Mongolia News Summary for November 07, 2024
The following news articles are the opinions of their authors and publications. They are presented here as translations for informational purposes and do not necessarily represent the opinion of Mongolia Strategy Center or its members.
Today's Stories
Politics
- URGENT: The Case Against V. Munkhzhargal, Accused of Attempting to Harm a Senior Government Official, Transferred as "Top Secret" by Intelligence to Court
- B. Munkhtamir: The Reputation of MIAT is Being Attacked for Political Reasons. There is No Financial Crisis
- Demand for Withdrawal of the Budget Proposal
- Palace Uprising and Presidential Politics!
- URGENT: The Case Against V. Munkhjargal for Allegedly Attempting to Harm a High-ranking Government Official is Returned to the Prosecutor
Economy
- Eliminating the Bureaucracy of Special Permits, Becoming Friendly to the Private Sector
- M Bank to Collaborate with Visa International for New Foreign Transaction Solution
- Specific Procurement Notice for Consulting Service
- N. Uchral: Agreement with France to Allow Increase in Mining Royalties
- Discussing the Appointment of Mendtuvshin as a Member of the Board of Directors of "Oyu Tolgoi" LLC
- Major Banks Expected to Slightly Loosen Lending Criteria in the Coming Months
- MIAT Announces 20% Discount on Economy Class Tickets for Busan Route
- Aero Mongolia's Flight to Seoul is Discounted
- Will E. Mendtuvshin be appointed as a member of the board of directors of Oyu Tolgoi?
- Aero Mongolia LLC Joins Korea's BSP
- MNCCI: Businesses Cannot Endure the Burden of Budget Overextension
- IAAC: Many Complaints About Budget Expenditure
- Inspection Conducted on Enterprises Lacking Permits for Building Material Production
- In the last year, copper production increased by 19%
- Caution Among Australians and the Kharmagtai Deposit
Diplomacy
- L. Gantumur: Implementing the Uranium Project is Necessary for Developing Green Energy. For This, China's Technology is Needed
- Discussed the Celebration of the 60th Anniversary of Diplomatic Relations between Mongolia and France
- D.Ulambayar: Regardless of Who is Elected As President, the Strategic Third Neighbor Relationship Between Mongolia and America Will Flourish
- President of Kazakhstan K. Tokayev Visited France Shortly After Visiting Mongolia
- Ambassador Eric Teo of Singapore Meets with Foreign Minister B. Battsetseg
Infrastructure
- Official Visit: Inspection of the Zizhi Tunnel in Hangzhou in Relation to Bogd Mountain Tunnel Project
- T.Munkhdalai: Drilling for Metro Project Completed at 40 Sites in Ulaanbaatar
- Minister J. Batsuuri Participates in the World Planning Forum
- Temporary Closure of the Old Zaisan Bridge for One Month
Society
- DARKHAN-UUL: Citizens and Organizations Offer Special Programs for Tourists
- DUNDGOVI: Project to Support Employment of Target Group Citizens to be Implemented
Health
- A Team of Specialized Doctors Begins Work in the Provinces
- It is necessary to increase the budget of the Health Insurance Fund
Politics
URGENT: The Case Against V. Munkhzhargal, Accused of Attempting to Harm a Senior Government Official, Transferred as "Top Secret" by Intelligence to Court
Published: 2024-11-06 | Translated from: isee.mn
V. Munkhzhargal, involved in a case of attempting to harm a senior government official, has been investigated by the Intelligence Agency, and the case has recently been transferred to court as "Top Secret." Specifically, the Intelligence Agency investigated the case involving V. Munkhzhargal's attempt to harm a senior government official, and the case was transferred to the court under Article 19.3 of the Criminal Code, which refers to "Attempting to Harm a Senior Government Official." The preliminary hearing for this case is scheduled to be held today at the Sukhbaatar District Criminal Court. Currently, it is unclear who the victim in this case is and what motivated V. Munkhzhargal to attempt to harm a senior government official, as the Intelligence Agency has treated the investigation as "top secret." According to a source, "V. Munkhzhargal, who is involved in the case, is currently being held at Detention Center 461," and reportedly attempted to harm and threatened a senior government official. Further updates on this matter will be provided. According to Article 19.3-1 of the Criminal Code, V. Munkhzhargal is involved in, it is stipulated that if someone causes serious harm intentionally to the health of a senior government official in connection with political or governmental activities with the aim of disrupting or weakening the state's government, they will be sentenced to imprisonment for a period ranging from five to twelve years.
B. Munkhtamir: The Reputation of MIAT is Being Attacked for Political Reasons. There is No Financial Crisis
Published: 2024-11-06 | Translated from: ikon.mn
There is a lot of information spreading online that MIAT's financial situation has worsened and that it can no longer pay its employees' salaries. It is even said that they cannot afford airplane rentals and tender payments. We have clarified these issues with the company's executive director, B. Munkhtamir. - Recently, there has been information that MIAT JSC is on the verge of bankruptcy but is hiding it. What is your organization's financial situation? - This information is baseless. A company is considered bankrupt if it is unable to pay its dues on time. Our company does not have any financial difficulties. When inquiring about such information from the websites disseminating it, they state, "It is not news from our editorial office. It is paid content." Therefore, I see this as politically motivated, false information being spread. Recently, there's been increased efforts to replace me through political means. For MIAT, the financial situation has improved this year. In 2019, before the pandemic, we achieved the highest revenue in our history. This year, we plan to double that by achieving a revenue of 1.1 trillion tugriks. People might have gotten the impression that MIAT is operating at a loss by looking at the second-quarter reports on social media. Not only MIAT but the entire tourism sector typically reports losses in the first half of the year. Also, since September 7, 2022, we've been procuring fuel directly from Russia's Rosneft under special conditions without going through domestic entities. This has significantly saved us costs. Some people might have the impression that we are operating at a loss after reviewing our mid-year report that factors in the costs of stockpiled fuel. We have never been late on employee salaries by even a single day. - How many planes does your company currently pay rent for, and are payments made on time? - There's no issue like repossessing planes. We pay our rent on time. If the rent was not paid on time, we would receive warnings. Companies leasing planes prepare reports every quarter to account for risks. No discrepancies have been found. Currently, we use 10 aircraft. We purchased a wide-body Boeing 737 model through a financial lease in 2013. The main loan payment was due in 2025 but was paid off by July 2022 ahead of schedule. Due to the Russia-Ukraine war, our "Ulaanbaatar"-"Frankfurt" flight was redirected, taking four additional hours for arrival and departure. This is equivalent to a loss of 22-23 thousand tons of fuel. Instead of incurring a loss of about $30,000 per flight, we decided to buy off the plane and have it fly over Russian airspace, thus paying off its dues in advance. For the other nine planes, we pay a total of 3.2 million dollars in monthly rent. In the near future, our company aims to operate direct flights to the United States. Due to the increased demand for direct flights to Europe caused by the Russia-Ukraine war, we have acquired two additional wide-body aircraft. Airline companies cannot purchase aircraft without proper financial analysis, and leasing companies do their due diligence ensuring only financially capable companies are approved for leases. After the pandemic, our company was on the brink of bankruptcy, owing commercial banks a debt of 118 billion tugriks and 96 billion tugriks in other liabilities. As of today, the bank loan balance stands at 24 billion tugriks. These loans will be fully paid off to three commercial banks by August 2025. All accumulated payments to contract companies have been settled. This year, our company aims to transport over one million passengers and achieve revenue of 1.1 trillion tugriks. - Recently circulated information also touched upon the ethics of your company's employees. Can you elaborate on how your company addresses employee ethics and responsibility? - We have three channels for confidentially receiving feedback and complaints from employees through our ethics committee, including a suggestion box, email, and phone. Any complaint received in any of these ways is reviewed. Currently, there have been no such complaints. If an employee exhibits such violations, the ethics committee will deliberate and take actions up to dismissal. "We generated a profit of 15 billion tugriks from transit transport last year." - MIAT JSC is expanding its foreign relations by partnering with international airlines to operate joint flights and share routes, thus increasing travel destinations. - Mongolia's aviation market is seasonal, which poses challenges to our sector's development because demand is high only during the three summer months, while it decreases during other periods. To counteract this, one of the initiatives includes scheduling flights for winter tourism during school holidays. In other periods like spring and autumn, there are constant losses. We are trying to make up for this with transit passenger transport, implementing our first project in 2023. In our history, our company has transported around 3,000 transit passengers a year, but last year we transported 13,800 transit passengers and earned 15 billion tugriks in total revenue. From 2023 data, 5.2 million passengers travel from Seoul to Western Europe, and 4 million from Tokyo. We can cover costs by transporting just 50,000 passengers from these routes. - Your company has plans to operate direct flights to the USA. You've acquired "Dreamliner" planes for this purpose. Are these planes being used? - The "Dreamliner" is a wide-body aircraft with 292 seats, capable of nonstop long-haul flights. In the long term, it enables direct unimpeded flights to the USA. Due to the Russia-Ukraine conflict, flights entering Europe from our partner have ceased. Thus, we are using this aircraft for high-traffic flights like Istanbul and Frankfurt. In the summer, flights are being operated daily, while in winter, flights occur four days a week. Additionally, we have increased weekly flights to Seoul to 25, all operated using wide-body aircraft. The legal environment has been established through intergovernmental agreements between the two countries. Now, we need to comply with US aviation standards and requirements. Once this is done, we can start flights in two months. Warning: Media outlets (Television, Radio, Social, and Websites) must cite their source (ikon.mn) when using our information in any form fully or partially.
