.50 Protection classification: Environment: “B” Involuntary Resettlement: “C” Indigenous peoples: “N/A”

Did your organization conducted legal due Yes diligence of environmental and social protection Yes Environmental Screening Checklist and Social Safeguards Screening Checklists were attached Other reports of environmental assessment or Yes audit reports reviewed by your organization Conclusion of State committee for Nature protection (ZVOS) What are the major environmental problems No associated with this project, which were identified during the examination carried out in your organization, how these issues were addressed (ie, the result of expertise)?

Did you discuss with initiator of the project Yes applicable requirements for environmental and social protection and their implementation?

Does the project suit to the applicable Yes requirements of the legislation of Uzbekistan? Does the project suit to the current protection Yes requirements of the ADB? Were there any documented cases of non- No compliance or requests for corrective action? Were there any complaints or claim on the draft submitted by any injured person or an interested No party?

Appendix 7

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 Institution JSCB “Turonbank”

Completed by (name): Abdurazakhov Alisher

Position in organization: Head of Division Date: 20.12.2017

A. Portfolio Information

Report Covering Period:

From: 01.01.2017 To: 01.12.2017

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

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

Microfinance Loans or other financial products for individuals 18 434,8 2,2

Small Loans or other financial products for business individuals 2 943,1 5,5

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 an individual, with individual 15 271,9 9,1 transactions less than $50,000

Any lending, leasing or other financial assistance to any corporate or legal entity Small other than an individual, with individual 21 340,2 91,2 business transactions less than $300,000

Other

Other (if Factoring 311,7 26,0

applicable) Any crediting, leasing or other financial assistance to any corporate or legal entity, with the exception of an individual, with a 47 762,8 868,4 separate transaction amount of more than $ 300,000

Total 106 064,5 9,9

C. Exposure by Horticulture Sectors

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

Industrial Sector % of Innovation to horticulture modernization loan portfolio (ADB)

For the purchase of agricultural machinery in the future, the cultivation of fruit and vegetable growing 50,0%

Acquisition of equipment for greenhouses 10,0% Purchase of equipment for a refrigerating household 2,9% Purchase of equipment for processing 37,1%

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 $5000000 loan size.

Any Safeguard outstanding category environmenta Sub- Value of 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$) Env IR IP period and funds(ye actions taken s/no) to address the issues

"Sarbon Asl Savdo" LTD. longtermcredit 72 440 horticulture B No N/A No Yes “MUHAMMAD BARAKA SERVIS” longtermcredit 84 564 horticulture No N/A No No LTD. “GREAT FUTURE PLAN” LTD. longtermcredit 84 954 horticulture No N/A No No “Kangli Meliorator” LTD. longtermcredit 84 140 horticulture No N/A No No “Texchorvaservis” LTD. longtermcredit 84 393 horticulture B No N/A No Yes “Zahro Hayot Orzusi” LTD. longtermcredit 36 563 horticulture No N/A No No “VANG`OZI BUNYODKOR” LTD. longtermcredit 60 185 horticulture No N/A No No “JAHON JAVOHIRI INVEST” LTD. longtermcredit 84 133 horticulture No N/A No No “BIG NATURAL PRODUCTION” longtermcredit 60 299 horticulture No N/A No No LTD. Joint ven.“SHIRIN ASILZODA” longtermcredit 60 238 horticulture No N/A No No “KEYS-A” LTD. longtermcredit 60 273 horticulture No N/A No No “JAMXUR FARM TIB SAVDO” LTD. longtermcredit 60 215 horticulture No N/A No No “SAM CHEVAR ASADBEK” LTD. longtermcredit 96 498 horticulture No N/A No No Commercial firm of manufacturing longtermcredit 60 490 horticulture No N/A No Yes “Shurchi Mebel” “Lider Agro Eksport Fayz” LTD. longtermcredit 120 498 horticulture No N/A No No “Nurobod” LTD. longtermcredit 60 2000 horticulture No N/A No Yes LTD.“Zovurchi” longtermcredit 72 1996 horticulture No N/A No No “Chulpon ota yulduzi” LTD. longtermcredit 96 989 horticulture No N/A No No “Dexqonobod Zovur” LTD. longtermcredit 72 312 horticulture No N/A No No “MILK AGRO ALLIANCE” LTD. longtermcredit 36 1900 horticulture No N/A No No

“BUSINESS TIME GROUP” LTD. longtermcredit 84 3400 horticulture No N/A No No “TEHMASH-TASHKENT” LTD. longtermcredit 60 950 horticulture No N/A No No “COLD INDUSTRY“ LTD. longtermcredit 84 100 horticulture No N/A No No “BEKABAD-9” LTD. longtermcredit 120 990 horticulture No N/A No No “NURAFSHON AGRO FAYZ“ LTD. longtermcredit 60 300 horticulture No N/A No No “SAMARKAND GARDEN PLAST“ longtermcredit 96 5000 horticulture No N/A No No LTD. “XALILOV SHERZOD longtermcredit 96 295 horticulture No N/A No No SHAVKATOVICH“ LTD. “ASIATIK GROUP” LTD. longtermcredit 60 989 horticulture No N/A No No “EAST-WEST SURXON“LTD. longtermcredit 84 312 horticulture B No N/A No Yes “PACKING INDUSTRIES“LTD. long term credit 96 1900 horticulture No N/A No No “O'ZMATBAA TA'MINOT“LTD. long term credit 120 3400 horticulture No N/A No Yes “AGRO KONSERV BIZNES” LTD. longtermcredit 120 950 horticulture No N/A No No “ZIYO AGRO ISHONCH“LTD. longtermcredit 60 100 horticulture No N/A No No farmer's household “AGRO HAMKOR longtermcredit 72 990 horticulture No N/A No No EXPORT” “SIFATLI CHORVA BIZNES“LTD. longtermcredit 24 300 horticulture No N/A No No “AGROVER“ LTD. longtermcredit 120 5000 horticulture C No N/A No Yes “Khiva Agro Fruit Product” LTD. longtermcredit 96 295 horticulture No N/A No No farmer's householdУХУ longtermcredit 96 58 horticulture No N/A No No ОИ farmer’s household “KambarovaMuhabbatShaymaruesnovn longtermcredit 60 20 horticulture No N/A No No a” farmer’shousehold longtermcredit 60 20 horticulture No N/A No No “IrnazarovaMuqaddasDusmuratovna” farmer’shousehold longtermcredit 60 20 horticulture No N/A No No “AllamuradovaRaziaHalikovna” farmer’shousehold longtermcredit 60 20 horticulture No N/A No No “MuhammadievaDilbarTahirovna” Askarkurban fКrmer’sСouseСoldодиров longtermcredit 60 20 horticulture No N/A No No murodovich” farmer’s household longtermcredit 60 20 horticulture No N/A No No “HamraevaYulduzRuziboykhizi” farmer’s household longtermcredit 60 20 horticulture No N/A No No “AbdirahimovAbbosYuldoshevich” farmer’shousehold longtermcredit 60 20 horticulture No N/A No No “YuldoshevaGulhayriErgashevna” Total 46 38 531

D. Environmental and Social Management System (ESMS)

REQUIREMENT: Policies & Processes Yes/No Has your organization developed and Being attached a copy of the ESMS to Yes implemented an ESMS? this 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 2 ESMS managers and to implement the ESMS? Yes 18 ESMS managers from branches of the bank

Please give details of any transactions No rejected due to environmental and/or social

concerns.

Please state any difficulties and/or constraints Delivering reports on the ADB project Yes related to the implementation of the ESMS. in a foreign language

Please describe how you ensure that your On the basis of the loan agreement and subproject companies and their subprojects in accordance with the legislation of the are operated in compliance with the national Republic of Uzbekistan, the borrower is Yes laws and regulations and applicable ADB’s obliged to fulfill all obligations to requirements. implement the current requirements for environmental protection measures Please give details of any material social and environmental issues associated with clients No 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 At all trainings conducted by ARSP and information of the Environmental/Social ADB. Officer or Coordinator who has the overall Yes Tashkulov Jamaliddin (tel: 202 01 responsibility for the implementation of the 01.internal:163) ESMS.

Please provide current staffing of other core The Bank conducts training seminars for ESMS persons in the organization involved branch specialists in each quarter of the with ESMS implementation. Yes year. Abdurazakhov Alisher (tel: 202 01 01 internal.218) What was the budget allocated to the ESMS The amount is insignificant, since the and its implementation during the year? Yes ESMS coordinators are the current specialists of the branch of the bank. Monitoring Yes/No Do you receive environmental and social Documents will be attached. monitoring reports from subproject Yes companies that you finance?

Do you check for ongoing compliance of your According to the legislation of the subproject companies with national regulation Republic of Uzbekistan, the and any other requirements? implementation of national standards Yes and any other environmental requirements is controlled by state bodies. The Bank monitors the project to implement their mitigation measures. Please describe how you monitor the The coordinator of the sub-project visits subproject company and their subproject’s Yes to the place of projects for monitoring and on the basis of supporting

social and environmental performance. documents, monitoring is carried out, the sub-project initiator fulfills all obligations to implement the current requirements for environmental protection measures prescribed in the EIS and in the conclusion of the state environmental review.

Do you require the subproject owner to The initiator of the subproject submits to submit to you evidence of compliance with the Coordinator of the ESMS a required environmental and social approvals confirmation of compliance with the and permits for the subprojects. necessary environmental and social Yes approvals and permits, on the 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/ litigation/complaints/regulatory notices and fines:

- Any incidents of non-compliance with the No 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 There is a department position that and environmental issues to senior oversees international credit lines. On management? the basis of the position, the manager of Yes 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 JSCB “Turonbank” social and reports: environmental reports are provided only

- For other multilateral agencies No to ADB. - 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 0 % involved in 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 exposures and any steps that have been taken to the "List of prohibited types of investment reduce such exposure. activities" of ADB

E. Category “B” Subprojects Using ADB Funds

5. Please provide information about all new subprojects using ADB loan funding approved during this reporting period. Name of Subproject Company: "NUROBOD" Farmer’s household

Subproject location: Surkhandarya region, Shurchi district, Ibn-Sino, Surkhon street

Horticulture sector: The organization of a refrigerating capacity for 500 tons.

Value of exposure (US$ ): $ 185,000

Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check out of the site and on the basis of supporting documents protective measures and 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.

Did you discuss with the subproject owner the Yes applicable environmental and social safeguard requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable ADB Yes safeguard requirements?

Have there been any recorded incidents of non- No 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: Commercial firm of manufacturing “Shurchi Mebel” Subproject location: Surkhandarya region, Shurchi district, Mustahkillik-166 street.

Horticulture sector: The organization of a refrigerating capacity for 340 tons.

Value of exposure (US$ ): $ 98,600

Was any environmental and social due diligence Held. The coordinator of the sub-project carried undertaken by your organization? out a check-out of the site and on the basis of supporting documents on protective measures and 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.

Did you discuss with the subproject owner the Yes applicable environmental and social safeguard requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable ADB Yes safeguard requirements?

Have there been any recorded incidents of non- No 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: “Sarbon asl savdo” LTD.

Subproject location: Bukhara region, Bukhara city, Otbozor

Horticulture sector: Organization of a greenhouse farm per hectare for growing agricultural products

Value of exposure (US$ ): $ 440,000

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 - Education of construction, household, associated with this subproject that were identified economic, food waste. The initiator of the through due diligence conducted by your project was instructed to dispose the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? - Storage of pesticides / herbicides. Organize a specially sheltered, protected and clearly marked place. Marking of boxes / bags / containers. Train staff in the handling, use, and disposal of pesticides

Did you discuss with the subproject owner the Yes applicable environmental and social safeguard requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable ADB Yes safeguard requirements?

Have there been any recorded incidents of non- No 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: “Texchorvaservis” LTD.

Subproject location: Khashkhandarya region, Kharshi city, Khudayzod street

Horticulture sector: Organization of a greenhouse farm per hectare for growing agricultural products.

Value of exposure (US$ ): $ 564,000

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.

Did you discuss with the subproject owner the Yes applicable environmental and social safeguard requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable ADB Yes safeguard requirements?

Have there been any recorded incidents of non- No 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: “UZMATBAA-TAMINOT” LTD.

Subproject location: Fergana region, Fergana city, the Kirguli street.

Horticulture sector: Organization of a greenhouse farm per hectare for growing agricultural products.

Value of exposure (US$ ): $ 3,400,000

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.

Did you discuss with the subproject owner the Yes applicable environmental and social safeguard requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable ADB Yes safeguard requirements?

Have there been any recorded incidents of non- No 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?

