MT Petrol Phase II

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 42200

Status Complete

Location

Mongolia

Business Sector

Natural Resources

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 42200

Status Complete

Location

Mongolia

Business Sector

Natural Resources

Notice Type

Private

Environmental Category

Approval Date

13 Apr 2011

Disclosure date

23 Feb 2011

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Mongolian

Project Description

The EBRD is considering providing a loan of up to US$ 50 million to Magnai Trade Group in Mongolia. The proceeds of the loan will be used to support the second stage of the Group’s development, funding the construction of new depot stores and further expansion of the gas filling stations network in Mongolia. A portion of the loan will be used for the the rehabilitation of logistics, diversification of the group’s business through the import and distribution of liquefied petroleum gas (LPG) and introduction of a Management Information System.

Transition Impact

Transition impact potential of the Project comes from

(a) support of private sector development and increased competition in the local petroleum sector; and

(b) further improvements in business, EHS and corporate governance practices.

Demonstration Effect of Higher Corporate, Business and Environmental Standards

The proposed transaction will improve standards in various areas:

(a) Increase transparency through an improvement on capital budgeting, financial reporting and cost-control procedure;
(c) Building of the good EH&S improvements of the first projects, through a landmark EH&S training by highly qualified international EH&S consultants;
(d) Introduction of a corporate EH&S code of conduct for upstream sector and commitment to comply with EITI principles;

Support to private sector and increased competition

The proposed financing will help strengthen the private petrol distribution business in Mongolia as well as increase competition. The Company will also be a new entrant in the liquefied petroleum gas (LPG) market.

The Client

Magnai Trade LLC, a medium-sized Mongolian Company specialised in importing and distributing petroleum products throughout Mongolia.

EBRD Finance

A term loan of up to USD 50 million.

Project Cost

US$ 83 million.

Environmental Impact

The project is screened B. Environmental due diligence included a visit by the Bank’s Environmental Specialist and an Independent Consultant in February 2011. The environmental audit and analysis was carried out by the Independent Consultant, and a comprehensive Environmental and Social Action Plan (ESAP) is being developed. Issues addressed in the ESAP include environmental management and monitoring, air emissions, hazardous materials transport and storage, waste management; health and safety and labour issues, fire and franchise management. The independent audit also confirmed that the Company is complying with the ESAP agreed under the first project in a timely manner.

The new ESAP identifies further mitigation measures to address all outstanding environmental, health and safety issues associated with the current transaction.

Technical Cooperation

None.

Company Contact

Magnai Trade Co. Ltd.
Ikh Toiruu 14, MT Building
Ulaanbaatar 20
PO Box 336, Mongolia

Transition impact

ETI Score:75

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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