Mongolian Sustainable Energy Facility

Location:

Mongolia

Project number:

46297

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

23 Jul 2014

Status:

Approved

PSD disclosed:

20 Jun 2014

Sub-projects signed under this framework

Translated version of this PSD: Mongolian

Project Description

The Mongolian Sustainable Energy Financing Facility (MonSEFF) will be the first sustainable energy financing facility established by the European Bank for Reconstruction and Development (EBRD) in Mongolia to provide financing for sustainable energy measures that go beyond a business-as-usual development scenario.

MonSEFF will be structured to provide

  1. Medium term credit lines extended to privately owned Participating Financial Institutions (PFIs) to be used for on-lending to private sector companies to finance sustainable energy investments and
  2. Technical assistance to both PFIs and their clients to support investments in a broad spectrum of industrial sectors (e.g. agribusiness, manufacturing, services).

MonSEFF will be supported by a technical cooperation programme for business and product development, as well as supporting the origination and assessment of eligible investments. This includes support to develop a project pipeline, product guidelines and may also support the PFI's associated marketing campaign(s) and staff training module(s).

This pilot facility in Mongolia is expected to attract a minimum of one PFI with another PFI potentially joining the Facility in the future.

Transition Impact

MonSEFF will generate transition impact by demonstrating the benefits of energy conservation and promoting the early adoption of sustainable energy financing. MonSEFF will demonstrate the effects of rational energy utilisation for improving industrial competitiveness as energy costs rise in Mongolia.

This pilot facility will introduce a new energy efficiency financing product to the market to support investment in the industrial and commercial sector. It is expected to transfer and build expertise related to sustainable energy investments among financial institutions and sub-borrowers. The PFIs will build expertise in assessing the risk of energy efficiency investments and enhance their capability in identifying clients and projects with energy savings potential. Sub-borrowers are expected to recognise the technical and financial benefits of Sustainable Energy Investments to improve their operations.

The Client

MonSEFF will be available to Participating Financial Institutions (“PFIs”) in Mongolia, the first of which is expected to be an existing client of the EBRD, XacBank.

The proceeds will be used for on-lending to private sector companies and SMEs for sustainable energy investments (industrial renewable energy and energy efficiency projects).

EBRD Finance

US$ 25 million.

Project Cost

US$ 25 million.

Environmental Impact

Categorised FI. Participating financial institutions will be required to comply with the EBRD's performance requirements 2 and 9 and submit annual environmental and social reports to the Bank, including reporting on sub-projects. Sub-projects will be required to comply with national standards for environment, health and safety and labour and, where relevant, EBRD E&S eligibility criteria for on-shore wind and small hydro projects.

Technical Cooperation

The Technical Cooperation will be aimed at supporting the identification of sustainable energy projects (e.g. via energy audits, training to loan officers, marketing support, etc.) and to build capacity in sustainable energy lending within the PFIs joining the programme. Funding for technical cooperation is yet to be secured.

Company Contact

Christopher Falco
Senior Banker

EBRD
One Exchange Square
London EC2A 2JN

Tel: +44 (0)20 7338 6399
Tel: +44 (0) 20 7338 7380
Email: FalcoC@ebrd.com

 

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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