Oct 9, 2024 67 min read Daily News Summaries

Mongolia News Summary for October 09, 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

Report: The Discarded 100,000 Electoral "Right" from the Ballot Box

Published: 2024-10-08 | Translated from: itoim.mn

The people of Mongolia exercise their right to govern once every four years, or 1095 days. Thus, the opportunity for citizens to assume the reins of power and choose their future is the lifeblood of a democratic society. Each citizen is obliged to personally participate in national elections and exercise their right to vote and be elected as granted by the Constitution. According to the Law on the Elections of the State Great Khural of Mongolia, “A citizen of Mongolia with suffrage has the right to vote without discrimination based on origin, ethnicity, language, skin color, gender, social status, property, occupation, position, religion, belief, or education,” indicating that 2,238,360 citizens should exercise this extraordinary right that occurs only once every four years. However, due to their employment specifics, life demands, and the ineffective policies of government, thousands of citizens are unable to send representatives and remain outside the voting process. The peak activity period for the mining and freight transport sectors, which starts in the warmer season coinciding with the election, results in more than 100,000 citizens' voting rights being forgotten. According to the Ministry of Mining and Heavy Industry, 40,500 people work in the mining, freight, and mineral sectors across 295 business entities. The Ministry of Road and Transport Development reports that 23,900 drivers work in the freight sector across 899 business entities, making a total of 64,400 voters from 1,194 business entities. Adding civil servants working at the border away from their place of residence, citizens registered in one region but living elsewhere, and students would surely bring the number above a hundred thousand. To put it metaphorically, 100,000 voters represent an entire electoral district, similar to the number of voters from 10-20 soums being discarded. Therefore, to ensure voting rights for those working in the mining sector, the government must establish specific policies, solutions, and mechanisms so that in future elections the same issue of 100,000 citizens' voting rights being raised and unaddressed doesn't persist. There is a regulation holding mining companies or employers legally accountable if they fail to ensure their employees’ voting rights. To find out how the Central Election Committee pays attention to this issue, we asked N. Bulgamaa, the director of the general department of the Election Commission. He said, “According to Article 66.16 of the Law on the Parliamentary Elections of Mongolia, the management of the organization where the voter works on election day has an obligation to allow the voter to take time off to vote.” The General Election Committee has organized several meetings for organizations to exercise citizens' voting rights within the framework of social responsibility by implementing the law, being exemplary, and supporting this resolution. Participants have widely suggested ensuring transport and parking availability besides not working on the voting day. Article 17.1.31 of the Violation Law of Mongolia states, “Anyone who fails to ensure voting opportunities for working voters on election day shall be fined an amount equal to 10,000 units for individuals and an amount equal to 100,000 units for legal entities.” Based on this, if employers do not enable their employees to vote, they can be fined 10 million MNT for individuals and 100 million MNT for legal entities. Citizens who are unable to exercise their voting rights can file a complaint with the police, and fines will be imposed based on the number of complaints. The Election Commission's working group in cooperation with journalists and researchers' “Electoral Education” club visited Umnugovi and Dundgovi provinces, where major mining companies operate, to see how the voting right of 100,000 people lost from the mining sector is ensured. People in the mining and freight transport sectors face several reasons making it impossible to exercise their voting rights. Firstly, due to the 24/7 operation of mines, it's hard to release workers to participate. Thus, only those coming from local areas are usually given the opportunity. Secondly, it's directly related to salaries and wages of the workers. Even though employers say they can allow 3-4 days off to cast votes, because it’s without pay, many workers prefer not to vote. Mining and transport companies typically operate on a 14-day shift cycle, meaning workers complete a full month's work in two weeks and receive their pay. Taking 3-5 days leave to vote means losing 1-2 million MNT in wages, leading many to avoid voting. Under the obligation to provide at least one day or eight hours leave to vote, this time is sufficient for those from nearby soums and local areas, but not for people coming from Ulaanbaatar and other provinces. This situation shows that economic constraints tie down their opportunities, as well as being less active in voting. On the other hand, because the legal options are limited, workers don’t resent or file complaints when informed about all available opportunities. Oyu Tolgoi: CAN ALLOW A DAY'S LEAVE IF NOT MISSING SALARY People working in Khanbogd, Manlai, and Bayan-Ovoo soums are given up to five hours off, and those from Ulaanbaatar and other provinces receive one day or eight hours of paid leave. Oyu Tolgoi company employs over 20,000 people, with over 10,000 working per shift. 97% of these workers are Mongolian and shift every 14 days. According to information given by the company, the provincial election committee sends official letters concerning local elections about ensuring employees’ voting rights. They usually notify workers with emails and internal networks to participate actively well before the election. With this information, arrangements are made. For residents working in Khanbogd, Manlai, Bayan-Ovoo soums, up to five hours per day is allowed, or one day or eight hours for people from Ulaanbaatar and other regions. These procedures have applied in previous election years. In addition to transport and flight details, buses are arranged for workers from Khanbogd, Manlai, Bayan-Ovoo soums based on the number of employees. Regarding the parliamentary elections, “If you submit your questions in writing, we can respond. Generally, if employees wish to take unpaid leave and vote, there's no problem, everyone can go. We can ensure every person is accommodated if they desire to vote. But workers tend to be indifferent, not wanting salary deductions. Individuals can make decisions.” ETT: PROVIDED 4 HOURS’ PAID LEAVE ON ELECTION DAY On parliamentary election day, citizens working from Tsogttsetsii and adjacent 1-2 soums were provided opportunities to vote, and transport was arranged. The “Erdenet Tavantolgoi” company's mine operates 24/7, employing over 5,400 people, with contracts with over 10 business entities. 60% of workers come from Ulaanbaatar, and 40% from provinces. For parliamentary elections, the director of "Erdenet Tavantolgoi" division, L. Dorjsuren, said, “People working from Tsogttsetsii and related nearby soums were given a chance to vote on election day. Work was pre-arranged with transport. We prepared an announcement about pre-organized voting to employees, who were informed it’s open to vote beforehand. There are about 90 from Dalanzadgad, Tsogttsetsii, Khongor. During the parliamentary elections, two 45-seat buses were deployed. On election day, four hours’ leave was allowed. However, employees had an opportunity to transfer to local areas months in advance to vote. Information about the opportunity to participate in elections through transfers was provided 3-4 months beforehand. Employees had to submit requests for transfer, leave, or calling someone in the same position a week before. Decisions about leave approval are relatively open and promptly managed. With clear information about who is scheduled to work during election periods, organizing in advance is entirely possible. Nevertheless, the requirement to vote only in one's registered location is tricky. People abroad, for instance, vote some days early. Similar pre-voting or using portable boxes, electronic voting from current residing places could be effective solutions.

