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Project summary document

Project name:MCS Beverages
Country:Mongolia
Project number:38972
Business sector:Agribusiness
Public/Private:Private
Environmental category:B
Board date:28 May 2008
Status:Signed
Date PSD disclosed:
Date PSD updated:
28 April 2008
Local language translation:Mongolian translation 
Date translation disclosed:30 May 2008
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EBRD in loan to fast-growing Mongolian beverages company [Press Release]

Project description
and objectives:

MCS Coca Cola has undertaken the construction of a Greenfield bottling plant in Ulaanbaatar that will be partially financed by EBRD. In addition to sparkling soft drink beverages and still water, the new plant will enable MCS Coca Cola to develop local production of products that are currently imported and develop new products to meet local tastes and needs.

The project will also include a waste water treatment plant that will also be attached to the neighbouring MCS – APB brewery.

Transition impact:

The project’s transition impact will be derived from import substitution, competitive enhancement with a broader choice of quality beverages, demonstration effect of international marketing and sales practices and example of improved environmental practices, including energy efficiency and water recycling.

The client:

MCS Coca Cola is a fully owned subsidiary of MCS Group, one of the largest business groups in Mongolia with activities spanning beverages, IT, construction, textiles and mining.

EBRD finance:

EBRD will provide a syndicated loan to partially finance the construction of the Greenfield brewery.

Total project cost:

To be confirmed.

Environmental impact:

MCS Coca Cola has provided the Bank with a range of information on the environmental, health, safety and social issues associated with their operations. MCS Coca Cola has confirmed that it is compliant with national requirements for environment, health, safety and labour. The Company has developed an environmental policy and an environmental management system which addresses the key areas of quality, safety, environment and supplier interactions. This management system is compliant with the Coca Cola standard and is comparable to ISO 14001. MCS Coca Cola sets targets for improvement across a range of areas and monitors achievements against those targets. Important forthcoming actions include the installation of a waste water treatment system which will allow the Company to recycle water up to five times prior to discharge to the municipal sewage system (once treated). The Company will provide that Bank with an annual report to confirm on-going compliance with the required standards and to update the Bank on the implementation of the management system.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Mr. Gankhuyag (CFO)

E-mail: ganhuyag@mcs.mn

EBRD contact:

Anna Mangova, Operation Leader: mangovaa@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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