Nov 20, 2024 71 min read Daily News Summaries

Mongolia News Summary for November 20, 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.

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Politics

B. Baasandorj: The budget law was sent to the President's Office yesterday. The President will decide whether to veto it within five days.

Published: 2024-11-19 | Translated from: itoim.mn

The Parliament of Mongolia approved the 2025 budget law, the 2025 budget of the National Wealth Fund, the 2025 budget of the Social Insurance Fund, and the 2025 budget of the Health Insurance Fund on the 8th of this month. According to the procedure law of the Parliament, these laws must be submitted to the President's Office. After the laws reach the President's Office, the President decides whether to veto them within five working days. When asked for clarification, the Chief of Staff of the Parliament, B. Baasandorj, stated, "The final editing of the Budget Law was presented by the Parliament last Friday, which was the 15th of this month. After the final editing is heard, the laws are sent to the President's Office. Yesterday, the Parliament finalized the draft laws and sent them to the President's Office with the official letter signed by the Secretary General of the Parliament. They have now reached the President's Office. The President will decide whether to veto within the lawful period. The law stipulates five working days." The 2025 state budget was controversially passed, and the Parliament has established a direction to submit a revised version within this year. Therefore, President U. Khurelsukh is likely to place a veto on the 2025 budget law. If the President vetoes the 2025 budget, the procedure is as follows: According to the Procedure Law of the Parliament, when the President's veto is discussed, 90.1. If the President of Mongolia places a veto on a law or decree, the State Great Khural (Parliament) must discuss and resolve the veto within 14 working days during a session or, if placed during a break in the session, within 10 days after the regular or extraordinary session begins and adopt a resolution. 90.2. The relevant Standing Committee and the Legal Standing Committee, which originally discussed the issue and provided opinions and conclusions, shall discuss the President's veto and provide their opinions and conclusions. 90.5. After the members speak in accordance with Article 90.4 of this law, an open vote will be held to decide whether to accept the President's veto. If the veto is on some parts of the law or decree, a separate vote will be held for each article, section, or provision, and the results will be presented. It will be considered that the Parliament's resolution regarding the veto has been adopted. 90.6. If two-thirds or 66.6% of the members participating in the standing committee and plenary session do not accept the President's veto, the law or decree remains valid. 90.8. If the President's veto is accepted, the law or decree may be revoked entirely or partially, or amendments and changes may be made if necessary by discussing and adopting the relevant draft law or decree. 90.9. If amendments or changes are to be made to the law or decree in connection with the acceptance of the President's veto, the relevant Standing Committee shall prepare the draft decision and submit it to the plenary session, and the opinions of the government and relevant organizations are not required for the draft.

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D. Amarbayasgalan: It is important to cultivate parliamentary oversight as a cultural practice

Published: 2024-11-19 | Translated from: itoim.mn

In the framework of the 100th anniversary of the proclamation of the Republic and the adoption of the First Constitution, we are presenting the full text of the opening speech by the Speaker of the State Great Khural, D. Amarbayasgalan, at the conference "Effective Implementation of Parliamentary Oversight." Members of the State Great Khural of Mongolia, Honorable ambassadors, scholars, researchers, guests, and delegates, Today, we gather to discuss the cornerstone of Mongolia's democratic governance - parliamentary oversight and how to effectively implement it. The 2024 parliamentary elections of Mongolia were conducted under a mixed system, resulting in a new parliament consisting of 126 members representing 5 political parties and various social groups. We have started working on significant goals to perfect the legal environment in line with the needs and requirements of the new era, realizing the public's trust and expectations in their government, and developing a new generation of parliament. In this scope, the laws ratified by the State Great Khural are being effectuated with human-rights-oriented, people-centered ideologies, adjusting legal regulation promptly to the demands of society's rapid development. To make laws comprehensive, clear, and understandable, and to delineate the boundary of relations governed by law and regulation, we have started implementing the "Three Perfections" policy. Subsequently, 54 working groups have been established under the initiative of members of the State Great Khural with the responsibility to evaluate and expedite the execution of pertinent laws and legal frameworks, of which 15 are associated with the oversight functions of the State Great Khural. Additionally, the recently ratified 2024-2028 strategic action plan of the State Great Khural emphasizes ensuring and protecting human rights and freedoms at all stages of law inception, proposal, deliberation, passage, and monitoring. Furthermore, it mentions the strengthening of a permanent system of oversight over legislative implementation and consistent evaluation to enhance the quality of the law. Article 25.1.8 of the Constitution of Mongolia grants the special power "to oversee the implementation of laws and other decisions of the State Great Khural." In other words, overseeing and inspecting the government's operations, which facilitate the observance of the Constitution of Mongolia and other laws nationwide, is the exclusive authority of the State Great Khural. According to Article 3 of the State Great Khural Law, "The primary objective of the State Great Khural, as the highest representative body of the people, is to ensure the people's ruling rights by legislating and defining the basis of internal and external policy, which includes the fundamental duty to oversee the implementation of laws." Furthermore, the initial law on the oversight of the State Great Khural was ratified on December 24, 2021. This law provided the tools and legal consequences for exercising the oversight powers of the State Great Khural and allowed for the formation of temporary committees for oversight. Also, it incorporated issues related to involving independent, autonomous organizations like the State Audit Office, the National Statistics Office of Mongolia, the Financial Regulatory Commission, and the National Human Rights Commission within their oversight functions in the State Great Khural's activities. The revised law on the oversight of the State Great Khural was ratified on May 16, 2024, following the constitutional amendments of November 14, 2019. Some of the regulations implemented in other countries were incorporated into this law. For example, to focus the oversight process in Standing Committees, upon members' proposals, those Standing Committees can now decide to establish oversight task forces. Once the relevant Standing Committee receives the evaluation report on the consequences of the law's implementation, it is mandated to discuss it within one month and bring it to the plenary session if deemed necessary. Additionally, the authority of oversight has been expanded to strengthen parliamentary democracy and form a strong opposition. For instance, the minority group can now initiate budgetary oversight hearings and directly present reports from oversight hearings conducted by the Expenditure Monitoring Subcommittee at plenary sessions. In summary, the State Great Khural has fully established the conditions to implement systematic oversight over the execution of legislation. It is crucial to cultivate parliamentary oversight as part of our cultural practice. Ensuring the coherence and non-redundancy in the oversight activities of the State Great Khural and institutions reporting to it is of utmost importance. Honorable members, Scholars, researchers, sector specialists, Your experience and participation are vital in effectively implementing parliamentary oversight and enhancing its impact. We urge continuous collaboration to fortify the foundations of Mongolia’s democratic governance. Furthermore, we direct the Office of the State Great Khural to pay special attention to institutionalizing parliamentary oversight activities.

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B.Baasandorj: The Budget Law was sent to the Presidential Office yesterday. The President will decide within five days whether to veto it.

Published: 2024-11-19 | Translated from: itoim.mn

During the plenary session of the State Great Khural, laws on the budget of Mongolia for 2025, the budget of the National Wealth Fund for 2025, the budget of the Social Insurance Fund for 2025, and the budget of the Health Insurance Fund for 2025 were approved. According to the law on the procedure of the State Great Khural, these laws must be sent to the Office of the President. Once the laws are received by the Presidential Office, the President has five working days to decide whether to veto them. Regarding this, when asked for clarification, the Secretary-General of the State Great Khural, B. Baasandorj, stated, "The State Great Khural heard the final version of the Budget Law on the 15th of this month. After reviewing the final version, the laws are sent to the Presidential Office. The State Great Khural approved the draft laws yesterday and sent them to the Presidential Office with an official letter signed by the Secretary-General, along with the constitution and the attached five laws and resolutions. Now it has been sent to the Presidential Office. The President will decide within the legal timeframe whether to veto. The law specifies five working days,” he said. The state budget for 2025 was approved amidst controversy, and the State Great Khural has set a direction to submit an amendment within this year by resolution. Therefore, President U. Khurelsukh is likely to veto the 2025 Budget Law. If the President vetoes the 2025 budget, it will be discussed according to the procedure. Specifically, the Law on the Procedure of the State Great Khural states that when the President of Mongolia vetoes, under Article 90.1, the State Great Khural shall discuss and decide on the veto during the session within 14 working days, or within 10 days after the start of the regular or extraordinary session if the veto is imposed during a recess. Article 90.2 states that the relevant Standing Committee, or the Standing Committee on Legal Affairs that initially discussed the issue, shall give a proposal and conclusion regarding the President's veto. According to Article 90.5, after members have spoken in accordance with Article 90.4 of this law, an open vote shall be held on whether to accept the President's veto. If a veto is imposed on specific parts of the law or resolution, a vote shall be held on each clause, section, or provision, and the results shall be presented, and a resolution of the State Great Khural solving the veto will be considered adopted. Article 90.6 states that if two-thirds or 66.6 percent of the members participating in the Standing Committee and the plenary session do not accept the President's veto, the law or resolution remains in force. If the President’s veto is accepted, according to Article 90.8, the entire law or resolution or certain parts thereof may be repealed, or if necessary, appropriate additions and changes can be discussed and approved. In relation to accepting the President’s veto, if amendments or changes are to be made to the law or resolution, the Standing Committee shall prepare the draft of such a decision and submit it to the plenary session, and it does not require proposals from the Government and other related organizations.

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Economy

Moody's Agency Rates Mongolia's Credit Rating as "B2, Stable"

Published: 2024-11-19 | Translated from: isee.mn

The international credit rating agency Moody's announced that Mongolia's credit rating has improved to B2, stable after 9 years. Last month, another international credit rating agency, Fitch, rated Mongolia's credit rating as B+, stable, while S&P rated it as B+, positive. However, Moody's emphasized the following factors in the improvement of Mongolia's credit rating to B2, stable: - The government's debt burden has been steadily reduced in recent years. - Due to proper debt management and fiscal discipline, the risk of government refinancing in the coming years has decreased. - The economy has been growing steadily, and the size and real growth of GDP have increased, as mentioned in the report. In the past, during the challenging years of the global pandemic and geopolitical conflicts, Mongolia's government was able to maintain its credit rating stably without reduction, thanks to proper policies in financial and fiscal discipline and debt management. Consequently, Mongolia received evaluations from three internationally recognized agencies. A credit rating affects the ability of a country's government, private sector, and financial institutions to attract foreign investment and reduce investment costs, making it an important indicator for supporting economic development and stable growth. Moreover, the value of the government's foreign bonds is expected to increase, and the credit ratings of other commercial banks and private sector companies are expected to improve accordingly.

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Sales in the Mining and Extraction Sector Reached 29 Trillion MNT in the First Ten Months of This Year

Published: 2024-11-19 | Translated from: isee.mn

The National Statistics Committee presented the socio-economic indicators for the first ten months of this year. According to preliminary results, the total industrial production for the first 10 months of 2024 amounted to 26 trillion MNT, an increase of 1.9 trillion MNT compared to the same period last year. The mining and extraction sector contributed an increase of 1.8 trillion MNT, and the electricity, gas, steam, and air conditioning sector contributed an increase of 121.6 billion MNT, which were the main factors. Additionally, for the first ten months of 2024, preliminary results show that 30.7 trillion MNT in sales were made in the foreign market, of which 29 trillion MNT were from the mining and extraction sector. Of the foreign sales of mining products, 61.6% were from the coal mining sector, 34.1% from the metal ore mining sector, 3.1% from the oil extraction sector, and 1.2% from other mineral extraction sectors.

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Moody's Upgraded Our Country's Credit Rating After Nine Years

Published: 2024-11-19 | Translated from: gogo.mn

The international credit rating agency Moody's announced that it has upgraded our country's credit rating to "B2, stable" after nine years. Last month, the international credit rating agency Fitch announced that they have given us a rating of "B+ stable", followed by S&P which rated us "B+ positive". Moody's highlighted the following factors that influenced the upgrade of Mongolia's credit rating to "B2, stable": ✅ The government's debt burden has been steadily reduced in recent years. ✅ Due to prudent debt management and fiscal discipline, the risk of refinancing in the coming years has decreased for the government. ✅ The economy has grown steadily, with an increase in GDP size and its real growth, according to the report. For our country, during the challenging years of the global pandemic and geopolitical armed conflicts, the government's implementation of financial and fiscal discipline and effective debt management policies resulted in maintaining the credit rating without downgrades, enabling us to receive such evaluations from the three prestigious international agencies. The credit rating affects the ability of the country's government, private sector, and financial institutions to attract foreign investment and reduce investment costs. It is a crucial indicator for supporting economic development and creating sustainable growth. Additionally, the Ministry of Finance reported that the value of government foreign bonds is expected to increase, as well as the improvement of the credit ratings of other commercial banks and private companies.