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Published: 2024-10-08 | Translated from: itoim.mn

Member of the Parliament Kh. Bolormaa gave information on current issues. It is unfortunate that candidates and leaders of the opposition in the local elections are spreading misleading information about the district's budget. The 2024 budget for the district is 564 billion tugriks. This is being reported as if Sukhbaatar district alone has spent this money. In fact, 71.3% of the 564 billion, or specifically 402.2 billion, is concentrated in Ulaanbaatar city. Therefore, each year, 70-72% of the local budget is centered in Ulaanbaatar. The remaining less than 30% is used for operational expenses. For the first time in the country, Sukhbaatar district started building a General Hospital with its local budget in 2018. As of yesterday, the hospital has officially started its operations. The Sukhbaatar district general hospital has been privatized for over 10 years. In other words, the current hospital has been subject to management privatization. In 2018, we exceeded our revenue collection by 25 billion, and with the surplus revenue, we decided to undertake a major construction project in the capital, resulting in the Selbe General Hospital. Selbe General Hospital will provide health services to the district residents in 7 main directions and has 200 beds for in-patient treatment. It also features a two-block parking lot for 100 vehicles, green areas, and recreational spaces fully equipped for comfort. Out of the total 200 beds for in-patient treatment, 40 beds are for pediatric services, of which 4 are pediatric intensive care beds, with 6 out of 160 adult beds planned for emergency reception isolation use, and 20 beds dedicated to adult intensive care. Essential 184 types of 2672 pieces of equipment, computer technology, medical drugs, and tools have been provided using the district budget to ensure readiness for medical services. Additionally, in the framework of increasing green spaces included in the Sukhbaatar District Governor's 2020-2024 program, in May, we commenced construction of a Park-Sports Complex with bike paths and sports fields at the 13th subdistrict for citizens to enjoy their leisure time. Land clearance has been done across 3 hectares using local budget funds, and construction, offering more than 140,000 district residents the opportunity to engage in public fitness and host major sports competitions, is about 30% complete, with usage expected to start in December 2025.

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Local Council Election Voting Will Be Held From 7:00 to 20:00

Published: 2024-10-08 | Translated from: montsame.mn

Ulaanbaatar. Compared to the 2024 regular elections for the State Great Khural, the local elections for aimag, capital city, soum, and district councils involve shorter voting hours by 2 hours. Therefore, the General Election Commission warns that voters should arrive early at the polling stations. The voting for the 2024 State Great Khural elections was organized on June 28th from 07:00 to 22:00. The voting for local council elections will start at 07:00 and end at 20:00 on the 11th of this month. The mobile sealed ballot box voting will be organized the day before the polling day, from 09:00 to 20:00. Citizens' votes will be collected using mobile boxes based on their request, medical certificate, and the relevant organizational certification.

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The National Coalition Begins to Fill the Space of an Opposition Force

Published: 2024-10-08 | Translated from: news.mn

Third Force Emergence in Mongolian Politics In the political arena of Mongolia, it is rare for parties to consistently collaborate in alliances. The first instance was in the 1992 elections when the Mongolian Democratic Party, Mongolian National Progressive Party, and Green Party formed an alliance and won four seats. In subsequent elections, parties known for their democratic ideals formed the "Democratic Union" coalition, winning 50 constituencies in parliament, achieving success and taking over the government. However, due to prioritizing factions, groups, and personal interests, they faced internal conflicts leading to a governmental crisis. Since then, aside from the "Justice Coalition" between the Mongolian National Democratic Party and the Mongolian People's Revolutionary Party, small parties and alliances that participated in the elections did not manage to gain more than one seat in parliament. If the current situation is assessed honestly, the public entrusted the party HUN with the role of leading the third force, giving them enough votes to establish a group in parliament. Unfortunately, they became caught in the circle of vested interests entrenched over many years, trading public choice for ministerial and leadership positions, and have since become silent. Thus, it seems the National Coalition is not only filling the third force space but also standing firmly in the role of the opposition, realizing its duties. The Opposition's Bold Moves The National Coalition is showing that it won’t just bear the name of fulfilling the role of the opposition listlessly. They have begun to expose the ruling party's legal theft and budgetary fraud, demonstrating an ambitious and outspoken stance. By whispering secretly under the same "blanket", and with the aim of hiding their theft and conspiracy, the MPP removed the Budget Expenditure Control Subcommittee from the hands of the opposition-carrying National Coalition, causing an "allergic" reaction from them. It is almost certain this will lead to a political boom by bringing grounds for submitting information to the Constitutional Court. In Mongolian parliamentary history, it has been a tradition for the party or coalition in the opposition position to control budget oversight, reining in the ruling party’s excess, making their fraud and theft public. Such balance of power and control is natural for creating balanced governance. However, this time the attempt to hide budget expenditure from the opposition has become a glaring political folly. The National Coalition has announced they are working with professional auditors to draft a conclusion on the 2025 budget, declaring their capability for strategic political maneuvers. They are also courageously opposing the clause inserted in the General Law on Social Insurance aimed at making the public pay for embezzled insurance funds, which serves as a stark warning to the ruling powers. Shaming an international aberration, where one has to pay social insurance for services received, is declared void, and the stoppage of such a blatant fraud will undoubtedly have public support. Therefore, the National Coalition's constant moves in favor of citizens, private businesses, and enterprises are set to have a positive outlook. Ongoing and Constructive Critique They have expressed their intention to base governmental decisions on recommendations and conclusions from professional experts, indicating a move away from hollow political populism. Small Parties Making Big Moves As local elections commence nationwide, a fierce competition to gain control over urban and district leaderships plays out in the political life. Particularly, the move regarding which party or coalition will govern the capital appears increasingly fierce. In contrast, with the NPP’s committee wagering ministerial and parliamentary roles for consolidation, their candidate is toiling towards retaining his mayoral seat by overstretching himself as others watch sharply—leading the Mongolian Democratic Party are figures criticized as ineffectual public figures, seen by the public as mere opportunists. Meanwhile, astonishment lies that they hold onto tasks meant for children's organizations instead. Seizing this moment, parliamentary-seated HUN, Green Party, and the National Coalition propose new, vision-aligned programs. Among them are many educated and promising young individuals. For the National Coalition, their capital city organization is led by a young man destined for political advancement. Munkh-Tamga's Tumur has already garnered attention among political circles through several political journeys. Leaders are keenly observing why the Coalition chose Tumur to lead the capital’s city council elections. Insights suggest that the move stems from the ambition to control or, alternatively, create strong opposition influence in the capital that encompasses more than half of Mongolia's population. Logical reasoning lies in that Tumur, with a legal education from Russia, specializes in fighting economic crimes, having investigated notorious coal theft, cryptocurrency scams, and money laundering, recovering over 40 billion MNT for the state's budget. Thus, deploying Tumur to guide a strong opposition at a time when the capital can autonomously manage its finances and oversee billions in uncontrolled budget allowances is strategic foresight. As such, the National Coalition’s maneuvers in the capital are both initial and significant. The next step involves policies that touch citizens closely. A notable program seeking to resonate with public concerns inclines toward legal reforms allowing for direct mayoral elections cultivated public interest. Rather than relinquishing political positions in disastrous alliance trades, the National Coalition's efforts to root themselves at the local level aligns well with today's objectives.

