OREANDA-NEWS. In the course of the Petersburg International Economic Forum and in the presence of Mongolia's Prime MinisterChimedinSiakhanbileg, Vnesheconombank and the Development Bank of Mongolia signed a credit agreement aimed at funding a project on upgrading CHPP-4 in Ulan Bator, Mongolia.

On behalf of Vnesheconombank the agreement was signed by First Deputy Chairman Member of the Board Petr Fradkov and on behalf of the Mongolian Development Bank by Chief Executive Officer Mr. MunkhbatNanjid.

VEB also signed an insurance agreement with JSC EXIAR (VEB Group), with insurance coverage under the agreement being a collateral under the transaction.

The Urals Turbine Plant acted as the general contractor under the export project. The Plant supplied the first steam turbine and accessory equipment; it also performed all ancillary work on a turnkey basis.

This is a landmark project for both countries' energy sector and it symbolizes renewed active technological cooperation between the Russian Federation and Mongolia.

The Development Bank of Mongolia (DBM) was founded in March of 2013 under the Mongolian Government's resolution. The Bank's activity is governed by the Law on the Bank for Development. The Development Bank of Mongolia is specializing in funding special development projects (construction of municipal roads, free motorways, granting subsidized mortgage credits. It also deals with commercial projects. The Bank's Office is located in the city of Ulan-Bator.