Place of New Dairy Factory in Baku Confirmed

Business Materials 28 February 2007 16:02 (UTC +04:00)

Azerbaijan, Baku / corr. Trend I.Khalilova / Anar Akhundov, the Executive Director of Azerbaijan Investment Company (AIC) JSC stated that the construction of the new dairy factory in Baku is planned to be realized in the Hovsan district. The project is realized jointly by the Azerbaijan Investment Company (AIC), the European Bank for Reconstruction

EBRD's participation share in the project will be 10%. Azerbaijan Investment Company JSC and Milk-Pro LLC signed a memorandum on the prospective financing of the construction of a new dairy processing plant in Baku and the reconstruction of the existing dairy factory of Milk-Pro in Goychay. The total investment of the project is estimated at $10.5 mln. part of which will be as joint-stock participation to Milk Pro, the other as EBRD credit investments.

Some funds will be spent on the reconstruction of an existing dairy factory in Goychay.

According to the memorandum regarding the possibility of financing the above-mentioned project which was signed between AIC and Milk-Pro at the end of 2006, the AIC stake in the authorized capital of Milk-Pro will reach at least 20%. The AIC final decision on investments to Milk-Pro is expected to be taken during the Supervisory Board of AIC, and the EBRD during the bank's next meeting of the Board within the first quarter of 2007.