Project Description
On June 16, 2023, MIGA issued guarantees to Agricultural Corporation In Water Solution, Inc. (IWS Korea) of the Republic of Korea for its US$3.87 million shareholder loans to its wholly owned subsidiary—«In Water Solution Agro» Limited Liability Company of the Kyrgyz Republic (IWS Agro)—against the risk of Transfer Restriction and Currency Inconvertibility for a period of up to 6 years.
The project consists of construction and operation of a 10-hectare smart farm located approximately 10km northeast of Bishkek, which contains hydroponic greenhouses with an automated system that comprehensively controls the growing environment for vegetables and flowers (the Project). Dohwa Engineering Co., Ltd.—a leading engineering company in Korea—acted as the key sponsor for the Project by making an equity investment into IWS Korea which was then invested as shareholder loans into IWS Agro to implement the Project.
Environmental Categorization
The Project is category B under the MIGA’s Policy on Environmental and Social Sustainability. Click here to view the environmental and social review summary.
Development Impact
With 63 percent of the population living in the rural areas of the country, the agriculture serves as the backbone of the Kyrgyz Republic’s economy. However, the country suffers from a frequent lack of food supply, and therefore the extreme volatility in food prices, due to its under-developed agricultural practices (e.g., outdoor land cultivation) that are particularly vulnerable to the impacts of climate change. The Project aims to tackle these problems with technology-driven, automated indoor cultivation that exhibits significantly higher productivity.
Specifically, the Project is: (i) contributing to the import substitution and stable supply of key crops in Kyrgyz Republic; (ii) expected to avoid approx. 990-1,100 tons of greenhouse gas emissions per year as a result of using LPG boilers (vs. solely using diesel boilers, prevalent in Kyrgyz Republic); (iii) expected to create 150+ new, well-paid jobs for local people, especially the socially disadvantaged population; and (iv) conducting community engagement with local academic institutions for skill transfer and job training.
