Liberty Partners
STRUCTURED COMMODITIES ▪ PROJECT FINANCE ▪ ADVISORY
Ulaanbaatar, Mongolia
May 21, 2014
For immediate release:
In response to malicious allegations regarding Liberty’s railway project engagement
In an article dated May 15th, 2014 published by Mongolian media outlet “Morning News” ("Article"), it accuses
Liberty of misconduct and further attempts to cast doubt on Liberty’s integrity with purported reference to the
awarding of an Advisory Contract (see below) in 2011. Liberty absolutely rejects these accusations contained in
the “Article” and views these baseless accusations as a clumsy attempt to undermine Liberty’s credentials,
obscure the true facts, attempt to demean and bring into question the accomplishments of Liberty in the minds
and face of public and Liberty’s partner organizations.
The contractual provisions governing the Advisory Contract for the Mongolian railway feasibility study were
legally sound and the feasibility study undertaken by members of the Advisory Team fully pursuant with the
terms of the contract. Furthermore, the study submitted to the Government of Mongolia was fully accepted and
endorsed by the Cabinet Meeting Minutes No. 40 dated 31 August 2011. An accurate summary of the facts
around the award of the noted contract is set forth below.
The Parliament of Mongolia approved the State Policy on Railway Transportation on June 24, 2010 by
Resolution No. 32 ("Railway Policy"). Within this policy framework, pursuant to the Cabinet Resolution No. 283
of November 3, 2010, the Chairman of the State Property Committee and the Minister of Roads, Transportation,
Construction and Urban Development issued a Joint Resolution No. 30/24 on February 1, 2011 authorizing
Mongolian Railway State Owned Shareholding Company ("MTZ") to select and engage an advisory team to
prepare a feasibility study for Phase 1 of the Railway, in accordance with Article 6.2.1 of the Railway Policy.
Directive No. 2/254 of the State Property Committee dated February 7, 2011, and MTZ Board of Directors
Resolution No. 23 dated March 1, 2011, authorized MTZ to execute the Agreement for Advisory Services dated
April 7, 2011 ("Advisory Contract") with McKinsey & Consulting Company Inc., Shanghai, Beijing Branch
("McKinsey"). BNP Paribas, Pillsbury Winthrop Shaw Pittman LLP and Liberty acted as co-advisors together
with McKinsey (collectively, the “Advisory Team"). Liberty’s role in the Advisory team was to perform local
advisory services that included, but not limited to, facilitating interface between the Project and all relevant
Mongolian ministries and authorities for purposes of ensuring compliances with Mongolian requirements.
Furthermore, pursuant to Cooperation Memorandum of Understanding on Certain Projects dated April 15, 2010
(the “MRTCUD MOU”) between Liberty and the Ministry of Roads, Transportation, Construction and Urban
Development ("MRTCUD"), Liberty provided financial advisory services to MRTCUD that included, among other
works, assistance in the development of railway infrastructure and other large capital investment projects.
These services were performed by Liberty on pro bono basis. Article 3.2 of MRTCUD MOU permits Liberty to
be compensated through engagements with financing or other participating parties on specified projects.
Liberty has at all times complied and continues to comply fully with the laws and regulations of Mongolia and
Foreign Corrupt Practices Act of the United States, as well as adhered to The Chartered Financial Analyst®
(CFA) Institute Code of Ethics and Standards of Professional Conduct. We stress that it is such adherence to
necessary compliance that allows Liberty to partner with the best breed of global business elite. Liberty bridges
the gap between the stakeholders and human capital, both local and foreign, through its work and with its staff,
invests and contributes to the future of Mongolia and its people.
Liberty Partners remains committed to its guiding principles and assures its present and future partners of its
tried-and-true business integrity.
About Liberty Partners:
Liberty Partners LLC was founded in March 2010 with a vision of assisting Mongolia in the development of
mining, infrastructure and industrial projects through financial expertise. The Company provides financial
advisory, structuring and arranging of debt and equity financing, and other services that enable public and
private sector clients in Mongolia to grow their businesses and successfully deliver projects by accessing global
capital and loan markets.
The founder of Liberty, Mr. Ganbat Chuluunkhuu previously worked in the International Structured Finance
team of Commerzbank AG, New York, from 2003 to 2009. His international banking career focused on
originating and structuring debt financing in Africa, Central Asia (including Mongolia), CIS and Latin America
markets. In addition to Mr. Ganbat Chuluunkhuu, the Liberty team consists of highly educated young Mongolian
professionals, all of whom share the same enthusiasm and passion for participating in the successful and
equitable development of Mongolia.
Liberty Partners LLC ▪ Finance Centre ▪ 8th Floor ▪ Jigjidjav Street 8 ▪ Ulaanbaatar 15160 ▪ Mongolia
Tel: +976 70119127 ▪ Email: [email protected]
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