DFF - Shunkhlai Plaza Regeneration (EBRD-55168)

Countries
  • Mongolia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Ulaanbaatar
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 23, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Shunkhlai Holding LLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 26.49 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 90000
Converted using 2024-07-23 exchange rate.
Project Cost (USD)
$ 61.05 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 207439.96
Converted using 2024-07-23 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 26, 2024

Disclosed by Bank Aug 2, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of the provision of a senior loan of up to MNT 90 billion to be provided to Shunkhlai Holding LLC to finance the construction, equipment and placing into operation of the group's headquarter office in Ulaanbaatar, Mongolia.

The Project is in line with the EBRD country strategy for Mongolia as it focuses on promoting a greener and more climate resilient economy by supporting the development of an energy efficient building. The loan finances the conversion of a dilapidated cashmere wool processing factory into a modern 6-floor office building, which will provide a new workplace for approximately 1,300 staff.

The proceeds of the Bank's investment will be used for the redevelopment of a Soviet-era building into an office complex, consisting of a 6-floor tower with ca. 13k sqm including construction, interiors and fittings, and exterior landscaping.

Shunkhlai Holding LLC is an existing Client of EBRD and is active in various industries, including alcoholic and non-alcoholic beverages, fuel and oil NBFI, telecommunications and media, vehicle and part sales, real estate sales and other businesses. 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B (2019 ESP). The expected environmental and social risks are limited, generally site specific and can be avoided or mitigated by adhering to relevant performance standards, procedures, guidelines, or design criteria. The project is not associated with any biodiversity, resettlement & economic displacement, or cultural heritage impacts. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

A senior loan of up to MNT 90 billion.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Shunkhlai Holding LLC is a limited liability company incorporated in Mongolia that was established in 1993 and is active in various industries, including alcoholic and non-alcoholic beverages, fuel and oil, NBFI, telecommunications and media, vehicle and part sales, real estate sales and other businesses.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Shunkhlai Holding LLC Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Batbayar Burentogtokh
batbayar@sg.mn
+97690090927
http://www.shunkhlaigroup.mn/

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works