Mongolia APU

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The EBRD is considering providing a $25 million loan to APU Joint Stock Company, a company organised and operating in Mongolia. The proceeds of the loan will be applied used to finance brewery capacity increase as well as working capital needs of the company related to the beer production. The transaction will result in a substantial increase of the beer production capacity of the company. The investment will result in the improvement of energy efficiency of the facility, and lower greenhouse emissions. The transaction will also have a demonstration effect showing the Bank's commitment to support strong local private entrepreneurs in Mongolia with long term financing. APU Joint Stock Company is the largest beverage company IN Mongolia. APU, established in 1924, and was one of the first companies privatised in 1990s and is listed on the Mongolian Stock Exchange. Senior secured loan. USD 25 million. The Project has been categorized as B in accordance with EBRD’s Environmental and Social Policy (2008). Environmental and social due diligence, including a number of site visits by the Bank's Environmental Specialist, was undertaken to verify the status of regulatory compliance and the controls in place to manage environmental, health and safety and labour risks. The due diligence confirmed that the Company's facilities are in compliance with national and international requirements for environment, health and safety and also in compliance with national labour requirements. APUs sites are not a source of significant environmental pollution nor are they of significant risk to local communities. Due diligence did not reveal any issues with regard to involuntary resettlement, cultural heritage or indigenous peoples. The Company are currently developing systems for environment, health and safety management in line with the International Standard ISO 14001. In 2006/2007, a series of EHS training programmes were conducted within the framework of 2-year project "Cleaner Production and Sustainable Entrepreneurship" sponsored by the Asia-Invest II program of the European Union (EU). APU operates a major recycling operation through an affiliated company “Depod”. Some 60 per cent of all bottles used in production are returned and re-used. Finally, the Company has a variety of stakeholder engagement channels, for both workers and the external public and organises regular factory tours for local communities, NGOs, academic and research organisations. The Company has demonstrated a high level of EHS performance and a responsible approach to EHS management. An Environmental and Social Action Plan (ESAP) has been agreed with the Company, to ensure that the Company will meet both national and EU standards for environment, health and safety and includes the implementation of international management systems for environment, health, safety and labour. None. Ms. Ariunsan Chadraabal, Head of International Affairs Department, email: ariunsan@apu.mn, tel: (976-11) 344554, fax: (976-11) 343063