The project sponsor is Newcom LLC (Newcom), a private company incorporated in Mongolia and established in 1993 is owned by Mr. Ts. Boldbaatar , Ms. Tuya and Mr. R. Arvintsogt. Principal subsidiaries and affiliates of Newcom include: (i) Mobicom Corporation (telecommunications) - established in 1995 as a Joint Venture between Newcom and two strategic investors from Japan, KDDI and Sumitomo Corporation; (ii) Eznis Airways (civil aviation) established in 2006; (iii) Clean Energy (renewable energy) - established in 2006 with a subsequent equity investment by EBRD in 2010 resulting; and (iv) Newcom Property (real estate development and management) – established in 2005.

The proposed IFC investment is estimated at $40 million and consists of: - A loan of up to USD20 million; and - C loan of up to USD20 million with an option to convert into the ordinary shares of selected Newcom subsidiaries.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

Newcom and its subsidiaries are headquartered in Ulaanbaatar. The proposed 50MW Salkhit wind project is located around the Salkhit Mountain and Shakhuugiin Khuviin Lake in Sergelen soum of Tov Aimag, about 70 Km south of Ulaanbaatar. The rest of the projects are expected to be located mainly in Ulaanbaatar.

The project is expected to: (i) help create additional jobs and promote entrepreneurship; (ii) contribute to increase the power generation capacity and tap into a renewable energy resource; (iii) reduce carbon emissions that would have been generated by alternative sources of electricity; (iv) provide access to health facilities; (v) support the development of mining and natural resources activities in Mongolia; and (vi) further contribute to Government tax income with expanded operations of NCG.

(i) IFC's financing will help NCG meet its funding needs in terms that are not available from local banks and support the growth of a strong partner in the country; (ii) IFC's stamp of approval can help NCG's subsidiaries attract investors in the event of an IPO in the future; (iii) IFC's global experience in infrastructure can add value to NCG's investment operations; (iv) the investment will support the expansion of Mongolia's infrastructure sector (which faces huge capacity constraints that will increase as Mongolian economy grows) through private sector investments; (v) IFC can play a catalytic role mobilizing financing to an IDA country.

This project has been categorized as Category B according to IFC’s Environmental and Social (E&S) Review Procedures. Key environmental, social, health and safety impacts that were reviewed include: the sponsor’s system to manage E&S issues during construction and operational phases of its business operations; land acquisition issues for development sites including a proposed wind power site; labor and working conditions; community and staff occupational health and safety issues; life and fire safety design and provisions of building structures; management and minimization of air, water and solid pollutants during construction and operation; management and mitigation of bird collision risk at the wind farm; energy and water usage efficiency; and community engagement.

The Company will manage its E&S performance in accordance with applicable local laws and regulations and international standards, including IFC’s Performance Standards on Social and Environmental Sustainability, and IFC Environmental, Health and Safety Guidelines (General; Telecommunications; Airlines; Wind Energy; and Health Care Facilities). The focus of the Company’s management of E&S issues will be on efforts to ensure development of a robust E&S management system at the corporate level, which will allow the Company to proactively screen for, manage, and monitor potential E&S risks and impacts in its various business operations.

Please refer to the disclosed Environmental and Social Review Summary for details of environmental and social issues.