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Assignment: The 100,000 Voting “Right” Lost from the Ballot Box

Published: 2024-10-08 | Translated from: itoim.mn

Mongolians exercise their right to govern every four years or 1,095 days. Therefore, taking the reins of government and choosing their future is the essence of a democratic society. Every citizen should participate in state elections and enjoy their voting rights as permitted by the Constitution. According to the Law on Parliamentary Elections of Mongolia, "Every Mongolian citizen with voting rights can vote without discrimination based on ethnicity, language, skin color, gender, social origin, status, property, occupation, position, religion, belief, or education," meaning that 2,238,360 citizens are supposed to exercise their rare voting rights every four years. However, thousands of citizens are unable to send representatives and are left out of their voting rights due to job specifics, life necessities, and ineffective government policies. The peak operation in the mining and freight transport sectors starts during the warm season, coinciding with election periods. Specifically, the voting rights of over 100,000 citizens working in this sector have been neglected for a long time. According to the Ministry of Mining and Heavy Industry, 40.5 thousand people from 295 businesses in the mining, freight transport, and mineral sectors work out of their districts, and according to the Ministry of Road and Transport Development, 23.9 thousand drivers from 899 companies work in the freight transport sector. In total, there are 64.4 thousand voters from 1,194 businesses. Adding government workers serving in shifts on the borders far from their registered locations and citizens and students living elsewhere, the number climbs well over one hundred thousand. Compared to a constituency with 10-20 sums, the votes of 100,000 voters are being discarded. Therefore, unless the government establishes specific policies, solutions, and incentives to ensure the voting rights of workers in the mining sector, the issue of the voting rights of 100,000 citizens might arise again in the next and subsequent elections. Mining companies or employers will face legal responsibility if they fail to ensure their workers' voting rights. The Head of the Election Commission, N. Bulgamaa, states, "According to Article 66.16 of the Law on Parliamentary Elections of Mongolia, 'On polling day, the organization's management must give leave to working voters and grant them the opportunity to vote.' To enforce this provision, the Election Commission has organized several meetings with enterprises and organizations to support and promote law implementation and social responsibility for citizens exercising their voting rights. Besides not working on polling day, many participants proposed to provide transport. Article 17.1.31 of the Law on Violations of Mongolia states, 'If a working voter is not granted the opportunity to vote on polling day, a penalty of 10,000 units of tugriks for individuals and 100,000 units for legal entities shall be imposed.' This means if employers do not grant leave for workers to vote, individuals can be fined 10 million tugriks and organizations 100 million tugriks. If a citizen is unable to exercise their voting right, they can file a complaint with the police, and fines will be imposed based on the number of complaints. A delegation from the Election Commission's operational group, journalists, and researchers from the "Election Education" club have visited major mining companies in the Umnugovi and Dundgovi aimags to examine how they are ensuring the voting rights of 100,000 citizens in the mining sector. Those in the mining and freight sector face several reasons they cannot exercise their voting rights. On one hand, since mines operate nonstop, there's a scarcity of opportunity to grant leave. Therefore, only those who come from local areas are provided with opportunities to participate in elections. Secondly, salary is directly linked to working days. While employers might allow 3-4 days of leave for voting, the lack of pay during this period discourages many. Mining and transportation companies often have 14-day shifts. That is, they complete a full month's work within 14 days and receive a full salary. If they take 3-5 days off for voting, they lose about 1-2 million tugriks in salary. Both employers and employees note that they prefer not to vote. In compliance with regulations that grant leave for voting, they can take up to a day off or eight hours. This duration is usually adequate for those coming from nearby sums, but not for those from Ulaanbaatar and other provinces. Given these circumstances, economic constriction plays a role, and reluctance to vote becomes evident. On the other hand, because of limited legal options, understanding and agreements between employers and employees prevent complaints from being filed. Oiutolgoi company employs over 20,000 people, with over 10,000 people on a shift, of whom 97% are Mongolian workers. They also have a 14-day shift system. Working personnel from the sums of Khanbogd, Manlai, and Bayangol receive a paid hourly leave of up to five hours, while those from Ulaanbaatar and other sums can receive an entire day or eight hours. According to the company, the provincial election committee sent an official letter concerning the workers' voting rights. Generally, they inform all employees via emails and internal networks to participate actively before elections by making leave arrangements accordingly. These arrangements have been in place during previous election years. In consideration of transport and flight information, buses are provided for Khanbogd, Manlai, and Bayang-Umnuud sums based on the number of employees needing to vote. Still, whether they vote or not during their leave cannot be verified. For parliamentary elections, concerning how they ensure employees' voting rights, Oiutolgoi commented, "If employees wish to vote without losing salary, all can take leave. We can accommodate everyone. Employees generally do not prefer losing compensation by taking unpaid leave, although they can vote. The choice is theirs.” On the parliamentary election day, personnel from Tsogttsetsii and adjacent sums were able to vote. Work arrangements were made in advance, including transport provisions. The Erdenes Tavan Tolgoi company operates mines non-stop around the clock. Approximately 5,400 people work at the mine, and they collaborate with over ten contractors. 60% of their employees work there from Ulaanbaatar, while the rest arrive from various provinces. The sectoral director of Erdenes Tavan Tolgoi, L. Dorjsuren stated regarding the parliamentary elections, "On the election day, we facilitated voting for personnel from Tsogttsetsii and nearby sums by planning work schedules and providing transport. Personnel were informed that they could vote by previous arrangements being made. There are about 90 people in Dalanzadgad, Tsogttsetsii, and Khana. Two buses with 45 seats each were provided during the parliamentary elections. Workers were given a four-hour paid leave. Workers also could move to their locals and participate in elections three months in advance. We inform about the option to transfer three to four months prior to the elections, allowing participation. Employees requesting to transfer or take leave, or seek shifts from available workers should submit their requests a week in advance. Generally, leave permissions are processed swiftly. The work schedule for mining staff is well-defined, enabling pre-arrangement of logistical coordination. Moreover, voting only in the registered location poses challenges. Citizens abroad can vote days before an election. A similar arrangement or using a mobile box could be beneficial. Alternatively, voting digitally from one’s current location would be effective, considering the current scenario.

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Economy

A National Wealth Fund Beneficial to Every Citizen

Published: 2024-10-08 | Translated from: news.mn

The National Wealth Fund is a system composed of diversified funds that centralizes the benefits of underground natural resources and invests them efficiently to distribute, accumulate, and share them equitably and fairly with every citizen, both current and future. This fund is relevant and beneficial to every citizen of Mongolia. The wealth fund is planned to consist of three component funds: the "Fiscal Stabilization Fund," the "Future Heritage Fund," and the "Inclusive Development Fund," each with its own source of funding. The significance of having a national wealth fund lies in the country's ability to utilize its natural resources efficiently, contributing to national development and ensuring equitable benefits for all citizens. In other words, it prevents a small group from making use of and spending natural resources for their own interests and avoids wealth concentration, allowing every Mongolian citizen to equally share the benefits. The operation of the wealth fund is characterized by transparency, openness, efficiency, independence, and external supervision, adhering to universally accepted principles and values acknowledged internationally, and being developed with good governance. The fund's assets are characterized by being under the ownership of the entire population, and its operations are aligned with Mongolia's medium and long-term development policies. In other words, the legal basis is established by law to ensure that the greater share of the benefits from exploiting strategic mineral deposits belongs to the people, in accordance with the principle that natural resources are under the ownership of the people.