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Securing a $40 Million Fund for Green Finance and Support for SMEs

Published: 2024-11-19 | Translated from: news.mn

In the framework of supporting green financing and a sustainable economy, Khaan Bank has expanded its cooperation by attracting a long-term financial resource of 40 million USD from the Development Bank of Germany, Deutsche Investitions- und Entwicklungsgesellschaft ("DEG"). This financing will not only support small and medium-sized business clients, particularly women-led entrepreneurs, but also finance environmentally friendly projects and those adapting to climate change. Additionally, to allocate this resource effectively and efficiently, Khaan Bank has signed a Memorandum of Cooperation to implement the "develoPPP" program in collaboration with Germany's Ministry for Economic Cooperation and Development and DEG Bank. This consultancy service implemented by DEG Impulse, an affiliate of DEG Bank, aims to provide tangible assistance in reducing greenhouse gas emissions impacting climate change, improving energy savings, and supporting green projects and activities. DEG Bank is an old partner that has previously invested in joint loan financings organized by FMO, the Dutch Development Bank, provided to Khaan Bank. This first bilateral financing agreement not only enhances and strengthens cooperation but also plays a crucial role in increasing financial access for micro, small, and medium-sized enterprises, the driving force of Mongolia's economy, as well as enhancing economic capacity and supporting environmental sustainability. About DEG Since its establishment, DEG has been providing financing and consultancy services to private enterprises in developing countries for over 60 years. Today, the organization holds an investment portfolio of approximately 10.3 billion euros and is one of the major financiers investing in the development of the private sector. As an impact and climate investor, the organization collaborates with enterprises addressing climate change. Clients who receive investment not only benefit from financing and consulting services tailored to their needs but also have the opportunity to expand their business and operations by leveraging DEG’s market knowledge, impact and climate expertise, and international network. In line with sustainable development goals, DEG, as a part of Germany’s KfW Group, continues to contribute significantly to creating new jobs, sources of income, and adding value. About Khaan Bank Khaan Bank provides comprehensive financial and non-financial services to micro and small-medium enterprises. In order to expand the scope of its clients' businesses, it not only offers financial products and services tailored to their needs but also regularly organizes business consulting services and training through its Small Business Academy, both in-person and online. In recent years, it has implemented significant initiatives to align all levels of operations with sustainable development goals and increasingly offers environmentally friendly products and services to its clients. For more detailed information or to view Khaan Bank’s Sustainability Report, click here. Growth in Harmony – Khaan Bank

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Moody's Agency Upgrades Development Bank's Rating to B2

Published: 2024-11-19 | Translated from: ikon.mn

Moody's agency announced that it has upgraded the long-term credit rating of the Development Bank of Mongolia from B3 to B2 (stable). The agency also announced that it had increased Mongolia's sovereign credit rating to B2. In recent years, Mongolia's mineral revenue has increased, and debt management and financial discipline have improved, leading to an enhancement of the country's credit rating. When upgrading the Development Bank's rating, the ability of the government to support the Development Bank was highlighted. Specifically, as the only export-import policy bank of Mongolia with the aim of promoting economic development, the legal basis for government support as stipulated in the Law on Development Bank of Mongolia was considered, raising the bank's fundamental rating by two notches from CAA1. Moody's previously upgraded the long-term credit rating of the Development Bank of Mongolia to B3 (stable) and the bank's baseline credit assessment from CAA2 to CAA1 on December 25, 2023, which has now been further revised upwards. Source: Development Bank Warning: Media organizations (Television, Radio, Social, and Web pages) must mention the source (ikon.mn) when using our information in any form, completely or partially.

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Presented the Investment Environment

Published: 2024-11-19 | Translated from: montsame.mn

The Financial Regulatory Commission (FRC) of Mongolia, in cooperation with the Mongolian Securities Dealers Association and the Korean Financial Investment Association, organized the event "Mongolian Capital Market Connectivity 2024: Korea" in Seoul, South Korea. The Deputy Chairman of the FRC, T. Tserenbadral, stated, "This event, organized by the Financial Regulatory Commission in Hong Kong, Shanghai, New York, and Singapore, is unique as it follows the VIII joint meeting between the governments of Mongolia and South Korea in Seoul. The relationship and cooperation between the two countries have deepened to the level of a strategic partnership in all fields, with regular high-level visits and dialogues taking place. This activity aims to connect the capital markets of the two countries by allowing domestic companies to dual list and attract financing, opening more market opportunities, increasing the investor base, and providing South Korean investors with opportunities to participate in Mongolia's capital market by investing in quality products, thereby expanding economic and financial cooperation." Additionally, the macroeconomic indicators of Mongolia have stabilized and shown positive results in recent years. Specifically, as of the second quarter of this year, GDP increased by 5.6% and is expected to grow by 6% next year. Fitch Ratings upgraded Mongolia's sovereign credit rating by one notch to "B+ with stable outlook." Due to reforms in the banking sector, IPOs of systemically important banks were successful, privatization of state-owned enterprises was realized, and the Law on the Securities Exchange of Mineral Products was enacted, leading to the growth of the domestic market through effective implementation of policies and regulations. The valuation of the capital market reached 12.1 trillion MNT by the third quarter of this year, a 4.6-fold increase compared to three years ago. With the amendments to the Law on the Securities Market and the Investment Fund Law passed by the State Great Khural, a favorable legal environment has been established to introduce new financial products and services in the domestic market, conduct trades and settlements in accordance with international principles, attract financing through the capital market, and boost the activity and interest of foreign and domestic investors. The importance of over 53,000 Mongolian citizens living and working in South Korea as an important lever to expand our cooperation was highlighted. During the event, presentations on Mongolia's economy, the investment environment, mining, energy, and banking and financial sectors were given, and member securities companies of the Mongolian Securities Dealers Association presented information. South Korean investors and professional participants attended, exchanging ideas on future cooperation, according to the FRC.

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Golomt Bank Now Accepts Electronic Applications for Opening Import Letters of Credit

Published: 2024-11-19 | Translated from: itoim.mn

Golomt Bank has introduced a service to receive electronic requests for opening import letters of credit, with the aim of increasing the accessibility of its services to customers and reducing paper usage. Customers in the capital and rural areas wishing to avail of this service can log in with their organization’s internet banking credentials to submit requests for opening a letter of credit online, as well as monitor the status and progress of opened letters of credit. A letter of credit is one of the most commonly used payment instruments in cross-border trade and is distinguished by its ability to reduce risks associated with the shipment and transportation of goods and payments. With the implementation of this electronic service, the quality and accessibility of the bank's services have improved significantly, and the bank is now able to process customer requests promptly and efficiently. As of the third quarter of 2024, Golomt Bank maintains its leading position in the country by holding 39% of the market share in the total number of letters of credit opened and 60% in total value. Customers can click HERE to access detailed information about the import letter of credit service. A bank of global standards in Mongolia.

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Should We Save or Sell Our Coal?

Published: 2024-11-19 | Translated from: gogo.mn

Coal is one of the most widely distributed, abundantly reserved, and economically significant energy resources in the world, with around 80 countries having established their coal reserves. Globally, there are over 2,900 coal basins. As of the end of 2020, proven global coal reserves amounted to 1.07 trillion tons. Although reserves can increase through geological exploration, coal is ultimately a finite resource. This raises the issue of how humanity will meet its unlimited energy needs once global coal reserves are depleted. However, scientific and technological advancements have led to the development of "renewable energies" that can replace and supplement coal, utilizing solar, water, and wind energy sources. In recent years, production of energy through solar plants, hydropower plants, and wind farms has become common worldwide. With technological progress, the cost of producing electricity from solar energy has decreased by 85% between 2000 and 2010. Non-renewable energies, such as oil, natural gas, and coal, are exhaustible resources. These fossil fuels have the most significant negative impact on global climate change, accounting for 75% of global greenhouse gas emissions and about 90% of carbon dioxide emissions. While 80% of the world's energy used to be produced from fossil fuels, the consumption and production of renewable energy have been rapidly increasing each year. Renewable energy not only reduces the impact of climate change but also exists abundantly across all regions, ensuring no shortage for any country or region. It is affordable, environmentally friendly, fosters job creation, and holds significant economic importance. In 2020, approximately $5.9 trillion was invested in fossil fuel production, excluding tax subsidies and the damages caused to health and the environment. Conversely, investment in relevant technologies and infrastructure for renewable energy requires $4 trillion annually until 2030. Implementing this plan could lead to "zero" air pollution by 2050. For countries with limited natural resources, the initial costs are substantial, necessitating financial and technological support for transitioning from traditional to renewable energy. Reducing environmental pollution and climate change could save the world $4.2 trillion annually. Through the initiatives and calls of the United Nations and other professional organizations, investment in the renewable energy sector is increasing yearly, driven by technological advancement and growing consumption. Currently, approximately 29% of all electricity is sourced from renewable energy. Thus, if renewable energy is expected to replace coal in the future, Mongolia retaining its coal reserves for too long without utilizing them could devalue these resources instead of increasing their worth. The International Renewable Energy Agency aims to produce 90% of the world's electricity from renewable sources by 2050. With coal demand and prices expected to decline as electricity is generated more from renewable sources, we need to consider whether Mongolia should save or sell its coal. Competition in the Coal Market Between Mongolia and Russia The Russia-Ukraine war has introduced new challenges for energy transition. Despite geopolitical conflicts boosting renewable energy developments like solar and wind power, energy production from traditional fossil fuels remains the most stable and reliable method. Hence, the world faces the challenge of ensuring the reliability of traditional energy while advancing the shift to renewables. Economically, Mongolia is divided into five regions: Central, Hangai, Gobi, Western, and Eastern, with coal reserves relatively evenly distributed across these regions. The Central region hosts 13 coal deposits accounting for 16.5% of national reserves; Hangai has 13 deposits (4.7%); Gobi has 20 deposits (30.6%); Western has 23 deposits (16.7%); and Eastern has 16 deposits (31.5%). The largest concentration of reserves is in the East and Gobi regions. Currently, "brown coal" is the predominant type of coal reserve in Mongolia, mainly situated in the economic eastern region. It falls under the secondary grade for coking coal. The largest coal deposits include Baganuur, Sharin Gol, Shivee Ovoo, Nariin Sukhait open-pit mine, and Tavan Tolgoi coal deposit. Baganuur, Sharin Gol, and Tavan Tolgoi's coal is relatively good based on key quality indicators such as ash content, moisture, sulfur content, and calorific value. Tavan Tolgoi is 250 km from China, making it the world's closest large, high-quality coking coal reserve to China. Russia, with a wide range of coal types and significant reserves of coking coal, has over 3/4 of its reserves located in the far east, in Asia, while less than 1/4 is in Europe. The cost of transporting coal concentrated in the Far East for the European market is higher due to transport and logistics, resulting in a lack of competitive advantage. Although geographically close to China, the world's major coal market, Russia's exports to China face restricted conditions due to transport and logistics limitations. The major geopolitical issue of recent times, the Russia-Ukraine war, is a significant event reshaping global order, affecting demand-supply dynamics, trade structures, and labor systems across sectors like oil, natural gas, coal, and new energy. Two years have passed since the war began. During this period, the EU has imposed over 200 sanctions against Russian aggression, while the United States has implemented more than 500 sanctions. The next policy from the US to limit Russia's income from its energy sector has been announced. As a major producer and supplier, Russia significantly influences the global coal market. Based on global statistical databases, Russia ranks second after the United States in coal reserves, holding 15% of the world's proven reserves. Russia ranks sixth globally in coal production and use, primarily for electricity generation and coking coal exports. According to the "Energy Strategy of Russia up to 2035", annual coal production is projected to reach 485-668 million tons by 2025. Russia's Ministry of Energy's statistics show that in 2023, 440 million tons of coal were produced, with 220 million tons exported, marking a 5% increase from the previous year. Russia has consistently led global coal exports. However, sanctions due to the Russia-Ukraine war have forced changes in Russian coal trade flows, shifting exports towards the "East" or the Chinese market. Amid this international geopolitical, economic, and trade environment, Mongolia faces the decision of whether to link its north-south railway with Russia and allow Russian coal to be transported through Mongolia to China, or whether to avoid linking with Russia and aim to sell its own coal to China under a less competitive and advantageous position. In traditional economic science, "economic processes are complex, interrelated systems operating under conditions of limited human and social resources and unlimited human needs". However, modern economic thought holds that human needs are limited. The possibility of fulfilling these limited needs with limited resources is acknowledged, leading to a continuous market cycle. Economic growth is encouraged, not just by meeting traditional needs with traditional resources, but by continuously developing and supplying new kinds of needs that producers create. While natural resources were once considered limited, scientific and technological advancements have discovered and utilized new types of limitless resources, exemplified by renewable energy. As renewable energy replaces coal in the future, coal may lose its value as a resource; therefore, capitalizing on current economic opportunities and exporting coal during its valuable period is economically significant. Mining exchanges can play a critical role in valuing minerals on the market, fostering competitiveness, implementing specific trade standards, establishing trade and service networks from extraction to buyer delivery, enhancing quality standards, and defining and protecting participant rights and responsibilities. Global mining exchanges have become a prevalent advanced service. In 2022, Mongolia enacted the "Law on Mining Products Exchange", effective from June 30, 2023. Before its implementation, coal trading predominantly involved only a few Chinese companies, with information on coal sales being opaque, highlighted by the long-concealed "Coal Theft Case". Despite geographical proximity and demand market advantages, Mongolia's spatial limitations, bordering only Russia and China, restricted conditions for exporting mining products to third-party markets. The increase in demand for mining products and rising prices are of considerable importance to Mongolia's economic development. However, implementing this law has brought transparency, openness, and free competition to Mongolia's coal market. Without behind-the-scenes deals limited to specific Chinese companies, virtual coal and mining product trading can happen through mining exchanges, allowing international buyers to compete openly and providing market opportunities driven by demand, leading to price increases. Thus, former buyers now participate in coal trading following market competition principles, and even Mongolia's strategic Southern neighbor crafts explicit policies regarding its position in Mongolia's long-term coal market through events like cross-border railway negotiations. The stock exchange robustly organizes and oversees Mongolia’s mining product trading, particularly coal exports, under transparent, open, impartial, and competitive legal frameworks. This process directly impacts increasing demand, rising prices, and fostering competition, which significantly influences Mongolia's economy, evidenced by numerous official statistical data and insights from domestic and foreign market conditions.