F. Sub-projects of the category “C”which are used from ADB funds.

the The amount Initiator of The location of of Sub- The goal of The basis for classifying a sub-

№ the sub- Sub-project loan sub-project project into category "C" project (thousan d US $)

According to the ADB system, based Acquisition of on the requirements of protective “AGROVER Tashkent region, tractors and 1 5 000 measures 1 (environment) Acquisition ” LTD. Zangiata district Other agricultural of tractors and Other agricultural machinery machinery is classified as category "C"

Appendix 7

PFI’s ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

(To be submitted by PFIs to RRA)

Name of the Financial JSCB Hamkorbank Institution

Completed by Avazbek Fazliev (name):

Position in Head of sector for Date:20.12.2017 organization: environmental assessment and monitoring

A. Portfolio Information

Report Covering Period:

From: To:

01.01.2017 01.12.2017

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

B. Business Lines

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

(US$)

Microfinance Loans or other financial products for individuals 3 179 271,55 1725,99

Small Loans or other financial 1 889 525,66 18 708,17 business products 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 140 282 834,35 5 557,73 than an individual, with individual transactions less than $50,000

Any lending, leasing or other financial assistance to any corporate or legal entity other 46 212 351,96 115 632,61 than an individual, with Small individual transactions less business than $300,000

Other

Other (if Please describe applicable)

C. Exposure by Horticulture Sectors

3. Please provide an indicative percentage of total Horticulture Value Chain Development Project loan portfolio per subcomponents:

Industrial Sector % of Innovation to Horticulture Value Chain Development Project loan portfolio

For purchasing of fruit seedlings 26,42%

Industrial Sector % of Innovation to Horticulture Value Chain Development Project loan portfolio

Purchasing of energy-efficient greenhouses 43,66%

Purchasing of cold storages 20,36%

Purchasing of processing and packaging equipment 9,56%

{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 in horg sector, 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

N/A

"Do’stlik- SME 48 74,1 horticultu B C No No abadiy re LTD

"ANDIJO N/A N SARA horticultu GIBRID SME 60 74,1 re B C No No URUG`L ARI" LTD

SHohido N/A n Shirin horticultu Mevalari SME 60 61,7 re B C No No farm

"NAVOI N/A Y AGRO horticultu PRESTI SME 36 49.4 re B C No No J" LTD

"Gayrat N/A Baraka horticultu Karmana SME 60 49.4 re B C No No " PE

Karmana N/A Cherri horticultu LTD SME 60 49.3 re B C No No

QUBBO N/A SHIRIN horticultu MEVALA SME 60 43.2 re B C No No RI farm

Bukhara N/A Tasty horticultu Vegetabl SME 60 37 re B C No No es and Fruits LTD

Khujayor N/A ov horticultu Ulugbek SME 60 36.8 re B C No No

Inter N/A Agro horticultu Mahsulot SME 60 30.8 re B C No No PE

KARMA N/A NA horticultu ROXILA SME 48 24.7 re B C No No BONU LTD

"JUMAB N/A EK horticultu AGRO SME 48 24.7 re B C No No SERVIS" LTD

Egam N/A Samad horticultu LTD SME 36 22.2 re B C No No

"DILFUZ N/A A- horticultu MUROD SME 36 12.3 re B C No No JON PLYUS"

SHOHJA N/A HON horticultu FAYZLI SME 36 11.9 re B C No No BOGI

Abdurah horticultu N/A monov re Abdurahi SME 37 9.8 B C No No m barakali bogi PE

Saidov horticultu N/A Mahmud re PE SME 36 9.6 B C No No

Ahunov horticultu N/A Avazbek re Sultonov SME 24 8.9 B C No No ich farm

"NAVOI horticultu N/A Y NUR re ISLOM" SME 36 8.9 B C No No LTD

“Nukus horticultu N/A Universa re l Bazasi” SME 84 641,5 B C No Yes LTD

“Baxt horticultu N/A No Imkon re Rivoj SME 60 B C Yes 691,0 Chorvasi ” farm

“Andijon- horticultu N/A No Un” LTD re SME 84 250,0 B C Yes

“Rukhsh horticultu N/A No abod re Agro SME 72 B C Yes 350,0 Sahovat” LTD

“Navoiy horticultu N/A No Aziya re Trans SME 120 B C Yes 150,0 Servis” PE

“Temir N/A Tulagan Boglari” SME 84 99,6 Farm B C No Yes farm

“Usta N/A Salimhoji 200,0 ” PE SME 84 Trade B C No Yes

“Fursat N/A Mahorat” 232,7 PE SME 120 Trade B C No Yes

*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. Policies & Processes Yes/No Has your organization developed and Being attached a copy of the ESMS implemented an ESMS? to this report. Yes

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 the updated policy/procedure? No

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 15 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 Obtaining a statement of constraints related to the environmental impact on some implementation of the ESMS. Yes projects for new customers. Sometimes, it is necessary to wait for up to 30 days to receive the statement of environmental impact. Please describe how you ensure that We request the conclusion of your subproject companies and their local environmental expertise. subprojects are operated in Yes Conduct monitoring and in case compliance with the national laws and of violations are identified loan is regulations and applicable ADB’s suspended. Precautionary

requirements. measures are undertaken, which are described in the contract. Please give details of any material social and environmental issues associated with clients during the No reporting period.

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

Capacity Yes/No Please provide the name and contact Coordinator for compliance with information of the Yes environmental regulations – Environmental/Social Officer or A.Fazliev - Head of sector for environmental assessment and Coordinator who has the overall monitoring. responsibility for the implementation of Uzbekistan, 170119 the ESMS. Andijan, 85 Babur st. tel: +998 74 2980043 (1125) mob: +998 90 2530690 [email protected] Training: 26-29/07/2017 Green climate found: training for ESMS; 22-28/08/2017 Green climate found: training for ESMS; 10-14/10/2017 Green climate found: training for ESMS; 23-24/11/2017 workshop for ESMS from Asian Development Bank. Please provide current staffing of All front and Back office staff was other core ESMS persons in the Yes trained on-site in the branches to organization involved with ESMS comply with environmental implementation. 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 No training not allocated. Trainings the year? are organized as per reports and as per plan of study. Monitoring Yes/No Do you receive environmental and If yes, please describe and social monitoring reports from provide supporting documents subproject companies that you No including any social and finance? environmental considerations if applicable.

Do you check for ongoing compliance We check our clients in of your subproject companies with compliance with national national regulation and any other Yes regulation and chek their activity requirements? 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 subproject’s social and environmental Yes once every 6 or 12 months performance. according to our ESMS policy.

Do you require the subproject owner If yes, please describe how these to submit to you evidence of are recorded as part subproject compliance with required No monitoring reports. environmental and social approvals and permits for the subprojects.

Please provide details of any accidents/ litigation/complaints/regulatory notices No 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 Report is provided monthly for mamagement:

on social and environmental issues to Yes 1. The report of the senior management? monitoring in the branches 2. The report of the managar’s conclusions for financial projects

Do you prepare any social and Social and environmental reports are environmental reports: provided only to ADB. - 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 0,54% to clients who are substantially involved in (production of or trade in alcoholic ADB’s Prohibited Investment Activities List beverages) (Refer to page 122 of SPS).

If the percentage is not zero, please We have an agreement with IFC to explain these exposures and any steps have up to 1% of the total credit that have been taken to reduce such portfolio for the production or trade in exposure. alcoholic beverages exceeding

E. Category “B” Subprojects Using ADB Funds 6. Please provide information about all new subprojects using ADB loan funding approved during this reporting period. Name of Subproject Company: “Nukus Universal Bazasi” LTD

Subproject location: Karakalpagistan, Nukus city, Berdak street 6 Horticulture sector: Greenhouse

Value of exposure (US$ ): 641 500,00

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

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

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

Does the subproject comply with Yes applicable government requirements?

Does the subproject comply with Yes applicable ADB safeguard requirements?

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

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

Name of Subproject Company: “Baxt Imkon Rivoj Chorvasi” farm

Subproject location: Andijan region, Oltinko’l district

Horticulture sector: Cattle breeding, gardening

Value of exposure (US$ ): 691 000,00

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

Any environmental assessment report or Yes audit reports reviewed by your organization?

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

Does the subproject comply with Yes applicable government requirements?

Does the subproject comply with Yes applicable ADB safeguard requirements?

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

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

Name of Subproject Company: Andijon-Un LTD

Subproject location: Andijan region, Oltinko’l district

Horticulture sector: processing and packaging

Value of exposure (US$ ): 250 000,00

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

Any environmental assessment report or Yes audit reports reviewed by your organization?

Does the subproject comply with Yes applicable government requirements?

Does the subproject comply with Yes applicable ADB safeguard requirements?

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

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

Name of Subproject Company: “Rukhshabod Agro Sahovat” LTD

Subproject location: Bukhara region, Otbozor Rukhshabod village

Horticulture sector: Greenhouse

Value of exposure (US$ ): 350 000,00

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

Any environmental assessment report or Yes audit reports reviewed by your organization?

Does the subproject comply with Yes applicable government requirements?

Does the subproject comply with Yes applicable ADB safeguard requirements?

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

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

Name of Subproject Company: “Navoiy Aziya Trans Servis” PE

Subproject location: Navoiy region, Karmana district, Nizamiy street 19

Horticulture sector: Greenhouse

Value of exposure (US$ ): 150 000,00

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

Any environmental assessment report or Yes audit reports reviewed by your organization?

Does the subproject comply with Yes applicable government requirements?

Does the subproject comply with Yes applicable ADB safeguard requirements?

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

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

Name of Subproject Company: “Temir Tulagan Boglari” farm

Subproject location: Samarkand region, Urgut district, Ilonli KFY

Horticulture sector: Gardening

Value of exposure (US$ ): 99 600,00

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

Any environmental assessment report or Yes audit reports reviewed by your organization?

Does the subproject comply with Yes applicable government requirements?

Does the subproject comply with Yes applicable ADB safeguard requirements?

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

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

Name of Subproject Company: “Usta Salimhoji” PE

Subproject location: Surkhandarya region, Angor district, Ulugbek street 2

Horticulture sector: Cold storage

Value of exposure (US$ ): 200 000,00

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

Any environmental assessment report or Yes audit reports reviewed by your organization?

Does the subproject comply with Yes applicable government requirements?

Does the subproject comply with Yes applicable ADB safeguard requirements?

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

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

Name of Subproject Company: “Fursat Mahorat” PE

Subproject location: Surkhandarya region, Denov district, Urtabuz MFY

Horticulture sector: Cold storage

Value of exposure (US$ ): 232 700,00

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

Any environmental assessment report or Yes audit reports reviewed by your organization?

Does the subproject comply with Yes applicable government requirements?

Does the subproject comply with Yes applicable ADB safeguard requirements?

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

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

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

A. Portfolio Information

Report Covering Period: From: 01.01.2017 To: 01.12.2017

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

B. Business Lines

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

Loans or other financial products Microfinance 174 412 174,59 8 068,29 for individuals Loans or other financial products Small business 6 468 965,83 12 989,89 for individuals Long term: Transactions with tenor greater than 12 months Any lending, leasing or other financial assistance to any Microfinance corporate or legal entity other than 26 474 147,46 12 588,75 an individual, with individual transactions less than $50,000 Any lending, leasing or other financial assistance to any Small business corporate or legal entity other than 92 084 579,19 31 025,80 an individual, with individual transactions less than $300,000 Other Factoring Any crediting, leasing or other Other (if financial assistance to any corporate or legal entity, with the applicable) exception of an individual, with a separate transaction amount of more than $ 300,000

C. Exposure by Horticulture Sectors

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

% Horticulture Value Chain Develoment Project Industrial Sector Portfolio Intensive garden 3% Modern greenhouse complex 17% Cold storages 64% Equipment for processing of agriculture products 17%

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 $5000000 loan size.