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Foreign Trade Surplus in the First Nine Months of 2024

Published: 2024-10-08 | Translated from: ikon.mn

Based on the first nine months of 2024, the value of exports surpassed imports by $3.2 billion, resulting in a favorable balance of foreign trade. According to the General Customs Authority's report on the performance of foreign trade for the first nine months of 2024, compiled from 556,246 export and 306,004 import customs declarations and other sources, the total turnover of foreign trade amounted to $20.4 billion. This represents an increase of $2.3 billion, or 13%, compared to the same period in 2023. The value of exports exceeded that of imports by $3.2 billion, resulting in a positive trade balance. Goods and raw materials worth $11.8 billion were exported, marking an increase of 4.3% compared to the same period last year. Mineral products accounted for $10.3 billion, or 87.4% of the total exports; precious and semi-precious stones, precious metals, jewelry, and coins accounted for $679.2 million, or 5.8%; and textiles and textile articles accounted for $356.4 million, or 3%. These categories collectively made up 96.2% of the total export value. Statistical data shows a decline in the export of beef and goat meat by 3.3-7.2%, with figures of 27.3 thousand tons and 4.7 thousand tons respectively. In contrast, coal exports increased 1.3 times, and iron ore exports rose by 28.8% compared to the same period last year. In the first nine months of 2024, 100% of lead ore and concentrate, iron ore, zinc concentrate, crude oil, and coal were exported to China; 85.8% of processed cattle hide went to China, 76.8% of combed cashmere to Italy, and 99% of washed goat cashmere to China. These exported goods accounted for 66.3% of the total export value.

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As of the first nine months of 2024, foreign trade turnover reached 20.4 billion USD

Published: 2024-10-08 | Translated from: montsame.mn

The performance of foreign trade for the first nine months of 2024 was compiled by the General Customs Authority based on 556,000 export declarations, 306,000 import declarations, and other sources. For the first nine months of 2024, the total foreign trade turnover reached 20.4 billion USD, increasing by 2.3 billion USD or 13% compared to the same period last year. The export value exceeded the import value by 3.2 billion USD, resulting in a positive foreign trade balance. Goods and raw materials worth 11.8 billion USD were exported, an increase of 4.3% compared to the same period last year. Minerals accounted for 10.3 billion USD or 87.4% of the total export value, followed by pearls, precious and semi-precious stones, precious metals, jewelry, and coins at 679.2 million USD or 5.8%, and textiles and textile articles at 356.4 million USD or 3%, together making up 96.2% of the total exports. According to statistical data, 27,300 tons of beef and 4,700 tons of goat meat were exported in the first nine months of this year, showing a decrease of 3.3-7.2%. However, coal exports increased 1.3 times and iron ore exports increased by 28.8% compared to the same period last year. In the first nine months of 2024, 100% of the exported lead ore and concentrates, iron ore, zinc concentrates, crude oil, and coal were shipped to China. Also, 85.8% of processed cattle and horse hides were exported to China, 76.8% of combed cashmere to Italy, and 99% of washed goat cashmere to the People's Republic of China.

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"Erdenes Tavantolgoi" JSC Trades 128 Thousand Tons of Coal on the Exchange

Published: 2024-10-08 | Translated from: news.mn

"Erdenes Tavantolgoi" JSC has traded 20 lots, or 128 thousand tons, of 1/3 coking coal through the open electronic trading of the Mongolian Stock Exchange, under the condition of delivery to the Gantsmod Port in China. Two buyers participated in the transaction, and it was settled at 83 USD. With this, the company successfully conducted a total of 38 trades from January 1, 2024, to October 8, 2024. During this period, a total of 2.9 million tons of coking coal, 7.4 million tons of 1/3 coking coal, and 2.2 million tons of thermal coal have been traded through the exchange. It should be noted that Mongolia has set a goal to export 78 million tons of coal this year, and by September, 62 million tons of coal had been exported, according to the Ministry of Economic Development. Although coal prices have fallen in the global market, there is anticipation for a recovery toward the end of the year.

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L. Enkh-Amgalan: A Decision Was Made to Increase the Minimum Wage to 792,000 Tugriks

Published: 2024-10-08 | Translated from: ikon.mn

The decision to increase the minimum wage was announced by the Minister of Family, Labor, and Social Protection. He stated, "The Ministry of Family, Labor, and Social Protection, along with the Mongolian Trade Union Confederation and the Mongolian Employers and Owners Associations, made a joint decision at the meeting of the National Labor and Social Partnership Committee to increase the minimum wage by 20% to 792,000 tugriks starting from April 1, 2025." The current minimum wage is 660,000 tugriks. Warning: Media organizations (Television, Radio, Social, and Web pages) must mention the source (ikon.mn) when using our information in any form, either in full or in part.

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E.Boldkhangai: In the Construction Industry, the Market Seeks Out Its Companies

