The FINANCIAL — IFC, a member of the World Bank Group, is providing $6.5 million in financing to MMC Polaris LLC to build an international-standard hotel and retail space in the Yarmag district of southwest Ulaanbaatar. The hotel-retail development will expand Ulaanbaatar’s economic and tourism activities and help ease congestion and pollution in the central business district.
The project is aligned with Ulaanbaatar’s 2020 Master Plan, which aims to promote a secondary city-center in the area of Yarmag en route to the city’s current and new airports, according to IFC.
MMC Polaris LLC is a wholly-owned subsidiary of Mongol Micron Cashmere LLC, one of Mongolia’s leading cashmere processing businesses.
“IFC’s long-term financing will contribute to strengthening Mongolia’s tourism infrastructure, which will help drive local economic growth and diversification,” said Mr. Battogoo Choindon, executive director of MMC Polaris LLC. “In addition to financing, IFC is assisting our hotel to meet international environmental and social standards, including green building design principles.”
The hotel is the first project in Mongolia to meet IFC’s Green Building Standards.
“IFC’s financing affirms our long-term confidence in Mongolia’s economy, and the success of this Ibis Styles hotel will catalyze much-needed modern hospitality and retail services in a newly developing area of Ulaanbaatar,” said Tuyen D. Nguyen, resident representative for IFC in Mongolia. “During its construction and operation, this project is generating jobs and creating business opportunities for local small and medium enterprises.”
The retail floors of the building will open in late 2016 and the hotel is expected to open in early 2017. The three-star property will be operated by Accor Hotels, an international operator, and will be the first Accor-managed hotel in Mongolia.
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