📋 Tender Overview
Location: Mongolia
Project number: 54920
Business sector: Agribusiness
Notice type: Private
Environmental category: B
EBRD Finance Summary: USD 8,000,000.00
Total Project Cost: USD 28,000,000.00
Project Description
Provision of a senior loan of up to US$ 8 million to Ulaanbaatar Flour LLC (the "Company" or the "Client"). The proceeds of the loan will finance the Company's working capital needs related to wheat procurement.
Project Objectives
The Project is in line with the EBRD country strategy for Mongolia to support non-extractive sector and strengthen competitiveness. The loan supports growth and competitiveness of the Company by funding its working capital needs.
Transition Impact
ETI score: 68
The transition impact is expected to derive from its contribution to the inclusive and competitive qualities. To support skills-focused evolution of the sector to deliver more sustainable growth, the Client will develop a training programme for its suppliers supporting improved production practices while targeting to increase the share of female trainees, which would lead to a behavioural change of the company, as well as internal audit training related to food safety standard for staff. The former will be delivered in collaboration with the Institute of Plants and Agriculture, this would strengthen an existing collaboration through a formal partnership; and the latter through a locally or internationally certified training of Ulaanbaatar Flour's staff. The Company is also going to introduce FSSC 22000 international standard for food safety. It will be the first miller in the country to do so. Obtaining FSSC standard entails improved food safety processes and controls are in place, and therefore better quality and reliability is expected to be realized, as well as greater trust in the supply chain.
