The Cabinet meeting of Mongolian government of the 15th December 2012 approved a Program to support the national production of building materials. Within the framework of “New Development”, a medium term plan, “New Ulaanbaatar” project will be implemented.
This initiative is developed and will be implemented with the goal of assisting national producers to manufacture building materials for the following major constructions, planned in the Reform Government’s platform: 17 apartment complexes, revitalization of Ger areas, planning for replacing old building that no longer meet government standards, housing project for 1,000 families for each of the provinces, a township of 100,000 to be established next the new Hoshigt International Airport, and hydro and thermal power stations.
By implementing the new program, the government hopes that the nation will be able to domestically manufacture at least 70% of the building materials by 2016. At present, 60% of the construction materials are being imported from overseas. In 2010-2011 alone, USD 500 Million was spent on imported building materials and supplies. Therefore, it is a priority for the government to support value added production nationally substituting imports, as stated by its recent press release.