Demand for Withdrawal of the Budget Proposal
Published: 2024-11-06 | Translated from: unuudur.mn
Representatives of the Board of Directors of the Mongolian National Chamber of Commerce and Industry (MNCCI) expressed their position in connection with the upcoming discussion of the state budget for the next year by the State Great Khural (Parliament of Mongolia). They announced their opposition to the ruling parties' initiation of discussions to approve a budget that recklessly spends taxpayers' money. Furthermore, they described next year's budget as "curbing the free market, turning back towards communism." The heavy burden of generating budget revenue falls on taxpayers. In other words, the majority of the state's budget is funded by taxes. However, the MNCCI members noted that it is wrong for the government to develop and spend a budget proposal that does not benefit taxpayers and is only aligned with its own interests. Therefore, they demanded the withdrawal of the project, insisting that the Finance Minister, who is facilitating the discussion of such a proposal by the State Great Khural, should be held accountable. They also emphasized that the Prime Minister should bear responsibility. "We taxpayers should not work just to sustain a bloated state structure. The reason the State Great Khural has increased to 126 members was to reduce the oppression and pressure accumulated over the past eight years and to improve oversight. However, the parties expected to function as the opposition have joined the government, and the oversight of the budget has essentially disappeared. A few individuals should not 'play' with our tax money. Those in power should not be allowed to act with impunity. Therefore, we have no choice but to speak up," said MNCCI Board Member B. Lkhagvajav. "Since the pandemic, the state budget has expanded significantly. Consequently, the pressure on taxpayers has continued to increase. The current budget under discussion has tripled compared to 2020. The additional income is supposed to be spent on improving the lives of the people. However, it appears that next year's budget is set to be spent on the operating expenses of state institutions, thus leaving the intent unfulfilled. Therefore, decision-makers should reduce their operating expenses," stated the MNCCI. They also advised that parliamentary members should make decisions after thoroughly familiarizing themselves with the budget and act responsibly. Furthermore, they urged lawmakers to break free from party constraints and speak out courageously against wrong actions.
Palace Uprising and Presidential Politics!
Published: 2024-11-06 | Translated from: news.mn
As Prime Minister L. Oyun-Erdene departs for a grand state visit to Shanghai, accompanied by cabinet ministers and leaders of political parties represented in the parliament, certain members of parliament held a press conference at the State Palace. They demanded that the government withdraw its budget and reduce the current expenditures by 3.6 trillion tugriks. Following the constitutional amendments, the Mongolian parliament now consists of 126 members from five political parties, but only five members (G. Temuulen, J. Bayarmaa, D. Enkhtuvshin, B. Tuvshin, D. Tsogtbaatar) objected to the "theft and fraud" inserted into the budget, thus initiating the "uprising" at the gray palace. The public is keenly observing who supports and who opposes their demands. It is evident that the goal of the members who "fled" from the State Palace and dined on "rice with fried dish" costing 50 million at the five-star "Terelj" hotel was not to do the math. Additionally, organizing a budget discussion at a hotel related to the minister using taxpayers' money, while lawmakers supposed to oversee the executive participate in theft and conspiracy, is an unethical act. In a society with laws and ethics, this conflict of interest would suffice to hold the Minister of Culture accountable. Furthermore, allocating 18.3 billion tugriks in the budget to distribute free vouchers to teenagers is an obvious insult to the people by the People's Party. It is not baseless suspicion that the interests of a significant national investor with three-letter initials are behind this. As the saying goes, "The pole stands because there is a jackdaw." In August, the government submitted the 2025 budget proposal to the parliament, estimating revenue at 33.9 trillion and expenditure at 35.8 trillion, with a deficit equal to 2% of GDP or 1.9 trillion tugriks. This has become the hot topic of the fall session. It is not uncommon for scandals involving public interest to erupt every fall when parliament discusses the state budget. Two years ago, it surfaced that funds were reserved for building a "mare's milk ger" in the district of Ts. Anandbazar with budget money, which the Ministry of Finance had stealthily inserted. Budget money is taxpayer money, not state money, so taxpayers themselves should be vigilant about how the budget is spent. National bourgeois receiving state nurturing under the guise of public-private partnerships have long inserted theft and fraud into the budget. As Member of Parliament J. Bayarmaa stated, "Payments for services rendered by others amounted to 1.9 trillion tugriks, growing 2.5 times from the previous year, and the cost of goods and services increased from 450 billion to 690 billion," indicating that theft within public-private partnerships has increased in the budget. An allocation of 268 billion for purchasing furniture signifies that some politician's relatives will supply furniture imported from Erenhot to the Mongolian government. This dual nature, stealing with one hand in concert with the state and grabbing small businesses' share with the other, characterizes our national companies. In other countries, national capitalists carve paths in accordance with societal and economic norms, but ours aim to seize and rob all industries and businesses with a mindset of annihilation. No roast or bread is left unscathed. There is always some good in any bad situation. The amendments and changes to the Constitution increasing the number of parliamentary members and forming a coalition government have also resulted in positive outcomes. It is unprecedented for members of the People's Party to oppose and demand the withdrawal of a budget submitted by their government in the past eight years. This time, People's Party members are doing excellent work on the state budget. They are exposing the theft and fraud hidden behind numbers. This is a positive impact of the political reforms courageously undertaken by L. Oyun-Erdene on the economy. Additionally, consolidating 500 projects into 38 as proposed prevents the random distribution of taxpayer money in insignificant projects. Of course, the government has no time to withdraw the budget proposal. According to the law, if the 2025 state budget is not approved by November 15, the parliament will dissolve. MPP, DP, T. Dorjhand, N. Nomtoibayar, and all 126 members of parliament do not want that. Every political event in Mongolia holds interests and stakeholders behind it. The uprising in the palace during L. Oyun-Erdene's absence is far from a mere coincidence. Even if the government withdraws its budget proposal, it will seem like it resulted from palace uprisings. The President is the final catalyst. U. Khurelsukh’s politics may very well begin with the veto of the state budget.
URGENT: The Case Against V. Munkhjargal for Allegedly Attempting to Harm a High-ranking Government Official is Returned to the Prosecutor
Published: 2024-11-06 | Translated from: isee.mn
The case involving V. Munkhjargal, accused of attempting to harm a high-ranking government official, was investigated by the Intelligence Agency and classified as "Top Secret". It had been transferred to the court, and a preliminary hearing was scheduled for today. However, the case against the defendant V. Munkhjargal has been sent back to the prosecutor's office. Specifically, the preliminary hearing regarding the case of V. Munkhjargal, accused of attempting to harm a high-ranking government official, was held at the Criminal Court of First Instance of Sukhbaatar District today. After approximately four hours of proceedings, the court decided to return the case to the prosecutor for additional investigation. We will continue to report on updates regarding this case.