Any Safeguard outstanding category Sub- Tenor Value of environmenta Type of l and IR and project of exposur loan Industry IP issues using Name of Sub-project loan e during SME/trade Sector ADB (mont (thousan Env IR IP reporting finance) period and funds hs) d US$) actions taken (yes/no) to address the issues LLC «Mangit Invest Plys» longtermcredit 60 477,0 Greenhouse В C N/A No Yes 84 Dried PE «Poytug' Barkamol Qurilish» longtermcredit 494,2 agricultural C N/A No Yes products 84 Dried LLC «Barkamol Avlod Qalqoni» longtermcredit 446,4 agricultural C N/A No Yes products Dried LLC «Asl Meva Invest» longtermcredit 84 100,0 agricultural C N/A No Yes products Dried PE «Bunyod servis lyuks» longtermcredit 84 650,0 agricultural C N/A No Yes products LCC «Sabo Hamkor» longtermcredit 60 1 502,2 Greenhouse C N/A No Yes Dried «Andijon export and import business longtermcredit 60 316,4 agricultural C N/A No Yes solutions» products Greenhouse LLC «Jondor Qurilish Invest» longtermcredit 60 1 998,8 and cold C N/A No Yes store LLC «Eltek Eksk lyuziv» longtermcredit 60 450,0 Greenhouse C N/A No Yes Farm Enreprise «Uktam Buston longtermcredit 84 450,0 Greenhouse C N/A No Yes Saxovati» The production of wine and LLC «Gala River» longtermcredit 60 1 100,0 C N/A No Yes concentrate d grape juice LLC «Grand Bukhara agro» longtermcredit 84 2 000,0 Greenhouse C N/A No Yes

LLC «Kongres Baraka Agro» longtermcredit 250,0 Greenhouse C N/A No Yes 60 LLC «Mo’jiza agro service» longtermcredit 60 960,0 Greenhouse C N/A No Yes LLC «Kelajak ta’mir savdo service» longtermcredit 60 180,0 Greenhouse C N/A No Yes 60 Dried «Botir Isaev» Farm Enterpise longtermcredit 280,0 agricultural C N/A No Yes products LLC «Apple Universal Service» longtermcredit 84 700,0 Greenhouse C N/A No Yes «Ochilov Javoxir Uzum Bog» Farm longtermcredit 60 386,0 Greenhouse C N/A No Yes Enterpise LLC «Samarkand Temir Beton longtermcredit 60 546,4 Greenhouse C N/A No Yes Konstruktsiya» Dried «Urgut Elektro Service» Farm Enterpise longtermcredit 84 225,6 agricultural C N/A No Yes products LLC «Shohjahon Bobur Boglari» longtermcredit 60 580,0 Greenhouse C N/A No Yes Dried «Intensiv gold fruit» Farm Enterpise longtermcredit 84 1 810,0 agricultural C N/A no yes products PE LLC «Sirdarinskiy Bereg» longtermcredit 60 5 000,0 Greenhouse C N/A No Yes

LLC «Mirzaobod Universal Trade» longtermcredit 60 5 000,0 Greenhouse C N/A No Yes LLC «Xoji Bohodirhon ota» longtermcredit 84 1 000,0 Greenhouse C N/A No Yes Dried LLC «Nulu Fayz Imkon» longtermcredit 60 325,0 agricultural C N/A No Yes products Dried «Surhon obi hayot» Farm Enterpise longtermcredit 84 5 000,0 agricultural C N/A No Yes products «Ezgulik Sari Agro» Farm Enterpise longtermcredit 60 1 970,0 Greenhouse C N/A No Yes Intensive LLC «Riv Makon» longtermcredit 60 897,0 C N/A No Yes garden Dried LLC «Muh Plast Service» longtermcredit 60 493,0 agricultural C N/A No Yes products 60 Dried Family enterprise «Nodira Diyor longtermcredit 150,0 agricultural C N/A No Yes Mevalari» products Dried longtermcredit 84 3 167,9 agricultural C N/A No Yes LLC «Zimniy Sad» products Dried longtermcredit 60 390,0 agricultural C N/A No Yes LLC «Chodak Sardor farm servis» products Dried longtermcredit 60 118,0 agricultural C N/A No Yes LLC «Yozavon Marvaridi» products LLC «Ali Kushchi Agro export» longtermcredit 60 1 092,8 Greenhouse C N/A No Yes Intensive LLC «Sag Agro» longtermcredit 120 4 750,0 C N/A No Yes garden Intensive LLC «Sag Agro Bulung'ur» longtermcredit 120 1 924,0 C N/A No Yes garden

Agro firm LLC YARASH longtermcredit 36 159 000,0 horticulture C N/A No No ALLABERGANOV В LLC "BAXT OMAD NUR FAYZ" longtermcredit 120 169 150,0 horticulture В C N/A No No Agro firm "TURON MEVA- longtermcredit 60 480 600,0 horticulture C N/A No No SABZAVOT AGRO" В LLC "KOMPOZIT INVEST" longtermcredit 60 212 100,0 horticulture В C N/A No No Farm Enterpise "SARDOR POLVON" longtermcredit 60 300 000,0 horticulture В C N/A No No Farm Enterpise "Yangi Kesh Fareli" longtermcredit 36 88 200,0 horticulture С C N/A No No Farm Enterpise "Қайнар" longtermcredit 36 87 000,0 horticulture В C N/A No No LLC "TAGOB MEVALARI NUR" longtermcredit 84 589 200,0 horticulture В C N/A No No LLC "Daromad Fayz Omad" longtermcredit 48 700 000,0 horticulture В C N/A No No LLC "Daromad Baxt Omad" longtermcredit 48 700 000,0 horticulture В C N/A No No Farm Enterpise «AMIRXON NOZU- longtermcredit 36 564 600,0 horticulture C N/A No No NE’MATLARI» В Joint Venture LLC "Joni Dali Saya longtermcredit 60 586 226,0 horticulture C N/A No No Tekstil" В LLC "HITECHPACK" longtermcredit 60 510 000,0 horticulture С C N/A No No LLC "Agro Dry Gold Fruits" longtermcredit 84 1 965 000,0 horticulture В C N/A No No ч longtermcredit 72 990 000,0 horticulture В C N/A No No LLC "Elita Yarn" longtermcredit 60 960 000,0 horticulture С C N/A No No LLC "GREEN DREAM" longtermcredit 84 579 800,0 horticulture С C N/A No No Farm Enterpise "HOSIYATLI BOG' longtermcredit 84 260 000,0 horticulture C N/A No No PLYUS" С LLC "IZZATULLOX AVIA TRANS" longtermcredit 60 186 206,0 horticulture В C N/A No No LLC "FARRUH FARHOD" longtermcredit 72 378 000,0 horticulture С C N/A No No PE "Tillaxon" longtermcredit 60 886 774,0 horticulture В C N/A No No LLC "Zamin agro savdo invest" longtermcredit 60 702 000,0 horticulture С C N/A No No LLC "Kushon Agro Service" longtermcredit 60 230 000,0 horticulture В C N/A No No LLC "Zarbdor Meva mega invest" longtermcredit 60 298 000,0 horticulture В C N/A No No LLC "ASADBEK G`ISHT SANOATI" longtermcredit 60 500 000,0 horticulture С C N/A No No PE "Otabek Sarvinoz Moxinur" longtermcredit 60 210 000,0 horticulture С C N/A No No LLC "Oromgoh Ikromi" longtermcredit 60 99 600,0 horticulture В C N/A No No Farm Enterpise "MARXAMATLI longtermcredit 84 250 800,0 horticulture C N/A No No ZAMIN TAROVATI" В LLC "Universal Dealer" longtermcredit 60 1 520 000,0 horticulture С C N/A No No LLC "ZAHRO" longtermcredit 60 489 200,0 horticulture С C N/A No No LLC "O'ZMATBAA TA'MINOT" longtermcredit 84 1 948 000,0 horticulture В C N/A No No LLC "ZAXRO BIZNES" longtermcredit 60 349 200,0 horticulture В C N/A No No Farm Enterpise "Kamoliddin Husniddin longtermcredit horticulture 84 1 997 159,0 C N/A No No Temur" В LLC «Oltiariq Sara Mevalari» longtermcredit 60 333 000,0 horticulture В C N/A No No Farm Enterpise «Bahodir Maqsud» longtermcredit 84 396 500,0 horticulture В C N/A No No

D. 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 26 ESMS coordinators 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 environmental issues associated with clients No 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 Project Finance Department: responsibility for the implementation of the Usmanhanov Boburxon ESMS.

Please provide current staffing of other core The Bank conducts training seminars for Yes ESMS persons in the organization involved branch specialists: Saliev Sherzod with ESMS implementation. What was the budget allocated to the ESMS ESMS coordinators are the current and its implementation during the year? specialists of the branch of the bank Monitoring Yes/No Do you receive environmental and social monitoring reports from subproject companies After financing the sub project, that you finance? environmental and social issues are presented to the monitor. of the ESMS Procedures for the ADB Loan 3471-Uzb "Horticulture Value Chain Development Yes 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 Yes Uzbekistan, the implementation of national Do you check for ongoing compliance of your standards and any other environmental

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.

The coordinator of the sub project makes a site visit, and on the basis of supporting Please describe how you monitor the documents, monitoring is carried out, the subproject company and their subproject’s Yes sub-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 Coordinator of the ESMS a confirmation of submit to you evidence of compliance with compliance with the necessary required environmental and social approvals Yes environmental and social approvals and and permits for the subprojects. permits, on the 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 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 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 Yes environmental protection measures were 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

E. Category “B” Subprojects Using ADB Funds

5. 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 analysis 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 associated This project falls under the category 3, with this subproject that were identified through due according to the Conclusion of State diligence conducted by your organization, and how Ecological Expertise and in compliance with were the issues dealt with (i.e., outcome of due diligence)? Decree of Cabinet of Ministers №491 dated 31/12/2001.

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 requirements and their implementation? and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Poytug' Barkamol Qurilish» Subproject location: Andijan city Navoiy street 46 Horticulture sector: Organization of drying of agricultural products Value of exposure (US$ ): $ 494 211,0 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 associated with this subproject that were identified Producing of construction and household through due diligence conducted by your waste. The initiator of the project was instructed organization, and how were the issues dealt with to take the waste to specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained

applicable environmental and social safeguard and presented the clarification to the requirements and their implementation? subproject 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Barkamol Avlod Qalqoni» Subproject location: Region of Andijan Asaka district МС Yangiobod Horticulture sector: Organization of drying of agricultural products with annual capacity of 1800tonness 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 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 The main waste is produced by the procedures associated with this subproject that were identified as washing, cleaning, polishing, sorting, through due diligence conducted by your dehydration and others. Therefore, it may organization, and how were the issues dealt with (i.e., outcome of due diligence)? 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 applicable environmental and social safeguard and presented the clarification to the requirements and their implementation? subproject 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Asl Meva Invest » Subproject location: Region of Andijan Bo'z district A.Ikramov street Horticulture sector: Organization of drying of agricultural products with annual capacity of 400 tonnes 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 The main waste is produced by the procedures associated with this subproject that were identified as washing, cleaning, polishing, sorting, through due diligence conducted by your dehydration and others. Therefore, it may organization, and how were the issues dealt with (i.e., outcome of due diligence)? 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 applicable environmental and social safeguard and presented the clarification to the requirements and their implementation? subproject 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

government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: PE «Bunyod servis lyuks» Subproject location: Region of Andijan, Asaka district Kujgan street Navoiy 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes. It was discussed, explained and applicable environmental and social safeguard clarified to the subproject owner by the requirements and their implementation? bank specialists 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Sabo Xamkor » Subproject location: Region of Andijan, city of Andijan, Babur street 73. Organization of a greenhouse farm for growing Horticulture sector: agricultural products such as vegetables and bananas with 3 hectares Value of exposure (US$ ): 1 502 159,0 Held. Particularly there were undertaken preliminary analyses of environmental impact (ecological screening), social Was any environmental and social due diligence safeguards screening, and safeguard due undertaken by your organization? 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 applicable environmental and social safeguard clarified to the subproject owner by the requirements and their implementation? bank specialists 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Jondor Qurilish Invest» Buhara region, Jondor city, F.Hudjaev street. Subproject location: 20 Organization of a greenhouse farm for growing Horticulture sector: agricultural products and cold store Value of exposure (US$ ): 1 998 756,0 Held. Particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental undertaken by your organization? impact (ecological screening), social

appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (permitted) volume. The formed utility fluids are to be taken away in the concreted moisture-proof cesspool, with further export of drains by means of cesspool cars on the next treatment facilities. For prevention of reproduction of pathogenic microbes and bacteria, the cesspool needs to

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used. be disinfected periodically.

Did you discuss with the subproject owner the Yes Bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 agricultural products Value of exposure (US$ ): 450 000,0 Yes, particularly there were undertaken preliminary analyses of environmental Was any environmental and social due diligence undertaken by your organization? 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 sub associated with this subproject that were identified project it is revealed that there will be through due diligence conducted by your generated industrial and consumption organization, and how were the issues dealt with (i.e., outcome of due diligence)? 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.