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The Insurance Sector is on the Verge of Significant Growth

Published: 2024-11-19 | Translated from: ikon.mn

There is a common oral narrative among people that insurance does not pay out compensation. However, the insurance companies explain that they pay compensation to hundreds of thousands of citizens every year, and some people complain because they do not fully understand the contract or are not aware of the principles of insurance. Mongolia has three financial sectors: banking, insurance, and the stock market. However, statistics show that the banking sector occupies 97% of the total financial sector. In other words, we have neglected the development of our insurance and capital markets. Economists compare the banking, insurance, and stock markets to the liver, heart, and lungs of a human body, respectively. If the liver and heart are not in good condition, no matter how healthy the lungs are, problems will arise. In reality, Mongolia’s economy faces many issues, such as high loan interest rates, inflation, and availability of loans. These problems are attributed to the underdevelopment of the insurance and capital markets. Researchers say that the insurance sector needs to grow 5-10 times larger to fulfill its proper role effectively. The larger the insurance sector, the more capable it becomes of covering the risks of citizens and companies. Perhaps compensation services will improve even further. The good news is that a revised version of the Insurance Law is being developed by the Financial Regulatory Commission, the Ministry of Finance, and other organizations, and it will soon be discussed in the Parliament. This law will open new opportunities for the insurance sector, and for the first time, the government will discuss developing the insurance sector substantially. According to the insurance sector, with the new law, the sector might experience a sudden growth, fulfilling functions that the banking sector cannot perform. Due to the anticipation of the new law, the number of investors interested in investing in the insurance sector is also increasing. In this article, we present an overview of insurance sector statistics for the second and third quarters of 2024. Another direction of the insurance company's operations is investment. While banks attract money in the form of deposits from citizens and earn income by issuing loans, insurance companies invest the insurance premiums in companies' stocks, bonds, and trusts until they need to payout for compensation, thereby earning income. In this way, they make a significant contribution to the development of the capital market. Warning: When media organizations (Television, Radio, Social, and Web pages) use our information fully or partially, they must cite the source (ikon.mn).

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Moody's Agency Improves XacBank's Credit Rating

Published: 2024-11-19 | Translated from: ikon.mn

The international rating agency Moody's has improved the credit rating of XacBank to B2/Stable, coinciding with an improvement in Mongolia's credit rating. In its report, Moody's stated, "The credit rating of Mongolia has been upgraded due to a decrease in external debt burden and improvements in debt and fiscal management. As a result, the cap that had been set on the base credit ratings of Mongolian banks has been raised, leading to an improvement in XacBank's rating." This upgrade in the credit rating is expected to have a positive impact by increasing foreign investment towards Mongolia and gradually reducing financing costs. Warning: 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.

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Moody's Upgrades Development Bank's Rating to B2

Published: 2024-11-19 | Translated from: news.mn

Moody's agency announced that it has upgraded the long-term credit rating of the Development Bank of Mongolia from B3 to B2 (stable). The agency also introduced the upgrade of Mongolia's credit rating to B2. The increase in the country's credit rating reflects the recent growth in revenue from Mongolia's mineral sector, improved debt management, and financial discipline. When upgrading the Development Bank's rating, it highlighted the increased support capacity from the government. Specifically, due to its role as the only export-import, policy-oriented bank in Mongolia aimed at boosting economic development, and in accordance with the Development Bank of Mongolia Law, there is a legal basis for the government to provide support. Consequently, the bank's baseline credit assessment was raised two levels from CAA1. Moody’s agency previously upgraded the long-term credit rating of Mongolia’s Development Bank to B3 (stable) and increased the baseline credit assessment from CAA2 to CAA1. This latest upgrade further updates their assessment.

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Government Purchases $77 Million of 2027 Maturing "Century" Bonds

Published: 2024-11-19 | Translated from: gogo.mn

The "Century" bond's price has increased by 8.6% over the past year, fluctuating around $93.6. The Government of Mongolia purchased approximately $77 million worth of their $500 "Century" bonds maturing in 2027 from the open market, Bloomberg reported. This bond, issued internationally by the Government of Mongolia, is the cheapest among the bonds maturing in the next five years. Specifically, the price of the "Century" bond has increased by 8.6% over the past year and is hovering around $93.6. Moreover, this bond has the lowest coupon rate among these bonds, at only 3.5%. At a time when the Bank of Mongolia has reduced the policy rate by a total of three percentage points this year, the yield on this bond has seen a decrease of more than 22%. Fitch Ratings reported that the Government of Mongolia's debt is expected to stabilize at around 44% of GDP starting from 2024. In 2025, the government debt is anticipated to be $400 million, or less than 2% of GDP, and in 2026, it is expected to be $1 billion.

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The Development Bank's Rating Upgraded to B2

Published: 2024-11-19 | Translated from: montsame.mn

The international credit rating agency Moody's announced that it has upgraded the long-term credit rating of the Development Bank of Mongolia from B3 to B2 (stable). The agency also reported that it raised Mongolia's credit rating to B2. This upgrade was attributed to the increase in revenue from Mongolia's mineral sector and improvements in debt management and financial discipline, leading to an enhanced national credit rating. When upgrading the Development Bank's rating, the increased ability of the government to support the bank was highlighted. Specifically, as the only export-import policy bank in Mongolia, with the purpose of contributing to economic development, and based on legal grounds provided in the law concerning the Development Bank of Mongolia, government support was considered. As a result, the bank's baseline rating was upgraded two notches from CAA1. On December 25, 2023, Moody's had raised the long-term credit rating of the Development Bank of Mongolia to B3 (stable) from its previous rating and had upgraded the bank’s baseline credit assessment from CAA2 to CAA1, which has now been further elevated.

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The Insurance Sector is on the Verge of Significant Growth

Published: 2024-11-19 | Translated from: gogo.mn

There is a common belief among the public that insurance companies do not pay claims. However, insurance representatives argue that every year, hundreds of thousands of claims are paid out, and that some policyholders do not fully understand their contracts or the principles of insurance, leading to misunderstandings and complaints. Mongolia has three financial sectors: banking, insurance, and capital markets. Yet, statistics indicate that the banking sector dominates 97% of the total financial sector. In other words, we have neglected to develop our insurance and capital markets. Economists explain that the banking, insurance, and capital markets should be seen as akin to a person’s liver, heart, and lungs. If the liver and heart are weak, problems will arise regardless of how strong the lungs are. In reality, Mongolia's economy faces many issues such as high loan interest rates, inflation, and credit availability. These problems are often attributed to the underdevelopment of the insurance and capital markets. Researchers suggest that the insurance sector needs to grow 5-10 times larger to fulfill its proper role. The larger the insurance sector, the greater the ability to cover risks for individuals and companies, possibly improving claim services. The good news is that a revised version of the Insurance Law is being developed by the Financial Regulatory Commission and the Ministry of Finance, among others, and will soon be discussed in Parliament. This law aims to introduce new opportunities for the insurance sector and, for the first time, address its practical development. With the new law, the insurance sector is expected to grow rapidly and may fill roles that the banking sector currently cannot. The anticipation of the new law has also increased the number of investors interested in the insurance sector. In this article, we provide an overview of insurance sector statistics for the second and third quarters of 2024. Another aspect of an insurance company's operations is investment. While banks collect deposits from the public and earn profit by offering loans, insurance companies invest insurance premiums in shares, bonds, and trusts until they are paid out in claims. This significantly contributes to the development of the capital market.

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Dealers Threaten to Strike Unless Demands Are Met

Published: 2024-11-19 | Translated from: itoim.mn

The Eco Vehicle Importers Association NGO and the Auto Trade Entrepreneurs Association PGN have announced that they are issuing demands to decision-making authorities and released the following statement. They have also demanded an apology from the Mayor of Ulaanbaatar, H. Nyambaatar, for insulting the profession of the public. C. Lkhagvajav, head of the Eco Vehicle Importers Association NGO, stated: "The laws, resolutions, and regulations are not feasible in practice. For example, since the cessation of vehicle license plate issuance in the capital, the numbers given out by the state registration system have become expensive on the black market. State license plates now cost at least 2 million MNT. There are even rumors that rural areas are like burial sites. Vehicle entrepreneurs are not opposed to the policy and objectives being undertaken against congestion by the government, parliament, and the Mayor's Office. In fact, we support them. However, please review whether the implementation methods, laws, and regulations fit reality. Isn't this decision limiting citizens' rights to own property? Up to now, we have approached related individuals with formal letters, speaking and negotiating, asking them to resolve this issue. For instance, congestion can be reduced by offering people options, using economic measures or transitional periods. Without this, sudden decisions impose state service and pricing pressures on citizens and businesses. Although we wished to discuss and resolve issues amicably, Mayor H. Nyambaatar made very serious statements during the CITC meeting. In other words, he slandered and insulted the individuals engaged in the vehicle business very rudely. The people working in this sector are deeply hurt by the mayor's statements. After the elections, should the Mayor say something like 'there you go' the next day? A parent does not differentiate between children as frauds, thieves, or good ones. Similarly, a mayor should work towards the common good of city residents. We are conducting a legally recognized business in Mongolia. Bringing cars from abroad is not an opposition to the Mayor's congestion-reduction policy. Mayor H. Nyambaatar's given attitude is wrong. The issue of congestion is not the fault of us businesses or the citizens purchasing vehicles. It's the result of 30 years of poor planning and corruption. We will appeal to the Prime Minister to restore our reputation and proceed through the legal system." P. Gantsooj, head of the Auto Trade Entrepreneurs Association, stated: "Mayor H. Nyambaatar should apologize for his reckless announcements. We then proposed discussing directives with the participation of professional associations and citizen representatives opposed to congestion." On November 8, a decision to set a ceiling of 730,000 for the registration numbers issued in Ulaanbaatar aimed at reducing traffic congestion, air pollution, and traffic accidents took effect. Within this decision, restrictions were placed on the issuance of city-series registration numbers to imported vehicles in Ulaanbaatar. This decision limits the right granted by the Constitution of Mongolia for citizens to own property, prompting some citizens to appeal to the Constitutional Court. As a result, a major public discussion arose about whether this decision was right or wrong. Regarding this event, the Mayor of the Capital and head of Ulaanbaatar, H. Nyambaatar, made offensive and slanderous remarks about business people at the first session of the CITC meeting, causing dissatisfaction. Foremost, we express our support for solving congestion. However, we have not organized actions to remove H. Nyambaatar from office and have instead been attempting to address these matters by submitting official demands to relevant organizations. Therefore, we demand an apology from Nyambaatar for his discriminatory and offensive actions towards citizens based on their profession and social status. Furthermore, we will seek legal redress for damage to our business reputation. At this press conference, we present three demands to decision-makers: 1. Redraft the regulations on issuing state license plates to imported vehicles to reflect the realities of business entrepreneurs. Specifically, any law or regulation should protect businesses whose rights and profits are affected from harm. 2. Issue state license plates for more than 37,000 vehicles in transit. Although the cap for vehicle registration in Ulaanbaatar is set at 730,000, it has currently exceeded 800,000. 3. Remove some requirements imposed for obtaining state registration numbers. Namely, the regulation that one must have private parking or garage space to register a car violates the property ownership rights granted by the Constitution of Mongolia. Additionally, the requirement for vehicles to be produced since 2015, eco-friendly, and 0 kilometers makes it impossible for anyone without 100-150 million MNT to own a vehicle, effectively telling others they must walk. If these demands are not met, we will proceed to the next stage of our struggle and organize a strike. Eco Vehicle Importers Association NGO Auto Trade Entrepreneurs Association PGN