Economy
Eliminating the Bureaucracy of Special Permits, Becoming Friendly to the Private Sector
Published: 2024-11-06 | Translated from: gogo.mn
Regarding the housing issue, meetings are being held daily with all state and private organizations, focusing on solutions and implementation rather than mere discussions, according to L. Enkh-Amgalan, the Minister of Family, Labor, and Social Protection. He stated, "For the upcoming year 2025, a financial source of 1.4 trillion MNT has been approved for mortgage loans. On the other hand, the readiness of the housing and construction is a topic of discussion. When involving target groups in mortgage loans, there needs to be affordable housing that does not inflate prices. In this regard, we had a meeting with the leaders of the Mongolian National Construction Association NGO. Although it's essential not to inflate housing prices, the sales price should proceed according to market principles with no state intervention. The Mongolian National Construction Association NGO has issued special permits to over 6,500 construction companies. Out of these, 1,500 to 3,000 operate regularly. Moving forward, the bureaucracy of special permits will be eliminated to make the private sector business-friendly. Also, the focus will be on the quality of construction companies, designing redevelopment zones, renewing standards for state commission acceptance, and incorporating private sector proposals during legal adjustments. Nationwide, 20,000 new housing units are commissioned each year. While plans state 160,000 family housing units, the infrastructure for these remains unclear. Therefore, there will be an integrated cross-sectoral regulation on how to ensure energy-efficient, independent solution-ready individual houses and register them as real estate.
M Bank to Collaborate with Visa International for New Foreign Transaction Solution
Published: 2024-11-06 | Translated from: ikon.mn
M Bank, Mongolia's first fully digital-based neobank, has initiated a strategic partnership with Visa International to introduce a new foreign payment solution. This collaboration aims to make cross-border transactions and foreign payments for customers and partner organizations faster, safer, and easier. By integrating Visa's solution, M Bank's clients will have access to safer and more convenient services for foreign payments with lower fees. Temuulen B., the Acting CEO of M Bank, stated, "This collaboration is a significant step towards enhancing digital banking services in Mongolia and will contribute greatly to the country's economic growth and connection to the global market." This partnership not only provides M Bank's clients the ability to conduct cross-border payments in 35 different currencies across more than 180 countries, but also enables M Bank to bring innovative services in line with international payment standards to its domestic market by working with Visa International. Warning: Media organizations (Television, Radio, Social Media, and Websites) must cite their source (ikon.mn) when using our information in any form, whether in full or in part.
Specific Procurement Notice for Consulting Service
Published: 2024-11-06 | Translated from: ikon.mn
MILLENNIUM CHALLENGE ACCOUNT - MONGOLIA: Specific Procurement Notice for Consulting Service 1. The United States of America, acting through the Millennium Challenge Corporation (“MCC”), and the Government of Mongolia (the “Government”) have entered into a Millennium Challenge Compact to provide 350 million USD to facilitate poverty reduction through economic growth in Mongolia (the “Compact”). The Government, acting through Millennium Challenge Account-Mongolia (the “MCA Entity”), intends to apply a portion of the MCC Funding for eligible payments under a contract for consulting services for Developing a Laboratory Information Management System (LIMS). Any payments made by the MCA Entity under the proposed contract will adhere to the terms and conditions of the Compact and its related documents. The Compact and related documents can be accessed on the MCC website (www.mcc.gov) and the MCA-Mongolia website (https://mca-mongolia.gov.mn/). 2. The Compact will fund the Water Supply Project for the city of Ulaanbaatar, addressing the increasing water demand. The project consists of three related activities: (1) A Downstream Wells Activity, constructing new groundwater wells with infrastructure and an advanced water purification plant; (2) A Wastewater Recycling Activity, constructing a new wastewater recycling plant to provide treated wastewater for industrial use, freeing fresh water for residential use; (3) A Water Sector Sustainability Activity, supporting policy reform and capacity building to ensure sustainable water supply in Ulaanbaatar. 3. Millennium Challenge Account-Mongolia invites eligible consultant firms to participate in the tender for developing the Laboratory Information Management System (LIMS). Details are provided in the Terms of Reference within the tender documents. 4. The selection will follow the Quality and Cost-Based Selection (QCBS) procedures as specified in the “Accountable Entity Procurement Policy & Guidelines” effective January 1, 2024. The PPG can be accessed on the MCC website (www.mcc.gov/resources/doc). The tender is open to eligible consultant firms as defined in the Request for Offers. 5. Interested parties should send an email with the subject “Request for Offers RFO#MCA-M/CF/WSSA/CS/07 for Consulting Service for Developing Laboratory Information Management System (LIMS)” to PA-Mongolia@charleskendall.com, with a copy to procurement@mca-mongolia.gov.mn, providing contact information to receive updates about the tender. 6. A Pre-Offer Conference will be held online on November 21, 2024, at 10:00 am local time in Ulaanbaatar (GMT+8). Consultants can register and attend the webinar using the link provided. Attendance is strongly advised. 7. Clarification requests should be submitted by November 28, 2024, to PA-Mongolia@charleskendall.com, with a copy to procurement@mca-mongolia.gov.mn. Responses to submitted questions will be provided by December 5, 2024. 8. Offers must be submitted electronically by December 19, 2024, by 10:00 am local time in Ulaanbaatar (GMT+8) via the submission link in the RFO. Only electronic submissions are accepted, and late offers will be rejected. MILLENNIUM CHALLENGE ACCOUNT - MONGOLIA Note: Media organizations must cite the source (ikon.mn) when using this information in any form.
N. Uchral: Agreement with France to Allow Increase in Mining Royalties
Published: 2024-11-06 | Translated from: ikon.mn
During a recent meeting of the Budget Standing Committee of the State Great Khural (Parliament), initial discussions were held on proposed amendments to the General Tax Law, submitted alongside amendments to the Nuclear Energy Law. In relation to the proposed amendments, Member of Parliament J. Batjargal inquired about how the project addresses the equivalency of state free shares with mineral resource usage fees. Member of Parliament P. Munkhtulga asked about adding tangible construction projects that would remain in Mongolia to the investment agreement. Member of Parliament B. Tuvshin questioned how the bill includes provisions for double taxation, and Member C. Davaasuren clarified issues related to valuing resources and controlling costs. Chief of the Cabinet Secretariat, N. Uchral, stated, "Currently, the Minerals Law stipulates that mineral resource usage fees cannot exceed 5%. However, during negotiations with the French side, we agreed to increase the proportion of Mining Resource Usage Fees (MRUF). It is important to include flexible regulations rather than rigid legal provisions, creating opportunities to negotiate and agree on future contracts. According to the Minerals Law, if the budget for determining a resource is from the state, up to 50% can be owned for free; if a private company finances the determination, up to 34% can be owned. These provisions allow for state ownership equivalents to be replaced with MRUF or production sharing under the Minerals Law. However, the Nuclear Energy Law does not provide the legal environment to replace state ownership percentages with MRUF. Therefore, we are aligning the Nuclear Energy Law to be consistent with the current Minerals Law." He further mentioned that "the valuation of our resources, and their investment, will bring investment agreements to life. By amending the Nuclear Energy Law and potentially transforming ordinary shares into preferred shares, financial liability can be mitigated. Nonetheless, the state will receive its dividends and income from MRUF. With the adoption of this law, we will continue to align agreements and negotiations with the law. It is for Parliament to decide how MRUF is determined." He emphasized that cost control is directly linked to shares. Director of the Tax Policy Department at the Ministry of Finance, B. Telmun, added, "There are inconsistencies among the Nuclear Energy Law, the General Tax Law, and the Investment Law that need to be harmonized and standardized. The Investment Law stipulates the stabilization of the tax environment. Section 3.1.7 of the law broadly defines the tax environment as the framework for determining, charging, and paying different types of taxes as specified by the law. We have examined this extensively and note that international practice generally advises against stabilization. Our understanding is that stabilization would cover financial impact factors such as the tax rate, loss carryforward periods, and depreciation periods." He also emphasized a firm stance on not stabilizing double tax agreements with France and other countries. Notice: Media organizations (Television, Radio, Social, and Online) are required to cite the source (ikon.mn) when using our information in any form, fully or partially.