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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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

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 applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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$ ): 1 100 000,0 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 In the technological process, waste will be associated with this subproject that were identified formed in the form of combat scraps, skin, through due diligence conducted by your grape seeds, used mineral materials organization, and how were the issues dealt with (betonies, diatomite, and perlite), waste (i.e., outcome of due diligence)? paper, spent 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 applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Grand Bukhara argo » Subproject location: Buhara region, Kogon street СС 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 undertaken by your organization? 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Congress Bukhara agro » Subproject location: Bukhara region, Kogon street СС 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 undertaken by your organization? 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Mojiza agro sanoat service» Subproject location: Namangan region Yankurgan district korapolvon street 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

Did you discuss with the subproject owner the Yes bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 undertaken by your organization? impact (ecological screening), social

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 applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: «Botir Isayev » Subproject location: Namangan region, Namangan district. Irvodon Horticulture sector: Organization of drying agricultural products

Value of exposure (US$ ): 280 000,0 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 associated with this subproject that were identified the process, Formation of construction, through due diligence conducted by your household, economic, food waste are occured. organization, and how were the issues dealt with The initiator of the project was instructed to (i.e., outcome of due diligence)? take the waste to specially remote places. Did you discuss with the subproject owner the Yes, Bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 undertaken by your organization? impact (ecological screening), social

associated with this subproject that were identified economic, food waste. The initiator of the through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 undertaken by your organization? impact (ecological screening), social

(i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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

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 applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 sub project, such as reports reviewed by your organization? Project 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 sub project, such as reports reviewed by your organization? Project 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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$ ): 1 810 000,0 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 through due diligence conducted by your project was instructed to take the waste to

organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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$ ): 5 000 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental undertaken by your organization? impact (ecological screening), social

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 applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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$ ): 5 000 000,0 Yes, particularly there were undertaken Was any environmental and social due diligence preliminary analyses of environmental undertaken by your organization? impact (ecological screening), social

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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 undertaken by your organization? impact (ecological screening), social

What were the main environmental issues By the result of inspection of this sub associated with this subproject that were identified project it is revealed that there will be through due diligence conducted by your generated industrial and consumption organization, and how were the issues dealt with (i.e., outcome of due diligence)? 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.

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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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: «Surhan obi hayat» farm enterprise Subproject location: Surkhandarya region, Termez city, Yangiyer street Horticulture sector: Organization of drying agricultural products and cold storages 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes. Bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: LLC «Mukh plast service » Subproject location: Fergana region, Toshlaq district, ogaxiy street, house 137 Horticulture sector: Organization of drying agricultural products and Cold storages 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

Name of Subproject Company: Family enterprise «Nodira Diyor Mevalari» Subproject location: Fergana region, Oliariq district, Furkhat street house 19 Horticulture sector: Organization of drying agricultural products and Cold storages 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes. Bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 and

Cold storages 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 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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes. Bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? and 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 safeguard requirements? positive 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- lodged on the subproject by any affected person or concerned stakeholder? compliance observed.

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 through due diligence conducted by your project was instructed to take the waste to organization, and how were the issues dealt with specially remote places. (i.e., outcome of due diligence)? Did you discuss with the subproject owner the Yes, bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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

Name of Subproject Company: LLC «Riv Makon» Subproject location: Samarkhand region, Samarkhand district, Ulugbekh Horticulture sector: Organization of gardening Value of exposure (US$ ): 897 000,0 Was any environmental and social due diligence Yes, particularly there were undertaken undertaken by your organization? preliminary analyses of environmental

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 applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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

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 associated with this subproject that were identified Ecological Expertise this project falls under through due diligence conducted by your the 4th category in compliance with Decree organization, and how were the issues dealt with (i.e., outcome of due diligence)? of Cabinet of Ministers #491 dated 31/12/2001. However, 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.

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 applicable environmental and social safeguard and 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 government requirements? positive 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 or requests for corrective actions? compliance 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 concerned stakeholder? received.

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 analyses of environmental

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.

compliance or requests for corrective actions? compliance 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

concerned stakeholder? received.

F. Sub-projects of the category “C” in which are used from ADB funds.

the The amount Initiator of The locationof of Sub- The goal of The basis for classifying a sub-

№ the sub- Sub-project loan sub-project project into category "C" project (thousa nd US $)

Appendix 7

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

(To be submitted by the Bank to RRA)

Name of the Financial JSCMB “Ipoteka bank” Institution

Completed by (name): Boltaev Sherzod

Position in Head of Department Date: 20.12.2017 organization:

A. Portfolio Information

Report Covering Period:

From: 01.01.2017 To: 01.12.2017

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

B. Business Lines

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

Microfinance Loans or other financial products 206 450 7 450 for individuals

Small Loans or other financial products 25 039 750 8 921 business for individuals

Long term: Transactions with tenor greater than 12 months

Microfinance Any lending, leasing or other 58 425 771 9500 financial assistance to any corporate or legal entity other than an individual, with individual transactions less than $50,000 Any lending, leasing or other 574 991 698.8 851 839 financial assistance to any corporate or legal entity other Small than an individual, with individual business transactions less than $300,000

Other

Other (if Please describe 894 486 040 2 541 150 applicable)

C. Exposure by Horticulture Sectors

3. 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 9% Modern greenhouse complex 35% Regrigirated store 34% Equipment for processing of agriculture products 22%

{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.

Any outstanding Type of Safeguard category Value environmental and Subpro- loan Tenor of IR and IP issues ject using SME/ of loan Name of Subpro-ject exposu Industry Sector* during reporting ADB trade (month re Env IR IP period and actions funds finance s) (US$) taken to address (yes/no) ) the issues Agricultural JV "Nisi Multifruits Trade" credit 60 667 B C N/A No Yes processing "Dilrabo-94" LLC credit 60 156,2 cold storages B C N/A No Yes "Jamshid Javohir Agrotexservis" credit 60 450 Greenhouse B C N/A No Yes LLC «NAVOIYAGRO» LLC credit 84 1500 Greenhouse B C N/A No Yes B "Suvon Omonturdi" PE credit 60 200 cold storages C N/A No Yes

"Farovon Termiz Chorva" LLC credit 60 250 cold storages B C N/A No Yes Dryer fruits and B "Dil shams qamar" LLC credit 60 265,9 C N/A No Yes vegetables B «Ozodbek -Servis» LLC credit 60 390 Greenhouse C N/A No Yes

B "Marokand agro invest" Farming credit 84 992,6 Garden C N/A No Yes

"Pastdarg'om Erkin Sabzavotlari" B credit 60 1000 Greenhouse C N/A No Yes Farming B "Platina Parnik Servis" LLC credit 60 500 Greenhouse C N/A No Yes

"TASHKENT TRUST TRADE" B credit 48 250 Cold storages C N/A No Yes LLC B "Qiziriq ximiyaviy ugit" LLC credit 60 244,7 Cold storages C N/A No Yes

Greenhouse and B «PERFECT LOGISTICS» LLC credit 60 1090,8 C N/A No Yes cold storages Production of «Miller Grand Kapital» PE credit 60 948,5 B C N/A No Yes beverages Manufacture “Ravshan Yodik Production” LLC credit 60 500,3 carton boxes for B C N/A No Yes fruits

«Mirzahamdeov Ravshan» PE credit 60 250 Cold storages B C N/A No Yes

"Turkiston Mirishkorlari" LLC credit 60 376,8 Cold storages B C N/A No Yes "Yogdu Fayz bogdorchilik" credit 60 798,5 Cold storages B C N/A No Yes Farming “Fayzli Ummon" LLC credit 60 168,7 Cold storages B C N/A No Yes

*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. Policies & Processes Yes/No Has your organization developed and Yes According to the rules, all subprojects implemented an ESMS? considered by the bank for financing must comply with the requirements of ESMS.Copy of Policy and procedure of ESMS signed by JSCMB “Ipotekabank” has been provided. 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 No updated policy/procedure?

Has your organization appointed staff tasked Yes In order to implement the ESMS, the ESMS to implement the ESMS? Manager and the ESMS Coordinator were appointed in the Bank's head office. In the branch offices, the heads of lending departments are appointed as regional ESMS managers (15 regional ESMS managers). Also all employees of the Bank's lending divisons are involved in the implementation of ESMS.Implementation of ESMS procedures and its each branch were approved by the Responsible for implementation Sh. Boltaev, Head of Division in Investment department. Please give details of any transactions No Before financing subproject, specialist for rejected due to environmental and/or social ESMS checks subproject for category for concerns. requirements of ADB. Here are some examples from the Bank’s practice when the Bank rejected transactions due to environmental and / or social concerns: - The client brought a contract for the purchase of slate, but could not provide information about percent of asbestos contained in the slate; - B category was assigned to the subproject, however the client did not bring the required documents (state expertise conclusion, etc.); - the client applied for funding the subproject of a poultry farm with more than 40 thousand hens. Sometimes there are difficulties in determining which category of environmental risk the subproject belongs to. Please state any difficulties and/or constraints Sometimes there are some related to the implementation of the ESMS. misunderstandings and difficulties to categorize some sub projects in requirement ADB. Please describe how you ensure that your For the requirements of ADB, every sub subproject companies and their subprojects projects should accord natioanal laws and are operated in compliance with the national norms. During the monitoring it is checked that the borrower meets the ESMS laws and regulations and applicable ADB’s requirements in accordance with the requirements. national standards and the requirements of ADB. In addition, according to the local legislation the divisions of the Committee on Ecology and Environmental Protection monitor compliance with the requirements stated in the State Expert Examination Conclusion by enterprises. Please give details of any material social and No There were no questions during the period environmental issues associated with clients of report. during the reporting period.

In case the existing ESMS is not fully The existing ESMS is fully 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 Department, information of the Environmental/Social [email protected] Officer or Coordinator who has the overall responsibility for the implementation of the ESMS.

Please provide current staffing of other core Yes State committee on Ecology and ESMS persons in the organization involved environmental protection. State sanitary with ESMS implementation. epidemiology service of the Republic of Uzbekistan. What was the budget allocated to the ESMS It depends on the expense of salary and and its implementation during the year? business trips. Monitoring Yes/No Do you receive environmental and social Yes After financing subprojects, monitoring of monitoring reports from subproject companies ecology and social questions will be done that you finance? 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 your Yes When monitoring is carried out, subproject companies with national regulation implementation of the activities envisaged in and any other requirements? the environmental management plan is verified, thus implementation of the national rules and ADB’s standards is checked. Please describe how you monitor the The sub-project coordinator monitors the subproject company and their subproject’s site visits and on the basis of the supporting social and environmental performance. 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 conclusion of the state environmental review. Do you require the subproject owner to Yes The initiator of the subproject submits to the submit to you evidence of compliance with ESMS Coordinator the supporting required environmental and social approvals documents for compliance with the and permits for the subprojects. 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 No 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 Yes Credit and environmental policies have been and environmental issues to senior approved. During the quarterly monitoring of management? credit lines, environmental monitoring based on the policy is also conducted. All subproject monitoring reports are submitted to the manager of bank branch. Do you prepare any social and environmental No No 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 Prohibited Investment Activities List (Refer to page 122 of SPS). 0%

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

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

Name of Subproject Company: JV "Nisi Multifruits Trade" Subproject location: Samarkand region Horticulture sector: Agricultural processing Value of exposure (US$ ): 667.0 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.

The initiator of subproject was informed that all those types of wastes should be collected in special metal containers and utilized in special designated places, as it was also prescribed in Conclusion of State Ecological Expertise.

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

Name of Subproject Company: "Dilrabo-94" LLC

Subproject location: Andijan region

Horticulture sector: cold storages

Value of exposure (US$ ): 156.2 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.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (permitted) volume.

Additionally, it was explained to the initiator of the subproject that during operation of cold storage only ecological safe Freon R404a must be used.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject owner all the requirements regarding the their implementation? environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Does the subproject comply with applicable ADB Yes, according to the results of safeguard requirements? preliminary analyzes, screening and safeguard due diligence this subproject complies with ADB safeguard requirements.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: "Jamshid Javohir Agrotexservis" LLC

Subproject location: Bukhara region

Horticulture sector: Agricultural processing

Value of exposure (US$ ): 450.0

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, suggested outline of 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 reports Yes, documents on this sub subproject, reviewed by your organization? such as Project 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 associated In the course of activity of this object, the with this subproject that were identified through due formation of 10 types of waste is diligence conducted by your organization, and how were expected. It is such waste as a worn-out the issues dealt with (i.e., outcome of due diligence)? polyethylene film, waste of vegetables, waste of rags, waste of food, waste of a sub-standard wooden container, waste paper, waste from cleaning of the territory and also used mercury lamps.

