Project Description
This summary covers an application by Agricultural Corporation In Water Solution, Inc. (IWS Korea) of Republic of Korea for its shareholder loan investment in « In Water Solution Agro » Limited Liability Company (IWS Agro) in Kyrgyz Republic (KR). The investor seeks cover for up to US$10 million against the risk of Transfer Restriction for a guarantee period of up to 8 years.
The project consists of construction and operation of a 10-hectare (ha) smart farm, consisting of hydroponic greenhouses with an automated system that comprehensively controls the growing environment for vegetables and flowers, in the Chuy region located approximately 10 km northeast of the capital city of Bishkek (the Project). The products from the Project will be sold both in domestic markets and neighboring countries. After Dohwa Engineering Co., Ltd. (Dohwa), a leading engineering and construction company of Korea, decided to participate to the Project as a main sponsor of IWS Korea in August 2021, the Project has shown a significant progress in constructing the greenhouses at site. The Project has finished its first 4 ha greenhouse construction in February 2022.
The Project leverages hydroponic farming technology in greenhouses, which are equipped with a 24-hour operational, automatic control system used to provide an optimal environment for growing crops. The hydroponic system optimizes the amount of water and nutrients to maximize productivity while improving product quality. Moreover, in efforts to enhance sustainability of the Project, the Project has also adopted hydroponic waste recycling, and agricultural water treatment system that desalinates groundwater and maintains an optimal level of minerals and nutrients, as well as a rain recycling system. The automated control system balances the supply of well-treated water, mist, heat, and nutrients based on crops’ needs on a real time basis.
Environmental Categorization
The Project is a Category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Information Summary.
Development Impact
MIGA’s support to the Project is intended to facilitate the mobilization of cross-border investments in the KR for the development of smart farming in the agricultural sector, a key economic driver for the country. The Project is expected to contribute to increasing productivity levels by the adoption of new efficient and environmentally friendly technology largely in support of domestic consumption. The Project is aligned with MIGA’s strategy to expand engagement in IDA countries and ramp up mitigation efforts to support the climate change agenda. It is also consistent with the World Bank Group Country Partnership Framework (CPF) for the KR for the Period FY19-FY21 (extended until FY23).