Discussing the Appointment of Mendtuvshin as a Member of the Board of Directors of "Oyu Tolgoi" LLC
Published: 2024-11-06 | Translated from: isee.mn
Mendtuuvshin, the son of former Minister of Foreign Affairs Enkhtuvshin, is being considered for appointment as a member of the Board of Directors of "Oyu Tolgoi" LLC. J. Tana has stepped down from his duty as a board member, and it has been agreed that E. Mendtuvshin will be appointed in his place. His father, N. Enkhtuvshin, was a former Minister of Foreign Affairs, and E. Mendtuvshin himself is a lawyer by profession, holding a master's degree from Harvard Law School. He has also worked as a lawyer in an international law firm in the United States. Furthermore, during a controversy regarding taking a loan from the Educational Loan Fund and not repaying it, E. Mendtuvshin's name was also mentioned in connection to the misuse of power, position, and access to information. The appointment of E. Mendtuvshin will be discussed in a government meeting. As a point of interest, the Board of Directors of "Oyu Tolgoi" LLC comprises nine members, with Sean Hinton serving as the chairman. The other board members include Deirdre Lingenfelder, Craig Stegman, Morita Tsuteya, Steve Tibo, N. Tserenbat, E. Bayasgalan, and S. Munkhsukh.
Major Banks Expected to Slightly Loosen Lending Criteria in the Coming Months
Published: 2024-11-06 | Translated from: gogo.mn
The Bank of Mongolia conducted a survey collecting and compiling data on lending criteria, conditions, demand, and supply over the past and upcoming three months from commercial and other banks. Here is a brief summary of the results: Lending Criteria In the past three months, major banks have not changed their lending criteria for businesses but have slightly relaxed criteria for individuals. Medium and small banks have not made any changes to their lending criteria. For the next three months, major banks are expected to slightly loosen their overall lending criteria, while small and medium banks are likely to keep their criteria unchanged. Lending Conditions In the past three months, banks have not made any changes to the lending conditions for businesses and individuals. In the next three months, major banks are expected to slightly tighten the lending conditions for individuals, while other banks are anticipated to maintain their current conditions. Lending Demand In the past three months, the demand for loans from major banks has slightly increased. However, there has been no change in the demand for loans from medium and small banks. It is expected that in the next three months, the demand for loans from major banks will slightly increase, while medium and small banks foresee no change in loan demand. For the detailed report of the survey, click HERE.
MIAT Announces 20% Discount on Economy Class Tickets for Busan Route
Published: 2024-11-06 | Translated from: isee.mn
MIAT Mongolian Airlines has announced a 20% discount on all economy class tickets for flights to Busan. The discount period will last from November 5, 2024, to December 15, 2024. The starting price for the Busan-Ulaanbaatar-Busan route is 192,000 KRW (taxes and fees not included). There is an opportunity to participate in a 1+1 luggage promotion on the Busan-Ulaanbaatar route. The discount is applicable on all routes including Ulaanbaatar-Busan, Busan-Ulaanbaatar, Ulaanbaatar-Busan-Ulaanbaatar, and Busan-Ulaanbaatar-Busan. Tickets can be booked and further information can be obtained by calling +976 11 333-999.
Aero Mongolia's Flight to Seoul is Discounted
Published: 2024-11-06 | Translated from: ikon.mn
Aero Mongolia LLC has announced a discount on flights to Seoul in celebration of joining South Korea's BSP (Billing and Settlement Plan). This discount applies to flights from 2024/11/06 to 2024/12/15, so we invite you to take advantage of this opportunity without delay. You can book your special discounted ticket through the following link: ☎ Phone: 7010 3030
Facebook Messenger: Aero Mongolia
Website: www.aeromongolia.com
Email: callcenter@aeromongolia.com
Tickets can also be booked from all authorized travel agencies. Notice: Media outlets (TV, Radio, Social, and Web pages) must mention the source (ikon.mn) when using our information in any form, either fully or partially, as a reference.
Will E. Mendtuvshin be appointed as a member of the board of directors of Oyu Tolgoi?
Published: 2024-11-06 | Translated from: news.mn
It has been agreed to appoint E. Mendtuvshin as a member of the Board of Directors of Oyu Tolgoi LLC. His father is Enkhtaivan, former Minister of Foreign Affairs, and E. Mendtuvshin is a lawyer by profession. The board member of Oyu Tolgoi LLC, J. Tana, has resigned from his position, and discussions are underway to appoint E. Mendtuvshin in his place, with the matter soon to be discussed at a government meeting. N. Bagabandi, former President and member of the Board of Directors of Oyu Tolgoi, has worked for many years, but he was released from his position in 2023, and the government had appointed J. Tana by invitation in his place. E. Mendtuvshin is a qualified lawyer with a master's degree from Harvard Law School and has worked as a lawyer in an international law firm in the United States. Additionally, there has been controversy involving him for allegedly using his authority, position, and access to information to obtain a loan from the Education Loan Fund and failing to repay it. Mendtuvshin, son of former Minister of Foreign Affairs N. Enkhtaivan, took out a 24,000 USD loan in 2015 to study a 1.5-year master's program in law at Harvard University. The loan terms specified that "Upon graduation, the loan will be repaid in accordance with the procedure stipulated in Article 8.8 of the Law on Higher Education Financing and Social Security of Students." During the controversy, information emerged that he was repaying the loan. Politically, he is reported to be closely associated with Member of Parliament O. Batnairamdal and belongs to the "Harvard faction", having once shared his experiences in a lecture titled "From Khovd to Harvard." The Board of Directors of Oyu Tolgoi LLC consists of nine members, and Sean Hinton has been appointed as the chairman. The other members include Dierdre Lingenfelder, Craig Stegman, Morita Suteta, Steve Thibault, N. Tserenbat, E. Bayasgalan, and S. Munkhsukh.
Aero Mongolia LLC Joins Korea's BSP
Published: 2024-11-06 | Translated from: ikon.mn
Aero Mongolia LLC has joined Korea's BSP (Billing and Settlement Plan), increasing its competitiveness in the South Korean market. By officially joining BSP Korea, Aero Mongolia, which follows a low-cost ticket policy, is expanding its operations more widely in the Korean market. As a result, Koreans can now directly book Aero Mongolia's flight tickets through popular travel platforms like NAVER, KAKAO T, and Interpark. Advantages for Passengers: - Easy Booking – Aero Mongolia flights can be booked through any global agency network. - Customer Satisfaction – With more flight options to Mongolia, international passengers will have a more comfortable booking experience. - Payment Reliability – The BSP system centralizes the payment process, providing passengers with reliable and prompt services. Advantages for Partner Organizations: - Sales Growth – By joining BSP, Aero Mongolia's tickets are sold through international agency networks, increasing sales for partner organizations. - Simplification of Financial Processes – The BSP system automates financial flows, reduces payment risks, and supports stability. - Increasing Customer Trust – By joining BSP, Aero Mongolia is seen as a reliable and innovative partner to international agencies, allowing partner organizations to collaborate with confidence. This step will not only contribute to Aero Mongolia's success but also provide valuable support to the development of Mongolia's aviation and tourism sectors. Warning: Media organizations (Television, Radio, Social, and Websites) must credit the source (ikon.mn) when using our information in any form, whether in full or in part.