As most subprojects include construction works to some extent, there will be also such wastes within this subproject, which have to be utilized accordingly.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

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

Name of Subproject Company: «NAVOIYAGRO» LLC Subproject location: Navoiy region

Horticulture sector: Greenhouse

Value of exposure (US$ ): 1500.0

Was any environmental and social due diligence Yes, in particular, there were carried out undertaken by your organization? analysis of environmental impact (ecological screening), as well as social safeguards screening, safeguard due diligence briefing note during review. Review of safeguard documents and field visits had been conducted by credit expert and ESMS coordinator.

Any environmental assessment report or audit reports Yes, sub project documents as Project of reviewed by your organization? 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 associated In the course of study carried out in with this subproject that were identified through due greenhouse agriculture, and as the diligence conducted by your organization, and how were results of conducted preliminary the issues dealt with (i.e., outcome of due diligence)? environmental and social impacts analyzes, as well as safeguard due diligence report, bank inspectors assigned to this subproject the following categories:

• category B on environmental impact • category C on involuntary resettlement impact.

By the end of all review works done, explanatory briefings with subproject initiators were conducted, main objective of which was making sure that minor construction wastes occurring during the execution part of the subproject will be collected to a special metal containers and further utilized in permitted areas. Moreover, the promiscuous use of water, land and contamination of underground water issues were also brought up and critically discussed.

Did you discuss with the subproject owner the applicable Yes. Bank inspectors carefully discussed environmental and social safeguard requirements and with the subproject owner all the their implementation? requirements regarding the environmental and social safeguard that he/she should meet during the implementation of subproject.

Does the subproject comply with applicable government Yes, it does, as witnessed by the positive requirements? Conclusion of State Ecological Expertise.

Does the subproject comply with applicable ADB Yes, as the result of preliminary analyzes safeguard requirements? shows, screening and safeguard due diligence this subproject complies with ADB safeguards requirements.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: "Suvon Omonturdi" PE

Subproject location: Surkhandarya region

Horticulture sector: cold storages

Value of exposure (US$ ): 200.0

Any environmental assessment report or audit reports Yes, subproject documents as Project of reviewed by your organization? 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 associated In the course of study carried out in with this subproject that were identified through due subproject’s industry, and as the results diligence conducted by your organization, and how were of conducted preparatory environmental the issues dealt with (i.e., outcome of due diligence)? and social impacts analyzes, as well as safeguard due diligence report, bank inspectors assigned to this subproject the following categories:

• category B on environmental impact • category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area. o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report). o generated domestic sewage

The methods of dealing with above- mentioned issues were brought at the post-review meeting and critically discussed with subproject owners. Generated domestic sewage is to be flown to the nearby sewer which was agreed and mentioned in Project of ZVOS (environmental assessment report). All above-mentioned issues require from subproject owners to work carefully and in compliance with all ecological standards. It was then clarified that subproject owners must execute the subproject following all required rules.

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with subproject executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the subproject that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with applicable government Yes, it does, as witnessed by the positive requirements? Conclusion of State Ecological Expertise. Does the subproject comply with applicable ADB Yes, as the result of preliminary analyzes safeguard requirements? shows, screening and safeguard due diligence this subproject complies with ADB safeguards requirements.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: "Faravon Termiz Chorva" LLC

Subproject location: Surkhandarya region

Horticulture sector: cold storages

Value of exposure (US$ ): 250.0

Any environmental assessment report or audit reports Yes, subproject documents as Project of reviewed by your organization? 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.

Main environmental issues associated with this subproject that were identified are as follows: o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area. o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report). o generated domestic sewage

The methods of dealing with above- mentioned issues were brought at the post-review meeting and critically discussed with subproject owners. Generated domestic sewage is to be flown to the nearby sewer which was agreed and mentioned in Project of ZVOS (environmental assessment report). All above mentioned issues require from subproject owners to work carefully and in compliance with all ecological standards. It was then clarified that subproject owners must execute the subproject following all required rules.

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with subproject executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the subproject that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with applicable government Yes, it does, as witnessed by the positive requirements? Conclusion of State Ecological Expertise.

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

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received stakeholder?

Name of Subproject Company: "Dil shams qamar" LLC

Subproject location: Andijan region

Horticulture sector: Drying line for fruits and vegetables

Value of exposure (US$ ): 265.9

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.

What were the main environmental issues associated During the conduction of screening and with this subproject that were identified through due due diligence, main issues studied were diligence conducted by your organization, and how were generation of production waste and the issues dealt with (i.e., outcome of due diligence)? waste water, as the technological process itself means use of much water and generation of food wastes, namely it contains such 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 city sewerage. Water will be taken from central water supply system. Production waste, formed at primary sink of raw materials, after cleaning in a horizontal settler will go to sewer chains of the enterprise with the subsequent dumping into the city sewerage. As no construction works are planned, there will not occur construction waste. However, as a result of production operations there will be 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 applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: "Dil shams qamar" LLC

Subproject location: Andijan region

Horticulture sector: Drying line for fruits and vegetables

Value of exposure (US$ ): 265.9 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.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: «Ozodbek -Servis» LLC

Subproject location: Bukhara region

Horticulture sector: Greenhouse

Value of exposure (US$ ): 390

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.

What were the main environmental issues associated By the result of inspection of this with this subproject that were identified through due subproject it is revealed that there will be diligence conducted by your organization, and how were generated industrial and consumption the issues dealt with (i.e., outcome of due diligence)? waste, which are formed within a year, such as waste of a 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 subproject has provided dust suppression of the working platform.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no the subproject by any affected person or concerned complaints received. stakeholder?

Name of Subproject Company: "Marokand agro invest" Farming

Subproject location: Samarkand region

Horticulture sector: Intensive Gardening

Value of exposure (US$ ): 992,6

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.

What were the main environmental issues associated There were no serious issues observed with this subproject that were identified through due within this subproject, as the technology diligence conducted by your organization, and how were of intensive gardening itself means the the issues dealt with (i.e., outcome of due diligence)? economy and saving of resources.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: "Pastdarg'om Erkin Sabzavotlari" Farming

Subproject location: Samarkand region

Horticulture sector: Greenhouse

Value of exposure (US$ ): 1000

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 reports Yes, documents on this subproject, such reviewed by your organization? as Project 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 associated By the result of inspection of this with this subproject that were identified through due subproject it is revealed that there will be diligence conducted by your organization, and how were generated industrial and consumption the issues dealt with (i.e., outcome of due diligence)? 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 subproject has provided dust suppression of the working platform.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: "Platina Parnik Servis" LLC

Subproject location: Samarkand region

Horticulture sector: Greenhouse

Value of exposure (US$ ): 500

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.

What were the main environmental issues associated By the result of inspection of this with this subproject that were identified through due subproject it is revealed that there will be diligence conducted by your organization, and how were generated industrial and consumption the issues dealt with (i.e., outcome of due diligence)? waste, which are formed within a year, such as waste of a top 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 subproject 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 applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of sub subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: "Qiziriq ximiyaviy ugit" LLC

Subproject location: Surkhandarya region

Horticulture sector: Cold storages

Value of exposure (US$ ): 244.7

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.

What were the main environmental issues associated At the stage of implementation of this sub with this subproject that were identified through due subproject, and during construction diligence conducted by your organization, and how were works, possible emissions of dust, the issues dealt with (i.e., outcome of due diligence)? construction debris, garbage will be immediately utilized in specially allocated places.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (permitted) volume.

Additionally, it was explained to the initiator of the subproject that during operation of cold storage only ecological safe Freon R404a must be used.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: «PERFECT LOGISTICS» LLC

Subproject location: Khorezm region

Horticulture sector: Greenhouse and cold storages

Value of exposure (US$ ): 1090.8

Any environmental assessment report or audit reports Yes, sub subproject documents as reviewed by your organization? Project 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.

• category B on environmental impact • category C on involuntary resettlement impact.

The factors as the Freon refill systems of coolers, the fact of identifying 4 different types of wastes from 5 air pollution sources were critically studied. All above mentioned factors require from subproject owners to work carefully and in compliance with all ecological standards. These topics were discussed in explanatory talks conducted with subproject owners. It was then clarified that subproject owners must execute the subproject following all required rules and standards. Apart from that, the volumes of waste generation and methods of dealing with them were identified and carefully discussed.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the subproject that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with applicable government Yes, it does, as witnessed by the positive requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: «Miller Grand Kapital» PE

Subproject location: Tashkent city

Horticulture sector: Production of fruit beverages

Value of exposure (US$ ): 948,5

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.

What were the main environmental issues associated In the territory of the object under with this subproject that were identified through due consideration, 9 types of waste are diligence conducted by your organization, and how were formed, such as glass, polyethylene waste, special clothing waste, waste the issues dealt with (i.e., outcome of due diligence)? paper, Crown cork waste. All these waste products are surrendered to specialized enterprises for recycling or recycling. Solid household waste is transported to the municipal solid waste landfill. Wastes of mercury-containing lamps are surrendered for demercurization to specialized enterprises. Used oil from the compressor is transferred for processing to JV "Uz-Prista Recycling". All types of waste, provided they are collected, stored and transported, do not adversely affect the environment. Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise Does the subproject comply with applicable ADB Yes, according to the results of safeguard requirements? preliminary analyzes, screening and safeguard due diligence this subproject complies with ADB safeguard requirements.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on . No, by this time there were no the subproject by any affected person or concerned complaints received. stakeholder?

Name of Subproject Company: “Ravshan Yodik Production” LLC

Subproject location: Tashkent city

Horticulture sector: Manufacture carton boxes for fruits and vegetables

Value of exposure (US$ ): 500.0

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 reports . Yes, documents on this sub subproject, reviewed by your organization? such as Project 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 associated The considered technological process is with this subproject that were identified through due accompanied by the release of dust of diligence conducted by your organization, and how were paper and suspended solids, during the operation of the boiler house carbon the issues dealt with (i.e., outcome of due diligence)? monoxide, dioxide, sulfurous anhydride is released. Calculation of the dispersion of emissions of harmful substances into the atmosphere showed that their maximum surface concentration at the boundary of the industrial site does not exceed the permissible values and the established QUOT. As a result of the activity of the facility, waste paper will be formed in the form of scraps of cardboard waste, as they are accumulated; they are sold to recycling centers. After the organization of the waste paper recycling plant, these wastes will be processed at the enterprise itself. Waste plastic containers from paint and glue are surrendered to recyclables for disposal. Used fluorescent lamps are subject to demercurization at a specialized enterprise. Waste of ferrous metal scrap is formed during the operation of the boiler room of the process equipment. A change in the worn out parts and units of the units can be recycled to the enterprise "O’zikkilamchiqorametal". Waste of substandard mass in the course of the technological process of kneading pulp and its processing is subject to delivery of recyclables. Solid household from cleaning the premises, hard surface and green planting and life activity of employees is exported to the city dump.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: «Mirzahamdeov Ravshan» PE

Subproject location: Tashkent region

Horticulture sector: Cold storages

Value of exposure (US$ ): 250.0 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.

What were the main environmental issues associated At the stage of implementation of this sub with this subproject that were identified through due project, and during construction works, diligence conducted by your organization, and how were possible emissions of dust, construction the issues dealt with (i.e., outcome of due diligence)? debris, garbage will be immediately utilized in specially allocated places.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on . No, by this time there were no the subproject by any affected person or concerned complaints received. stakeholder?

Name of Subproject Company: "Turkiston Mirishkorlari" LLC

Subproject location: Tashkent region

Horticulture sector: Cold storages Value of exposure (US$ ): 376,8

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.

What were the main environmental issues associated At the stage of implementation of this with this subproject that were identified through due subproject, and during construction diligence conducted by your organization, and how were works, possible emissions of dust, the issues dealt with (i.e., outcome of due diligence)? construction debris, garbage will be immediately utilized in specially allocated places. Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received.. stakeholder?

Name of Subproject Company: "Yogdu Fayz bogdorchilik" Farming

Subproject location: Ferghana region Horticulture sector: Cold storages

Value of exposure (US$ ): 798.5

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.

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no complaints the subproject by any affected person or concerned received. stakeholder?

Name of Subproject Company: “Fayzli Ummon" LLC Subproject location: Ferghana region

Horticulture sector: Cold storages and steam boiler for fruits

Value of exposure (US$ ): 798.5

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 reports . Yes, documents on this subproject, reviewed by your organization? such as Project 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

Did you discuss with the subproject owner the applicable Yes. Bank specialists discussed, environmental and social safeguard requirements and explained and clarified to the subproject their implementation? owner all the requirements regarding the environmental and social safeguard that him/she should comply with during the implementation of sub subproject.

