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Introduction
In order to become and remain competitive, businesses must be aware of the fast-changing market environment in which they operate. The businesses need to be aware of and understand the latest market trends, and the new technologies being employed in their industry. They need to manage their resources and especially their finances efficiently and effectively. Many firms are unable to access the expertise required to compete in dynamic international markets, either because of lack of information or prohibitive costs. Experience in developed economies throughout the world shows that the utilization of short-term, third party expertise, in the form of business development services, can inject much needed impetus to company performance.
The Mongolian Business Development Fund (BDF) is a key element of the competitiveness component within the USAID funded Economic Policy Reform and Competitiveness Project (EPRC) in Mongolia. It helps companies to identify projects that will develop their competitiveness and can provide a co-payment to firms to offset the costs of such projects.
The BDF is administered through the EPRC project office based in Ulaanbaatar . Their professional staff can advise you on the application process, and provide you with information about local advisers and consultants. You can contact EPRC by telephoning or e-mailing the Business Development team of EPRC (you will find the contact numbers at the end of these guidelines).
What is the Mongolian Business Development Fund?
The Mongolian Business Development Fund (BDF) provides discretionary financial assistance to companies and firms to develop projects that are designed to improve the competitiveness of Mongolian businesses. The co-payment is up to 50% of the cost of engaging third party business development service providers to a maximum of the MNT equivalent of USD 10,000, i.e. total project cost of USD 20,000.
Who is eligible?
Business firms with a presence or the potential to compete in world markets or businesses that provide goods or services to those firms defined above are eligible. In addition the businesses must be:
- at least 26% Mongolian owned, Mongolian managed or significantly committed to advance Mongolian management
- registered as a legal entity in Mongolia
- in operation for at least two years
- involved in legitimate business pursuits
- not otherwise excluded by U.S. Government and USAID regulations.
(You may obtain the list of exclusions from the EPRC team.)
Which types of projects are encouraged?
Any project which will leads to the improved competitiveness of the firm will be considered, however the facility will be particularly supportive of projects that involve one or more of the following elements:
- Business and financial planning or re-structuring
- Technology upgrading
- Market development
- Export readiness
- Introducing international quality standards
- Introducing Management Information Systems (MIS)
- Management and Skills Development
- Improved facilities or services to the sector
Prior commitment
There must be no prior commitment to the project otherwise it will be difficult to establish a need for co-payment assistance. Project appraisal must have been completed and a formal offer of assistance issued before the applicant proceeds with the project.
Which activities are eligible?
The activities eligible for BDF support include:
- Professional fees of advisors/consultants
- Training costs
- Associated Travel and accommodation costs
Expenditure on fixed assets, salaries for staff employed by the supported group, and any other normally recurring overheads such as office rent, utilities etc are not eligible.
How to apply for Co-payment?
If you consider your project needs financial assistance in order to go ahead, you should contact the EPRC to check your eligibility. You should also talk to potential advisers (EPRC can help you with this) before you decide to apply. If you do apply you will first enter into a confidentiality agreement with the fund to protect your interests. EPRC staff will then help you to complete a ‘business profile', normally conducted at the company premises, and will assist you to submit a project plan and appropriate financial information. The detail expected in the project plan will be proportionate to the size of the co-payment applied for. The EPRC team will be happy to provide guidance.
The business profile will include: - Details of the company ownership and history,
- Most recent financial statements,
- The main activities and products of the company,
- Current and potential market opportunities,
- Trading results for the last three years.
The project plan should include:
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Project description, rationale and expected future benefits to the company in terms of increased sales opportunities, new production processes, quality improvements, jobs to be created or safeguarded etc.
- An estimate of the required project working capital for the project,
- A description of how the project will be co- financed,
- An explanation of why the co-payment is necessary for the project to succeed.
Appraisal time-scale
The target time taken for decisions on applications, from the date of receipt of a fully completed application (including all specified financial information) is 10 days. More complex cases may take longer than this to appraise. Where this is necessary, the EPRC will aim to take account of the commercial needs of the applicant.
EPRC may discuss the project with the applicant or their advisers to seek clarification or further details and may wish to visit the project location.
Larger co-payments are normally released in installments upon achievement of project milestones and deliverables that are set out as an appendix in the formal offer of co-payment assistance (letter of agreement). The milestones and deliverables will be agreed with applicants during the appraisal process and are generally arranged to coincide with the expected progress of the project. Smaller co-payments will be paid on satisfactory completion of the project. All co-payments are taxable.
Successful applicants will be allocated a contact person who will provide advice on the procedures for submitting a claim for payment of a co-payment installment.
Fully documented claims will be processed within 15 days of receipt. Completed and signed claims must be accompanied by supporting documentation. (i.e. an invoice/receipt, independent accountant's report, documentary evidence of any preconditions to be met, etc.)
