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 .
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.
ETI score: 64
The 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.
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
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
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 and 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
Company Contact Information
New Millennium Building 4F, 15th khoroo, Khan Uul District, Ulaanbaatar 17011, Mongolia
PSD last updated
26 Oct 2022
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Environmental and Social Policy (ESP)
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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).
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.