Daily Business News Mongolia

MCA Starts Operating on July

info — Fri, 16 May 2008 09:52:15 +0000

Governing Board of the Millennium Challenge Corporation (MCC) approved the general agreement proposal of USD 285 million to be concluded with the Government of Mongolia in order to eradicate poverty through economic growth. The agreement focused on four main sectors such as railways, ownership, professional education and health and especially on key support of Mongolia’s economic development, including efficient network of railways operation and improvement of capacities.

With reference to the establishment of MCA in Mongolia, Robert Reed, Representative of MCC of the United States and N.Bayarbaatar, Executive Director of MCA of Mongolia held a meeting with journalists and introduced on the Account. Established on January, MCA elected its Governing Board and is into the preparation of operation.

The Account shall be responsible for coordinating the above mentioned projects for the period of 5 years. Currently 5 units to implement projects were established, their directors were appointed and operation teams are being recruited. Starting this month, project bids have been announced, preparation works would end and basic activities would begin on July. Majority or USD 188.38 million is projected for railways.

Main freight forwarding line in Mongolia is railways. Old infrastructure, vehicles and current system could not meet railways needs today. It boosts inflation and declines domestic and foreign trade growth. USD 23.06 million is projected for ownership rights, USD 25.51 million for professional education and USD 17.03 for health projects.

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Election Date is Officially Announced

info — Thu, 15 May 2008 08:05:12 +0000

Yesterday, General Election Commission /GEC/ of Mongolia announced the date of Parliamentary election officially on June 29. And this is the commencement of election preparation. According to B.Battulga, Head of GEC, there are a lot of problems to solve before the election. For instance, 116568 citizens had 234777 addresses. In other words some people have more than 2 addresses.
This problem should be solved before the election. Related officials, however, didn’t reach agreement on in which conditions the poll sheet is considered valid or null. This is because of poor legislation. GEC is to gather soon to solve complicated issues and inform the public as well.

We already reported that GEC submitted its budget for election as MNT 8.2 billion, and the parliament is to cut it down to MNT 7.2 billion. First of all, GEC must form election circuits and approve the structure. This time 26 circuit commissions shall be formed. Each commission shall recruit 11 staff.
The Head and Secretary of the commission shall be those from different political parties and a dominance of any party is prohibited. The number of commissions to operate in branches or soums and urban areas shall be 340, recruiting 9 people each and total staff shall be 3060. A total of 23400 people shall be recruited at voting point. This election is to be organized with the help of 26746 nationwide. Inclusion of any politician is prohibited.

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Israel and Mongolia is to Collaborate on Agriculture

info — Thu, 15 May 2008 08:03:32 +0000

Right after the 60th anniversary of Israeli independence, the President of Mongolia paid a visit to Israel for the first time and met Sh.Peres, President of Israel, exchanging views on extending and strengthening bilateral cooperation and relations. At the beginning of the meeting, Mr. Peres said, “Since I was a kid I heard a lot about Mongolia. Therefore, I know well about this great homeland of beautiful nature and fascinating history. Mongolia and Israel are same countries in terms of their pride in the world historic pages.”
Sh.Peres also noted that Israel was ready to share its experience on growing its crop yield by 20-25 percent by cultivating the desert with Mongolia. Also he promised to focus on extending bilateral political, economic and educational relations as well. Expressing his gratitude to the President Sh.Peres, N.Enkhbayar highlighted the success of bilateral diplomatic relations tied in 1991. He also informed that Mongolia had developed its development concept “National development policy” and had it approved by the Parliament. In this regard, the President expressed the interests of exchanging agricultural professionals, training specialists and collaborating in economic sector. He pointed out that there were a lot of opportunities in the agricultural sector to extend bilateral cooperation and even the two had essential demands for it.
At the end of the meeting, N.Enkhbayar invited Sh.Peres to visit Mongolia and confirmed his contributions to accelerating talks and negotiations.

President hosts dinner with Honorary Consul

Respecting President of Mongolia N.Enkhbayar, Ami Orkabi, Honorary Consul of Mongolia to Israel hosted dinner to the President. Officials accompanying the President, Israeli businessmen, scholars, politicians and representatives of Mongols living in Israel, a total of 150 people attended the dinner. Highlighting favorable opportunities of extending Mongolia-Israel bilateral relations and cooperation, N.Enkhbayar called the attendees for collaboration.