Does the subproject comply with applicable government Yes, it complies, as evidenced by the requirements? positive Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints lodged on No, by this time there were no the subproject by any affected person or concerned complaints received. stakeholder?

Appendix 7

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

Completed by (name): Aslanov Aziz

Position in organization: Head of Department Date: 20.12.2017

A. Portfolio Information

Report Covering Period:

From: 01.01.2017 To: 01.12.2017

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

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

Microfinance Loans or other financial products for

219 577 individuals 2 121

Small Loans or other financial products for 6 317,9 6,2 business individuals Long term: Transactions with tenor greater than 12 months

Any lending, leasing or other financial assistance to any corporate or legal Microfinance entity other than an individual, with 66 849,9 74,4 individual transactions less than $50,000

Any lending, leasing or other financial assistance to any corporate or legal Small entity other than an individual, with business 115 123,3 125.5 individual transactions less than $300,000

Other

Factoring 0 0 Any crediting, leasing or other financial Other assistance to any corporate or legal (if applicable) entity, with the exception of an 1 116 430 599 individual, with a separate transaction amount of more than $ 300,000

Total 838 467,1 3 443

C. Exposure by Horticulture Sectors

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

Industrial Sector % of Investments to horticulture value chain development project loan portfolio (ADB)

For the purchase of agricultural machinery, the cultivation of fruit and vegetable growing 15%

Acquisition of equipment for greenhouses 50% Purchase of equipment for a refrigerating household 10% Purchase of equipment for processing 25%

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 $5000000 loan size. Any outstanding Sub- Safeguard environmental Value of project Type of loan Tenor of category and IR and IP exposure Industry using Name of Sub-project SME/trade loan issues during (thousand Sector reporting ADB finance) (months) US$) period and funds actions taken Env IR IP to address the (yes/no) issues

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 SME 72 4 656 agricultural B C N/A NO YES products JE LLC OLCHAZOR IMPEX SME 60 1 988 Cold storage 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 SME 60 698 Cold storage B C N/A NO YES INDUSTRIES 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 SME 60 198 Cold storage B C N/A NO YES LTD SHAKHRUZA DIYOR NAVOIY SME 60 498 Greenhouse B C N/A NO YES LTD GABO LTD SME 60 165 Cold storage B C N/A NO YES OZODBEK AZAMATBEK FE SME 60 120 Cold storage B C N/A NO YES ALISHER QIPSHAQ LTD SME 60 306,40 Cold storage B C N/A NO YES 199,8 KUNGRAD VEK STORY LTD SME 60 Cold storage B C N/A NO YES

M GULOM LTD SME 60 198,5 Greenhouse B C N/A NO YES TOMATO PLANT INVEST LLC SME 60 1 280 Greenhouse B C N/A NO YES ASKAROV NARIMON FARMING SME 60 546,4 Greenhouse B C N/A NO YES ENTERPRISE NAVBAHOR FAYZ EXPORT SME 84 340,0 Greenhouse B C N/A NO YES LTD BAKHT KHARAKAT SME 60 620,3 Cold storage B C N/A NO YES MEVALARI LTD Processing of JIZZAKH LEADER FOOD LTD SME 60 780,0 agricultural B C N/A NO YES products 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 SME 60 1 210,0 Greenhouse B C N/A NO YES LTD 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 C C N/A NO YES truck Processing of MASTER GLOBAL PLUS LTD SME 60 4 878,1 agricultural B C N/A NO YES products Purchase of agricultural TOSHKENTVINO KOMBINATI SME 60 685,9 machinery for C C N/A NO YES intensive garden FRESH FRUITS EXPORT LTD SME 60 635 Cold storages B C N/A NO YES

D. Environmental and Social Management System (ESMS)

REQUIREMENT: Policies & Processes Yes/No Has your organization developed and All projects considered by the bank for implemented an ESMS? Yes financing must comply with the requirements of ESMS. In connection with the implementation

of the ADB project 3471-UZB: Horticulture Value Chain Development, the Management Board of JSICB "Ipak Yuli" approved the ESMS Procedures for implementation of the above Project on 24th May 24, 2017. Copies are attached. If there is an ESMS already in place, have As mentioned in the above paragraph, there been any updates to the ESMS or policy the Bank has implemented ESMS since and procedures adopted by your organization April 15th, 2013. during the reporting period? During the reported period with Yes consideration of the pecularities of the ADB project 3471-UZB: Horticulture Value Chain Development, ESMS procuderes were adopted for implementation of this particular project. Has senior management signed off on the As indicated in the paragraphs above, updated policy/procedure? the internal documents of the bank on Yes ESMS were approved by the Supervisory Board and the Management Board of the Bank. Has your organization appointed staff tasked In order to implement the ESMS, the to implement the ESMS? ESMS Manager and the ESMS Coordinator were appointed in the Bank's head office. In the branch offices, the heads of lending departments are appointed as regional ESMS managers (15 regional ESMS managers). Also all employees of the Bank's lending divisons are involved in Yes the implementation of ESMS. Loan officers apply procedures for managing environmental and social risks when considering every project financed by the Bank. They ensure compliance with protective measures for environmental and social issues, and if required, ensure the availability of environmental documents for each decision on granting a loan. Please give details of any transactions Not any transactions rejected due to rejected due to environmental and/or social No environmental and/or social concerns concerns.

Please state any difficulties and/or constraints Sometimes there are difficulties in Yes related to the implementation of the ESMS. determining which category of

environmental risk the project belongs to. Please describe how you ensure that your On the basis of the loan agreement and subproject companies and their subprojects in accordance with the legislation of are operated in compliance with the national the Republic of Uzbekistan, the laws and regulations and applicable ADB’s Yes borrower is obliged to fulfill all requirements. obligations to implement the current requirements for environmental protection measures Please give details of any material social and Not social and environmental issues environmental issues associated with clients No associated with clients during the during the reporting period. reporting period

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

Capacity Yes/No Please provide the name and contact Aslanov Aziz information of the Environmental/Social ( tel: 234-11-17) Officer or Coordinator who has the overall responsibility for the implementation of the ESMS.

Please provide current staffing of other core Aslanov Aziz ESMS persons in the organization involved ( tel: 234-11-17) with ESMS implementation. The Bank conducts training seminars for branch specialists in each quarter of the year. What was the budget allocated to the ESMS Besides salaries of employees involved and its implementation during the year? in the implementation of ESMS, no budget was allocated

Monitoring Yes/No Do you receive environmental and social Supporting attached documents. monitoring reports from subproject Environmental Screening Checklist Yes companies that you finance? (Appendix 3) was attached to this document

Please describe how you monitor the ESR manager will evaluate ES subproject company and their subproject’s (environmental and social) social and environmental performance. preformance of subprojects annually and benchmark of the report will be monitoring apllicability of sub projects Yes with environmental and social safeguard national requirenments. Based on this report the ESR Manager will review and assess the subproject’s environmental and social safeguard preformance

Do you require the subproject owner to The initiator of the subproject submits submit to you evidence of compliance with to the Coordinator of the ESMS a required environmental and social approvals confirmation of compliance with the and permits for the subprojects. necessary environmental and social Yes approvals and permits, on the 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 litigation/complaints/regulatory notices and fines:

Reporting Yes/No Is there an internal process to report on social In case of environmnetal issues, and environmental issues to senior ESMS manger in branch will management? investigate the reason for non complience with envioronmental requirenments, and a decision will Yes be taken with subproject owner about what action is needed to bring a subproject in to complience with all applicable envioronmental safeguard requirenments. After all detailed report will be submitted to senior manager.

Do you prepare any social and environmental NBU’s social and environmental reports: No reports are provided only to ADB - 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 0 % involved in ADB’s Prohibited Investment Activities List (Refer to page 122 of SPS).

E. Category “B” Subprojects Using ADB Funds

5. Please provide information about all new subprojects using ADB loan funding approved during this reporting period. Name of Subproject Company: Muhammad Mironshoh LTD

Subproject location: Surkhandarya region

Horticulture sector: Establishment of greenhouse

Value of exposure (US$ ): 760 000

Was any environmental and social due diligence Yes. ESMS coordinator (Shermatov Akmal) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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 organization, and how were the issues dealt with within a year, such as waste of tops of (i.e., outcome of due diligence)? 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.

Did you discuss with the subproject owner the Yes. Bank specialists discussed, explained applicable environmental and social safeguard and 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 government requirements? positive Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Agro Feed LTD

Subproject location: Surkhandarya region

Horticulture sector: Drying fruits

Value of exposure (US$ ): 3 386 000

Was any environmental and social due diligence Held. ESMS coordinator (Shermatov Akmal) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

Any environmental assessment report or audit Yes. The Bank examined the ZVOS and the conclusions of the state environmental review.

reports reviewed by your organization?

What were the main environmental issues During conducted monitoring on environmental associated with this subproject that were identified issues, subproject owner was instructed to set through due diligence conducted by your up special plastic container to take vegetables organization, and how were the issues dealt with and fruits waste after each working day and (i.e., outcome of due diligence)? deliver it to a special enterprise for processing it for animal foods.

Also this process may lead to a generation of wastewater, which will be discharged to the central sewage system, with the subsequent dumping into the city sewerage. Water will be taken from central water supply system. Production waste, formed at primary sink of raw materials, after cleaning in a horizontal settler will go to sewer chains of the enterprise with the subsequent dumping into the city sewerage.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Agro processing group LTD

Subproject location: Surkhandarya region

Horticulture sector: Production of fruit puree

Value of exposure (US$ ): 4 656 000

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 associated with this subproject that were identified is revealed that there will be generated through due diligence conducted by your industrial and consumption waste, which organization, and how were the issues dealt with are formed within a year, such as waste of (i.e., outcome of due diligence)? 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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: LTD OLCHAZOR IMPEX

Subproject location: Namangan region

Horticulture sector: Cold storage

Value of exposure (US$ ): 1 988 000

Was any environmental and social due diligence Held. ESMS coordinator (Kholboyev Avazbek) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report.

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 course of study carried out in associated with this subproject that were identified project’s industry, and as the results of through due diligence conducted by your conducted preparatory environmental and organization, and how were the issues dealt with social impacts analyzes, as well as (i.e., outcome of due diligence)? safeguard due diligence report, bank inspectors assigned to this project the following categories:

• category B on environmental impact

• category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area.

o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report).

o generated domestic sewage

ZVOS (environmental assessment report). All above mentioned issues require from project owners to work carefully and in compliance with all ecological standards. It was then clarified that project owners must execute the project following all required rules.

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Did you discuss with the subproject owner the Yes. Bank inspectors carefully discussed applicable environmental and social safeguard with the subproject owner all the requirements and their implementation? requirements regarding the environmental and social safeguard that he/she should follow during the implementation of project.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

Does the subproject comply with applicable ADB Yes, as the results of preliminary analyzes safeguard requirements? shows, 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 or requests for corrective actions?

compliance 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: MUSAFFO IQLIM TRANS SERVIC LLC

Subproject location: Namangan region

Horticulture sector: Agricultural products processing

Value of exposure (US$ ): 1 992 000

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: LTD KRISTALL-FUYUN INDUSTRIES LLC

Subproject location: Syrdarya region

Horticulture sector: Cold storage

Value of exposure (US$ ): 698 000

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.

• category B on environmental impact

• category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area.

o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report).

o generated domestic sewage

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

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

compliance 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: Chashma Tomchi LTD

Subproject location: Jizakh region

Horticulture sector: Organizing modern greenhouse

Value of exposure (US$ ): 598 500

Was any environmental and social due diligence Held. ESMS coordinator (Abbosov Dilshod) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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 sub associated with this subproject that were identified project it is revealed that there will be through due diligence conducted by your generated industrial and consumption organization, and how were the issues dealt with waste, which are formed within a year, such (i.e., outcome of due diligence)? 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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Aziz Agro Imkon Sanoat LTD

Subproject location: Jizakh region

Horticulture sector: Organizing modern greenhouse

Value of exposure (US$ ): 579 800

Was any environmental and social due diligence Held. ESMS coordinator (Abbosov Dilshod) confirmed that the subproject owner is

undertaken by your organization? undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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.

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Hazorbog' Shirin Mevalari LTD

Subproject location: Bukhara region

Horticulture sector: Organizing cold storage

Value of exposure (US$ ): 198 500

Was any environmental and social due diligence Held. ESMS coordinator (Ergashev Iskandar) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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 At the stage of implementation of this associated with this subproject that were identified subproject, and during construction works, through due diligence conducted by your possible emissions of dust, construction organization, and how were the issues dealt with debris, garbage will be immediately utilized (i.e., outcome of due diligence)? in specially allocated places.

