Ulaanbaatar, the capital city of Mongolia, is the country’s primary economic hub with over 40% of the population, 63% of registered businesses and generating over 65% of the national GDP. MUB is the largest subnational entity in Mongolia and has a wide mandate of infrastructure service provision to its citizens. The project will be owned by a special purpose vehicle which will be fully owned by MUB or a 100% MUB-owned subsidiary.    

 IFC, together with BCFP will invest up to US$90 million in the Bond issued by MUB.

The project is located in the outskirts of Ulaanbaatar at Baganuur district.    

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability, as it is expected to have limited adverse environmental or social risks and/ or impacts that are limited in scale, few in number, generally site-specific and readily addressed through mitigation measures, by adhering to good international industry practice (GIIP) procedures, guidelines and design criteria, as described in the following sections. The project will use GIIP, meeting requirements established under the applicable WBG Guidelines.

Key risks and impacts of the project include limited scale: biodiversity impacts on the habitat of a small population of Mongolian Marmot and risks to migratory waterbirds and raptors (Steppe Eagle); construction stage impacts related to noise, dust, hazardous and other waste, labor working and living conditions and community safety and traffic management; supply chain; and impacts associated with waste and hazardous material management, occupational and community health and safety, and labor working conditions.