The project consists of the following three components:
COMPONENT 1. DEVELOPMENT OF A NEW LINE OF EXPORT FINANCE PRODUCTS
Sub-component 1.1 Knowledge transfer and capacity building for the Agricultural Reinsurance Joint Stock Export Insurance Subsidiary (AgRe)
а) Building the capacity of AgRe on export credit insurance and other trade finance products which include: (i) Conducting fact-finding and study visits and on-site learning; (ii) Conducting an assessment of existing export insurance rules and regulations and survey of market demands in areas of export finance; and (iii) Carrying out a comprehensive risk analysis and management framework of key inhibitors to export market.
b) Developing a range of export insurance products for Mongolian SMEs engaged in export activities, including (i) Underwriting guidelines for products developed, (ii) Pricing methodology; and (iii) Claims payment process.
c) Establishing the Export Insurance Subsidiary for purposes of operating the Export Insurance Facility.
Sub-Components 1.2 Equity injections to AgRe's Export Insurance Subsidiary, under subagreement between MOF and AgRe.
Provision of a Capital Contribution to the Export Insurance Subsidiary for the establishment and operation of the Export Insurance Facility.
COMPONENT 2. EXPORT COMPETITIVENESS ENHANCEMENT
Sub-component 2.1 Training and research on foreign trade
1. E-LEARNING TRAINING: Create a free online training section on the project website with a series of training modules on foreign trade. The training modules, documents, videos uploaded on the website shall be made publicly available.
2. FACE TO FACE TRAINING:
2.1 Generic Training
Through generic training, SMEs will be familiarized with market selection, product development, improvement, and common risks associated with exporting, a course on Business English will also be provided.
2.2 Customized Training
Customized training is a more interactive training, provided to SMEs that have already started to export their products. A group of businesses in the same sector or an association of companies will be able to apply for a more customized training tailored to their needs. Research and/or surveys on specific markets and industry analysis will also be conducted as part of this training.
3. WORKSHOPS/CONFERENCES/SEMINARS ON TRADE:
This will bring exporters together to share experiences and gain knowledge on topics related to foreign trade. A group of international companies/importers can visit Mongolia to provide their insights, in the form of “how do we do it” seminars. Additional workshops will be organized targeting women entrepreneurs.
4. OTHER TRAINING:
Sub-component 2.2 Matching Grants to promote export competitiveness
“Matching Grants” means, collectively, the grants to be made out of the proceeds of the Credit to Beneficiaries for partially financing the cost of implementing Export Development Plans and enhancing competitiveness; all in accordance with the terms and conditions, selection criteria and procedures set forth in the Matching Grants implementation Manual.
Matching Grants Beneficiary
“Matching Grants Beneficiary” means enterprises operating in the non-mining sector and established and operating under the laws of the Mongolia, which is eligible to receive a Matching Grant in accordance with criteria set forth in the Matching Grants Implementation Manual.
Export Development plans
“Export Development plans” means the development plans for the implementation of export related activities, such as quality testing and certification, product adaptation, business strategy and planning, production management, export fairs, and training, prepared by Beneficiaries to be implemented under Subcomponent 2.2 of the Project.
Matching Grant Agreement
“Matching Grant Agreement” means the written agreement to be entered into by the MOF and Beneficiary for the provision of a Matching Grant for the financing of Export Development Plans.
The MGF will co-finance the following eligible activities:
Maximum Grants level
An individual grant will cover 50 percent and no more than US$100,000 of eligible expenses. No single enterprise may receive grants in excess of a cumulative limit of US$100,000, though multiple applications up to accumulated threshold will be permitted.
COMPONENT 3. PROJECT IMPLEMENTATION SUPPORT
Provision of support to the Project Implementation Unit, includes strengthening its capacity to carry out and monitor and evaluate the Project through the provision of technical assistance on coordination, procurement, financial management, training and logistical support.