Published: 2024-10-08 | Translated from: news.mn

In the Dornogovi aimag, a plan is in place to build 10,000 housing units over the next four years, which is ten times larger than the housing built in the last four years. Local construction companies are not searching for the market; instead, the market demands that they multiply. Enkhee Boldkhangai, the candidate in the 2nd district of the Citizens' Representatives Council of Sainshand soum, Dornogovi aimag, is an architectural engineer by profession. Since 2019, he has been serving as the head of the Builders Association of Dornogovi aimag. Through this interview, he shares his thoughts on the near future and trends of the construction industry and how to align it with local development. The construction industry in the locality has generally taken off since 2000. I went to study as a civil engineer at MUST in 2001 when Ya.Batsuuri was appointed as the governor of Dornogovi aimag, and repair works on kindergartens and school buildings funded by the state budget became abundant. As a result, construction companies started emerging locally. Governor Batsuuri himself was a construction engineer and economist, while there were very few specialists with engineering knowledge in the province at the time. The local NCD (National Cooperative Department) factory property, which used to travel around the countryside building structures, used to be a major state-owned company constructing hospitals and housing. After transitioning to a market economy, these two organizations were dissolved. One of the private companies established after that was my father's "EOIL" firm. My father had worked as an engineer and chief engineer in the NCD factory. After graduating in 2007, I worked as an engineer in my father's company for a while. As a young person seeking to gain experience, I returned to Ulaanbaatar and worked there for about 6 to 7 years on frame and structure buildings. When I returned to my hometown in 2019, local construction companies were only doing the kind of repair jobs I knew they were doing between 2003 and 2005, with revenues not exceeding 200-300 million MNT per year. Either they didn't have the opportunity, or they weren't given support, but companies from the city used to take the big jobs of building schools and kindergartens. Back then, it wasn't like today, where a school or kindergarten gets built each year; it used to take four years to build one each. Tenders couldn't be announced locally. All government ministries had a construction client department. Especially, the Ministry of Education had a large construction client office. When tenders were announced there, city companies participated while local ones either didn't have the opportunity to join or were less competitive. Although tender-related laws began to be implemented around 2008, more than ten years later, local companies have not improved in competitiveness; they stuck to negotiating and dividing repair works. That's why I decided to work in my hometown in 2019 and, driven by the desire to organize things and set them right, was elected head of the Builders Association of Dornogovi aimag. Yes, it was precisely from this situation that the Builders Association meeting was organized, where Chairman Enkhtaivan proposed transferring work to the youth. An election was held, and besides the operations of my company, I also hold the position of the head of the Builders Association of Dornogovi aimag. Local companies are now significantly empowered. They have received good support. Towards the end of 2019, the first billion MNT tender was won by a local company. Now those youths have become excellent and are working on large housing projects. When I arrived, there were around ten companies. Now, there are 35 or 36 companies with special licenses. Yes. There's no need to look for the market anymore; it is now necessary to have more companies. Indeed. What I did when I took up this role was offer capable individuals a proposal to establish construction companies and support them in obtaining the necessary technical staff, special licenses, etc. With the support of our association members and the aimag's decision-making leaders, 7-8 companies have been licensed. Today, energetic young people are actively working in the locality. According to a recent survey, 17-18 companies regularly participate in tenders. Participation is open in all tenders. The rest are building apartment flats, and some are starting to produce building materials. In recent years, not only is the construction sector rapidly developing in Dornogovi aimag, but the quality and expertise of work are also improving substantially. Recently constructed housing is all full-concrete structures. Yes, there are no companies from the city currently building structures here. The local "Gantulga Trade" company, for example, is building the "Mandakh Naran" complex, and yet again, local youths are building the "Energy Residence" complex. The "Khos Urgoo" company, which is building two nine-story buildings, is also local. The current leadership of Dornogovi aimag has planned to build 10,000 housing units between 2024 and 2028. From this perspective, I have accepted the proposal to run for the Citizens' Representatives Council of Sainshand soum to become a bridge to connect local companies with this development. This decision wasn't made by myself. I have friends and many in the construction sector who encourage me to pursue this. Yes, four companies participated in the works related to the oil refinery, completing their tasks. Under the international standard of control, carried out on those projects, there was much learned through the process. As such, construction companies are gaining valuable experience to prepare for subsequent projects. Being near Zamiin-Uud and Ereliin, the largest port bordering China, almost everything is accessible, making construction cheap. Labor forces are currently scarce across all sectors. Another challenge is the discrepancy between the budgets for constructing schools and kindergartens through tender and the residential construction budget. State work has a very low budget. Generally, working on projects funded by state budgets yields a 15% profit, which is lower than market norms but shouldn't be dismissed. Yet, the principle of market competition drives companies to work for higher profits, possibly reducing interest in state projects. Most pressing is the worsening issue of the workforce. To avoid losing workforce capability, evaluations and wages for jobs executed under state, provincial, and local budgets must be adjusted to match market standards. I was just looking at the journal earlier. In the "Mandakh Naran" project built in our aimag's center, local companies joined and completed housing for 1,068 families between 2020-2024. That's a significant number for one aimag. However, 10,000 units is ten times that number. Local companies won't be able to handle it alone, and large-capacity companies from the city will probably be needed to join this project. They pull staff from both local areas and Ulaanbaatar. To carry out work quickly with quality, skilled workers are necessary. No. China itself is experiencing a workforce shortage. This is not an issue exclusive to Mongolia but a global one. Due to their own workforce shortages, China is drawing Mongolian workers. Meanwhile, many Mongolian workers skilled in finishing work are now going to China for work. Yes. I've spoken to many Mongolian workers doing construction work in Erel, and they are earning significantly more by doing restaurant and bar renovations there compared to in Mongolia. Yes. Since workers in mining started doing rotational shifts, many people have gone in that direction. Mining and construction are Mongolia's two major sectors. Those skilled in construction are moving more toward mining due to better pay and stable year-round work. We are educating children locally. Our aimag's VTC (Vocational Training Center) offers broad-spectrum construction courses and trains students. However, children find this kind of work more challenging. Nowadays, children lose hand skills. The VTC sends practical students for work, and amongst 15 to 16 students, only two or three seem likely to continue into construction or become engineers. Our vocational center has upgraded to a polytechnic college. However, there is a persistent misconception that vocational schools are for students deemed less academic, often from rural areas. We need to change this perception and instill in children that they can live well by working. Not everyone needs a diploma from college. Nowadays, there are many law graduates working as shop clerks. I maintain close relations with the polytechnic school, discussing both joys and challenges. Manpower is scarce. "It's hard to find students who want to learn or those who continue working," they'll say. Sometimes you can't even raise your voice. Raising your voice may offend young people. But now, as our construction sector heads into a period of rapid development, it is important to lay a strong foundation with precision. Local companies are beginning to have concrete plants. They are producing paving stones, Euro fences, and filler blocks. Since taking over the Builders Association's work, I've launched initiatives, including the "One Company, One Factory" proposal. Many companies have yet to embrace it, but Dornogovi aimag is starting to produce onsite blocks, building filler blocks, and paving stones to meet its own needs. However, companies here are struggling to meet supply demands. Extensive road and pavement work is being done. Transportation and logistics are quite convenient for us. Cargo from Zamiin-Uud passing through Sainshand can be used to bring construction materials from the city at a slightly lower cost. Smog. The issue of smog exists in our aimag, just as in others. In the past, when planning heat sources, all aimags established their central locations in hollows. Now, as residential areas grow and become denser, smog becomes a topic for all aimags. Yes, that's the solution. Sainshand city in Dornogovi aimag may become Mongolia's first city without a ger district. Efforts are underway to expand the boiler plant in our aimag. Our aimag's heat station was built in the 1980s alongside those in 5-6 aimags. Today, all others have ceased operations or been decommissioned. Of these, only ours continues operating and, with expansions and repairs, supplies the aimag with heat. That's the achievement of the "Chandmani Ilch" state-owned enterprise engineers. Inevitably, expanding this boiler plant is necessary for the aimag's growth. Construction follows heat lines. Where heat lines end, smog begins. I have visited many other aimags: Darkhan and Erdenet are developing nicely, thanks to their large thermal power plants, which spurs urban expansion and growth. Based on the general plan of Dornogovi aimag and Sainshand soum, we're advancing in land allocations, schools, kindergartens, and residential areas. Certainly, there are. Dornogovi aimag appears to occupy a small hollow area when viewed from a satellite map. Its growth potential lies to the west. However, no plan exists for that area, and lands have been individually distributed for ownership. This is unfortunate. Should roads, infrastructure, and planning proceed in that direction, lands will be premium for building, provided there are heat lines. Yes, indeed. Viewing our aimag, it's evident that the railroad coming from Ulaanbaatar ends just north of our center. The railway from Zuunbayan stretches in about 800-900 meters and curves away. The area for Dornogovi's development is certainly westward. Although we are expanding the boiler plant frequently, the pace of construction requires capacity still to catch up. If the 10,000-housing-unit program starts, additional heating sources and lines must inevitably be added. It's like this in all the western aimags. Mongolia, from an engineering perspective, presents tough conditions for construction due to its climate. Summers are extremely hot, reaching up to 50 degrees Celsius in the Gobi. Though it's perceived as warm, the Gobi becomes cold in the winter, with air temperatures dropping to -30 degrees and wind chills reaching -40 degrees. Improving the partnership between the public and private sectors, assisting with what's working by connecting it with what's not, and resolving challenges is plentiful. Importantly, if local companies can become self-sufficient, with each having a factory and not needing to source from the city, our locality would develop more. As you mentioned, I grew up around construction. My father is a civil engineer, and my mother knows almost every building constructed from the 1980s to 2010 in this area, from the switch to private enterprise. She is an engineer-economist specializing in construction budgets, a leading estimator in Mongolia. She continues to work privately in her field.

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The decision to increase the minimum wage has not been finalized

Published: 2024-10-08 | Translated from: news.mn

The Minister of Family, Labor, and Social Protection, L. Enkh-Amgalan, announced through social media that it has been decided to increase the minimum wage by 20% starting April 1 next year, bringing it to 792,000 tögrögs. However, this decision has not been finalized, and whether the minimum wage will be increased is still uncertain. Regarding this, Deputy Prime Minister S. Amarsaikhan stated that the level of the minimum wage is not a matter that can be decided immediately. Currently, no definitive studies or calculations have been completed. Research work is being conducted at the Ministry of Family, Labor, and Social Protection. The increase of the minimum wage to 792,000 tögrögs has not been finalized yet. Thus, the decision whether to increase it will be finalized only after conducting studies and calculations, and aligning with the living standards of people.

