MIGA issued a guarantee of $333,000 to Fatoglu Gida Sanayi Ve Ticaret A.S. (Fatoglu Food Industry and Trade Corporation or “Fatoglu”) of Turkey for its $370,000 investment of equipment and machinery in Fatoglu Istehsal Azerbaycan, Ltd (Fatoglu Production Azerbaijan Co. Ltd. or “Fatoglu-Azerbaijan”) of Azerbaijan. The investment is guaranteed for a period of five years and coverage is provided against the risks of transfer restriction, expropriation, and war and civil disturbance.

The machinery and equipment will be used for the expansion of the Fatoglu-Azerbaijan mill which currently produces flour that is distributed and sold in Azerbaijan and Georgia. The expansion will consist of the construction of a warehouse and three steel silos for wheat and flour storage, wheat classifications, and mixing. The investment will improve the enterprise’s wheat and flour storage facilities, which will, in turn, contribute to a higher quality and greater variety of flour output.

In FY03, MIGA issued Fatoglu a guarantee for $529,920 to cover its $588,800 equity investment in Fatoglu-Azerbaijan, for a period of up to 5 years, against the risks of transfer restriction, expropriation, and war and civil disturbance.

This expansion project will contribute to the development of Azerbaijan’s emerging agri-cultural sector, which helps diversify the economy, currently concentrated in the oil and gas industry. The project will also employ 150 people during the construction phase of the project.