MCS Coca-Cola Extension

Location:

Mongolia

Project number:

47897

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

16 Sep 2015

Status:

Complete

PSD disclosed:

14 Aug 2015

Translated version of this PSD: Mongolian

Project Description

The EBRD is considering a senior secured long-term loan of up to USD 30 million to be provided to MCS Coca-Cola (the “Company” or “MCS CC”) for financing of the Company’s capex program including investments in glass and hot fill bottling lines as well as restructuring the Company’s balance sheet.

Transition Impact

The Project’s transition impact will be derived from market expansion through development of distribution in remote regions, and setting standards of corporate governance and business conduct through energy efficiency improvements.

The Client

MCS Coca-Cola is one of the leading soft drinks producers in Mongolia and is fully owned subsidiary of MCS Holding, one of the largest business groups in Mongolia with activities spanning across beverages, telecommunications, construction, textiles and mining.

EBRD Finance

EBRD will provide up to USD 30 million of multicurrency loan.

Project Cost

USD 37 million

Environmental and social categorisation, impact, and mitigation

Categorised B (2014 ESP).  The potential EHS risks associated with the provision of a new hot filling line and a glass bottling line are well understood by the company and can be managed with the existing management systems and resources of the company.  The ESD site visit and interviews with site personnel verified that the risks associated with this project are not significant and are being managed adequately.  The site operates under guidance from Coca-Cola Corporate, is implementing numerous internationally certified management systems covering EHS, food safety, quality etc.  The proposed project will not require an enlarged physical footprint of the site.  The project will need to provide annual reports, including information on resource efficiency (covering water and power use).  Due to the comprehensive management of site issues, there is no ESAP required on this project.

Technical Cooperation

None.

Company Contact

Tsedendamba KHANDAA

Finance and Planning director

MCS Coca-Cola

MCS Coca-Cola Plant, Gachuurt road 104, Amgalan 13260, BZD, 10 khoroo,
Ulaanbaatar, Mongolia

Tel: +976-70165555 Mob: +976-88117501 E-mail: khandaa.ts@mcscocacola.mn

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.