During construction works, emissions of

dust from cement of inorganic origin, oxide threw, oxide of manganese and carbon oxide to the atmosphere are high likely to take place. Pollutants will be released into the atmosphere in a chaotic manner.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (permitted) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be use.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Shakhruza Diyor Navoiy LTD

Subproject location: Navoiy region

Horticulture sector: Organizing modern greenhouse

Value of exposure (US$ ): 498 000

Was any environmental and social due diligence Held. ESMS coordinator (Murtazoyev undertaken by your organization? Khurshid) confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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 course of activity of this object, the associated with this subproject that were identified formation of 10 types of waste is expected. through due diligence conducted by your It is such waste as a worn-out polyethylene organization, and how were the issues dealt with film, waste of vegetables, waste of rags, (i.e., outcome of due diligence)? waste of food, waste of a sub-standard wooden container, waste paper, waste from cleaning of the territory and also used mercury lamps.

project.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Gabo LTD

Subproject location: Kashkadarya region

Horticulture sector: Organizing cold storage

Value of exposure (US$ ): 164 300

Was any environmental and social due diligence Held. ESMS coordinator (Gafforov Abdulla) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report.

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 At the stage of implementation of this associated with this subproject that were identified project, and during construction works, through due diligence conducted by your possible emissions of dust, construction organization, and how were the issues dealt with debris, garbage will be immediately utilized (i.e., outcome of due diligence)? in specially allocated places.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (permitted) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon

R404a must be used.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance observed.

Have there been any grievances or complaints No, there were no incidents of non- lodged on the subproject by any affected person or compliance observed. concerned stakeholder?

Name of Subproject Company: Оzоdbek Аzаmatbek Farming Enterprise

Subproject location: Khorazm region

Horticulture sector: Organizing cold storage

Value of exposure (US$ ): 120 000

Was any environmental and social due diligence Held. ESMS coordinator (Sabirov Sardor) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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 course of study carried out in associated with this subproject that were identified project’s industry, and as the results of through due diligence conducted by your conducted preparatory environmental and organization, and how were the issues dealt with social impacts analyzes, as well as

(i.e., outcome of due diligence)? safeguard due diligence report, bank inspectors assigned to this project the following categories:

• category B on environmental impact

• category C on involuntary resettlement impact.

The factors as the Freon refill systems of coolers, the fact of identifying 4 different types of wastes from 5 air pollution sources were critically studied. All above mentioned factors require from project owners to work carefully and in compliance with all ecological standards. These topics were discussed in explanatory talks conducted with project owners. It was then clarified that project owners must execute the project following all required rules and standards. Apart from that, the volumes of waste generation and methods of dealing with them were identified and carefully discussed.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) valume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used

project.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

Does the subproject comply with applicable ADB Yes, as the results of preliminary analyze safeguard requirements? shows, 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 or requests for corrective actions? compliance 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: Alisher Kipshaq LTD

Subproject location: Nukus region

Horticulture sector: Organizing cold storage

Value of exposure (US$ ): 306 145

Was any environmental and social due diligence Held. ESMS coordinator (Allamuratov Damir) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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.

• category B on environmental impact

• category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area.

o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report).

o generated domestic sewage

The methods of dealing with above- mentioned issues were brought at the post- review meeting and critically discussed with project owners. Generated domestic sewage

is to be flown to the nearby sewer which was agreed and mentioned in Project of ZVOS (environmental assessment report). All above mentioned issues require from project owners to work carefully and in compliance with all ecological standards. It was then clarified that project owners must execute the project following all required rules.

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Kungrad Vek story LTD

Subproject location: Nukus region

Horticulture sector: Organizing cold storage

Value of exposure (US$ ): 199 880

Was any environmental and social due diligence Held. ESMS coordinator ( Allamurodov undertaken by your organization? Damir) confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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 course of study carried out in associated with this subproject that were identified subproject’s industry, and as the results of through due diligence conducted by your conducted preparatory environmental and organization, and how were the issues dealt with social impacts analyzes, as well as (i.e., outcome of due diligence)? safeguard due diligence report, bank inspectors assigned to this project the following categories:

• category B on environmental impact

• category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline

battery charging area.

o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report).

o generated domestic sewage

The methods of dealing with above- mentioned issues were brought at the post- review meeting and critically discussed with project owners. Generated domestic sewage is to be flown to the nearby sewer which was agreed and mentioned in Project of ZVOS (environmental assessment report). All above mentioned issues require from project owners to work carefully and in compliance with all ecological standards. It was then clarified that project owners must execute the project following all required rules.

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used

and social safeguard that he/she should follow during the implementation of project.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: LTD M Gulom

Subproject location: Republic of Karakalpakstan

Horticulture sector: Procurement Greenhouse equipments

Value of exposure (US$ ): 620,310

Was any environmental and social due diligence Held. ESMS coordinator .(Damir Kalkazorov) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report.

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 During conducted monitoring on environmental associated with this subproject that were identified issues project owner was instructed to install through due diligence conducted by your containers and sign contract with waste organization, and how were the issues dealt with management company for collection and (i.e., outcome of due diligence)? transportation to legal landfills and designate and mark area for covered and protected storage. Labeling of containers boxes and packs.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Tomato plant invest LLC

Subproject location: Tashkent region, Qibray district

Horticulture sector: Establishment of greenhouse

Value of exposure (US$ ): 1 280 000

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.

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Askarov Narimon Farming Enterprise

Subproject location: Khorazm region

Horticulture sector: Organizing modern greenhouse

Value of exposure (US$ ): 546 400

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 course of study carried out in

associated with this subproject that were identified greenhouse agriculture, and as the results of through due diligence conducted by your conducted preliminary environmental and organization, and how were the issues dealt with social impacts analyzes, as well as (i.e., outcome of due diligence)? safeguard due diligence report, bank inspectors assigned to this project the following categories:

• category B on environmental impact

• category C on involuntary resettlement impact.

mercury lamps shall be submitted to specialized companies for demercuration. The technology of this greenhouse is very environment-friendly and can avoid many factors with serious consequences and impacts on environment. For instance, the use of hydroponics will avoid from cultivation of land to plant seeds and soil pollution by fertilizers, use of drip irrigation system will save water resources provided from the planned artesian well, economical boilers use less natural gas, which reduces of emission of air pollutants.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: LTD Navbahor Fayz Eksport

Subproject location: Navoi region

Horticulture sector: Procurement Greenhouse equipments

Value of exposure (US$ ): 340 000

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.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: LTD Bakht Kharakat Mevasi

Subproject location: Urgench region

Horticulture sector: Organization of Cold Storage

Value of exposure (US$ ): 620,310

Was any environmental and social due diligence Held. ESMS coordinator (Sardor Sabirov) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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.

• category B on environmental impact

• category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area.

o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report).

o generated domestic sewage

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise

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

compliance 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: Jizzakh leader food LLC

Subproject location: Jizzakh region

Horticulture sector: Agricultural products processing

Value of exposure (US$ ): 780 000

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Tashabus Do’rmon Farming Enterprise

Subproject location: Khorazm region

Horticulture sector: Purchasing the equipment for clearing, sorting and packaging Green(mung)

Value of exposure (US$ ): 267 750

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.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Piskent Parranda LTD

Subproject location: Tashkent region

Horticulture sector: Organizing modern greenhouse

Value of exposure (US$ ): 2 320 000

Was any environmental and social due diligence Held. ESMS coordinator (Sadikov Mahmud) undertaken by your organization? confirmed that the subproject owner is undertaking the obligation on compliance with all applicable environmental safeguard requirements, prescribed in ZVOS and conducted site visit and prepared site inspection report

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 course of study carried out in associated with this subproject that were identified greenhouse agriculture, and as the results of through due diligence conducted by your conducted preliminary environmental and organization, and how were the issues dealt with social impacts analyzes, as well as (i.e., outcome of due diligence)? safeguard due diligence report, bank inspectors assigned to this project the following categories:

• category B on environmental impact

• category C on involuntary resettlement impact.

By the end of all review works done, explanatory briefings with project initiators were conducted, main objective of which was making sure that minor construction wastes occurring during the execution part of the project will be collected to a special metal container and further utilized in permitted areas. Moreover, the promiscuous use of water, land and contamination of underground water issues were also brought up and critically discussed.

wooden container, waste paper, and waste from cleaning of the territory and also used mercury lamps.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Sharq Yulduz Fayz LTD

Subproject location: Andijan region, Oltinkol district

Horticulture sector: Organizing modern greenhouse

Value of exposure (US$ ): 1 095 000

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 course of study carried out in associated with this subproject that were identified greenhouse agriculture, and as the results of through due diligence conducted by your conducted preliminary environmental and organization, and how were the issues dealt with social impacts analyzes, as well as (i.e., outcome of due diligence)? safeguard due diligence report, bank inspectors assigned to this project the following categories:

• category B on environmental impact

• category C on involuntary resettlement impact.

discussed.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Sunday business group LTD

Subproject location: Andijan region, Shakhrihon district

Horticulture sector: Organizing modern greenhouse

Value of exposure (US$ ): 1 210 000

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.

• category B on environmental impact

• category C on involuntary resettlement impact.

of the project will be collected to a special metal container and further utilized in permitted areas. Moreover, the promiscuous use of water, land and contamination of underground water issues were also brought up and critically discussed.

In the course of activity of this object, the formation of 10 types of waste is expected. It is such waste as a worn-out polyethylene film, waste of vegetables, waste of rags, waste of food, waste of a sub-standard wooden container, waste paper, and waste from cleaning of the territory and also used mercury lamps.

requirements and their implementation? and social safeguard that he/she should meet during the implementation of project.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: LTD Zomin Meva Logistika

Subproject location: Jizzakh region, Zaamin district

Horticulture sector: Cold storage and intensive garden

Value of exposure (US$ ): 5 000 000

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.

• category B on environmental impact

• category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area.

o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report).

o generated domestic sewage

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

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

compliance 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: MUSHTARI OQDARYO LLC

Subproject location: Samarqand region, Oqdarya district

Horticulture sector: Agricultural products processing

Value of exposure (US$ ): 3 181 000

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: Shirin Agro Nur LTD

Subproject location: Syrdarya region, Shirin district

Horticulture sector: Organizing modern greenhouse

Value of exposure (US$ ): 567 800

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.

• category B on environmental impact

• category C on involuntary resettlement impact.

By the end of all review works done, explanatory briefings with project initiators were conducted, main objective of which was making sure that minor construction wastes occurring during the execution part of the project will be collected to a special metal container and further utilized in permitted areas. Moreover, the promiscuous use of water, land and contamination of underground water issues were also brought up and critically discussed.

wooden container, waste paper, and waste from cleaning of the territory and also used mercury lamps.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: LTD Farma servis

Subproject location: Syrdarya region, Mirzaabad district

Horticulture sector: Agricultural products processing and cold storage

Value of exposure (US$ ): 932 800

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.

• category B on environmental impact

• category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area.

o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report).

o generated domestic sewage

was agreed and mentioned in Project of ZVOS (environmental assessment report). All above mentioned issues require from project owners to work carefully and in compliance with all ecological standards. It was then clarified that project owners must execute the project following all required rules.

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non-

compliance or requests for corrective actions? compliance 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: Master Global Plus LTD

Subproject location: Tashkent region, Yangiyol district

Horticulture sector: Agricultural products processing

Value of exposure (US$ ): 4 878 100

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the government requirements? positive Conclusion of State Ecological Expertise.

Have there been any recorded incidents of non- No, there were no incidents of non- compliance or requests for corrective actions? compliance 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: LTD Fresh fruits export

Subproject location: Khorezm region, Xonqa district

Horticulture sector: Organization of Cold Storage

Value of exposure (US$ ): 635 000

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.

• category B on environmental impact

• category C on involuntary resettlement impact.

Main environmental issues associated with this subproject that were identified are as follows:

o emission of wastes to atmosphere identified and they are expected to be implemented by the boiler room, kitchen and by the alkaline battery charging area.

o 3 sources of atmosphere pollution were identified and listed in Project of ZVOS (environmental assessment report).

o generated domestic sewage

Moreover, the volumes of waste generation from each source and methods of dealing with them were identified and carefully discussed with project executors.

During operation of refrigerating appliances, emissions of nitrogen of oxide, carbon of oxide and ammonia to the atmosphere are expected in restricted (admissible) volume.

Additionally, it was explained to the initiator of the project that during operation of cold storage only ecological safe Freon R404a must be used.

Does the subproject comply with applicable Yes, it does, as witnessed by the positive government requirements? Conclusion of State Ecological Expertise

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

compliance 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?