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Diplomacy

Prime Minister's Presentation on the Cross-Border Railway Agreement of Gashuunsukhait-Gantsmod Port

Published: 2024-11-19 | Translated from: unuudur.mn

The parliamentary groups of the Mongolian People's Party (MPP) and the Democratic Party (DP) hold meetings every Monday according to schedule. The DP group had a meeting yesterday at 10:00 AM. In this meeting, Prime Minister L. Oyun-Erdene provided information on the progress of the cross-border railway negotiation of Gashuunsukhait-Gantsmod port and answered members' questions. Prime Minister L. Oyun-Erdene stated, "China will connect the ports in stages. After starting the construction of Gashuunsukhait-Gantsmod port, we will move to Shiveekhuren-Bichigt and Hangi-Mandal ports. It would be better to reduce our internal disputes." Following the group meeting, DP members provided information to journalists. Group leader O. Tsogtgerel said, "Increasing the capacity of the port and using the railway to both Mongolia and China is of great economic significance. We believe that we should move past political issues that have been ongoing for many years and resolve matters based on business principles." Member of Parliament Ch. Lodoysambu said, "Our group requested Kh. Nyambaatar to come and present measures to reduce air and environmental pollution. However, he did not come, citing an assignment. Although his deputy provided information, it was very unsatisfactory. Therefore, we sent back those who came and asked the city mayor to provide the information himself. Generally, the capital city governor is unable to respond promptly to any issue. Parliament is unable to obtain information from the capital's administration. Previously, we submitted a suggestion to review the pedestrian path restoration issue on site. Kh. Nyambaatar claimed health reasons at that time, which turned out to be false. It is right to inform the public about their irresponsibility. Do not disrupt the operations of the parliament." In response to a journalist's question about what measures the DP intends to take regarding banks and construction companies being mired in corruption and young people being unable to participate in mortgage programs, Member of Parliament B. Jargalan said, "From 2012 to 2016, over 80,000 households participated in the mortgage program. After that, the program came to a standstill, and problems started to arise. The government's action plan has set goals to intensify the mortgage loan program and to bring housing financing to a different level. There are many solutions to make the ger districts free of chimneys and pit latrines." The MPP group met at 3:00 PM, and Prime Minister L. Oyun-Erdene again provided information on the issue of Gashuunsukhait-Gantsmod port as well.

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US Introduces 4 Red Lines in Relations with China

Published: 2024-11-19 | Translated from: news.mn

The newly elected president of the United States, Donald Trump, has less than two months before taking office. However, China has already begun establishing the boundaries between the two countries. Specifically, Chinese President Xi Jinping introduced "four red lines" of US-China relations during a meeting with Joe Biden at the APEC summit held in Peru on Saturday. These are Taiwan, democracy and human rights, China's path and system, and the right of nations to develop. Xi Jinping stated, "These are unchangeable. This is the most important barrier and protection net for China-US relations." Among the four red lines, the Taiwan issue is the most sensitive, and President Xi has emphasized this for many years. China declares Taiwan as part of its territory and does not rule out the use of force. For the US, Taiwan is an important partner in the semiconductor and security sectors. Meanwhile, the Trump administration has already created risks regarding Taiwan. Specifically, in a June interview, Trump stated, "Taiwanese should pay for US protection." Thus, there is global anticipation of tension arising between the two countries once Trump assumes office. Florida senator Marco Rubio, known as a Chinese hawk, has already been appointed by Trump as Secretary of State. Furthermore, Trump announced a 60% tariff on China. SOURCE: INSIDER

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Political Consultative Meeting Between the Foreign Ministries of Mongolia and Germany

Published: 2024-11-19 | Translated from: montsame.mn

The regular political consultative meeting between the Ministry of Foreign Affairs of Mongolia and the Foreign Ministry of the Federal Republic of Germany took place on the 18th of this month in the city of Berlin. During the consultative meeting, the two sides exchanged information on the current political, social, and economic situation of Mongolia and Germany, and on major goals outlined in long-term development policies. They also discussed the events organized to commemorate the 50th anniversary of the establishment of diplomatic relations between Mongolia and the Federal Republic of Germany this year. In particular, they expressed satisfaction with elevating the bilateral relations to the level of a "Strategic Partnership" during the state visit of the President of Germany, F.W. Steinmeier, to Mongolia, and exchanged detailed proposals on expanding and deepening cooperation in all sectors. Furthermore, they discussed maintaining the tradition of cooperation within the framework of the UN and international organizations and exchanged views on some issues of international relations. The political consultative meeting was led by G. Battungalag, Director of the Department of Europe and Africa from the Mongolian side, and Martin Tummel, Deputy Director of the Asia and Pacific Department of the German Federal Foreign Office, according to the Ministry of Foreign Affairs.

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Indian Ambassador Discusses Coal Transportation with UBTZ Management

Published: 2024-11-19 | Translated from: ikon.mn

India is emphasizing having multiple sources for importing coking coal to meet its needs. In this regard, the Government of India is particularly interested in importing coking coal from Mongolia. Some of India's leading steel industries are already importing Mongolian coking coal on a trial basis, and the Indian government has announced that they will soon develop logistics solutions for importing coal from landlocked Mongolia. To achieve this, Mr. Atul Malkhari Gotsurve, the Ambassador Extraordinary and Plenipotentiary of India to Mongolia, met with Mr. O.A. Kazakov, the First Deputy Director of UBTZ, to discuss the transportation of coal over UBTZ's infrastructure. Initially, India is considering the transportation of 5 million tons of coking coal annually through the Far East. The meeting was attended by Mr. M.V. Vasiliev, the Trade Representative of the Russian Federation to Mongolia, along with relevant officials from UBTZ. Source: "UBTZ" LLC Warning: Media outlets (Television, Radio, Social, and Web pages) using our information in any form, whether in full or in part, must credit the source (ikon.mn).

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India Explores Coal Transportation Over UBTZ Infrastructure

Published: 2024-11-19 | Translated from: news.mn

India is studying the logistics of transporting coal over the infrastructure of the Trans-Mongolian Railway (UBTZ) as it emphasizes having multiple sources for its coking coal needs. The Government of India has shown a strong interest in importing coking coal from Mongolia. Some leading steel companies in India are conducting trial imports of Mongolian coking coal. Furthermore, the Indian government has announced plans to develop logistics solutions in the near future to import coal from landlocked Mongolia. To further this aim, the Ambassador Extraordinary and Plenipotentiary of India to Mongolia, Mr. Atul Malhari Gotsurve, met with the First Deputy Director General of UBTZ, Mr. O.A. Kazakov, to discuss coal transport over the UBTZ's infrastructure. Initially, India is examining the prospect of transporting 5 million tons of coking coal annually via the Far East. The meeting was also attended by the trade representative of Russia to Mongolia, M.V. Vasilyev, along with other relevant officials from UBTZ. Source: "UBTZ" LLC

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Infrastructure

Risk of being called to arbitration if withdrawing from border railway connection

Published: 2024-11-19 | Translated from: news.mn

The Democratic Party group in the State Great Khural and the Mongolian People's Party group in the State Great Khural received a briefing on the Gashuunsukhait-Gantsmod border railway connection project. During his visit to China, Prime Minister L. Oyun-Erdene signed an agreement between the Governments of Mongolia and China to jointly build a cross-border railway bridge at Gashuunsukhait-Gantsmod. The implementation of the Gashuunsukhait-Gantsmod border railway project would allow for the execution of the Hangi-Mandal, Shiveekhuren-Sekhe, Bichigt-Zuun Khatavch railway projects and others, while increasing Mongolia's coal exports to 120 million tons. Mongolia expressed interest in implementing this project with China over a decade ago, leading to representatives from China's state-owned "China Energy" company coming to Mongolia in 2014 to sign a financing contract, and in 2015 deploying funds and building the railway. However, Mongolia withdrew from the contract, and years later, despite constructing a railway, it was misaligned with the Chinese side's railway. While China constructed with a narrow gauge, Mongolia built with a broad gauge. As a result, Mongolia's failure to fulfill its contractual obligations and reversal of decisions has led "China Energy" to claim lost opportunities worth 2.7 billion yuan. During the Democratic Party group's meeting in the State Great Khural, Prime Minister L. Oyun-Erdene and Minister of Industry and Mineral Resources Ts. Tuvaan explained that China's state-owned "China Energy" stated in a letter that "If this project can be resolved from the current deadlock, we will not seek lost opportunities through international arbitration." According to the Prime Minister, representatives of "China Energy" came to Mongolia to sign a financing contract. In 2015, they implemented the funds and fulfilled their obligations on the Gantsmod side. However, a dispute arose on Mongolia's side. Hence, "China Energy" has indicated that our investment since 2014 is now a loss due to Mongolia's domestic political issues. The agreement was made during a meeting between the two countries' heads of state. Initially, China Energy was part of the agreement, but at Mongolia's request, "Chalco" was brought in. It was communicated that the biggest partner for Mongolia is "China Energy," which owns railways. However, by concluding a contract with "Chalco," Mongolia has violated the agreement's fairness. This concern is raised every time a meeting takes place, emphasizing that if Mongolia fails to fulfill its contractual obligations, China's state-owned companies are expected to resolve issues through negotiations due to the importance of maintaining good neighborly and cooperative relations. There was also a discussion on international norms and standards, where it was pointed out that laws cannot be applied retroactively. Changing terms of agreement shifts responsibility back to the agreeing party. After the agreement was signed, and alterations were made, conflicts arose with the Constitutional Court, regarded as internal issues of Mongolia. Prime Minister L. Oyun-Erdene further explained that from Mongolia's perspective at the time, transitioning 49% of Tavantolgoi to "China Energy" would have resulted in significantly greater losses than prices paid by "Chalco," illustrating its clear significance. Compromises were made, and a position was reached to connect both sides' railways, suggesting that the political struggle on Mongolia’s part was not unjust. We must resolve domestic and international issues by uniting rather than proposing multiple perspectives that lead to deadlock. In summary, if Mongolia reneges on its recent negotiations, "China Energy" may resort to international arbitration, posing a risk. The Gashuunsukhait-Gantsmod border railway connection's cost is estimated at 976 billion MNT or 280 million USD. Mongolia is responsible for the internal border costs and will make payments in cash. Despite launching the 233 km railway from Tavantolgoi to Gashuunsukhait with a capacity to transport up to 50 million tons of cargo in 2022, the misalignment in the border connection has caused coal to be transferred onto trucks for border crossing, increasing costs and difficulties. D. Bayasgalan, Chairman of the Board of Directors of "Bold International" Group, which carried out the railway work, earlier expressed views on the misalignment of the railway. He stated that the railway from Gashuunsukhait stopped 3 km before the border of Mongolia. When the project began, Mongolia had not yet finalized the border crossing point with China. Initially, the Chinese seemed skeptical that Mongolia would build the railway, expecting that it might not be accomplished. When the railway began construction in late 2021 and the Gashuunsukhait station began development, both sides started discussions on the exact connection points. China proposed connecting through point 703, their border pillar. There was simply no other option. Visiting the area revealed a scenario where the railway from China reached Mongolia's border and stood still, indicating no other connection method. Misconceptions existed, suggesting engineers made mistakes or the Chinese had intentionally elevated their railway, resulting in level differences, which is not the case. Gantsmod city is at a higher elevation. The railway traverses a mountain and becomes a slope when entering the Mongolian border. This is not an artificial level difference; building a bridge to connect to the railway is inevitable. This isn't someone's error or contrivance. The final connection point was agreed upon with the Chinese government and has been incorporated into our agreements. Completing the Gashuunsukhait-Gantsmod border railway connection and putting it into operation is crucial for Mongolia to export its coal. The Mongolian People's Party group, Democratic Party group, and People's Party group in the State Great Khural are in favor of implementing the project.