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The Number of Tourists Visiting Mongolia Has Increased by 16,000

Published: 2024-10-08 | Translated from: news.mn

As a result of extensive international promotion, Mongolia received 600,000 tourists last year, earning around one billion U.S. dollars in revenue, officials highlighted. In particular, 651,000 tourists visited in 2023, whereas by October 7, 2024, 667,000 tourists have already visited Mongolia. This makes the current year the one in which Mongolia has received the most tourists in its history. The regular meeting of the National Committee promoting Mongolia internationally was held today. During this meeting, it was noted that positive perceptions of Mongolia in online platforms have increased by 88 percent, and the result shows that 36 percent of survey participants plan to visit Mongolia. Officials also pointed out that the ministry has planned to collaborate with the Ministry of Transport to allow tourists to fly directly from their home countries to Mongolia's provinces and regions by 2025. Tourists choosing to visit Mongolia prioritize the country's natural landscapes and beauty, and many expressed their satisfaction. Following that, activities like horseback riding, staying in gers, and tasting Mongolian national cuisine were highlighted. In other words, tourists place significant importance on getting acquainted with Mongolian traditions and culture.

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Diplomacy

President U. Khurelsukh to Make State Visit to Turkmenistan

Published: 2024-10-08 | Translated from: unuudur.mn

President U. Khurelsukh will make a state visit to Turkmenistan from the 10th to the 13th of this month, at the invitation of the President of Turkmenistan, Serdar Berdimuhamedov. This visit is notable as it is the first state visit at the highest level since the establishment of diplomatic relations between the two countries 32 years ago. During the visit, President U. Khurelsukh will meet with Gurbanguly Berdimuhamedov, the national leader of the people of Turkmenistan and Chairman of the Halk Maslahaty, the People's Council, to discuss expanding and developing friendly relations and cooperation between the two countries, as well as exchange views on a wide range of regional and international issues. Additionally, President U. Khurelsukh has been invited as an honored guest to an international forum dedicated to the 300th anniversary of the famous Turkmen poet and thinker Makhtumkuli Fraghi.

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Possibilities to Import Electricity and Natural Gas through a Visit to Turkmenistan and Strengthening the Cooperation of the Ministries of Foreign Affairs

Published: 2024-10-08 | Translated from: isee.mn

The President of Mongolia, U. Khurelsukh, is preparing to visit Turkmenistan from October 10-13, 2024, following an invitation from the President of Turkmenistan, Serdar Berdimuhamedov. This visit is the first state visit at the highest level since diplomatic relations were established between the two countries in 1992. In 2023, President Khurelsukh sent an invitation letter to the President of Turkmenistan for a visit to Mongolia. Turkmenistan is known for its long-standing totalitarian presidential governance. The current president, Serdar Berdimuhamedov, took over the presidency from his father, who ruled for 15 years, in March 2022. Mongolia established diplomatic relations with Turkmenistan in 1992, and D. Bayarkhuu is currently serving as Mongolia's Ambassador Extraordinary and Plenipotentiary to Turkmenistan. It is noteworthy that in 2015, the Turkmenistan Minister of Foreign Affairs, R. O. Meredov, visited Mongolia, marking the first high-level visit between the two countries. During this visit, the two sides agreed to establish an intergovernmental commission to expand and develop bilateral trade, economic, cultural, educational, and humanitarian cooperation. Later, in 2023, President Khurelsukh invited Turkmenistan’s head of state, Serdar Berdimuhamedov, to visit Mongolia. This year, Turkmenistan imported goods worth USD 10,000 from Mongolia, while Mongolia has not exported to Turkmenistan. Turkmenistan is rich in natural gas and oil, holding the fourth-largest natural gas reserves in the world, with the Galkynysh gas field being the second-largest globally. Around two-thirds of Turkmenistan's natural gas extraction is purchased by Russia's "Gazprom" company. Since 2009, Turkmenistan has supplied 40 billion cubic meters of natural gas annually to China through a 7,000 km pipeline via Uzbekistan and Kazakhstan. Since 1993, Turkmenistan has provided its citizens with free electricity, water, and natural gas. Therefore, it is possible for Mongolia to learn from this experience, expand cooperation, and import natural gas and electricity from Turkmenistan. Economically, Turkmenistan ranks 9th in the world in cotton production and sales. In terms of bilateral trade, in the first nine months of the year, Mongolia imported goods worth USD 10,500 from Turkmenistan, while not exporting any goods to the country. The current visit aims to expand the cooperation between the two countries' Ministries of Foreign Affairs. During this visit, official talks will be held between the two countries to expand friendly relations and cooperative development, as well as to exchange views on a wide range of regional and international cooperation issues. Among the "stan" countries, Kazakhstan, Kyrgyzstan, and Uzbekistan, Turkmenistan is now the country to expand state-level cooperation with. As part of the visit, the President of Mongolia will attend an international forum celebrating the 300th anniversary of the birth of the renowned Turkmen poet and thinker, Makhtumkuli Fragi, as an honored guest. Meanwhile, the media of Turkmenistan have reported that a high-level meeting between the presidents of the two countries will enhance neglected cooperation, particularly between the Ministries of Foreign Affairs, by strengthening ties.

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Infrastructure

Energy Reform and Survival Strategy!

