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Ulaanbaatar/MONTSAME/ On May 17, Oyu Tolgoi LLC signed a memorandum of understanding with Deutsche Gesellschaft Für Internationale Zusammenarbeit (GIZ), the Gobi Oyu Development Support Fund (DSF), the Umnugovi Governor (UG), and International Finance Corporation (IFC), a member of the World Bank Group.
Furthermore, a co-financing agreement between the Gobi Oyu Development Support Fund (DSF) and GIZ was signed. Together, the parties seek to cooperate on the development of ‘Capacity Building Program’ for Mongolian small and medium enterprises’ (SMEs).
Key aim of the capacity building program is to facilitate necessary trainings for SMEs in various sound business practices such as HSE, business integrity, business management, supply chain management, etc. to improve their competitiveness and sustainability while meeting world class mining and other industry’s needs but also to facilitate financial literacy and capacity building programs.
In Mongolia, 98 percent of all businesses are classified as SMEs, but they contribute only 25 percent to the country’s GDP. While they account for 90 percent of Mongolia’s jobs, these businesses struggle to grow and develop. Only 10 percent of Mongolian companies are able to regularly access finance through banks.
Through this innovative partnership, OT together with its partners continues to contribute to the prosperity of Mongolia by developing and upskilling capacities of Mongolian business, with particular focus on Umnugovi, to be more safe, sustainable and competitive.
Armando Torres, the Chief Executive Officer of Oyu Tolgoi LLC underlines the strategic perspective of the project: “Our focus is on programs with long-term contributions that support sustainable development in close cooperation with a range of national and local stakeholders.” Mr. Torres added, “With this partnership, we start a new era of multi-stakeholder support for SMEs Capacity Building Program in Mongolia.”
“This partnership will enable demand for inputs and services from mining companies to be aggregated and communicated to local suppliers. This will help enhance transparency and generate greater opportunity — and hence, sustainability — for SMEs, which will be upgrading their skills through this program” says IFC Resident Representative for Mongolia Tuyen Nguyen.