The European Bank for Reconstruction and Development (EBRD) is providing a credit of up to US$ 40 million to Mongolia’s Magnai Trade petrol stations group to support the country’s petroleum sector with investments in energy-efficient technology and fund the company’s expansion.
The EBRD’s senior loan will finance the second phase of Magnai Trade’s development, as well as the construction of 18 new petrol filling stations across Mongolia.
It will also help Magnai Trade expand its depot stores network and, thus, improve the company’s distribution system. In addition, new petrol filling stations and depot stores will be fitted with the modern equipment utilising the modern energy efficiency technologies.
EBRD Managing Director for Energy and Natural Resources Riccardo Puliti, signing the project in Ulaanbaatar, said that the new project was part of the EBRD’s strategy for the sustainable development of the entire petroleum distribution sector in Mongolia.
“In line with our strategy, we pay particular attention to the promotion of the local private sector and the adoption of best environmental practices. This new project will ensure that Mongolian customers continue receiving high-standard services and better products, especially, in the country’s remote areas and newly-developing regions,” Mr Puliti added.
In addition, as part of the project, over half of the company’s staff and their franchisees will benefit from an advanced training course in Environmental, Health and Safety management, conducted by international experts.
The domestic Magnai Trade is a leading independent private Mongolian importer and distributor of petroleum products and has developed a large fuel wholesale and retail network with a significant market share in the local Mongolian market.
The EBRD investment will also enable the company to introduce advanced management information systems, offer new services and products and improve its environment and health and safety standards.
In Mongolia the EBRD focuses on developing a sustainable mining sector with sufficient mining supply chain, food processing industry, financial, manufacturing and retail sectors.
Since the beginning of its operations in Mongolia in October 2006, the EBRD has committed about €317 million (US$ 425 million) to 36 projects in various sectors of Mongolia’s economy, with 100 per cent of the projects’ being related to private sector debt and equity investments.