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DFF - Mekhlopat



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

17 Nov 2020



PSD disclosed:

17 Nov 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The provision of a senior secured loan of up to € 2 million (or its equivalent in US dollars) to Mekhlopat, a supplier of consumables, equipment and engineering services to mining and energy sectors in Mongolia, for working capital purposes.


Project Objectives

The proposed transaction will support Mekhlopat's need for increased liquidity and its resilience following the Covid-19 outbreak. In addition to financing the liquidity needs, the EBRD also will also bring advisory support to the Company to improve its business and financial standards.

Transition Impact

ETI score: 60

The Project will contribute to the framework objectives by supporting the Company in the following areas: Competitive and Resilient.

Client Information


Established in 2002, Mekhlopat is engaged in supply of consumables, equipment and engineering services to mining, energy and other sectors. Mekhlopat has developed long-term relationships with leading Mongolian mining projects and has established efficient supply chains from global producers of mining consumables.

The Company is owned by Mongolian citizen Mr. Gantulga Baatarsuren.

EBRD Finance Summary

EUR 2,000,000.00

Total Project Cost

EUR 2,000,000.00


The EBRD loan will ease the burden on Mekhlopat while the Company is adjusting to new operating environment following Covid-19 outbreak. In addition to the liquidity support, the Bank is offering a 24-month grace period, which is not available in the local financial market. Furthermore, the Bank's advisory support enables the Company to adopt higher business standards.

Environmental and Social Summary

Category B (2019 ESP). The environmental and social risks associated with the manufacture and import of rockbolts are typical in the sector, and can be mitigated using standard industry practices. Due diligence involved a review of a detailed EHSS questionnaire completed by the Company and a search of publicly available information on the Company. The Company has appropriate management capacity for the EHSS risks posed by their operations and performance is in line with the Bank's Performance Requirements. There is no ESAP required for this Project.

Technical Cooperation and Grant Financing

1) Audit of financial statements according to IFRS standards and training of Company's staff under Accounting Improvement Program. The project cost is  € 13,684 including Company's contribution of  € 4,354.

2) Legal Due Diligence. Technical Co-operation cost is expected to be up to  € 10,000.

Both TCs are funded by EU AIF.

This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

Company Contact Information

Mr. Gantulga Baatarsuren
+976 7500 1166
Grant Plaza Complex, Suite – 801, Bayangol district, 2nd Khoroo, Peace Avenue, Ulaanbaatar, Mongolia

PSD last updated

08 Dec 2020

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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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