F. Sub-projects of the category “C” which are used from ADB funds.

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

According to the ADB system, based Surkhandarya on the requirements of protective “Eshnazar Purchase of 1 region, Jarkurghon 210 measures 1 (environment) Acquisition Invest” LTD. refrigeration truck district of tractors and Other agricultural machinery is classified as category "C"

According to the ADB system, based Acquisition of "Toshkentvino on the requirements of protective Tashkent, tractors and 2 Kombinati" 635 measures 1 (environment) Acquisition Yashnobod district Other agricultural LTD. of tractors and Other agricultural machinery. machinery is classified as category "C"

Appendix 7

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

Name of the Financial Institution JSCB “Uzpromstroybank”

Completed by (name): Niyazov Sarvar Erkinovich

Position in Meneger ESMS of JSCB Date: 31.12.2017 organization: “Uzpromstroybank”

A. Portfolio Information

Report Covering Period:

From:01.01.2017 To:01.12.2017

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

B. Business Lines

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

Loans or other financial Microfinance 3 741 229,59 6 362 846,31 products for individuals

Small Loans or other financial 7 592 668,39 8 347 115,34 business products for individuals

Long term: Transactions with tenor greater than 12 months Any lending, leasing or other financial assistance to any corporate or legal entity other Microfinance 30 210 986,01 46 322 414,71 than an individual, with individual transactions less than $50,000

Any lending, leasing or other financial assistance to any Small corporate or legal entity other 40 466 998,36 52 162 389,38 business than an individual, with individual transactions less than $300,000

Other

Other (if Please describe 2 386 964 084,75 3 198 364 009,51 applicable)

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 Intensive garden 0 % Modern greenhouse complex 54 % Cold storages 17 % Equipment for processing of agriculture products 29 % {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.

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

LLC”Emir SME 60 129 800,0 Cold storage B C N/A No Yes parranda” Processing LLC “Xorazm SME 60 1 000 000,0 of B C N/A No Yes qovunlari” agricultural products LLC “Sarkor SME 60 193 256,0 Cold storage B C N/A No Yes quruvchi” LLC “Zarafshon SME 84 2 000 000,0 Greenhouse B C N/A No Yes Jasur Navoiy” LLC “Kogon MSB 84 440 000,0 Greenhouse B C N/A No Yes mega trans” Processing LLC “Narpay of SME 84 710 200,0 agricultural B C N/A No Yes Optimum” products and cold storage LC “Lider best SME 60 535 000,0 Greenhouse B C N/A No Yes tomato” LLC “AR Logistics SME 60 499 440,5 Greenhouse B C N/A No Yes Vegetables Fruits”

LLC “Surxon Greenhouse SME 84 1 500 000,0 and cold B C N/A No Yes Kombinati” storage Processing LLC “Indigo SME 72 300 000,0 Yes of B C N/A No trade” agricultural products LLC “Isroil Ismoil SME 60 296 150,0 Cold storage B C N/A No Yes Xamkor”

LLC“Xakimova Fruits and Lola SME 72 2 470,39 vegetables B C N/A No No Mixaylovna” growing Safeguard Any category outstanding environment Type of al and IR Subpro- ject using loan Tenor and IP Value of ADB of loan issues Name of Sub- SME/ exposure Industry during funds project Sector* (month reporting Trade (US$) Env IR IP s) period and finance actions (yes/no) taken to address the issues

LLC“Eshkabulov Fruits and Xaliq SME 72 2 194,94 vegetables B C N/A No No Kamalovich” growing LLC “Voxidov Fruits and Bexzod SME 72 2 785,37 vegetables B C N/A No No Xasanboyevich” growing LLC Fruits and “Mahmadiyeva SME 72 3 622,58 vegetables B C N/A No No Saodat growing Sattorovna” LLC Fruits and “Sherboboev SME 72 2 421,60 vegetables B C N/A No No Nurmuxamat” growing LLC “Avazov Fruits and Saidali SME 72 3 869,75 vegetables B C N/A No No Ergashevich” growing LLC ”Babadjanov Fruits and Elmurod SME 72 3 368,38 vegetables B C N/A No No Ibragimovich” growing LC “Rano Fruits and Ibragimovna SME 72 3 087,99 vegetables B C N/A No No Servis” growing Farm Fruits and “Mamashukurov SME 72 3 423,35 vegetables N/A a Komila B C No No growing Allashukurovna” Fruits and Farm “Giyosjon SME 72 4 200,41 vegetables B C N/A No No Toshtemirovich” growing *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.

Policies & Processes Yes/No Has your organization developed and Yes implemented an ESMS? Copy is attached

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

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

Director of the Department of Coordination and monitoring of the Investment Activities A. Ismatov is responsible for implementation of policy on Environmental and Social Risks of the Bank. Has your organization appointed staff Yes Deputy Head of the Financial tasked to implement the ESMS? Investment Projects Department S.Niyazov is responsible for process of implementiong Environmental and Social Risks for the realization of project “Development of the value chain of the horticulture” Please give details of any transactions rejected due to environmental and/or No - social concerns.

Please state any difficulties and/or In rare cases, it is difficult to constraints related to the implementation determine which category of of the ESMS. environmental risk relates to project

Please describe how you ensure that Work of the company, our leading your subproject companies and their sub-projects and their sub-projects subprojects are operated in compliance provided according to ESMS with the national laws and regulations responding to the requirements of and applicable ADB’s requirements. the national law, also requirements established by ADB. Please give details of any material social and environmental issues associated with clients during the reporting period. Not occured

In case the existing ESMS is not fully functional, what is the action plan being Active ESMS is considered as implemented by your organization? totally functional

Capacity Yes/No Please provide the name and contact Deputy Head of Investment Projects information of the Environmental/Social Management Department Officer or Coordinator who has the overall Yes S.Niyazov. responsibility for the implementation of Contact:+998(71) 120-45-64, the ESMS. [email protected]

Director of Coordination and Please provide current staffing of other Monitoring of Investment Activities core ESMS persons in the organization Yes Department involved with ESMS implementation. A.Ismatov Contact:+998(71)120-45-64

What was the budget allocated to the Wages for employee’s salaries ESMS and its implementation during the No participating in realization of ESMS. year? Other expenses are subject to payment by reason of necessity Monitoring Yes/No The monitoring is carried out by the Do you receive environmental and social employees of the Bank’s branches monitoring reports from subproject No who financed the project jointly with companies that you finance? the project initiator

Verification of implementation of activities are checked during the monitoring process which is provided in the control board of Do you check for ongoing compliance of environment, this way it is checked your subproject companies with national Yes the fulfillment of national norms and regulation and any other requirements? requirementsof ADB. Besides that, according to the current law subdivisions of the Committee of Ecology and Environmental protection extinguish the control over the fulfillment of the requirements of the state expert opinion. Please describe how you monitor the In practise, the Bank will monitor subproject company and their environmental and social impacts on No subproject’s social and environmental equipment which is completelly performance. delivered equipment

Do you require the subproject owner to Monitoring of employees at the exit submit to you evidence of compliance is obliged to check the with required environmental and social Yes implementation of mitigation approvals and permits for the measures specified in the payment subprojects. of 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 No Social Requirements - Covenants/conditionalities imposed by the Financial Institution to the subproject company as a result of any non-compliance

Reporting Yes/No According to adopted ESMS, based on results of monitoring if it is revealed that the borrower does not Is there an internal process to report on meet the requirements for social and environmental issues to senior Yes compliance with protective management? measures to protect environment, employees are obliged to inform about it to the manager of ESMS for accepting applicable measures

Do you prepare any social and environmental reports: - For other multilateral agencies No Yes, prepared for ADB - 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 Not available 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

6. Please provide information about all new subprojects using ADB loan funding approved during this reporting period. Name of Subproject Company: LLC ”Emir parranda”

Subproject location: Bukhara region, Bukhara district.

Horticulture sector: Organization of сold storage

Value of exposure (US$ ): $ 129 800,0

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.

Did you discuss with the subproject owner the Yes applicable environmental and social safeguard requirements and their implementation?

Does the subproject comply with applicable Yes government requirements? Does the subproject comply with applicable ADB Yes safeguard requirements?

Have there been any recorded incidents of non- No 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: LLC “Xorazm qovunlari” Subproject location: Khorezm region, Urgench district. Horticulture sector: Agricultural processing Value of exposure (US$ ): $ 1 000 000,0 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, documents on this sub project, such as reports reviewed by your organization? Project 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 In the course of activity of this object, the associated with this subproject that were identified formation of 10 types of waste is expected. It is through due diligence conducted by your such waste as a worn-out polyethylene film, organization, and how were the issues dealt with waste of vegetables, waste of rags, waste of (i.e., outcome of due diligence)? food, waste of a sub-standard wooden container, waste paper, waste from cleaning of the territory and also used mercury lamps.

As most subprojects include construction works to some extent, there will be also such wastes within this subproject, which have to be utilized accordingly. 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 subproject. 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 subproject 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 ”Sarkor Quruvchi”

Subproject location: Bukhara region, Bukhara district.

Horticulture sector: Organization of сold storage

Value of exposure (US$ ): $ 193 256,0

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.

Did you discuss with the subproject owner the Yes applicable environmental and social safeguard requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable ADB Yes safeguard requirements?

Have there been any recorded incidents of non- No 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: "Zarafshon Jasur Navoiy" LLC

Subproject location: Navoiy region, Kyzyltepa district

Horticulture sector: Greenhouse

Value of exposure (US$ ): 2 000 000

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 sub subproject, such as reports reviewed by your organization? Project 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 subproject it associated with this subproject that were identified is revealed that there will be generated through due diligence conducted by your industrial and consumption waste, which are organization, and how were the issues dealt with formed within a year, such as waste of a top of (i.e., outcome of due diligence)? 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.

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 sub subproject.

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 subproject 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: "Kogon Mega Trans" LLC

Subproject location: Navoiy region, Kyzyltepa district

Horticulture sector: Greenhouse

Value of exposure (US$ ): 440 000

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise.

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 “Narpay Optimum” Subproject location: Samarqand region, Samarqand district. Horticulture sector: Cold storage and agricultural processing Value of exposure (US$ ): $ 710 200,0 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, documents on this sub project, such as reports reviewed by your organization? Project 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 In the course of activity of this object, the associated with this subproject that were identified formation of 10 types of waste is expected. It is through due diligence conducted by your such waste as a worn-out polyethylene film, organization, and how were the issues dealt with waste of vegetables, waste of rags, waste of (i.e., outcome of due diligence)? food, waste of a sub-standard wooden container, waste paper, waste from cleaning of the territory and also used mercury lamps.

As most subprojects include construction works to some extent, there will be also such wastes within this subproject, which have to be utilized accordingly. 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 subproject. 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 subproject 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: "Lider best tomato" LLC

Subproject location: Fergana region, Dangara district

Horticulture sector: Greenhouse

Value of exposure (US$ ): 535 000

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise.

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: "AR logistics Vegetables Fruits" LLC

Subproject location: Khorezm region, Urganch district

Horticulture sector: Greenhouse

Value of exposure (US$ ): 499 440

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise.

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: "Surxon Kombinati" LLC

Subproject location: Surkhandarya region, Kumkurghon district

Horticulture sector: Greenhouse and cold storage

Value of exposure (US$ ): 1 500 000

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.

Does the subproject comply with applicable Yes, it complies, as evidenced by the positive government requirements? Conclusion of State Ecological Expertise.

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 “Indigo Trade” Subproject location: Surkhandarya region, Sariosiyo district. Horticulture sector: Agricultural processing Value of exposure (US$ ): $ 300 000,0 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, documents on this sub project, such as reports reviewed by your organization? Project 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 In the course of activity of this object, the associated with this subproject that were identified formation of 10 types of waste is expected. It is through due diligence conducted by your such waste as a worn-out polyethylene film, organization, and how were the issues dealt with waste of vegetables, waste of rags, waste of (i.e., outcome of due diligence)? food, waste of a sub-standard wooden container, waste paper, waste from cleaning of the territory and also used mercury lamps.

As most subprojects include construction works to some extent, there will be also such wastes within this subproject, which have to be utilized accordingly. 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 subproject. 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 subproject 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 ”Isroil Ismoil Xamkor”

Subproject location: Namangan region, Uychi district.

Horticulture sector: Organization of сold storage

Value of exposure (US$ ): $ 296 150,0

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.

Did you discuss with the subproject owner the Yes applicable environmental and social safeguard requirements and their implementation?

Does the subproject comply with applicable Yes government requirements?

Does the subproject comply with applicable ADB Yes safeguard requirements?

Have there been any recorded incidents of non- No 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?