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Inspection of Oil Refinery Project and "Tavantolgoi Fuel" Operations

Published: 2024-11-19 | Translated from: gogo.mn

The Industrial Policy Standing Committee of the State Great Khural held a meeting during which four issues were discussed and resolved. Under Resolution No. 01 of 2024 by the Standing Committee, a working group was established to inspect the construction activities of the "Oil Refinery Construction Project in Mongolia," to provide relevant recommendations and conclusions, and to draft a decision project. The project associated with the resolution aims to approve the directive of the working group's activities, tasked with inspecting the construction of the "Oil Refinery Construction Project," under Resolution No. 01 of November 13, 2024, by the Industrial Policy Standing Committee. The directive must be accompanied by a report on the implementation to be presented to the Standing Committee during the spring session of 2025. By Resolution No. 02 of 2024, a working group was established to inspect the production and technological activities of "Tavantolgoi Fuel" LLC, conduct control inspections, provide relevant recommendations and conclusions, and draft a decision project. Therefore, the meeting discussed approving the directive of the working group's activities. At the end of the meeting, a proposal to establish a working group to conduct control inspections of "Erdenes Tavantolgoi" JSC's coal processing plant was discussed. In connection with the resolution project, members L.Munkhbayasgalan, P.Ganzorig, and B.Tulga proposed to be included in the working group, while member D.Enkhtuvshin requested to remove member J.Zoljargal and suggested adding member G.Ochirbat instead. Member D.Batbayar suggested that the scope of the working group's inspection activities should not be limited solely to the "Erdenes Tavantolgoi" JSC's coal processing plant but should also encompass all activities of the company, including coal extraction, export, stock exchange sales, and transportation. The chair of the Standing Committee, S.Ganbaatar, agreed with this proposal. Therefore, 71.4% of the members present supported the resolution's draft to establish a working group to inspect the operations of the "Erdenes Tavantolgoi" JSC's coal processing plant. The working group will be led by member S.Ganbaatar and include members M.Badamsuren, D.Batbayar, P.Ganzorig, Kh.Jangabyl, G.Luvsanjamts, L.Munkhbayasgalan, P.Munkhtulga, G.Ochirbat, B.Tulga, B.Uyangaa, D.Enkhtuvshin, and M.Enkhtsetseg, according to the State Great Khural’s Press and Communication Office.

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A task force to be established for inspection of "Erdenes Tavan Tolgoi" JSC's coal enrichment plant operations

Published: 2024-11-19 | Translated from: isee.mn

The Standing Committee on Industrialization Policy of the Parliament will hold a meeting today to discuss four issues. Notably, it will consider and approve the draft resolution to establish a task force responsible for inspecting the operations of the coal enrichment plant of "Erdenes Tavan Tolgoi" JSC. In other words, a task force will be established to inspect the operations of "Admineral" LLC. To recall, due to issues such as construction work being carried out without a plan and assembly work being done without a construction commencement permit, the operations of 18 structures of the "Erdenes Tavan Tolgoi" enrichment plant and five buildings of the Borteeg coal processing plant were halted.

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Bidding for a Plant to Generate Energy by Incinerating Waste to be Announced Next Month

Published: 2024-11-19 | Translated from: isee.mn

The Ulaanbaatar City Mayor's Office plans to gradually implement projects to build sludge drying and incineration plants from 2024 to 2028 to improve engineering infrastructure. Although the work at the central wastewater treatment facility is complete, it remains unusable due to the absence of a sewage pipeline and a sludge drying plant. During a presentation on the development plans for the coming years within the "20-Minute City" framework, Ulaanbaatar City Mayor Kh. Nyambaatar remarked, "Our country currently dries sludge naturally on-site and buries it. In other countries, this sludge is incinerated in closed kilns to generate energy and gas, with the remainder used as building materials. Therefore, it has been decided to announce a public-private partnership tender for the construction of sludge drying and incineration plants as an initial step." Furthermore, the second deputy mayor of the city, A. Amartuvshin, has been tasked with organizing a tender by December for plants that will incinerate waste to generate energy at the central waste disposal sites of Tsagaan Davaa and Moringiin Davaa. Once these plants are operational, plans to shut down centralized waste disposal sites and improve waste collection management are set to progress in stages.

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B. Dulgüü: Due to Traffic Congestion, Buses Cannot Always Operate According to the Timetable and Often Get Bunched Up

Published: 2024-11-19 | Translated from: ikon.mn

Complaints related to public transportation services are being received 24 hours on the Facebook page of the Public Transport Policy Department (PTPD) and through the phone number 7004-4040. A large portion of last week's complaints received by the department were regarding "Not adhering to the scheduled timetable." B. Dulgüü, the head of the Passenger Transport Division of the PTPD, explained the issue. He stated, "The conditions currently do not allow for full operations of public transport services as planned. This is due to traffic congestion, which causes public buses traveling in a particular direction to bunch up on one side, preventing them from serving people according to the scheduled timetable." Citizens have suggested organizing short loops for the long-distance bus traveling the Tavan Shariin-Ofitser route through the city center. This route's buses encounter traffic jams at the central square and the crossroad of the Teachers' Institute, causing delays for passengers traveling from east to west across the city. Warning: Media organizations (TV, Radio, Social Media, and Websites) must cite the source (ikon.mn) when using our information in any form, whether in full or partially. Please take note!

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Tender for Two Waste-to-Energy Plants to Be Announced Next Month

Published: 2024-11-19 | Translated from: montsame.mn

The Ulaanbaatar City Municipality plans to implement phased projects to improve the city's engineering infrastructure from 2024 to 2028, including the construction of sludge drying and incineration plants, as well as waste-to-energy plants. Although the work on the central wastewater treatment plant has been completed, it remains inoperative because the sewage transmission line and sludge drying plant have not been built. Therefore, the construction of new sludge drying and incineration plants is necessary. The Mayor of Ulaanbaatar and Governor of the Capital City, Kh. Nyambaatar, outlined these infrastructure projects as part of the "20-Minute City" plan, stating, "Currently, we dry and bury sludge naturally in fields. Other countries burn such sludge in closed incinerators to produce energy and gas, using the residue as building materials. Therefore, a tender will be announced for the construction of a sludge drying and incineration plant in partnership with the private sector." Additionally, Ulaanbaatar's Deputy Mayor, A. Amartuvshin, has been assigned the task of announcing a tender by December for the construction of waste-to-energy plants at the centralized waste collection sites in Tsagaan Davaa and Moringiin Davaa. The plan is to implement these projects step by step, eventually closing the centralized waste collection sites and improving waste collection management.

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Work on the Central Wastewater Treatment Plant is complete, but the sludge incineration plant has not been built

Published: 2024-11-19 | Translated from: ikon.mn

In Ulaanbaatar, from 2024 to 2028, there are plans to implement projects in stages to establish a sludge drying and incineration plant and produce energy from waste incineration. As of today, although the work on the Central Wastewater Treatment Plant is complete, the facility cannot be put into operation due to the unfinished construction of the sewage pipelines and the sludge drying plant. Consequently, there is no option but to construct a new sludge drying and incineration plant. Regarding this, the city's mayor, H. Nyambaatar, stated, "Currently, our country is drying and burying the sludge naturally in the fields. However, other countries incinerate it in enclosed facilities to derive energy and gas, with the remaining materials being used as construction materials. Therefore, a tender will be announced for the construction of a sludge drying and incineration plant under the public-private partnership framework in the first phase." The construction of the sludge drying and incineration plant is budgeted at 241.4 billion MNT and is expected to be completed in three years. By deodorizing, drying, and incinerating the sludge, it is anticipated that pollution of the air, soil, and water will be reduced. The "Keumkang-ThreeENC" consortium from South Korea has provided the feasibility study for the sludge processing plant to the leadership of Ulaanbaatar, handing it over in March of this year. The South Korean group's alliance contributed 90 million won, and the "Keumkang-Three ENC" consortium contributed 210 million won to the feasibility study, amounting to more than 700 million MNT. Furthermore, a tender to establish a waste incineration plant to produce energy at the centralized waste sites of Tsagaan Davaa and Moringiin Davaa is scheduled to be announced by December. Once these facilities are operational, the centralized waste sites will be closed. Source: Public Relations Department, Mayor’s Office

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A working group was established to check the operations of "Erdenes Tavantolgoi" JSC

Published: 2024-11-19 | Translated from: news.mn

The Industrial Policy Standing Committee of the State Great Khural discussed and resolved four issues during its recent session. At the start of the session, the draft resolution of the standing committee on "Amendment to the resolution" was discussed. By the first resolution of 2024, the standing committee had established a working group to inspect and study the construction work of the "Mongolian Oil Refinery Construction Project," to make relevant recommendations, conclusions, and to develop a draft decision. Member of the State Great Khural S. Lundeg submitted an official request to join the working group, which was introduced by Standing Committee Chairman S. Ganbaatar. A vote was held on the proposal to "approve the draft resolution on changing the composition of the working group," which was supported by 66.7 percent of the members present at the session. Thus, member of the State Great Khural S. Lundeg joined the working group. Next, the draft resolution of the standing committee on "Approval of the working group’s operational guidelines" was discussed. The draft resolution provided for the approval of the operational guidelines of the working group established by the resolution of the Industrial Policy Standing Committee of the State Great Khural dated 13th November 2024, which was tasked with inspecting, studying, and developing a draft decision on the construction project of the "Mongolian Oil Refinery." It was instructed that the working group leader submits the fulfillment to the standing committee during the spring regular session of 2025. There were no members who asked questions or spoke on the matter. Therefore, the "Approval of the working group's operational guidelines" was supported by 76.9 percent of the members present at the session. Afterwards, the draft resolution of the standing committee on "Approval of the working group's operational guidelines" was discussed again. The February 2024 resolution of the standing committee established a working group to inspect, study, monitor, make appropriate recommendations, conclusions, and develop a draft decision on the production and technological operations of "Tavantolgoi Fuel" LLC. Thus, the issue of approving the operational guidelines of the working group was addressed. As there were no members asking questions or giving speeches regarding the issue, 69.2 percent of the members present at the session supported the approval of the "Approval of the working group's operational guidelines" draft resolution. At the end of the session, the draft resolution of the standing committee on establishing a working group to inspect the operations of the coal enrichment plant of "Erdenes Tavantolgoi" JSC was discussed. In connection with the draft resolution, members L. Munkhbayasgalan, P. Ganzorig, and B. Tulga expressed a proposal to join the working group, while member D. Enkhtuvshin requested to remove member J. Zoljargal from the group and replace him with G. Ochirbat. Additionally, member D. Batbayar suggested that the scope of the working group's inspection should not be limited to the coal enrichment plant of "Erdenes Tavantolgoi" JSC, but should include all operations such as coal extraction, export, sales on the stock exchange, and transportation. Standing Committee Chairman S. Ganbaatar agreed with the proposal. The draft resolution to establish a working group to inspect the operations of the coal enrichment plant of "Erdenes Tavantolgoi" JSC was supported by 71.4 percent of the members present at the session. Thus, it was decided to form the working group under the leadership of State Great Khural member S. Ganbaatar and include members M. Badamsuren, D. Batbayar, P. Ganzorig, Kh. Jangabyl, G. Luvsanjamts, L. Munkhbayasgalan, P. Munkhtulga, G. Ochirbat, B. Tulga, B. Uyanga, D. Enkhtuvshin, and M. Enkhtsetseg, as reported by the Press Office of the State Great Khural.