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L.Gansukh(DP): Parliament Waits for Task Group Conclusions on Rosnefti

info — Wed, 14 May 2008 07:24:41 +0000

We got details from L.Gansukh, Head of DP Council in the Parliament on an issue discussed at the Council meeting.

What kind of issues did you discuss?
We discussed issues related to infected people in Bayan-Ulgii aimag and risks of infectious MHFD /mouth, hand and foot disease/ that could cover children of young age in great number. The number of infected children that was 98 reached 150. We got the Government information with reference to the Disease. Also we met Chairman and Secretary of General Election Committee and staff of Civil registration center. Names of over 230 people have been counted repeatedly. We shared views on eradicating such errors and providing favorable environment for running the election smoothly. In addition to it, issues included in the weekly business plan have been discussed.
What is the position of Council members on Rosnefti?
The Parliament Speaker formed a task group to deal with this issue. Within 2 days the group should bring the issue to the Parliament for discussion. We assume that the most potential alternative shall be selected.
Who is included in the task group?
Leader of the group is Ts.Munkh-Orgil, Minister of Justice and Home Affairs and members include N.Batbayar, M.Zorigt, S.Bayartsogt and Ch.Radnaa.
What kinds of measures are realized in HMFD?
The Government allowed MNT 57 million. School children between 1st and 5th grades were quarantined for 2 weeks of period and children activities were halted.
What did you discuss on Bayan-Ulgii poisoning?
We discussed whether professional inspection agency authorities should be sentenced or not. Chairman of the PIA said the great number of poisoning had no connections with authorities of PIA. The main poisonous foods included salad and cake, prepared at home and kept for 2 days while electricity has been halted temporarily.

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B.Erdenesuren(MPRP): We Agreed Because Percentile per the Public was High

info — Wed, 14 May 2008 07:20:50 +0000

MPRP group in the Parliament discussed the draft law on modifications to the Minerals Law of Mongolia during the Group Meeting. We got details on the meeting from Deputy Chairman of the group, B.Erdenesuren.

What issues did you discuss during the Group Meeting?
We discussed what the position of the Group would be at the first discussion of the draft law on modifications to the Minerals law of Mongolia which was initiated and submitted by MP Z.Enkhbold and E.Bat-Uul. Members expressed different positions and opinions on it. Some tend to criticize that only product-sharing is not the important thing and power was granted to the Government before the percentile became clear.
The Government should submit the agreement to the Parliament for approval. We agreed on more the minerals dividend better it would be for Mongols. The Government submitted a draft law on oil products. Other important issues were discussed as well. The group agreed on the provision which restricted sales points of oil product importing companies.
A Collaborative task group has been established and the leader is Minister Ts. Munkh-Orgil. In order to maintain stable traditional relations, this issue must be discussed seriously. A-92 gas price is lower than that exported to Europe by MNT 45. We import over 90 percent of oil products from Russia. It is important to study well how to use international relations factors properly and bring into right direction. It is estimated that MNT 280 billion should be paid a year to maintain gas price. This is the estimation for once. The Parliament should open the way for negotiations. Otherwise the Government would not move thinking it would breach laws.

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New Project Agreement is Signed

info — Mon, 12 May 2008 07:12:46 +0000

In framework of consultative meeting between the Government of Mongolia and the Government of Federal Republic of Germany and negotiation on development policy cooperation in 2007, technical cooperation society of Germany launched a new project on “Confirming stable economic environment”. This project shall be implemented jointly by Ministry of justice and internal affairs, Supreme Court and State General Prosecutors Office, and the Government of FRG grants €2.5 million for project financing.
The goal of the project is to regulate market and political regularity through activities of court and legal organizations and legal policies. At the initial phase, it shall influence on improving formulation and implementation of legislations. Recently the co-executors of the projects have signed on the agreement. Participating the ceremony, D.Lundeejantsan, Speaker of the Parliament notes in his speech, “I recall the implementation of many projects realized by technical cooperation society of Germany on Criminal and Civil codes. I believe that this new project would be of great significance in sophisticating legal system in Mongolia.”

