DFF-Tavan Bogd 2



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

06 Jul 2021



PSD disclosed:

12 Jul 2021

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."

Project Description

Provision of a senior secured loan of up to USD 10 million to Tavan Bogd LLC. The loan will finance the company's capex expansion (construction of a new building which includes a showroom and a warehouse) and working capital needs.

Project Objectives

By investing in the new, state-of-the-art energy efficient buildings, the project is expected to (1) enhance the company's competitiveness through improving its customer service (including new "trade-in" offer) and overall customer experience, and (2) lower operational costs and decrease its environmental footprint as the new building meets energy performance class B, which is one class above the national requirement and deliver at least 20 pe cent energy savings.

Transition Impact

ETI score: 62

The project will contribute to the framework objectives by supporting the company in the following areas: Competitive and Green.

Client Information


Tavan Bogd has been an official dealer of Toyota passenger cars in Mongolia since 2013. The company is a subsidiary of Tavan Bogd Group - a succesfull and well-diversified group in Mongolia.

EBRD Finance Summary

USD 10,000,000.00

Total Project Cost

USD 10,000,000.00


The EBRD is offering a 36-month tenor for working capital financing, which is not available in the local financial market. In addition, the project will set new standards for higher energy efficiency of the building.

Environmental and Social Summary

Categorised C: ESDD has been undertaken by ESD and included a review of previous reporting and follow up E&S questionnaires. ESDD has confirmed that the Borrower represents a low E&S risk profile and that existing operations are meeting national legislative requirements. An ESAP is not required for this assignment, however, the Borrower will be required to report E&S performance on an annual basis.

Technical Cooperation and Grant Financing


Company Contact Information

Mr. Purevlkham Enkhtur
+976 9910 9380
Suite 1001, 10th level, Khan Bank Tower, Stadion Orgil-1, Chingis Avenue 6, 15th khoroo, Khan-Uul District, Ulaanbaatar City, Mongolia

PSD last updated

12 Jul 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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