DFF - GCR

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A facility that guarantees up to MNT 20 billion (US$ 6.3 million) performance bonds issued to Oyu Tolgoi LLC (OT) copper-gold mining company by GCR Mongolia LLC (GCR) against the its failure to meet the obligations of the contract with OT .

Project ID 53830

Status Cancelled

Location

Mongolia

Business Sector

Natural Resources

Notice Type

Private

Company Contact Information

Jonon Batdorj
jonon.b@gip.mn
+976-77119797
https://www.gcrmongolia.mn/
New Millennium Building 4F, 15th khoroo, Khan Uul District, Ulaanbaatar 17011, Mongolia

Project ID 53830

Status Cancelled

Location

Mongolia

Business Sector

Natural Resources

Notice Type

Private

Environmental Category

Approval Date

04 Oct 2022

Disclosure date

26 Oct 2022

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."

DFF - GCR (Mongolian) (PDF, 0.52MB)

Project description

Project objectives

The project will allow GCR to enter into large scale mining construction contracts with OT and thereby support transfer skills and know-how to the industry.

Transition impact

ETI Score:64

project will contribute to the framework objectives by supporting the company in the following areas:

Primary quality "Inclusive": introduce a new replicable and accredited training programme improving skills for 120-140 people from the inclusion target group.

Secondary quality "Competitive": introduce new operational approaches that will significantly improve the efficiency of the client operations.

Client information

GCR MONGOLIA LLC

GCR Mongolia LLC ("GCR") is a mining contractor company that provides engineering design, procurement and project management services to large scale mining development projects in Mongolia.

It was established in 2017 as a joint venture of three partners including Gobi Infrastructure Partners LLC (later re-organised under Gobi Capital Management LLC), Clough Projects International Pty Ltd and RUC Cementation Mining Contractors Pty Ltd to undertake large scale underground mine construction contracts for Oyu Tolgoi copper-gold project.

EBRD Finance Summary

MNT 20,000,000,000.00

A performance bond of up to MNT 20 billion (US$ 6.3 million) issued by the EBRD to be paid to OT against the failure of GCR to meet its obligations of the contract with OT.

Total project cost

MNT 20,000,000,000.00

Additionality

Financing Structure - the EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period. Such financing is necessary to structure the project.

Financing Structure - the EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.

Financing Structure - the EBRD offers local currency financing on terms not readily available in the market.

Environmental & Social Summary

Category B (2019 ESP). The provision of a performance guarantee to a mining contractor carries little direct E&S risk but the operations of the contractor are related to significant potential environmental and OHS risks. The client completed a detailed EHSS questionnaire on their internal capacity and capabilities in EHSS risk management procedure and practice. The consortium partners in the JV forming the client organisation includes entities with extensive experience of operating to international standards on EHSS. The client's organisation includes personnel with appropriate knowledge and experience, and the risk management structures are appropriate to the risks posed by their operations. The main operations at the Oyu Tolgoi mine are well known to the Bank and Rio Tinto require all contractors to operate to their corporate standards, which are largely aligned with the Bank's PRs. Rio Tinto has an extensive training and monitoring programme for all contractors operating on-site, the monitoring in particular is continuous. Client operations are aligned with the PRs and no ESAP is required for this Project.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Jonon Batdorj
jonon.b@gip.mn
+976-77119797
https://www.gcrmongolia.mn/
New Millennium Building 4F, 15th khoroo, Khan Uul District, Ulaanbaatar 17011, Mongolia

Implementation summary

PSD last updated

26 Oct 2022

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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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DFF - GCR

Overview

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)