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Peabody Energy is Interested in Mining

info — Mon, 12 May 2008 06:15:25 +0000

Last Friday, delegates, headed by Taib Taheer, CEO of Northeast Asia affairs of Peabody Energy Corporation of the United States, visited the President of Mongolia N.Enhbayar. Delegates of the world biggest U.S. private coal company introduced the world class proposal on developing Mongolia’s coal production. The proposal has been developed by US leading corporations; marketing part of the coal mining proposal has been developed by Peabody, legal compliance part by Fasken Martineau, tax and financial part by KPMG and investment, bank and finance part by Morgan Stanley. In brief, this is a proposal on legal, financial and organizational regulations and preventing and protecting the environment of coal mines. The proposal includes the following:
- Regulation of coal production shall be carried out by one organization,
- The highest rate shall be set, considering minerals as products could be sold worldwide,
- Mongolian staff shall be enrolled in training and their number shall be the maximum,
- Social fund for Mongolian citizens with independent governing board shall be formed, and
- Minerals shall be the property of the state 100 percent until they are mined.
T.Taheer says, “Peabody Energy is very much interested in Mongolia. We have developed a comprehensive proposal that maintained state and private sector equilibrium. We are aiming to invest in Northeast Asia. According to our proposal, it is proper that the state should control the majority proportion.” Kartan Sumner, Director of Government relations Department says, “Mongolia is the center of world minerals. Therefore, we have a proposal that maintained the equilibrium of interests of the state, public and investors.”
“Though Mongolia has less experience in minerals mining, except Erdenet, I think it is proper to develop the legislation, dividing deposits in accordance with who found the deposit: state or private and then the state should find and collaborate with right partners. Our decision makers need to exchange information and share experiences in this regard”, says the President.

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Rosnefti Says to Move the Price If Necessary

info — Thu, 08 May 2008 01:58:59 +0000

We got details from Kh.Narankhuu, Minister of Industry and Trade on gas price.

It’s been several days since a deadline for responding to a proposal of Russian Company “Rosnefti” expired. Aren’t they dramatically increasing the gas price?
Talks and negotiations are held with Russian side at all levels. I sent a letter to the Minister of Food and Agriculture of Russia. Confirming the interest of importing oil product from Russia, the letter told that specific study on Russian proposal was time-consuming. Also it mentioned about the advantage of entrance of foreign company into the domestic market that it would increase competition and liberalize the market.
Moreover we asked to keep gas price stable until the Parliament finishes discussing the matter. Russia did not send any official reply yet. We will carefully observe how Rosnefti Company would react to our proposal. They informed that a gas price would be changed if necessary.

Is the Government processing alternatives other than establishing 100 Russian stations?

There are 2-3 options. One option is that the Government itself regulates import tax, VAT and excise tax of oil products. The Government will take the authority to null the tax if necessary. This option has been submitted to the parliament 2 months ago. On the other hand, another option here is to prepare resources. It is essential to consult with the Parliament on assets. A gateway for solving all of them as a complex is essential. It is almost clear that gas price would increase in the future. Therefore a structure that enables Government regulation is vital.

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DP Forwards a Requisition to PM

info — Thu, 08 May 2008 01:56:41 +0000

They considered that accepting Russia’s proposal is like giving up independence

Yesterday DP council held a broad meeting. DP Leader Ts.Elbegdorj, who just arrived from Korea, attended the meeting. Several issues were discussed at the meeting and council members criticized the acceptance of Russia’s Rosnefti proposals by the Government was a case of ignoring national interests.
Council members agreed that if we accept the proposal of Russian Rosnefti Company to construct 100 gas stations in Ulaanbaatar and Darkhan, it will be same as giving our independence up. Therefore the council agreed on forwarding a requisition to the Prime Minister to withdraw the proposal submitted to the parliament for discussion and seek other alternatives.
The Council meeting also agreed upon holding the parliamentary election on June 29. It is considered that expenditures must be looked back and re-estimated as well. Moreover, it was discussed to submit a proposal on placing cameras in poll places to the draft resolution.

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S.Oyun Visits France

info — Wed, 07 May 2008 01:31:41 +0000

Minister of Foreign Affairs of Mongolia S.Oyun pays an official visit to France at the invitation of the Minister of Foreign and European Affairs of France. During the visit, S.Oyun is to hold a meeting with Bernard Kouchner, Minister of Foreign and European Affairs of France and a tete-a-tete meeting with authorities of major French companies and sign on collaboration agreement between two ministries. This is the first official visit of the Foreign Affairs Minister to France in 43 years since extension of bilateral diplomatic relations between two nations.

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