MNCCI: Businesses Cannot Endure the Burden of Budget Overextension
Published: 2024-11-06 | Translated from: gogo.mn
The Mongolian National Chamber of Commerce and Industry (MNCCI) Board held a press conference to inform the public about the potential pressures on businesses resulting from the expenses included in the government's 2025 state budget draft presented to the parliament. The MNCCI compared the economic and business promises of parties and coalitions participating in the regular parliamentary elections and expressed their commitment to regularly monitor and press the ruling parties and coalitions to fulfill the economic and business programs and measures included in their election platforms. Particularly, the ruling parties MPP, DP, and HUN, who secured the most seats in the parliament with many beautiful promises to ensure economic growth and support businesses, formed a coalition government to implement their election programs together. Unfortunately, the MPP abandoned its commitment to "reduce the share of budget expenditure to GDP to 25%", the DP abandoned its pledge to "cut consolidated budget expenditure by 20%", and HUN abandoned its policy to "substantially reduce government expenditure." The draft 2025 state budget submitted to the parliament by the Government of Mongolia envisages total revenue of 36.8 trillion tugriks, balanced revenue of 33.9 trillion tugriks, and expenditure of 35.8 trillion tugriks. Compared to the 2023 budget, this represents an increase in total revenue by 15.0 trillion tugriks or 68.8%, expenditure by 13.4 trillion tugriks or 60.0%, and current expenditure by 9.1 trillion tugriks or 53.9%. Members of the Board stated, "The proposed estimates for budget revenue in the 2025 state budget are overly optimistic, not reflecting the economic cycle, with unclear prioritization, criteria, and effectiveness of budget investments, and the current expenditure estimation is inadequate with some current expenses excessively increased. An excessive budget expansion results in increased government intervention in the economy, which further diminishes the space for private sector activities. It is estimated that 87% of the budget revenue or 31.9 trillion tugriks will be collected through taxes, which means businesses and citizens will have to pay 10.5 trillion tugriks more in taxes and social insurance contributions, a 49% increase from 2023. Excessive budget expansion increases government intervention in the economy and constrains private sector space, and it will be difficult for business owners, already under significant pressure from taxes, social insurance contributions, and loan interest rates, to withstand the tax burden of 2025. Therefore, it is necessary to stop the practice of excessively increasing government expenditure every year, reduce the tax burden instead of increasing current expenses during periods of high economic growth, support investment projects with economic significance, increase private sector participation in the economy, and fundamentally reform social welfare policies by shifting from welfare to labor. We warn that there is a situation developing that requires accountability as stipulated in the Law on Budget Stability, involving relevant organizations and officials. The press conference was attended by the executive director of "Suu" JSC, B. Gantulga, the general director of "Naran Trade" LLC, D. Udval, the general director of "Urbanek" LLC, B. Lkhagvajav, the deputy director of "Juroo" LLC, B. Munkhzul, the general director of "Bars" group, Ch. Amarbaatar, the chair of the Board of "Ard Daatgal" JSC, O. Odbayar, and the chair of the MNCCI's Women Entrepreneurs Council, L. Bolormaa. As representatives of business owners, they expressed that they would closely monitor the process of discussing and approving the 2025 state budget draft submitted by the government and take phased actions accordingly.
IAAC: Many Complaints About Budget Expenditure
Published: 2024-11-06 | Translated from: gogo.mn
The Research and Analysis Department of the Independent Authority Against Corruption (IAAC) received 63 complaints and petitions from citizens and legal entities. These were forwarded to the relevant departmental units. Of the received petitions, complaints, and information, 60.3% are of a criminal nature, with complaints related to budget expenditure being predominant. There were 174 calls received through the special anti-corruption hotline 110 last week. The department is conducting various studies, including the following: - Assessment of Integrity in Government Organizations - Survey on Job Positions Vulnerable to Corruption in Government Organizations - Perception Survey on Corruption Within Political and Legal Monitoring Organizations - Children’s Integrity Survey - Procurement Activities Announced by Government Organizations from 2020 to 2023.
Inspection Conducted on Enterprises Lacking Permits for Building Material Production
Published: 2024-11-06 | Translated from: news.mn
The City Mayor's Council has been tasked with evaluating and reviewing the standards for building facades to suit the extreme climate of our country. Following this, a discussion titled "Quality, Standards, Current Status, and Future Trends of Building Facade Materials" is being organized today by the City Inspection Authority, the City Emergency Agency, and the Ministry of Urban Development, Construction, and Housing. In this discussion, research on the current usage of building facade and insulation materials in Mongolia and internationally was presented. Regarding the quality, standards, and current condition of building facade materials, Senior State Inspector of Building Technical Control at the City Inspection Authority, S. Munkhtselmeg, stated, "We have conducted inspections on enterprises producing building facade and insulation materials. This discussion is organized based on the results of these inspections. Specifically, inspections were carried out on 48 enterprises producing insulation materials for building facades across the nine districts of the city. Most of these enterprises produce foam polystyrene panels. The inspections revealed that enterprises were operating without a special permit for building material production and without compliance certificates. Common violations and deficiencies included not being verified by relevant equipment and not having their products tested in laboratories. Additionally, there are no specific norms and regulations for building facade and insulation materials used in our country. Therefore, we aim to bring suggestions for specific norms and regulations from this discussion and submit them to the relevant authorities," he said. However, the average density, usage, and construction technology of foam polystyrene panels, which are the most commonly used building facade insulation materials in our country, comply with international standards. Furthermore, raw materials for foam polystyrene panels, such as styrene granules, are imported and processed entirely domestically.
In the last year, copper production increased by 19%
Published: 2024-11-06 | Translated from: gogo.mn
"Oyu Tolgoi" company has presented its third quarter report for this year. According to the company's production information, copper production increased by 19% compared to the third quarter of 2023. This is due to intensified production at the underground mine and an increase in ore grades. However, planned maintenance of the processing plant and unfavorable weather conditions affected open-pit operations, resulting in a 5% drop in production from the previous quarter. The Panel 0 of the underground mine opened a total of 120 ore passes, with six commissioned in the third quarter. In this quarter, the underground mine processed 1.5 million tonnes of ore with an average copper grade of 2.05%, and the open-pit processed 7.4 million tonnes of ore with an average grade of 0.39%. "Oyu Tolgoi" company aims to continue production smoothly and plans to produce 500,000 tonnes of copper annually (100% pure metal) from both the underground and open-pit mines between 2028 and 2036.
Caution Among Australians and the Kharmagtai Deposit
Published: 2024-11-06 | Translated from: news.mn
Xanadu Mines, the holder of the Kharmagtai project license, issued additional shares and raised $5.5 million. The company valued each of its 100 million shares at $0.055, conducting a closed financing round among its investors. The share valuation is 14% lower than the last trading price. In other words, the shares of the Kharmagtai project were valued significantly below their market value to raise funds. Xanadu Mines is at a critical juncture to decide whether to bring the Kharmagtai project into economic circulation. Xanadu Mines' partnership with Zijin Mining dates back to 2022. As of now, Zijin Mining has provided approximately $35 million in financing in exchange for acquiring a 20% stake in Xanadu Mines. Additionally, a project unit responsible for implementing the Kharmagtai project was established, half of which is under the control of China's Zijin company. The Australian stakeholders in Xanadu are now considering whether Zijin should further invest according to its ownership share in Kharmagtai or even acquire 100% ownership. For the Australian stakeholders, there is the option of selling the remaining 50% and exiting the project or retaining a small share of 25% and being left with a perpetual debt like the Oyu Tolgoi project. However, this is merely an arrangement being discussed between Australians and Chinese over an abundant gold and copper deposit located in Mongolia's southern Gobi region. Unfortunately, there seems to be nothing from which the Mongolians would benefit. Is Kharmagtai truly an affluent deposit? The answer can be found in the project estimates presented by Xanadu Mines. The Kharmagtai deposit reportedly has confirmed extractable reserves of 4.8 million tons of copper and 9-11 million ounces or 300 tons of gold, as announced to investors. Meanwhile, data from the Mineral Resources and Petroleum Authority lists Kharmagtai's reserves as 512,000 tons of copper—nine times less—and 51 tons of gold—three to six times less, which is noteworthy. The Australians are cautious about revealing the true value of the project, fearing that the Mongolian government might classify Kharmagtai as a strategic deposit. There are even doubts whether Mongolia collected the appropriate taxes when Xanadu transferred 50% of Kharmagtai to Zijin. By presenting their investors with preliminary feasibility studies and predicting laws not yet approved by the parliament, they make it appear as if Mongolia is lawless, as can be seen from their statements. Under the current mineral resources law, the mineral resource usage tax is 19%, but they claim that it will be 4% in the new draft law, which is a mockery of the Mongolian state. The government is strongly advocating for taking control of 34% of strategic deposits. Discussions on whether to include the Kharmagtai project in the list of strategic deposits have arisen several times but then subsided. It is now time for Mongolians to become actively involved in the Kharmagtai project before this "rushed, cold" deal proceeds.
