The bulk of GCF’s contribution, USD 19.5 million, will allow Mongolia’s XacBank extend loans to micro, small and medium-sized enterprises to break down financial barriers to low-carbon investment.

An aversion to the risks of opening new markets means Mongolian entrepreneurs currently lack the necessary commercial finance to carve out new businesses in energy efficiency and renewable energy.

This five-year project is being implemented by XacBank, one of Mongolia’s major lenders which became the country’s first and only bank specializing in eco-banking in 2009. At the end of last year, GCF designated XacBank as a direct access Accredited Entity, which propose and implement GCF-financed climate initiatives.

“This disbursement marks an important milestone in the continued development of sustainable financing business of XacBank and our cooperation with the Green Climate Fund,” said Amartuvshin Hanibal, President of XacBank.

While many Mongolian people currently burn low-quality coal in their homes for heating and cooking, the government is striving to leap frog their landlocked nation into adopting a low-carbon energy sector.

In accordance with GCF’s gender focus, at least half of GCF’s loan support in this project will go towards women-led enterprises.

“This project will empower women and reduce emissions,” said Ayaan Adam, Director of GCF’s Private Sector Facility. “It will show women-led enterprises can make a strong impact in Mongolia’s private sector. Mongolian micro, small and medium-sized enterprises can demonstrate that low-carbon investment is the business of the future.”

Ms Adam added the growth of a low-carbon energy sector fits well with the Mongolian Government’s move to raise the percentage of renewables to 20 percent of national energy generation by 2020, according to the country’s Nationally Determined Contribution under the Paris Agreement.

“Integrated” is one the six transition qualities that the EBRD has identified as elements of a successful and sustainable economy. The other qualities are resilient, green, competitive, well-governed and inclusive.

The loan to Terra Express is the first project in the transport sector financed by the EBRD in Mongolia. It will consist of two tranches and support the expansion of the company by restructuring its balance sheet.

Terra Express, established in 2011, is a mining logistics service provider. With the expansion of the multi-billion-dollar Oyu Tolgoi mining project the market demand for the services of Terra Express is expected to increase significantly. In turn, Terra Express plays an important role in the value chain of key exports. The company is preparing itself for this increase with an ambitious investment programme that includes the acquisition of 35 new vehicles.

Ekaterina Miroshnik, EBRD Director for Infrastructure, Russia, Central Asia and Mongolia, said: “We are very pleased to support Terra Express with our financing, which will bolster the company’s investment programme. Improved and intensified logistics will play an important role in the integration of Mongolia into the global economy.”

Irina Kravchenko, EBRD Head of Mongolia, commented: “Mongolia has big potential, and young and innovative private small businesses such as Terra Express are key to realising this promise. This project supports the recently approved EBRD strategy for Mongolia with a focus on infrastructure and private sector development.”

Altanbagana Shiituu, CEO of Terra Express, added: ‘’I look forward to a long and mutually beneficial partnership with the EBRD, helping to expand our capacity and improve our operational safety and environmental standards. This financing will allow Terra Express to target new and exciting market opportunities within the Mongolian logistics sector. We appreciate the EBRD’s commitment to private entrepreneurship in Mongolia and the future development of our company.”

Since the start of its operations in Mongolia in 2006, the EBRD has invested over €1.4 billion in more than 80 projects in various sectors of the country's economy.

1. STOCK TRADING:
471,015 shares of 55 listed companies with a total value of MNT 215,361,700 were traded.
2. GOVERNMENT SECURITIES:
370,000 units of Government retail bonds with a total value of MNT 34,794,430,000 were traded on the primary market in one trade.  
8,506 units of Government retail bonds with a total of the value of MNT 820,914,650 were traded by 6 trades on the secondary market.  
3. CORPORATE SECURITIES:
60.000 units of primary market listed company “Suu” JSC’s MNT 100.000 valued bond were traded with 17.5 percent interest rate and successfully collected MNT 6 billion.
As of June 16th, 2017, the market capitalization was worth MNT 1,497,666,603,273.07 and the MSE All index increased by 3.31% reaching 860.47 units.

During the meeting, engineers from the participating countries will be presenting their technologies, as well as exchanging practices of further development. The organizers consider that breakthrough technologies of the 21st century will help provide safety in the projects implementing in Mongolia and will have significant impact in their efficiency.

One of the highlighted technologies that is expected to be presented at the event is a non-destructive testing technology. Introducing internationally approved non-destructive testing technologies into Mongolian industrial sector would help determine abnormalities, evaluate safety and assets. In order to increase the longevity of equipments and for industries to adapt to the market, the usage of non-destructive testing technology is increased in the recent years.

With an aim to renovate various sectors, such as mining, renewable energy, construction and energy, Mongolia's branch of "Aplas" Ltd' is organizing the meeting to introduce breakthrough modern technologies. The company provides world-class human resource service and has expanded their operation to mining sector, cooperating with various projects in the energy sector.