Published: 2024-10-08 | Translated from: news.mn

"Diplomatic policy is an extension of domestic policy," as the saying goes. Simplified, this means that a country's domestic and foreign policies should not be in conflict. Without coherence between domestic and foreign policies, national security cannot be guaranteed. 1. The Russia-Ukraine war is pushing countries into an energy crisis. Since the war began, energy has become a central issue in geopolitics and cyber security. Thus, the global community is keenly aware that ensuring energy security is a tactic for protecting national security. Mongolia has sufficient underground resources to achieve energy independence. However, with involvement from its two big neighbors, Mongolia is currently experiencing an energy shortage. Without reform in the energy sector, it is uncertain how long it can "get by." Solving the energy shortage with simple tricks from B. Choijilsuren is not an easy matter. Thus, one of L. Oyun-Erdene's "New Revival" policies is energy reform. Mongolia generates electricity from coal and renewable energy sources. However, in the last 10 years, no new energy sources have been added. The projects to build Tavantolgoi and the Fifth Power Plant are mere tales. Coal from Baganuur and the hydropower plant at Eg River are not expected to be built during this administration or in the next four years. Last September, Russian President V. Putin's 24-hour visit to Ulaanbaatar resulted in a memorandum to jointly produce a detailed environmental assessment for the Eg River Hydropower Plant. Therefore, it is almost reasonable to conclude that the Eg River Hydropower Plant project has "failed." The Joint Government plans economic reforms for the next four years and has promised to implement 14 mega projects, among which there are several energy projects. This is akin to "killing two birds with one stone," aiming to boost the domestic economy and protect national security from the outside. Mongolia's strategy to advance its new energy projects is to ensure equal participation from its two neighbors in this sector and attract third-country investment beyond its neighbors. While Russian interests have been brought into the Eg River Hydropower Plant and CHP III, the Erdeneburen Hydropower Plant project has been assigned to the Chinese. If unexpected obstacles do not arise in foreign and domestic politics, good news is expected about signing an investment agreement with the French state-owned "Orano" in the uranium sector this month. If the agreement with "Orano" is successful, it will be the second largest third-country investment since the Oyu Tolgoi project, attracting foreign investment in 15 years. If "Orano"'s investment joins Oyu Tolgoi, it means Mongolia will have additional leverage in ensuring national security from economic and energy perspectives. 2. Lastly, "Since building the IV Power Plant in 1981, Mongolia has not constructed such a large power plant. Therefore, today marks a historic day for the revival of the energy sector," said Prime Minister L. Oyun-Erdene at the inauguration of the Booroljuut Power Plant. The agreement to build this power plant was signed during Ch. Saikhanbileg's tenure and took over 10 years to be operational during L. Oyun-Erdene's government. In short, whenever there is talk of a power plant in Mongolia, saboteurs instigated by foreigners grow. One prominent representative in the government is Ts. Davaasuren. Due to Ts. Davaasuren, the Baganuur and Tavantolgoi power plants have not been built, which is a harsh yet true observation. The Booroljuut Power Plant's capacity is 600 MW. The first block with a capacity of 150 MW opened recently, marking a significant event in Mongolia's energy history. First, it is a project of joint public-private partnership built by Mongolians. Second, it is the starter and established project of energy reform. By 2025, another block of 150 MW will be built, by 2027 another 150 MW, and by 2028 the last block, bringing the power plant to full capacity. Once the plant becomes fully operational, it is expected to provide 20-30% of Mongolia's energy consumption from a reliable and affordable source. As energy is the cornerstone of the economy and security assurance, the crucial "task" is not who builds the power plant but making it operational. In the next four years, if the Erdeneburen and Tavantolgoi power plants become operational and preparations begin for a nuclear power plant, all these could become L. Oyun-Erdene's legacy in politics. Broadly speaking, energy reform in Mongolia is a survival strategy!

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Position: Importance of Focusing on Infrastructure to Attract Foreign Investment

Published: 2024-10-08 | Translated from: news.mn

There is a significant need for Mongolia to attract foreign investment and expand its economy. The international rating agency Fitch announced that it had raised Mongolia's credit rating to "B+ stable" based on indicators such as reducing external debt pressure, maintaining financial and fiscal discipline, regular increases in foreign reserves, and ensuring political stability. Economists were consulted to understand what areas need focus to continue attracting foreign investment. "The main issues have been the reversal of government decisions and asset seizures from foreign investors," said economist Dr. Ch. Khashchuluun. Over the past decade, many mistakes have been made regarding foreign investment, primarily related to government policy. Instances where established decisions were reversed and agreements canceled at the last moment occurred frequently. For instance, the contract for the TPP V power station was ready, but signing it was delayed, leading to significant power and heat shortages. The foreign company that prepared the project had pursued it for over a decade. Foreign investors are well aware of such information and share it among themselves, seeing Mongolia as not very favorable for foreign investment. Regaining our reputation and attracting foreign investment will take time. We need to strictly fulfill previously made agreements and avoid sudden changes in investment-related environments, such as political and tax decisions. State intervention should be limited to provide a favorable environment for foreign investors. By doing so, foreign investors will start viewing Mongolia as a place where agreements won't suddenly be canceled, and projects won't be delayed, minimizing risks. In Mongolia, the Investment Law creates a sound legal environment. The main concern is avoiding interruptions to foreign investments due to unexpected political decisions, pandemics, or ministerial changes. Foreign countries making agreements with the government of Mongolia should not encounter issues like demands for money from investors or unjust confiscation of their assets. Such issues need attention. Otherwise, from a legal standpoint, Mongolia appears supportive and offers a favorable environment for investors. However, past mistakes remain the main reason for deterring foreign investments. "Attention needs to be paid to two main factors: energy supply and transport logistics," said economist B. Dulguun. Investment is crucial for economic expansion, but many limiting factors are hindering foreign investment. Among these, energy supply and transport logistics stand out. Firstly, the supply of energy, including electricity and heat, is a concern, particularly with heat being more insufficient. The same applies to electricity. Secondly, transport logistics. To address these, the "New Revival Policy" was developed in 2021, and its implementations began in 2022 and 2023, including major power supply projects. Otherwise, businesses wanting to increase capacity and connect to higher MWs find it impossible to do so. Foreign investment is not limited to mining alone. Enterprises looking to build factories cannot do so without electricity. Addressing critical issues urgently is necessary. In terms of transport logistics, the focus is on transportation cost and time efficiencies. It's not just about cost but also the impact of time, making it a concern. Although port blockages have been resolved, issues with railways remain. Dual tracking the road between Zamiin-Uud and Altanbulag is needed. Another issue is connecting the coal export railways with neighboring countries. "The legal environment must be clear, and political stability is crucial," said economist B. Sosorbaram. Firstly, macro-environment stability is essential. Secondly, the legal environment needs clarity. Thirdly, tax policy should be favorable and understandable for foreign investors. Finally, infrastructure issues must be resolved—these include energy, roads, and other infrastructure elements. For the legal environment, several aspects require attention. For example, the government needs stability, and political stability is necessary. Furthermore, the Investment Law and related laws must be explicit. Regarding infrastructure, energy supply, transport logistics, and other infrastructure issues must be addressed according to the specific sector foreign investors are targeting. In the mining sector, border checkpoints are crucial. The operation at checkpoints needs to be smooth, continuous, and uninterruptedly efficient. Additionally, decisions about transportation, whether by paved roads or railways, need clarity. Generally, to attract foreign investment, certain measures are essential.

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AUDIT: Budget Allocation Needed for Development Projects

