Project detail - ANGKOR KASEKAM ROONGREUNG CO. LTD.

ANGKOR KASEKAM ROONGREUNG CO. LTD.

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Who is our client

Angkor Kasekam Roongreung Co. Ltd. (AKR) is one of the largest rice miller in Cambodia. The company gained a good reputation processing qualified fragrant rice “Neang Malis” which is marketed market both domestically and internationally. The company sources its paddy via a dedicated network of member-farmers. These farmers receive inputs and assistance which enables them to produce the high quality paddy.

Funding objective

The proposed funding will be used for AKR’s investment in a dryer and working capital for expanding its contract farming program for sourcing fragrant rice.

Why we fund this project

Long-term working capital funding is not available locally. In addition, the proposed project is inclusive and potentially green.

Environmental and social rationale

The proposed project is categorized as B+; attention is given on OHS risks during construction, waste water treatment during operations as well as irrigation water management in the supply chain. The activities are much appreciated by the famer communities and fit in the government’s policy targets. Relevant IFC Performance Standards are: 1 Assessment and Management of Environmental and Social Risks and Impacts; 2 Labour and Working Conditions; 3 Resource Efficiency and Pollution Prevention; 4 Community Health, Safety and Security. IFC Performance Standards 5 to 8 are not applicable: 5 The impact of the factory is very limited. There is no land acquisition nor are any minority communities affected; 6 The expansion of the sourcing of AKR is not very likely to have any negative impacts on biodiversity conservation and sustainable management of living natural resources; 7 No indigniuous people are affected; 8 Cultural heritage is not applicable as the factory is already established and the supply chain expansition will come from existing paddie fields and farming families. Applicable are IFC Performance Standards, General IFC EHS Guidelines and IFC “Sector EHS Guidelines for Annual Crop Production” (2016).

More investments

Date Total FMO financing
12/3/2017 USD 2.00 MLN
Website client
http://angkorrice.com/
Region
Asia
Country
Cambodia
Sector
Agribusiness, Food & Water
Signing date
12/3/2017
Total FMO financing
USD 21.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+