Coca-Cola Almaty Bottlers
MIGA also issued $13.3 million of coverage to Efes for its equity investment in a soft drink facility that will produce, bottle, and distribute Coca-Cola beverages in Kazakstan. The project enterprise, Coca-Cola Almaty Bottlers (CCAB), is a joint venture with TONUS, which is owned jointly by the Kazak state and private nationals. MIGA guarantees were issued against the risks of expropriation and war and civil disturbance.
CCAB, which will establish an efficient product distribution system based on modern techniques, will generate developmental benefits for both Kazakstan and Turkey. The project will create more than150 jobs for Kazak nationals, who will be trained in all aspects of soft drink bottling operations, including modern manufacturing techniques, sales, marketing management, and distribution. Domestic suppliers will benefit from local procurement of some raw materials, and local retailers will benefit from increased availability and sales of soft drinks. Efes's investment includes equipment and machinery from Turkey, which will stimulate private enterprise in the country and have a positive impact on Turkish export earnings.
An environmental audit was undertaken to examine possible wastewater contamination and other environmental issues related to operation of the soft drink facility. Efes has committed to implement the recommendations of the audit and to comply with local regulations.