Diplomacy
L. Gantumur: Implementing the Uranium Project is Necessary for Developing Green Energy. For This, China's Technology is Needed
Published: 2024-11-06 | Translated from: isee.mn
The reporting team from isee.tn news site is delivering information from the city of Shanghai, China. The Prime Minister of Mongolia, L. Oyun-Erdene, is making a working visit to China. During the visit, he participated in the 'Shanghai Expo 2024' exhibition where he delivered a speech and also met with representatives from over 10 businesses participating in the exhibition. Additionally, he met with Li Qiang, the Premier of the State Council of China, and during this meeting, both sides signed several documents.
Discussed the Celebration of the 60th Anniversary of Diplomatic Relations between Mongolia and France
Published: 2024-11-06 | Translated from: montsame.mn
The Minister of Foreign Affairs, B. Battsetseg, received the Ambassador of the Republic of France to Mongolia, Corinne Pereira Da Silva, on the 5th of this month to discuss bilateral relations and cooperation. During the meeting, both sides expressed satisfaction with the rapid expansion of Mongolian-French relations and cooperation due to joint efforts and affirmed their commitment to continue working on implementing a roadmap aimed at advancing the level of relations, particularly by carrying out joint projects successfully. Minister of Foreign Affairs B. Battsetseg noted that she is pleased with the concrete results of the issues agreed upon during the high-level reciprocal visits in recent years and emphasized that the Ambassador's efforts and initiative are crucial in advancing the bilateral objectives. She wished her great success in her work. Furthermore, the two sides discussed the issue of solemnly and substantively celebrating the upcoming 60th anniversary of the establishment of diplomatic relations between Mongolia and the French Republic next year, according to the Ministry of Foreign Affairs.
D.Ulambayar: Regardless of Who is Elected As President, the Strategic Third Neighbor Relationship Between Mongolia and America Will Flourish
Published: 2024-11-06 | Translated from: ikon.mn
The United States presidential election polling took place on November 5. Currently, results are being compiled. Experts believe that preliminary results could be available within 24 hours after the polls close. An observation event for this globally anticipated election was organized by the US Embassy. American citizens living in Mongolia, diplomats, and researchers attended. During the event, views were sought from D. Ulambayar, a lecturer at the University of Humanities, Doctor of Science, Professor, and Honorary Diplomat, regarding the characteristics of the US presidential candidates and the international implications of the election outcome. Regarding the war in Russia and Ukraine and issues in the Middle East, Professor D. Ulambayar stated that the geopolitical situation in international relations and how pressing issues are resolved will become evident depending on who is elected president. For example, how the Russia-Ukraine war will be resolved and the situation in the Middle East are of interest. Behind organizations like Hamas and Hezbollah is Iran. Former President Donald Trump has a strong stance against Iran. If re-elected, he might continue his hardline policies and support Israel. Leaders of European Union countries tend to support Kamala Harris. The Chancellor of Germany, Olaf Scholz, has almost openly stated his support for her. Between 2016 and 2020, issues arose within the alliance relationship between the US and NATO. Donald Trump had labeled NATO as an outdated organization during his time. However, due to the war with Russia and Ukraine, NATO has been expanding, with Finland and Sweden joining, making 32 members. Also, due to the war, in the last three years, NATO member countries have increased their defense spending by more than two percent of their Gross Domestic Product (GDP). Trump had previously stated that NATO member countries needed to increase their defense spending to two percent and that because they were not fulfilling this, he would cut US funding to NATO. Now, this issue might change. He also expressed a stance on stopping the Russia-Ukraine war. Specifically, there seems to be an observation to stop the war based on recognizing the current status that the territories of Eastern Ukraine, including Luhansk, Donetsk, Zaporizhzhia, and even Crimea, be transferred to Russia under international law. He also mentioned that, due to the enormous human and financial costs of the war, the US might not promise future financial support. Therefore, if Donald Trump is elected, Russia's military operations in Ukraine might intensify. Concerning the Korean Peninsula issue, Professor Ulambayar noted that "The Korean Peninsula is becoming part of Mongolia's national security." Over 58,000 Mongolian citizens work, live, and study in South Korea. According to the World Bank's Migration and Development Brief, 250-300 million USD is remitted annually from South Korea to Mongolia, which is a non-refundable direct investment. If the situation on the Korean Peninsula escalates, the safety of Mongolian citizens will be affected. Recently, cooperation between Russia and North Korea in the defense sector has intensified. This year, President Vladimir Putin visited North Korea, where the main highlight of the visit was the signing of a comprehensive strategic agreement. As per the Russian president, Article 4 of the agreement states that the two countries will provide military assistance to each other in the event of a state of war. He emphasized that the relationship between the two countries is not a concern for others. However, developing military cooperation with a country subject to UN sanctions is considered a violation of those sanctions, according to international experts. These events indicate that North Korea and Russia have reached a level of military alliance. About 11,000-12,000 North Korean troops have arrived at the Russian front, with 3,000 stationed in the Kursk direction. North Korea has not participated in any conflict for over 60 years, effectively having no modern war experience. Therefore, they are gaining experience, which poses a serious threat to South Korea's security. The situation is significantly escalating. Donald Trump was the first US president to visit North Korea during his presidency. He established a very good personal relationship with Kim Jong Un. This could potentially have a positive impact on regional issues. If Kamala Harris is elected, Joe Biden's policies will likely continue, so there might not be much explanation needed. Regarding climate change, D. Ulambayar mentioned the potential implications of each candidate's policies. "If Donald Trump is elected, he might stop the funding, if not completely withdraw from the Paris Agreement." Domestic voters' opinions are divided. However, Europe and Asia are expressing their support for Kamala Harris, while Latin America is divided. An interesting picture is emerging on a global scale. By Mongolia's time tomorrow, it should be almost certain who the winner is. One thing is clear: regardless of who is elected US president, the strategic third neighbor relationship between Mongolia and America will flourish.
President of Kazakhstan K. Tokayev Visited France Shortly After Visiting Mongolia
Published: 2024-11-06 | Translated from: isee.mn
President of Kazakhstan Kassym-Jomart Tokayev paid an official visit to Mongolia. Subsequently, he made a state visit to France. During the visit, the two countries' leaders exchanged views on international and regional issues and discussed strengthening their cooperation. Previously, K. Tokayev visited France at the invitation of Emmanuel Macron. During this visit, the President of Kazakhstan congratulated Macron on the recent Olympic and Paralympic Games and expressed eagerness for France to successfully organize the 2030 Winter Olympics in the French Alps. Moreover, they discussed expanding ties in culture and humanitarian areas and exchanged views on future cooperation in fields like mechanical engineering, transportation, logistics, agriculture, energy, industry, climate, digital development, and healthcare. Interestingly, 80-90% of Kazakhstan's total exports go to France, with the two countries' foreign trade turnover averaging 2.5-6.5 billion dollars annually over the last decade. Kazakhstan supplies France with crude oil, uranium, titanium, and natural gas, while importing aircraft, pharmaceuticals, perfumes, cosmetics, and electrical equipment from France. Kazakhstan is a leading country in uranium and oil extraction globally, and France also imports oil from Kazakhstan. Both countries are looking to further develop this cooperation in the future.
Ambassador Eric Teo of Singapore Meets with Foreign Minister B. Battsetseg
Published: 2024-11-06 | Translated from: montsame.mn
Ulaanbaatar – The Minister of Foreign Affairs, B. Battsetseg, received Ambassador Eric Teo, who concurrently serves as the Ambassador of the Republic of Singapore to Mongolia. Minister B. Battsetseg emphasized that the relations and cooperation with Southeast Asian countries occupy a significant place in Mongolia's foreign policy directed towards the Asia-Pacific region and expressed her confidence in the Ambassador's commitment to actively engaging in fostering dialogue at all political levels between the two countries. Ambassador Eric Teo noted his dedication to expanding and enhancing the cooperation between Singapore and Mongolia during his tenure as Ambassador, with a particular focus on deepening regional and international cooperation. He highlighted the importance of celebrating the 55th anniversary of the establishment of diplomatic relations between the two countries in 2025 with great ceremony.
