Azerbaijani Investment Company & European Bank of Development and Reconstruction to Construct New Milk Plant in Azerbaijan in 2008

Business Materials 12 November 2007 11:56 (UTC +04:00)

Azerbaijan, Baku / Trend corr. I.Khalilova / Milk-Pro Ltd is planning to complete the construction of a new milk plant in the district of Hovsan by the end of 2008, Anar Akhundov, the head of Azerbaijani Investment Company (AIC), said.

Under an agreement signed with the European Bank of Development and Reconstruction (EBDR) AIC will invest AZN 4.684mln in Milk-Pro. As a result, AIC's share in Milk-Pro will make up 20%.

According to Akhunmdov, the share of EBDR in Milk-Pro is 10% and the bank will assign a loan for milk production over a five year term.

Along with the construction of the new milk plant in Hovsan there are plans to increase the production capacity of the milk plant in the region of Geychay as well as the construction of a milk plant in Georgia and the expansion of production.

"We had the joint business-plan approved before we became shareholders and in accordance with this Milk-Pro is to carry out a tariff policy. We receive reports from Milk-Pro every quarter," Akhundov said.

The project is estimated at $10mln.

Milk-Pro Ltd produces milk and dairy produce as well as natural juices.