APU Dairy (EBRD-55290)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mongolia
Geographic location where the impacts of the investment may be experienced.
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 24, 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
APU Dairy LLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
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)
$ 20.00 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.
Loan Amount (USD)
$ 20.00 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.
Project Cost (USD)
$ 53.00 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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jan 29, 2025

Disclosed by Bank Jun 12, 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 EBRD, the project consists of the provision of a senior loan of up to US$ 20 million in MNT equivalent (including US$ 2 million concessional tranche funded under the High Impact Partnership on Climate Action programme by Canada) to APU Dairy to finance its dairy processing and packaging capacity expansion, construction of the new production facility, which meets high energy efficiency standards, and working capital.

The Project is in line with the EBRD country strategy for Mongolia to support non-extractive sector and strengthen competitiveness. The loan supports growth and competitiveness of the company by funding its capacity expansion investments as well as promotes the adoption of climate smart farming practices by Mongolian dairy farmers.

The transition impact is expected to derive from its contribution to green and inclusive qualities. As part of the project, the company is committed to build a new factory building meeting high energy efficiency standards, and to implement a dedicated programme to promote the adoption of climate smart practices in its Mongolian milk supply chain and increase the resilience of farmers to climate change. The project will also support human capital development in a remote region by reaching out to and equipping small-scale yak herders with new market relevant skills and technology.

As stated by the EBRD in their response to a request for information, "climate smart farming practices" include:

  • enhanced feed management including balancing feed ration, the procurement high quality feed, supplementary feed provision, etc.
  • improved pasture management - comprising improved grazing management, rotational grazing, establishment of cultivated pasture, etc.
  • herd management enhancement for example via improved veterinary and breeding management
  • enhanced farm infrastructure including provision/enhancement of animal shelter, improved feed and manure storage
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
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.

As stated by the EBRD, APU Dairy, operational since 2014, produces full range of dairy products, and is one of the leading dairy producers in the country. It's a fully owned subsidiary of APU JSC, the largest and oldest beverage producer and distributor in Mongolia.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
APU Group (Mongolia) Parent Company Industry and Trade owns APU Dairy LLC Client Agriculture and Forestry

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.

Client - APU Dairy LLC:

Anudari Ganbaatar
Email: anudari.g@apu.mn
Phone: +976 99083474
Website: https://www.apudairy.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