On last Friday’s plenary session meeting of the SGH, Prime Minister N.Altankhuyag made a brief statement regarding the current political and socio-economic situation of Mongolia. Premier N.Altankhuyag provided information on the spending of the $1.5 billion sourced from the “Chinggis” Government bond.
The Premier also stated that the Government has established “Financial Intermediation Agreement” with the Central bank of Mongolia that will provide a financial management until the capital sourced from the bonds will be paid out in full.
In order to spend the Capital wisely and prudently, Policy Council was formed which is headed by the Prime Minister. Members of council includes Ministers of all Ministries of Mongolia, Office of the President, Office of the Government, Standing Committees of the Parliament, Governor of the Central Bank, Chairman of FRC, Speaker of the Parliament and Advisor to the Speaker.
The Premier noted that the Policy Council has sanctioned the following priority projects to be implemented at first.
The list of projects to be implemented by the fund sourced from the “Chinggis” Government bond:
-To construct a new railroad of 1800km
-To build paved roads to connect Ulaanbaatar city to centers of 6 Provinces
-To construct a railroad along the south of Bogd Khan Mountain
-To purchase new aircraft for MIAT company
-To build an industry on oil products
-Provide necessary investment into “Erdenes Tavan Tolgoi” LLC
-Provide necessary investment into “Baganuur” LLC
-To meet 100% of domestic demands in cement industry
-To develop local infrastructure of all 21 Provinces of Mongolia
-To build Sainshand Industrial complex in Dornogovi Province
-To construct a Underground Railway in Ulaanbaatar
-To construct power plants near large coal mines
(Other various projects are included in the list.)
Politicians and businessmen gave their advices and views on how to effectively use the 1.5 billion USD.
Prime Minister N.Altankhuyag:
“Chinggis” Government bond should be spent to make the society better. We are planning epic projects like the 1800km railroad and connect the Capital city to 6 Provinces with paved roads. Feasibility study for the 1800km railroad project is completed and it requires significant amount of investment.
By implementing the new railway project we will easily export our mining products and have access to sea ports. Many have agreed on this proposal so far and other ideas are emerging. We are closely discussing on the listed projects and proposals.
Mongolian National Chamber of Commerce and Industry:
MNCCI has summed up businessmen view on how to spend the “Chinggis” Government bond. MNCCI stated that the Capital should be spent on over 10 sectors including railway, road, energy, production of construction materials, construction and infrastructure.
Finance Minister Ch.Ulaan:
First priority is to implement the Energy project because of the shortage that we are having. It is very important to invest into a new power plant. He also noted that this kind of project takes about 5 years to give any return.
We have to pay back the 1.5 billion USD therefore we have to invest into production that will give us return starting from tomorrow. In my opinion, 60% of this capital should be invested into production, 30% to railway and roads and the rest (10%) could be spent on routine spending like refurbishment of old buildings.