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Fire at Booroljuut Power Plant Delays Operations

Published: 2024-11-19 | Translated from: unuudur.mn

The Booroljuut power plant was inaugurated with much fanfare just before the regular local elections. However, just over a month after its opening, an accident occurred, leading to a delay in the power plant's ability to supply electricity to the central region's power system, as reported by officials from the plant. Specifically, a fire broke out around 05:00 on Sunday in section C6 of the coal conveying facility. Investigations are underway to determine the cause of the fire. "The first phase of the 600 MW Booroljuut power plant, with a capacity of 150 MW, began operation. Since then, technological trials and adjustments for full-capacity operation have been completed. Unfortunately, we apologize for the delay in supplying electricity to the central region's power system due to the accident. Engineers and technical staff from both the contracting and the general contractor 'Sinosteel' company are working to bring the plant back to normal operation as soon as possible," said a statement from the plant. The power plant is built on the Booroljuut brown coal deposit, located 120 km from Ulaanbaatar city in the Bayanjargalan district of Tuv province. The project cost 300 billion MNT from the city's bond funds. Ulaanbaatar city initially issued a 500 billion MNT bond in the domestic capital market, with more than half of it allocated to this plant. During the opening, the mayor of Ulaanbaatar, H. Nyambaatar, boasted, "The commissioning of Booroljuut's first block and battery station will enable the production of much-needed energy for Ulaanbaatar. We plan to commission the second block of the Booroljuut power plant in 2025." However, it seems likely that the first phase of the plant will not be operational by 2025.

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Society

MFA: Approximately Over 10,000 Mongolian Citizens Reside Illegally in the US

Published: 2024-11-19 | Translated from: ikon.mn

US President-elect Donald Trump has announced plans to deport immigrants illegally residing in the United States. Currently, there are official figures stating that 11 million illegal immigrants live in the US. Meanwhile, the Ministry of Foreign Affairs of Mongolia has provided information about the number of Mongolian citizens living in the US. According to the ministry, "According to information from our Diplomatic Missions in the United States, there are currently 43,510 Mongolians living there. However, there is an estimated number of over 10,000 citizens residing illegally. But this is an approximate figure, and it is not possible to determine the exact number of illegal residents." Warning: Media organizations (Television, Radio, Social and Web sites) must cite their source (ikon.mn) when using our information, in whole or in part, in any form.

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“Loans Secured Against Pensions are Leading Seniors to Poverty”

Published: 2024-11-19 | Translated from: news.mn

The standing committee on social policy of the State Great Khural is meeting today. The meeting reviewed information on the implementation of the Law on the Elderly. According to the information given by the Minister of Family, Labour, and Social Protection L. Enkh-Amgalan, as of 2023, there are 385,000 elderly persons in Mongolia. The number of elderly people is increasing every year, and there is a need to make changes to the social protection and health system for the elderly and to provide services that meet their needs. The Government's Action Plan for 2024-2028 stipulates that comprehensive family centers will provide developmental and social services to support the needs of the elderly. This includes training seniors in new skills and increasing their opportunities to work and earn income. Various caregiving services will be developed, and participation from the private sector and NGOs is encouraged. The law on the elderly states that pensions will be increased in line with inflation. However, the regulation that mandates businesses with 50 or more employees to employ seniors in at least two percent of their positions is not implemented. The provision to establish an Elderly Fund is also not implemented. In 2023, the government recalculated the pension index after nine years, including 481,000 citizens. The average pension was increased by 181,000 MNT, raising the average pension to 687,000 MNT, with approximately 200 billion MNT spent. From April 2024, with a 100,000 MNT increase in social insurance fund pensions and military pensions, the full pension reached 650,000 MNT, the pro-rata pension reached 540,000 MNT, and the average pension rose to 787,000 MNT. There are no elderly without pensions, which is considered an achievement in social protection in Asia. As of September 2024, 420,000 citizens receive pensions nationwide, with the average pension reaching 795,000 MNT. Pensions will be increased by six percent next year. The welfare fund provides a 375,000 MNT pension, and a 302,000 MNT caregiving allowance is given to seniors who require constant care. The expenditures of social welfare fund distributions must be carefully monitored to ensure they reach the intended recipients, as cases have emerged of groups receiving the 302,000 MNT allowance without actually caring for the elderly. This issue will be announced soon. A 2022 study by the Friedrich Ebert Foundation found that around 60 percent of seniors have taken out loans against their pensions. Typically, seniors use these pension-secured loans for their children’s expenses, such as buying property, cars, or paying educational loans. Such loans do not support seniors' livelihoods but rather violate their rights, burden them with debt, and leave them without pension payments, leading to poverty according to the study. Commercial banks offer pension-secured loans with 24-month terms. Therefore, to ensure social security for the elderly, a proposal has been submitted to the Mongolian central bank to reduce the term of pension-secured loans to 12 months. This serious issue requires government attention and regulation. Other countries do not have pension-secured loan services, which are referred to as "black loans." The Ministry's statement confirmed that the Law on the Elderly approved by the State Great Khural will come into effect from January 1, 2025.

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Published: 2024-11-19 | Translated from: gogo.mn

At today's meeting of the Standing Committee on Social Policy of the State Great Khural, the rules of the National Council for Social Insurance and the procedures for selecting its members, as well as the level of their incentives, were revised and adopted in line with the newly adopted concept of the Social Insurance Law package. According to Article 35.17 of the General Social Insurance Law, "a non-staff professional committee on risk management, actuarial calculations, investment, and auditing shall operate alongside the National Council to make decisions on developing the operations of the social insurance institution, generating and using fund income, and investing the free balance of the social insurance fund in financial instruments, based on necessary research and risk assessment." Similarly, Article 13.3 of the law states that "there shall be a non-staff public oversight council to monitor and provide expertise and methodology for activities involving the investment of free cash assets of the social insurance fund in financial instruments." Therefore, regulations and arrangements such as approving the rules and procedures for the structure and functioning of the professional committee and public oversight council, conducting member selection, determining the level of incentives, ensuring working conditions and leadership, and providing direction, were newly incorporated into the draft statute to implement this major legislative reform objective. The General Social Insurance Law stipulates the open selection process for members representing employers and insured persons in the National Council for Social Insurance. Therefore, a draft procedure for the open selection of representatives of employers and insured persons to the National Council was developed and approved.

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A Woman Trafficked 12 Years Ago is Repatriated

Published: 2024-11-19 | Translated from: gogo.mn

A woman, who became a victim of human trafficking in 2012, has been successfully repatriated to her homeland 12 years later through an operation organized by the Mongolian Police and INTERPOL. Victim N recounted: "In 2012, when I turned 16 and received my first passport, a woman came from the city and promised my parents that she would take me to Ulaanbaatar, where I could work, live well, and earn money. After arriving in Ulaanbaatar, I was issued a foreign passport. Then the woman took me, saying we were going to Ereen to bring goods back. On the train, all the passengers were foreigners, and I couldn't understand their language. When I asked the woman 'What are you doing?' she replied, 'You'll understand eventually.' After three days, when I asked 'When are we going back?', she kept saying 'In a few days' and eventually left me there, returning to Mongolia. She then came back with another girl under false pretenses of employment. I couldn't understand the language. I was sold for money with four zeros after the number 4. I had no idea I was being sold and exploited. The person never talked about it, and I couldn't understand what the others were saying. I didn't know how to escape, nor could I even find my direction. - What was it like when you returned home after 12 years?
- After 12 years, my mother had aged, and my father had passed away. Without any documents, I had no way to return. - How did you inform the police and get help?
- I contacted someone in the Xilin Gol League of Inner Mongolia and said, 'I've been sold to someone, I have no documents. What should I do? Please help.' In May 2024, with the assistance of the police from both countries, I returned to Mongolia in November. Thank you for bringing me back to my homeland." The Mongolian and Chinese police, in collaboration with the national center of INTERPOL, were able to bring the victim back to Mongolia. The responsible party is located in China, and a court hearing is scheduled to occur soon.

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Chinese Citizen Wanted for Investigation Apprehended and Deported

Published: 2024-11-19 | Translated from: gogo.mn

A Chinese citizen named Bao V, who was under investigation in Mongolia, was apprehended by the Immigration Agency and the General Police Department of Mongolia and deported. According to the law on the legal status of foreign citizens, his right to enter Mongolia again has been restricted. He had been repeatedly convicted of criminal offenses in his home country and had fled to Mongolia after committing another crime, where he obtained a residence permit using forged documents. Source: Immigration Agency

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Living Among Pit Toilets from an Aerial View of Ulaanbaatar

Published: 2024-11-19 | Translated from: ikon.mn

"Mongolia's First Toilet" NGO held a press conference with the theme "Toilets Are the Beginning of a Healthy Life" on the occasion of World Toilet Day. S. Önörsaikhan, director of the National Center for Public Health (NCPH), stated, "96% of people aged 15-69 in Mongolia live at risk of non-communicable diseases. These diseases include cancer, diabetes, cardiovascular, respiratory, and lung diseases. Although toilets are not directly related to these diseases, they create risks. By having safe sanitation facilities, approximately 842,000 deaths can be prevented annually. Instead of discussing the matter only after contracting intestinal infections or when children develop disorders and citizens are sick with infectious diseases, prevention is needed. Our people should not think it's okay to relieve themselves anywhere. Having safe, hygienic sanitation facilities improves people's quality of life and contributes to social well-being." Additionally, "To address the open defecation issue, a campaign was launched this year to improve toilets. Letters were sent to the 102 districts of the 17 provinces celebrating their 100th anniversary. Nine provinces, including Dornod, Uvs, Khuvsgul, Umnugovi, Uvurkhangai, Bulgan, Govi-Altai, Sukhbaatar, and Bayankhongor, with 61 districts and Darkhan-Uul province, showed that toilet issues can be resolved in their way according to local conditions. From a scaled map view, Ulaanbaatar appears to be surrounded by pit toilets. This situation affects both personal and public health and soil pollution, which can be seen on the sudalgaa.mn site with significant results," she mentioned. Warning: Media organizations (Television, Radio, Social and Web pages) are reminded that when using our information in any form, full or partial, they must necessarily cite their source (ikon.mn).

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EVENT: Strengthening Child Protection Systems - Joint Mongolia-Korea Conference

Published: 2024-11-19 | Translated from: ikon.mn

The "Strengthening Child Protection Systems" joint Mongolia-Korea conference is being organized for the second year at the Great Hall of the Holiday Inn Hotel at 9:00 AM. From 10:00 AM to 2:00 PM, sessions of working groups and standing committees within the State Great Hural will take place at the Government Palace. At 10:00 AM, an open house event for foreign trade companies and citizens will be held at the Material Impex Customs Control Zone of the Ulaanbaatar City General Customs Office. It will focus on "Self-declaration electronically" and paperless processing for passenger vehicles. At 10:30 AM, Minister of Digital Development, Innovation and Communications, Ts. Batarkhuu, will be working at the 11-11 Center. At 11:00 AM at the "National Information Center" of Zuunii Medee newspaper, the Eco Car Importers Association and the Auto Trade and Car Business Owners Association will hold a press conference opposing the restrictions on issuing state license plates in Ulaanbaatar. At 11:30 AM, the "Mongolian Toilet Pioneer" NGO will provide information on World Toilet Day with the theme: "A Toilet is the Beginning of a Healthy Life." Warning: Media organizations (TV, Radio, Social and Web pages) must cite the source (ikon.mn) when using parts or the entirety of our information in any form.