Application documents
Contact Information
Economic Policy Reform and Competitiveness Project
Tavan Bogd Plaza , 2nd Floor, Rm 23
Eronhii Said Amar Street, Sukhbaatar District,
Ulaanbaatar, Mongolia
Tel: (+976 11) 32 13 75
Fax:
(+976 11) 32 78 25
E-mail: business@eprc-chemonics.biz
 
Introduction
Experience in developed economies throughout the world indicates that competitiveness depends on the speed at which a business is able to build the different skills, know-how, expertise, and market understanding required by the fast-changing economic realities. An effective method for building these capacities is for firms to work within groups or ‘clusters' which can achieve synergies and collective efficiency.
The Mongolian Competitiveness Fund (MCF) is a key element of the competitiveness component within the USAID funded Economic Policy Reform and Competitiveness Project (EPRC) in Mongolia. It provides a co-payment to groups of firms to offset the costs of innovative projects which will enhance the competitiveness of an industrial sector or sub-sector.
The MCF is administered through the EPRC project office based in Ulaanbaatar. Their professional staff can advise you on the application process, and provide you with information about local advisers and consultants. You can contact EPRC by telephoning or e-mailing the Business Development team of EPRC (you will find the contact numbers at the end of these guidelines).
What is the Mongolian Competitiveness Fund?
The Mongolian Competitiveness Fund (MCF) provides discretionary financial assistance to new projects that are designed to improve the competitiveness of Mongolian industry. The co-payment is up to 50% of the cost of eligible activities to a maximum of the MNT equivalent of USD 10,000, i.e. total project cost USD 20,000.
Who is eligible?
Viable business groups (non-government) representing any industrial sector or sub-sector with an export potential are eligible, regardless of industry sector, however some specific sectors may be regarded as not suitable for support. You may obtain the list of exclusions from the EPRC team.
Which types of projects are encouraged?
Any project which will lead to improved competitiveness will be considered, however the facility will be particularly supportive of projects that involve one or more of the following elements:
- Technology upgrading
- Market development
- Export readiness
- Introducing international quality standards
- Introducing Management Information Systems (MIS)
- Business and Financial Planning
- Management and Skills Development
- Improved facilities or services to the sector
Prior commitment
There must be no prior commitment to the project, otherwise there will be difficulty in establishing a need for co-payment assistance. The project appraisal must be completed and a formal offer of assistance issued before the applicant proceeds with the project.
Which activities are eligible?
The activities eligible for MCF support include:
- Professional fees of advisors/consultants
- Training costs
- Project salaries
- Travel costs
- Associated consumables
Expenditure on fixed assets, salaries for staff employed by the supported group, and any other normally recurring overheads such as office rent, utilities etc are not eligible.
How to apply for Co-payment?
If you consider your project needs financial assistance in order to go ahead, you should contact the EPRC to check your eligibility. You should also talk to potential advisers (EPRC can help you with this) before you decide to apply. If you do apply you will need to submit an appropriate completed application form, along with the financial appendices, and a project plan. The detail expected in the project plan should be proportionate to the size of the co-payment applied for. EPRC will be happy to provide guidance.
The project plan should expand on the information contained in the application form including for example:
- A description of the group and its membership
- Details of the sectors principal products/ services
- A description of the market served by the group and its current marketing strategy
- Project description and rationale and expected future benefits to the group or sector in terms of new production processes, quality improvements, increased sales opportunities, jobs to be created or safeguarded etc.
- An estimate of the required project working capital
- A description of how the project will be financed
- An explanation of why the co-payment is necessary for the project to succeed
Appraisal time-scale
The target time taken for decisions on applications, from the date of receipt of a fully completed application (including all specified financial information) is 10 days. More complex cases may take longer than this to appraise. Where necessary, the EPRC will aim to take account of the commercial needs of the applicant group.
EPRC may discuss the project with the applicant or their advisers to seek clarification on further details, and may wish to visit the project location.
Larger co-payments are normally released in installments upon achievement of project milestones and deliverables that are set out as an appendix in the formal offer of co-payment assistance (letter of agreement). The milestones and deliverables will be agreed with applicants during the appraisal process and are generally arranged to coincide with the expected progress of the project. Smaller co-payments will be paid on satisfactory completion of the project. All co-payments are taxable.
Successful applicants will be allocated a contact person who will provide advice on the procedures for submitting a claim for a co-payment installment.
Fully documented claims will be processed within 15 days of receipt. Completed and signed claims must be accompanied by supporting documentation. (i.e. an invoice/receipt, independent accountant's report, documentary evidence of any preconditions to be met etc.)
Application and brochure
Contact Information
Economic Policy Reform and Competitiveness Project
Tavan Bogd Plaza , 2nd Floor, Rm 23
Eronhii Said Amar Street, Sukhbaatar District,
Ulaanbaatar, Mongolia
Tel: (+976 11) 32 13 75
Fax: (+976 11) 32 78 25
E-mail: business@eprc-chemonics.biz |
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