Infrastructure
Official Visit: Inspection of the Zizhi Tunnel in Hangzhou in Relation to Bogd Mountain Tunnel Project
Published: 2024-11-06 | Translated from: gogo.mn
The official visit of Mongolia’s Prime Minister L. Oyun-Erdene to the People’s Republic of China is ongoing for the third day. Today, the Prime Minister and his delegation visited Hangzhou, Zhejiang Province, China, where they familiarized themselves with the Qiantang River Second Bridge at Pengbu, China’s longest tunnel, and the Zizhi Tunnel in the Shihu Lake District, which are recognized as significant infrastructure achievements globally. The Zizhi Tunnel is a crucial part of Hangzhou’s "Four Vertical and Five Horizontal" highway project. Started in December 2012 and opened in August 2016, it aims to accelerate and enhance the efficiency of urban transport. In efforts to alleviate congestion, the Government of Mongolia is planning a 15.8 km tunnel from Khurkhree Canyon to Nomt Canyon on Bogdhan Mountain to achieve a 20-minute drive across the city. In line with these plans, the Prime Minister and members of the government, along with parliament representatives, visited the management center responsible for the safety of the globally fourth-ranked Zizhi Tunnel. The tunnel is monitored by 400 cameras overseeing seven control aspects, including traffic movement, lighting, ventilation, water drainage, and fire safety. Real-time traffic information allows for the adjustment of traffic signals during emergencies, ensuring optimal traffic management. The tunnel is equipped with standard, emergency, and additional lighting systems, and lighting is adjusted for driver safety at any time of day to prevent accidents. Ventilation is also managed by the Control Center, allowing for immediate traffic regulation by activating opposite-side fans in the event of a fire, earning the structure accolades as one of the world’s best infrastructure achievements. Built over approximately four years at a cost of 45 billion yuan, the Zizhi Tunnel accommodates 80,000 vehicles daily. It reduced the previous 50-minute detour from the south to north of the city to just 14 minutes. The bridge has significantly contributed to the city’s economic growth, notably enhancing capacity for hosting G20 summits. Minister of Roads and Transport B. Delgersaikhan has announced the call for design proposals for constructing a tunnel through Bogd Mountain. He stated, "We have arrived at the management center of the 14.4 km long metro in Hangzhou, ranked 4th in the world. Our calculations indicate our deepest section will be 300 meters compared to their 21 meters. Traversing the Zizhi Tunnel at 80 km/h takes nine minutes. Speed can range from 60 to 100 km/h, adjustable by the Control Center. It’s essential to pay special attention to ventilation, lighting, and fire safety. By allowing natural light into the tunnel, an energy saving equivalent to 2.3 million kWh per year is achieved." When it comes to tunneling through Bogd Mountain, some people remain skeptical. Is it really the best option for reducing congestion? While many studies are ongoing concerning this matter, it's clear that the idea of tunneling through Bogd Mountain has been considered since as far back as 1981. A study from the socialist era, prepared by the USSR, suggested that tunneling southward into Bogd Mountain could allow for Ulaanbaatar’s expansion. The issue was later brought up during the governments of D. Byambasuren and N. Enkhbayar by Infrastructure Minister Jigjid, but the project was not realized then. We have two main approaches for constructing tunnels: blasting and machine boring. The Zizhi Tunnel was constructed using the blasting method, considered the quickest. We are announcing the selection of a company to prepare design plans from today. We aim to complete the selection within this year and identify a contractor early next year, with plans to commence the project in March or April.
T.Munkhdalai: Drilling for Metro Project Completed at 40 Sites in Ulaanbaatar
Published: 2024-11-06 | Translated from: ikon.mn
The decision to build a metro in Ulaanbaatar city was made in December 2023, and the consortium led by the South Korean company "Dohwa Engineering" was selected in the consulting service tender, continuing the project work. We obtained some information about the progress of the metro project from T. Munkhdalai, the Metro Project Manager of the integrated project unit for reducing Ulaanbaatar city traffic congestion. The South Korean company "Dohwa Engineering" will provide consultancy for up to two years after the metro is commissioned, and currently, a budget of 181 billion tugriks is sufficient, he noted. - Geological drilling for the construction of the metro in Ulaanbaatar was reported to begin last June. At what stage has this work reached? In terms of the metro project, the first task is geological drilling. This is for research purposes, taking soil load data along the route and analyzing it. Thus, the metro tunnel structures will be designed and built according to the soil load. As part of the project, vertical drilling must be done to a depth of 30 meters from the surface at 42 points at intervals of 500 meters over 18 kilometers, and as of today, drilling has been completed at 40 points and the sites have been restored. Geological drilling was conducted from the Songinokhairkhan intersection or starting from Tolgoit to Amgalan along Peace Avenue at Tavan Shar, 10th district, State Department Store, the parking lot next to Blue Sky Tower, and Chuluun Ovoo, and finally at the "Bagshiin deed" site from September 13 to October 2, which residents are used to calling. Drilling was done with a 100mm diameter. Now, after determining the location of the maintenance center, drilling will be done at two points and samples will be taken. The Mongolian subcontractor company with special permission worked on the drilling site, and "Dohwa Engineering" company engineers from South Korea ensured quality control and oversight. Drilling for mining and tall buildings is widespread in our country. Since this is for metro construction, local subcontractor company employees were trained before the work started. In addition, research studies are being conducted as part of the project. Specifically, the study of the current state of demand for and movement of transport in Ulaanbaatar city is being renewed. The study is being organized by installing cameras at the city's major 58 intersections and roads and using artificial intelligence to count, with surveyors collecting data from residents. The study of the demand for and movement of transport has reached 53% and will be completed this month. Hydrogeology and topographical survey work are 90% complete, and the local building material resources and pricing survey is 80% complete. After completing these studies, data analysis will be conducted in December and January 2025, the Technical and Economic Feasibility Study (TEFS) will be updated and approved in February. After that, it is planned to move to the second stage of the tender. The first stage of the international tender for selecting the contractor for the metro's construction and installation was announced last October 3, and the tender will be opened on December 9. Organizations expressing interest in the tender will be equally and openly shared the above research information to move on to the second stage of the tender. - Will the metro's infrastructure be built underground? An 18-kilometer metro line will be built from Tolgoit to Amgalan. Research is being conducted comparing two options: mixed and entirely underground. Mixed means 7 kilometers of the path in the city center will be underground, while the remaining 11 kilometers will be in the form of a surface bridge structure. The other option is to build all 18 kilometers underground. In other words, the center of the city has an underground route, while the outskirts have a surface bridge structure, or it can be entirely underground. If the metro structure is built in a mixed form, it is cheaper in terms of cost. However, with the cold climate of our country, a surface route is unsuitable in terms of environmental pollution, city planning, passenger comfort, and technical wear. An underground route poses no risk in any natural condition. In the TEFS conducted 11 years ago, it was planned to establish the metro route above ground to save costs, but a comparative study of engineering lines and urban expansion is being discussed with Urban Planning Department experts. After the comparative study and TEFS are complete, a decision will be made about which part of the ground the metro route will be built on. - If Ulaanbaatar city gets a metro, will there be a shortage of running staff? What is the plan for this? The metro is planned to be commissioned in September 2030. About 500 employees will be needed to operate the metro. A tripartite memorandum of understanding with the Capital City Governor's Office, "Dohwa Engineering" from South Korea, and the Mongolian National University of Science and Technology (MUST) was signed in September to train specialized staff for modern national railways. Four classes will be opened at the School of Mechanical Engineering on September 1, 2025, for metro engineering and technical specialties, and the first admissions will be accepted. Students will study in a 2+2 program, spending the first two years at MUST and then two years at a South Korean university. Discussions are being held with 3-5 South Korean universities about cooperation. Moving forward, opportunities will be made available to complete their studies entirely in Mongolia. Before that, domestic teachers are being trained, and a joint training program is being developed with an assigned working group. If we do not prepare the metro personnel alongside the construction progress, there is a risk of dependence on foreign workers. Experience shows that in foreign countries, if personnel are not trained in time after building a metro, they fall behind. - How many people will the metro train accommodate, and from which country will it be purchased? The metro's main measure is the carrying capacity per hour in one direction. The TEFS conducted in 2013 specified that a metro with a capacity to carry 17,700 people per hour in one direction was suitable for Ulaanbaatar city. After completing the study of the current state of demand for and movement of transport in Ulaanbaatar, it will be decided whether to change this number. Preliminarily, it is planned to make the metro's basic infrastructure capable of carrying 17,000 to 23,000 people. As the country's population is growing steadily and the metro will be used for 50-100 years, it means that if the metro's basic infrastructure is sufficiently completed, new trains will be purchased as the population grows. The company selected in the EPC tender for building the metro will construct the building and fully supply the metro train. The metro trains will be ordered and produced according to standards suitable for Mongolia's extreme climate. Even though it is not possible to see which company submits proposals before the tender is opened in the first stage of the EPC tender, inquiries and clarifications have been made by companies from Asia, Europe, and the USA regarding tax conditions, registration, etc. The procurement law does not align well with large-scale projects. For example, it requires a digital signature from a foreign company when participating in the tender, and the person obtaining the digital signature must be present in person, which is impractical. Also, all tender materials must be submitted in Mongolian. This becomes a difficult challenge of translating many hundreds of pages of materials concerning new technology technical jargon not yet established in our country in a short period. Still, all processes are proceeding within the current law. The metro trains are produced best in England, France, Germany, and Japan, but they are relatively expensive. Recently, metro trains produced in China are cheap yet of good standards, and Eastern European and US cities are beginning to acquire them.
