EBRD to diversify in Mongolia: First Vice President Phil Bennett

By Svitlana  Pyrkalo
@pyrkalo

The European Bank for Reconstruction and Development (EBRD), having approved its 2013-2016 strategy for operations in Mongolia, is aiming to diversify the Bank’s investment strategy in the country.

 

The Bank will focus on sustainable mining but also support development of infrastructure, financial institutions and SMEs.

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The EBRD’s First Vice President and Chief Operating Officer, Phil Bennett, has said that the Bank is looking to increase investments in non-natural resource sectors, and especially to support the development of infrastructure, financial institutions and small to medium-sized enterprises (SMEs), while maintaining a focus on sustainable mining.

“So far we’ve had a large participation in the mining and natural resources sector. By value about 60 per cent of our investments have been in that sector.

“Our goals going forward are to try to diversify away from mining and natural resources to build up our other businesses, while maintaining our focus on mining in a sustainable, environmental way.

“We want to foster private sector development, we want to foster infrastructure development, particularly in transport, heating and water.

“We also want to strengthen the financial institutions sector because that is the most effective, sustainable channel for investment into the economy”.

Phil Bennett added: “The absorption capacity of this economy is growing quite quickly, so we are very confident that we can continue to build on some of the smaller enterprises and grow those slowly but surely into medium-sized enterprises.

“We have a lot of opportunity here; it’s a very active economy, we are looking forward to staying committed and staying engaged across all of the economic developments”.

The EBRD’s President, Sir Suma Chakrabarti, will reaffirm the Bank’s commitment to sustainable economic development in Mongolia during his first visit to the country as EBRD president from 30 August – 2 September 2013.

Since 2006 the Bank has invested about US$ 1 billion in about 60 projects across Mongolia, mobilising approximately twice that amount in further financing for those projects from other sources.