Published: 2024-10-08 | Translated from: news.mn

The Government submitted the drafts for the 2025 budget of Mongolia, the 2025 budget of the Social Insurance Fund, the 2025 budget of the Health Insurance Fund, and the 2025 budget of the National Wealth Fund to the Parliament. The National Audit Office conducted an audit of these drafts and sent its conclusions to the Parliament and the Government. The News Agency presents a series of concerns related to the conclusions made by the Audit Office. Mongolia's main channels of foreign economic relations have been implemented by exporting mining products to China and importing electric energy and fuel products from Russia. Therefore, despite Russia's GDP growth of 5.4% in the first quarter of 2024, budget expenditures increased due to military expenses, leading to a rise in consumer goods prices, as noted in the audit's conclusions. The inflation rate gradually increased from December 2023 to May 2024, exceeding the target level by 4.3 points to reach 8.3%. Meanwhile, China's economic growth slowed to 4.7% in the second quarter of 2024, down 0.6 points from the previous quarter. Coal imports reached 44 million tons in May 2024, up 10% from the previous year, due to lifting the coal trade ban with Australia and tripling purchases. According to the World Bank's economic forecasts, Mongolia's real GDP is expected to grow by 4.8% in 2024 and by 6.3-6.6% in 2025-2026. Agricultural production might decline due to weather influences, leading to increased inflation from food supply issues. Mongolia's economy is forecasted to grow by 5.6% in the first half of 2024, primarily driven by increased mining production. However, agricultural production declined due to the winter hardships resulting in the death of 8.1 million livestock. Additionally, despite an 8.9% decrease in the export of goods and services compared to the same period last year due to falling coal and copper concentrate prices, foreign trade turnover amounted to $13.2 million, with a surplus of $2.5 million; foreign exchange reserves reached $4.8 million, and the inflation rate stood at 5.1%. The mining industry accounted for 95% of the total exports in the first half of this year. In 2025, Mongolia's budget draft plans for balanced revenue to be 33,864.7 billion MNT, or 35.6% of GDP; total expenditure and net loans to be 35,795.2 billion MNT, or 37.7% of GDP; the basic balance of the consolidated budget to be 1,909.5 billion MNT surplus, or 2% of GDP; and the balanced budget deficit to be 1,930.5 billion MNT, or 2% of GDP. It plans to consolidate 36,830.5 billion MNT in total revenue in the 2025 consolidated budget, with 608.9 billion MNT accumulated in the stabilization fund and 2,356.8 billion MNT in the national wealth fund. The government has lined up its 2024-2028 operational program with the "Vision-2050" long-term development policy and the 2021-2030 action plan. The program consists of 4 goals with a total of 626 actions, whereas the 2025 budget draft includes 65 fully funded actions and 366 partially funded actions aligned with Mongolia's long-term and medium-term development policy and the government's action program. Within the policy framework, "Develop an open and responsible mining and mineral sector, using the revenue to promote sustainable and independent economic development in the short and medium term, supporting human development, education, health, public physical culture, and sports" focuses on: - Improving the living environment of citizens using revenues from mining, with allocation mainly to mining provinces based on local citizens' proposals and initiatives; - Implementing differentiated tax policies starting next year, establishing 20 different tax types based on regional specifics, allowing local regions to independently implement economic policies, attract business and investments, and compete with each other; - Developing the commodity exchange activity, increasing the variety and volumes of products sold through the exchange, making product prices more market-based and determined by fair competition principles; - Directing governmental budget investments, foreign loans, and aid fundings towards the development of roads, energy, and infrastructure, as stated in Mongolia's regional development policy and the "Government's 2024-2028 operational program"; - Paying attention to urban and rural enhancement, decentralization, and housing issues for citizens, as highlighted in the National Audit Office's report. To be continued...

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The design and feasibility study for the new six-lane road connection from Yaarmag to 'TETs-IV' to the First Neighborhood is complete

Published: 2024-10-08 | Translated from: ikon.mn

The six-lane, two-directional 2.8 km road and bridge structure from Naadamchi Street's "Nomin" store to the "TETs-IV" power street was opened for traffic. The design and preliminary feasibility study for the connection road from Naadamchi's auto road to Peace Avenue have been completed. This will connect the road to the First Neighborhood. Funding is being included in next year's budget, with construction planned to begin in 2025. Furthermore, the "Ulaanbaatar Road Repair and Maintenance Department" public corporation has been selected as the contractor for the expansion of the power street to four lanes, and the work has begun. A total of 59 land plots need to be cleared for the road expansion, and the aim has been to collaborate between the city's Land Management, Road Development, and the contractor enterprise. As of now, 16 of these properties have been cleared. Upon completion of the land clearing, the initial phase will involve expanding the road from Naadamchi street to the Power street with a bridge intersection of three roads to the "Husug Trade" JSC into four lanes.

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REPORT: The Booroljuut Power Plant to Begin Supplying Electricity Next Month

Published: 2024-10-08 | Translated from: gogo.mn

How much electricity does your household consume monthly? I asked several apartment dwellers. They couldn’t answer immediately. However, when asked about their monthly electricity bill, they mentioned paying around 25,000-30,000 MNT, which translates to an average usage of 200 kWh per month. Recently, the opening ceremony of Booroljuut Power Plant was held in Bayandelger and Bayan, two districts of Tuv Province. The first block of the project, a 150 MW boiler, has been fired up, adding a new source of energy to Mongolia. In the past 34 years, Mongolia’s energy capacity has increased by about 900 MW; however, since the commissioning of CHP-4 back in 1984, this marks the first opening of a new large-scale power plant and a significant investment in the energy sector, as highlighted in the keynote speech of Prime Minister L. Oyun-Erdene. What does 150 MW mean? If an average household uses about 200 kWh of electricity per month, the capacity of Booroljuut Power Plant would suffice for the energy needs of approximately 470,000 households, according to director B. Amarmend. Mongolia’s energy demand increases by 80-100 MW annually. Last winter's peak demand, during which energy utilization grew by 12% between 17:00 and 22:00 in November, December, January, and February, reached up to 1636 MW in the central region. With demand expected to grow, the central energy grid is projected to face a shortfall of 180-200 MW. Commissioning the 150 MW Booroljuut Power Plant is estimated to cover 75% of this shortfall. Located 130 km from the capital, between Bayandelger and Bayan districts, Booroljuut Power Plant has a total capacity of 600 MW, and the first block of 150 MW was delivered on time as specified in the contract. The Booroljuut Power Plant consists of four blocks with a total capacity of 150 MW each. The second block is scheduled for commissioning in October 2025, and the third and fourth blocks in 2027 and 2028, respectively. The project is being implemented by "Tsetsens Mining and Energy," a subsidiary of "Bodi" Group, with China’s Sinosteel Equipment & Engineering Company as the main contractor. The energy produced will be transmitted to Baganuur and Sergelen substations via a 220 kV overhead double line integrated into the central power grid. Testing processes will conclude by the end of October and mid-November, before the plant goes into full operation ahead of the winter peak demand. Currently, the 71.3 km electrical line connecting Baganuur and Booroljuut is fully operational. The opening ceremony was attended by Prime Minister L. Oyun-Erdene, members of the government, the city’s mayor Kh. Nyambaatar, investors, builders, and employees of Booroljuut Coal Mine and Power Plant. This power plant boasts low-temperature combustion technology, resulting in emissions three times lower than Mongolia’s standards. Its air cooling system minimizes water usage, consuming 6-8 times less water than similar mines, and has reduced dust emission by four times. The plant is located at the entrance of the coal mine and utilizes a 1.6 km conveyor belt for coal transportation, making it the first major cost-effective power plant in Mongolia. Prime Minister L. Oyun-Erdene promised revitalization of the energy sector in the next three years, stating that projects were once unprofitable due to the lack of an energy price index. The government plans to untangle energy sector restrictions and focus on expanding economic growth by increasing energy sources. Legal frameworks and decisive actions will be prioritized to attract investors. With two choices facing us, there is no alternative but to choose the path focused on our future. The Booroljuut Power Plant’s proximity to its mine results in lower costs. The Prime Minister emphasized his commitment to revitalizing the energy sector within three years and called for investment in this area. National budget allocation traditionally led to approximately 500 new and 600 continued projects each year, most of which slowed progress and delayed completion. We are reforming the budget to fully fund only 38 projects over three years by 2025. Half of these are transport projects and the other half energy projects. The government will sequence its investments and maintain a stable legal environment for profitable energy projects, with the goal of eventual exports. Chairman of “Bodi International” D. Bayasgalan established a contract to continuously provide energy at a fixed price for 28 years. Recognizing Mongolia’s overreliance on mining, he stressed the importance of producing affordable energy with domestic resources. Constructing a power plant involves numerous factors including geographic location, infrastructure development, coal quality, sufficient water, environmental requirements, local community involvement, staff skills, and unwavering investor determination. He pointed out the need for financial discipline and intense investment, with the first 150 MW block requiring the construction of 60 facilities. