Prime Minister S.Batbold presented a draft resolution on the main direction of privatizing state properties in year 2010 – 2012 to D.Demberel, the Speaker of the State Great Khural. He stated a new concept of privatization, such as increasing the involvement of people and improving the activities and governance of state owned companies. Capital market and the Stock Exchange shall develop along with it. When privatizing state properties, they will be privatized through the Stock Exchange, securing transparency of the privatization.
After receiving the draft resolution, Speaker Demberel asked few questions:
D.Demberel: Are Oyu Tolgoi and Erdenet included in the privatization?
S.Batbold: Major actives of mining companies, Tavan Tolgoi and other strategically important deposits, state owned mines and energy privatization are included in the draft resolution.
D.Demberel: When the draft resolution will be discussed by the State Great Khural?
S.Batbold: Quite some is needed for the due diligence and improvement of activities. There are some important privatizations such as Tavan Tolgoi and railway. I believe that the issue will be proposed to the fall session of SGK.
After the meeting with the Speaker, Prime Minister S.Batbold answered to the media.
Q: How would you secure the participation of people?
S.Batbold: People will have choices. People can make investment or buy shares in comparison with the saving interest rate of commercial banks. People’s funding srouce is mostly from commercial banks. But in other developed countries, this fund comes from the capital market. If we make privatization through the Stock Exchange, it will show its effectiveness in the development of Mongolia.
Q: What is the privatization of infrastructure?
S.Batbold: Roads and railways are included in infrastructure in Mongolia, the infrastructure of mining projects. They will be listed at the foreign market, with even distribution of shares to the people of Mongolia. It will bind the Mongolian market with the international markets. Energy is uranium and coal actives.