Azerbaijan Investment Company, EBRD & Milk-Pro Consider the Structure of Investing in Dairy Plants

Business Materials 18 January 2007 15:12 (UTC +04:00)

Azerbaijan Investment Company (AIC), European Bank for Reconstruction and Development (EBRD) and Milk-Pro LLC commenced negotiations on determining the structure of investments for the construction of a new dairy processing plant in Baku and the reconstruction of the existing Milk-Pro dairy factory in Goychay.

AIC Executive Director, Anar Akhundov, informed Trend that the negotiations for construction commenced due to the completion of assessment of gross investment allocations to the project, which is estimated at $10,5 mln. According to the agreement signed between AIC and Milk-Pro, the AIC share in the authorized capital of Milk-Pro will be 20%. The Investment Company intends to participate in the management of the enterprise, as well as in the implementation of projects on the construction of the new dairy factory and the reconstruction of the existing one.

According to Akhundov, currently the EBRD participation share in the stock capital and the possibility of allocating additional finances for the construction of the new dairy processing plant has not been defined. It has not been ruled out that the structure of the financing of the project will be clear within a week. The final decision on putting investments to Milk-Pro is expected to be taken during the Observatory Council of AIC. According to the preliminary data, it will take place in the first quarter of 2007.