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Accountability for Domestic and Technology-Enabled Violence Seen as Ineffective, Warns NHRC

Published: 2024-11-19 | Translated from: ikon.mn

The Chairperson of the Subcommittee on Human Rights of the State Great Khural, S. Erdenebold, along with member K. Baasanjargal, paid a visit to the National Human Rights Commission (NHRC) to familiarize themselves with the activities of its members. The subcommittee had approved its action plan for 2024-2025 during its meeting on October 29, outlining 19 objectives, which this visit is organized to address. At the beginning of the meeting, Chairperson S. Erdenebold commented on the Speaker of the State Great Khural, D. Amarbayasgalan's initiative to create a people-centered, comprehensive legal environment that meets the requirements of rapid societal development, referred to as the "THREE FULFILLMENTS." This initiative has led to the adoption of a strategic plan for 2024-2028 by the State Great Khural. Additionally, he noted that the nation will celebrate the 100th anniversary of declaring the Republic and adopting the First Constitution, with planned commemorative events and ceremonies on November 26. The Subcommittee on Human Rights assumes responsibility for issues related to human rights and freedoms, amnesty, immigration, and citizenship policy. Consistent with these functions, it closely cooperates with the NHRC. Erdenebold highlighted the pressing human rights violations in Mongolia and the strategies to address them as the agenda of the meeting. During the meeting, Chairperson D. Sunjid of the NHRC provided an overview of the commission's mandate and activities. She highlighted overlapping functions between existing laws such as the Legal Status of Human Rights Defenders and the Protection of Personal Information, which require attention. The members of the commission, appointed through an open selection process in 2020, detailed their activities and public complaints received since then. The NHRC has presented 23 reports on the state of human rights in Mongolia, addressing the implementation of the 18 fundamental rights and freedoms of citizens as anchored in Article 16 of the Constitution. Issues such as the right to freely choose occupations, fair labor conditions, compensation, rest, and private enterprise have been discussed in every report. Other topics include the rights to inviolability and freedom in 17 reports, and the right to live in a healthy, safe environment in 19 reports. The commission emphasizes addressing the rights groups specified by the UNDP, such as those who are vulnerable due to their location or education level, and actively works on issues around suspects, defendants, and human rights defenders, with particular attention to linguistic minorities. D. Sunjid subsequently presented on the commission's structure, personnel, capacity building needs, strategic objectives, and international cooperations, fostering clarifications and exchanges among participants. Following this, each member of the commission presented their area of focus. Issues such as economic, social, and cultural rights were shared by D. Sunjid, while H. Munkhzul highlighted gender-based violence. Problems of employment rights violations like unemployment, poverty, living conditions, access and quality of education, and social services were noted, pointing to deepening social inequality. D. Sunjid called on the Government and lawmakers to address inequality at all levels of decision-making. Despite having a legal framework against gender-based violence such as domestic violence, human trafficking, and workplace harassment, Mongolia faces challenges in enforcement, with family-related crime rising yearly. H. Munkhzul criticized the ineffectiveness of penalties, the lack of budgetary provisions for law implementation, and proposed revising accountability mechanisms. She also addressed technology-driven gender-based violence, highlighting the new global challenge of cyberbullying, with increasing reports to child helplines for cyber harassment. The laws do not sufficiently cover emerging terminologies and forms of technology-enabled gender-based violence, leading to legal loopholes exploited by perpetrators. Member J. Khunan presented on children's rights, addressing their positive and necessary efforts. However, reports and public complaints about violations are rising, indicating underlying reasons like insufficient budget allocations for child protection. B. Enkhbold explained the commission's efforts toward upholding human rights in law enforcement and military sectors, implementing measures for fair trials and soldier's labor rights. Evaluations and training dynamics are consistent with human rights principles, and targeted at different training institutions and police departments. The commission has conducted significant research on non-regulatory interactions within the military and submitted findings in its periodic reports in 2007 and 2022. Systematic inspections aim to eradicate rights violations, with recommendations provided to authorities. In conclusion, members Erdenebold and Baasanjargal engaged commission members with questions and discussions, reported by the State Great Khural Press Office. (Note: The press and media must mention the source (ikon.mn) when using this information in any form such as Television, Radio, Social, and Web pages.)

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Environment

45% of Dangerous Waste Processors and Recyclers Comply with Disposal Regulations

Published: 2024-11-19 | Translated from: isee.mn

The Department of Environmental and Climate Control is conducting nationwide preventive inspections across 9 areas. As part of this initiative, preventive inspections were carried out on 286 facilities in Ulaanbaatar and provinces, which are engaged in the storage, use, recycling, and disposal of hazardous and toxic chemicals and waste. During the inspection, 339.4 tons, 6014 pieces, and 1700 liters of hazardous waste were transferred to licensed enterprises for disposal. The waste disposed included 22 tons of plastic containers, 5801 chemical containers, 103.4 tons of sacks, 213 gas cylinders, 2.44 tons of expired chemicals, 1700 liters of used oil and grease, 203 tons, 6.2 tons of metal barrels, and 2.4 tons of oil-soaked materials. Of the 111 entities responsible for generating and recycling hazardous waste that were checked, 45% dispose of waste in accordance with regulations, while the remaining percentage store it at the source. Additionally, among the enterprises handling hazardous chemicals, 175 facilities used 9874 types of chemicals, over 2 million liters, and 1973.4 tons. An assessment of these organizations revealed that 31% had a high risk level, 41% medium, and 28% low, with an average risk assessment of 38%. During the inspections, over 170 violations were detected, with 68 or 39% fully rectified. Appropriate measures were taken for enterprises with violations, and steps were implemented to prevent potential future risks.

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Innovation

STUDY: Government Agencies Unable to Assess Risk of Cyber Attacks

Published: 2024-11-19 | Translated from: gogo.mn

In 2021, assessments were conducted in 605 local government organizations according to the MNS ISO/IEC 27001 standard. 35% of the surveyed organizations have an information security policy, but the remaining institutions were deemed insufficient. 53% of the organizations believed they had resolved property management issues, but the remaining 47% still need improvements. 43% of the organizations have appropriately managed human resource issues, yet need to progress further in this area. Additionally, 23% expressed that information security regulations are at an inadequate level. A cybersecurity survey was also conducted among 67 government organizations in Mongolia. Notably, 32.35% of these organizations have a dedicated unit responsible for IT issues, and 29.41% have experienced a form of cyber attack. Furthermore, 50.33% do not follow any standards or frameworks to ensure information security, and 30% do not conduct any risk assessments. A notable statistic is that 70.59% of these organizations are unaware of their risk to cyber attacks, and 56.67% have not developed information security policies or documents. This study outlines the attitudes and readiness of government organizations concerning information security. The survey involved 5 organizations from the Mongolian Parliament, 28 government agencies, 14 central local agencies, and 14 other organizations. Going forward, a study to determine the current level of cybersecurity in Mongolia is being conducted by the Ministry of Digital Development, Innovation, and Communications in collaboration with Oxford University. The results of this study are expected at the end of 2024. Source: Ministry of Digital Development, Innovation, and Communications.

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Advanced Technology to Expedite Citizen Complaints Processing

Published: 2024-11-19 | Translated from: montsame.mn

The MIFRS Ministry is collaborating with the government and the 11-11 center to enhance feedback mechanisms on citizen complaints resolution. Despite the digitalization of state services, the issue persists where state agencies demand information from another state body or the citizen. To address this, a meeting with IT specialists who operate behind the state information exchange system HUR and the authentication system DAN will be organized on the 22nd of this month. For instance, when a citizen requests a reference, a notification saying "The government body is seeking information about you. Do you approve?" will be sent to their mobile. If the citizen consents, their information held by the state will be accessed, eliminating the need for the citizen to be physically present, as highlighted by the MIFRS Minister Ts. Baatarkhuu during his visit to the 11-11 center. The center plans to develop its system for collecting citizen feedback and bring it to unified standards with report preparation in focus, discuss connecting responsible officials' emails and phone numbers automatically, and consider using AI-based technology developed by the private sector. The 11-11 center head, G. Odgarav, noted that there are issues in processing reports of suggestions, complaints, requests, and petitions from citizens. The problem arises when new technologies are implemented but not developed every step of the way, leading to underutilization. They are pressing on collaborating system developer companies. "Lately, there have been numerous complaints related to healthcare institutions. Complaints about not being able to schedule doctor appointments online are increasing," explained B. Myagmarnairan, director of the "E-Mongolia Academy". "In reality, when hospitals are overwhelmed, they stop offering online appointments, which citizens don't understand. They say E-Mongolia isn't working." Processing information received at the 11-11 center and making decisions based on just numbers is challenging. The technological solution will be used to correctly pinpoint the cause. Initially, the aim is to classify applications, suggestions, complaints, and requests to swiftly deliver them to the relevant official. They intend to discuss pressing issues and achieve results. Although the center has positions for 10 operators, 8 are currently employed. They receive citizen feedback on state operations through phone calls, emails, kiosks, voice messages, Facebook, applications, and websites, as well as in-person visits. Statistics from the last 21 days show that out of 8042 contacts, 7500 were made by phone, and the remainder through other channels. Going forward, they plan to improve the handling of information received from citizens by leveraging advanced technology solutions for expedited processing.

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Minister Ts. Baatarkhuu Addresses the Use of AI-Based Solutions at the 11-11 Center

Published: 2024-11-19 | Translated from: isee.mn

The Minister of Digital Development, Innovation, and Communication, Ts. Baatarkhuu, visited the 11-11 center today, which is the government’s public interaction hub. During his visit, he discussed the potential of using artificial intelligence-based technology to resolve citizen complaints and suggestions. Minister Ts. Baatarkhuu stated, "We exchanged ideas today about resolving complaints not separately through each ministry or municipality but through a centralized digital solution. We are working with the government and the 11-11 center to improve the feedback system that informs citizens whether their complaints have been resolved. Even though government services have become digital, some information is still requested from citizens or other government agencies, which we aim to resolve. On November 22, we plan to meet with IT specialists working behind the government's information exchange HUR system and identification DUN system to address these issues. For example, when a citizen requests information, they will receive a notification saying, 'A state agency is requesting your information. Do you approve?' If the citizen consents, they will proceed without needing the citizen to be present in person," he emphasized. Several issues were highlighted at the center. Specifically, there is a need to develop the system for recording citizen complaints and suggestions to integrate it into a unified standard, to improve report processing, and to automatically connect the relevant officials with email and phone information. The use of AI-based technologies developed by the private sector was also discussed. The head of the 11-11 center, G. Odgerel, stated, "There are challenges in processing the reports and requests from citizens. Even with new technologies, the systems developed are not being fully utilized because they are not continually updated. Therefore, we are exerting pressure on companies developing these systems to improve them." The head of the Digital Development Policy Implementation Coordination Department of the Ministry of Digital Development, Innovation and Communication, L. Bat-Ulzii, mentioned, "In collaboration with the World Bank, by 2025 under the 'Smart Governance 2' project, we are working to resolve the information received at the 11-11 center using AI-based technology, analyze it comprehensively, show why certain complaints arise, track the resolution process, and directly connect with responsible officials on a dashboard. If these conditions are met, the Prime Minister could view analyzed and prioritized data every morning and give directions to ministers accordingly." Meanwhile, the director of the E-Mongolia Academy, B. Myagmarnaran, noted, "Recently, there have been many complaints related to medical institutions. There is an outcry that people cannot book medical appointments online. In reality, when hospitals reach their capacity, they stop online appointments, which citizens fail to understand, leading to the belief that E-Mongolia is not working." The data received at the 11-11 center makes it difficult to make decisions based solely on numbers. To accurately identify the underlying causes, technological solutions are necessary. Initially, the focus is on categorizing requests, complaints, and suggestions and swiftly delivering them to the appropriate officials. The staff remains committed to tackling these challenges and achieving results. Although the center has 10 operator positions, only eight are currently staffed. In addition to phone, email, kiosks, voiced messages, Facebook, applications, and the website, citizens can also visit the center in person to submit their requests and complaints. According to a 21-day statistic, a total of 8042 citizens have contacted the center. Of these, 7500 were by phone, with the others using different channels to express their feedback. The Ministry of Digital Development, Innovation and Communication aims to process this incoming data from citizens swiftly and efficiently by leveraging advanced technology.