Minister J. Batsuuri Participates in the World Planning Forum
Published: 2024-11-06 | Translated from: montsame.mn
The Minister of Urban Development, Construction, and Housing, J. Batsuuri, is participating in the 12th World Cities Forum. The forum is being held in Cairo, Egypt, with decision-makers from the urban development sector of 182 UN member countries participating, including presidents, prime ministers from 4 countries, ministers of construction and urban development from 72 countries, and mayors from 96 cities. As the global population rapidly grows, the demand for housing that meets basic human needs is increasing, and interest in investing in smart homes and smart cities is rising in line with digital developments that accelerate daily. However, one-third of humanity still remains unconnected to the internet, which poses significant challenges and is a major topic of this forum. Upon invitation from the organizers, Minister J. Batsuuri is presenting the policies of the Government of Mongolia in the urban development, construction, and housing sector, as well as introducing the development of projects such as "New Zuunmod City" and "New Kharkhorin City," which are being implemented by decisions of the Parliament and Government. Furthermore, he is participating in the Ministers' roundtable meeting and discussions on the 2030 Sustainable Development Agenda. Additionally, he is attending the "Urban Development Expo," where over 20,000 participants working in urban development, architecture, and finance are registered to explore practical solutions to urban challenges related to housing, energy, waste, and climate change.
Temporary Closure of the Old Zaisan Bridge for One Month
Published: 2024-11-06 | Translated from: gogo.mn
The old Zaisan Bridge in the 22nd subdistrict of Khan-Uul district was put into use in 1968, which is 56 years ago now. Since then, no repairs or renovations have been done, and according to expert evaluations, it may collapse at any time. Plans are in place to demolish and rebuild the old bridge in 2025. The bridge will be temporarily closed from November 8 to December 1 to relocate the sewage pipe. After the peak traffic period is over, transport will again be halted on the old bridge in January 2025 to initiate its demolition and the construction of a new bridge, according to a report from the Ulaanbaatar City Mayor’s Office.
Society
DARKHAN-UUL: Citizens and Organizations Offer Special Programs for Tourists
Published: 2024-11-06 | Translated from: montsame.mn
Despite its small land area, Darkhan-Uul province sees many foreign and local tourists during the summer. In recent years, private sector entities and citizens have developed programs for tourists, with regulatory oversight from relevant state agency specialists. The Darkhan-Uul province's Horse Riding Club has established three camping sites designed for tourism around Khuiten River, Zuramtain Valley, Khavtsal, Bichigt Rock, and Gaviluukhairkhan. A total of 86 foreign and 120 local tourists have participated in special programs involving a 200 km horseback ride, nature cinemas, and performances showcasing traditional and native arts. Most of the foreign tourists are from South Korea and Japan. The archery and horse riding training center not only provides training for children and young people in horseback riding but also offers local and foreign tourists a glimpse into the Mongolian way of life, thus promoting the region. In the first nine months of this year, over 70 foreign and 100 domestic tourists have visited the center, marveling at the wonders of Mongolian horses and exploring the natural beauty. The community forest located at Khuiten River has welcomed over 180 domestic vacationers. The Saturn Extreme Mongolia ski base operating in Khongor district provides 7 types of services and has served 300 domestic and 20 foreign tourists in the first nine months. The museum of Darkhan-Uul province has been visited by 790 local and 83 foreign visitors. The Province's Department of Environment and Tourism is collaborating with the province's fishing sports association to develop and support winter sports. They are organizing regional and national ice fishing championships. Furthermore, events such as ice drift, the northern region's ice archery assembly, Chinggis master cross, the Taij Khasar Banhryn competition, the Darkhan-88 bicycle race, drift events, and the Darkhan-50 festival have attracted 1,510 both domestic and foreign tourists.
DUNDGOVI: Project to Support Employment of Target Group Citizens to be Implemented
Published: 2024-11-06 | Translated from: montsame.mn
The team for the "Strengthening Systems to Support the Employment of Target Group Citizens and Assist in Independent Living" project by the Japan International Cooperation Agency (JICA) is currently working in Dundgovi province. This project will be implemented from 2025 in the Sain Tsagaan, Erdenedalai, and Gurvansaikhan soums of Dundgovi province, as well as in three districts of the capital. Today, Chief Consultant Chiba Hisao and the JICA project team met with the Governor of the province S. Munkhchuluun, Deputy Governor Ts. Ariunbayar, and relevant officials to introduce the pilot project. Within the scope of the project, pilot activities will be carried out from November 5, selecting five target group citizens from the Sain Tsagaan soum to participate in workplace training, personal development, communication attitude change courses, evaluation, and securing permanent employment until the end of December. The project will be jointly implemented in Dundgovi province by the Labour and Welfare Service Department and the "Gerelddeg Yertunts" NGO.
Health
A Team of Specialized Doctors Begins Work in the Provinces
Published: 2024-11-06 | Translated from: unuudur.mn
In an effort to decentralize healthcare services and increase accessibility, a national team composed of specialized doctors has been established and has begun working in the provinces. Since provincial areas do not provide tertiary-level hospital services, many citizens travel in large numbers to the capital city. This increases the workload and waiting times for healthcare institutions, and the ministry is implementing these measures to address the issue. The Minister of Health stated, "A national team has been established to introduce and integrate specialized healthcare services locally, aiming to improve quality and accessibility. The team will become an exemplary model for comprehensive specialized treatment and services throughout provinces, districts, and eventually nationwide. Specifically, they have started providing essential cancer, cardiovascular, angiography, women's, neurological, cardiac, abdominal diagnostics, trauma, orthopedic, and general surgical services on-site. Concurrently, they are training and mentoring local doctors and specialists, equipping them with skills and methodologies." Last month, the national team worked in Khentii, Ömnögovi, and Övörkhangai provinces, examining and diagnosing over 200 patients and performing urgently needed surgeries and services for over 50 clients. This has reduced expenses and logistical burdens for these individuals and helped prevent disease complications.
It is necessary to increase the budget of the Health Insurance Fund
Published: 2024-11-06 | Translated from: isee.mn
The Standing Committee on Social Policy of the Parliament held a session yesterday and heard the 2023 activity report of the National Council of Health Insurance (NCHI). During this session, the Chair of the NCHI and the Minister of Health, T. Munkhsaikhan, noted that it is necessary to develop a revised version of the Health Insurance Law, improve the legal framework, simultaneously increase the budget of the Health Insurance Fund when raising salaries, and increase the percentage of contributions paid by the state for citizens whose insurance premiums are covered by the government. He highlighted that these citizens constitute 27.4% of the fund’s revenue but account for 77% of the spending on health services, thus necessitating an increase in the government's subsidy rate for their premiums. Additionally, he stated that 44% of the 136.1 billion MNT debt owed by Capital Bank, or 59.9 billion MNT, has been recovered. There is still a remaining 76.2 billion MNT, and the fund is owed 30.5 billion MNT by Chinggis Khan Bank.
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