The EBRD in Mongolia – our work in pictures

Nestled in the Eurasian steppe, Mongolia is one of the least densely populated countries in the world. The economy is heavily dependent on natural resources. Strengthening other sectors is a priority for the EBRD.

Reaching out to the private sector, we’ve invested more than €1.3 billion since we started work in 2006, in projects from energy and small business, to industry and financial institutions.

Half the population is concentrated here, in the capital Ulaanbaatar. In recent years, foreign investors flocked in too, as the economy boomed – until factors such as an uncertain business climate and a global decline in commodity prices dampened enthusiasm. We’re working with the private sector and the government to restore growth.

Modern Ulaanbaatar is surrounded by Ger districts –agglomerations of once-nomadic tents and small dwellings, lacking planning or municipal services. In winter, families burn coal for heating, blanketing the capital in smoke and making it one of the world’s most polluted cities.

Clean energy is a priority. We participated in Mongolia’s first commercial windfarm project. Salkhit – meaning ‘Windy Mountain’ – generates about five per cent of the country’s needs: a big step forward.

For centuries, livestock of one sort or another have provided livelihoods for Mongolians. Milk producer Hishigten Nuudelchin has imported several hundred French-bred cows. It’s expensive in the long cold winter – but the farm has developed a link with dairy producer Teso to secure a steady income.

From a single second-hand ice cream machine, six siblings have built Teso into a company that employs more than 1000 people. Donors to the EBRD are helping entrepreneurial successes like theirs become more resilient – and provide an example to others.

Foreign exchange risk is a significant disincentive to investment. With support from our donors, we’re promoting loans in the Mongolian currency – the tugrik – to small business and start-up owners like Gulmaira Akim with her workshop producing traditional textiles and handcrafts.

At the other end of the scale, we arranged a US$ 1.221 billion syndicated loan for mining operations in the world’s largest undeveloped copper and gold deposit. Oyu Tolgoi – meaning Turquoise Hill – will contribute as much as a third of Mongolia’s GDP.

Another abundant resource is the wool from cashmere goats – and it’s one of Mongolia’s main exports. With EU support, we helped this producer, Mongol Noos, improve their accounts and management systems, making exports to markets like Japan and Italy much simpler.

Gerelmaa Enebish runs Molor Zam, a manufacturer of PVC insulated windows– a vital defence against the fierce Mongolian winters. Funded by the EU, our business advice and know-how has helped her put in place the conditions to expand her business.

Building work is under way at a new branch of Doctor Auto Chain, a company that sells car parts and accessories in a country with few real roads - and hence a lot of off-road driving. We helped the business raise its financial reporting to international standards.

Since 2006, the EBRD has become one of the largest foreign investors in Mongolia. Our priorities are to diversify the economy, while supporting sustainable growth, responsible mining and institution building.

We couldn’t achieve this without generous support from our donors, who include the European Union, the and the Early Transition Countries Fund ( whose contributors include Canada, Finland, Germany, Ireland, Japan, Korea, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Taipei China and the United Kingdom).

From the EBRD in Mongolia: Bayarlalaa! (Thank you!)