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FreshPack Platform Wins Best Tech Business at DPC 2024

Published: 2024-11-19 | Translated from: gogo.mn

The largest event for digital products, the DPC or "Digital Product Conference 2024," was successfully held for the fifth time, bringing together over 700 experts from the digital product industry for discussions and to select the best among them. In this year's category of "THE BEST TECH BUSINESS OF THE YEAR," the platform FreshPack has been awarded. This is because the infrastructure of Ulaanbaatar city is unable to meet the needs of its rapidly growing population, hindering business owners from fully utilizing their potential to increase their profits. Issues such as traffic congestion, parking, utility costs, attracting new customers, and logistical difficulties can be cited as examples. However, these problems faced by business owners have been solved through the technology of the FreshPack platform, which has the largest delivery infrastructure for electronic commerce in consumer goods and food. Within the platform, citizens of the capital city can receive the "Wholesale" section where they can get water and beverages at wholesale prices, have access to a fresh food market, and a home section featuring the world's best brands, which makes it a unique business model that hasn't been seen before in our digital product sector. These unique features and advantages helped FreshPack to win this year's BEST TECH BUSINESS award. Digital products are more accessible than physical products as they can be consumed directly from one's palm, and they have a direct impact on life. DPC selects the best in four categories: "BEST - Experience, Development, Business, Culture-Shaper," and this year it was organized with broader scope and greater importance than in previous years. FreshPack is the largest platform with the largest delivery infrastructure, encompassing consumer goods and food products all in one place.

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Health

Hospitals Deprived of Their Land and Surroundings

Published: 2024-11-19 | Translated from: unuudur.mn

In the capital city, where more than half of the population resides, there are only three specialized hospitals, 13 specialized hospitals, one emergency service, four district integrated hospitals, 10 health centers, and three maternity hospitals. Yet, our country seems pitiful as it cannot even improve the treatment, services, and environment of these few hospitals. Some hospital buildings have been plagued by mold and mildew from the start, no longer meeting basic hygiene standards, unable to install modern equipment, and operating in an environment where even the sign is not visible, let alone the landscaping. At this rate, it wouldn't be surprising if hospitals are squeezed out by surrounding buildings, shops, and entertainment centers around them one day. The outdoor environment of more than 30 health institutions, which citizens of the capital use daily, generally lacks conditions. More than half of the planned land area has been lost, and entry and exit points have been robbed, with some lacking even a playground for children or a sunbathing area for the elderly. For instance, the Mongolian National University attempted to demolish the fence of the National Center for Maternal and Child Health in broad daylight to seize the land. The land dispute between them is still unresolved. Similarly, the entrance and exits of the National Cancer Center have been blocked by private entities, putting doctors and patients in a difficult situation. The Third State Central Hospital has also lost its land to private entities, deteriorating its surroundings. Surrounding the hospital are private neurological, cardiovascular, spinal, and diagnostic medical facilities, such that even the sign is obscured. The First State Central Hospital faces the same issues with its entrance and exits becoming critical. The territory of the National Trauma and Orthopedic Research Center has been gradually encroached from the west, east, north, and south, with private hospitals and diagnostic centers "nesting" around it. While public hospitals suffer from poor equipment and are chronically low on reagents and diagnostic kits, private businesses thrive around them without any oversight, standards, or regulations. Despite barely being able to serve the capital's population with just over 30 state health institutions, there are 1,086 private clinics and bedded hospitals. Although the true picture is like this, government ministers and officials are distributing all the funds from the Health Insurance Fund to private entities under the guise of creating competition between public and private hospitals and raising the level of treatment and services to the same level. District integrated hospitals and health centers have almost no outdoors left. The entrance and exit of the Bayangol District Health Center, Children's and Women's Hospitals, have merged with the road, leaving no space for visitors to come by car, nor for parking. The "Tsambagarav" Health Center in Songinohairkhan district is also adjacent to the road, facing the same issues with entrance and exit. Chingeltei has similar woes, being next to the main road, making it difficult for visitors to embark, disembark, enter, or exit. No need to mention maternity hospitals—surrounded by "chaos," they've become something of a black market. Among the second-level hospitals, the oldest building unable to expand or modernize is Sukhbaatar District Health Center. This district comprises an area of 208 sq km with a population of 142,000. Yet, the hospital located in the territory of the 11th khoroo, Zuun Ail, lacks inpatient wards, needing to provide about 40,000 beds annually. An example of a hospital deprived of its land and outer environment, the center is now "hidden" behind construction materials markets and shops, making it difficult to find. Construction trades and services have surrounded the hospital and obscured its environment, complicating access. The hospital system in Ulaanbaatar designed around specialized fields is a remnant of Soviet-style models. Around 70% of third-level hospitals offer specialized care. In contrast, second-level hospitals restrict their services, operating under limited conditions, generating artificial load and delays at central hospitals due to stagnant environments. The Sukhbaatar District Health Center building, constructed in 1987, doesn't provide specialized care and lacks the infrastructure to accommodate modern medical equipment, as confirmed by its doctors. According to the Health Law, district hospitals should provide at least seven specialized treatments and services, but Sukhbaatar District's center has "fallen by the wayside" due to its poor environment. Our country has developed a scientific-based hospital system transitioning through the new era of health services 1921-1940, socialist health defense period 1941-1990, and progressive time from 1991 to present. However, over the years, focus has been put on the quality of services rather than the surrounding environment, with accessibility almost completely forgotten—state-owned hospitals in the capital attest to this. A hospital is not just about seeing patients and administering injections. It should provide comfort, health, and safety for the patients, their families, as well as the doctors and experts. The Constitution states that "Citizens of Mongolia have the right to live in a healthy and safe environment, to be protected from environmental pollution and natural imbalances." To achieve this, over 30 health-related legal acts are in place, with approximately 980 standards. Unfortunately, certain do not adhere to or implement these standards; hospital environment standards exemplify this. Second-level hospitals are legally obliged to operate in accordance with codes and guidelines such as Hospital Building Code BD 31-115-12, Unified Hospital Structure and Operation MNS 5095:2017, Central Hospital Structure and Operations Standard MNS 6330-1:2012, Hygienic Requirements for the Environment of Health Institutions MNS 6392:2013, and City and Town Planning, Building Codes, and Guidelines BNBd 30-01-04. It is the responsibility of government administrative agencies to enforce, implement, and monitor these standards. However, state agencies themselves have set a precedent of land theft from hospitals, with hospital leaders shamelessly selling land. Policies and objectives related to provincial and district hospital buildings should be included in state policies and national programs, but existing help structures and management do not meet constitutional citizen rights. The State policy includes plans for the design of an integrated hospital. The City Standards and Inspection Agency emphasized that hospitals face issues with parking, access, and exits in their environments. According to standards, hospitals should have at least three entrances and exits for vehicles such as emergency service, outpatient services, special services for doctors, and staff. Specifically, the General Requirements for the External Environment of Healthcare Organizations established in 2022 defines regulations on hospital planning, site location, master planning, and infrastructure construction regardless of the form of ownership in health facilities, covering environmental hygiene, safety, and comfort indicators like main entrances, steps, pedestrian paths, roadways, parking, landscaping, hospital fences, benches, shades, lighting, location markers, and waste management. Ulaanbaatar, as a sprawling metropolis with no fixed address and a population including consistent arrivals for treatment, temporary workers, intercity service operators, and other transitory groups, is home to nearly two million people. Sadly, the buildings of a few hospitals remain outdated, their services inadequate, their surroundings resembling a mere black market.

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Arts

TODAY: "Cultural Heritage and Creative Production" Conference to Take Place

Published: 2024-11-19 | Translated from: montsame.mn

Here is an overview of some events happening on Tuesday, November 19: 09:00 am: At the Novotel Hotel: A meeting and discussion on projects being implemented in 21 provinces for the benefit of children will be organized by UNICEF in collaboration with the Cabinet Secretariat of the Government. Contact: 9911-2652. 10:00 am: At the conference hall of the National Library: As part of the "Cultural Creative Month" initiative, a conference on "Cultural Heritage and Cultural Creative Production" will take place. Contact: 8898-3838, 9990-5352. 10:30 am: The Minister of Digital Development, Communications, and Innovation, Ts. Baatarkhuu, will work at the 11-11 Center for Public Communication. Contact: 9499-9598. At the ZMN Information Center (Contact: 9979-0206, 8019-0070): 11:00 am: The Association of Eco Car Importers and the Association of Auto Trade and Car Business Owners will hold a briefing to protest the restriction of issuing state registration numbers in the capital. 11:30 am: The "Mongolian Toilet Elders" NGO will give a presentation on the topic "Toilets are the Beginnings of Healthy Living" in honor of World Toilet Day.

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Today's Stories

Politics

Economy

Diplomacy

Infrastructure

Society

Environment

Innovation

Health

Arts

Politics

B. Baasandorj: The budget law was sent to the President's Office yesterday. The President will decide whether to veto it within five days.

D. Amarbayasgalan: It is important to cultivate parliamentary oversight as a cultural practice

B.Baasandorj: The Budget Law was sent to the Presidential Office yesterday. The President will decide within five days whether to veto it.

Economy

Moody's Agency Rates Mongolia's Credit Rating as "B2, Stable"

Sales in the Mining and Extraction Sector Reached 29 Trillion MNT in the First Ten Months of This Year

Moody's Upgraded Our Country's Credit Rating After Nine Years

Securing a $40 Million Fund for Green Finance and Support for SMEs

Moody's Agency Upgrades Development Bank's Rating to B2

Presented the Investment Environment

Golomt Bank Now Accepts Electronic Applications for Opening Import Letters of Credit

Should We Save or Sell Our Coal?

The Insurance Sector is on the Verge of Significant Growth

Moody's Agency Improves XacBank's Credit Rating

Moody's Upgrades Development Bank's Rating to B2

Government Purchases $77 Million of 2027 Maturing "Century" Bonds

The Development Bank's Rating Upgraded to B2

The Insurance Sector is on the Verge of Significant Growth

Dealers Threaten to Strike Unless Demands Are Met

Diplomacy

Prime Minister's Presentation on the Cross-Border Railway Agreement of Gashuunsukhait-Gantsmod Port

US Introduces 4 Red Lines in Relations with China

Political Consultative Meeting Between the Foreign Ministries of Mongolia and Germany

Indian Ambassador Discusses Coal Transportation with UBTZ Management

India Explores Coal Transportation Over UBTZ Infrastructure

Infrastructure

Risk of being called to arbitration if withdrawing from border railway connection

Inspection of Oil Refinery Project and "Tavantolgoi Fuel" Operations

A task force to be established for inspection of "Erdenes Tavan Tolgoi" JSC's coal enrichment plant operations

Bidding for a Plant to Generate Energy by Incinerating Waste to be Announced Next Month

B. Dulgüü: Due to Traffic Congestion, Buses Cannot Always Operate According to the Timetable and Often Get Bunched Up

Tender for Two Waste-to-Energy Plants to Be Announced Next Month

Work on the Central Wastewater Treatment Plant is complete, but the sludge incineration plant has not been built

A working group was established to check the operations of "Erdenes Tavantolgoi" JSC

Fire at Booroljuut Power Plant Delays Operations

Society

MFA: Approximately Over 10,000 Mongolian Citizens Reside Illegally in the US

“Loans Secured Against Pensions are Leading Seniors to Poverty”

The National Council for Social Insurance's Rules Have Been Revised and Adopted

A Woman Trafficked 12 Years Ago is Repatriated

Chinese Citizen Wanted for Investigation Apprehended and Deported

Living Among Pit Toilets from an Aerial View of Ulaanbaatar

EVENT: Strengthening Child Protection Systems - Joint Mongolia-Korea Conference

Accountability for Domestic and Technology-Enabled Violence Seen as Ineffective, Warns NHRC

Environment

45% of Dangerous Waste Processors and Recyclers Comply with Disposal Regulations

Innovation

STUDY: Government Agencies Unable to Assess Risk of Cyber Attacks

Advanced Technology to Expedite Citizen Complaints Processing

Minister Ts. Baatarkhuu Addresses the Use of AI-Based Solutions at the 11-11 Center

FreshPack Platform Wins Best Tech Business at DPC 2024

Health

Hospitals Deprived of Their Land and Surroundings

Arts

TODAY: "Cultural Heritage and Creative Production" Conference to Take Place

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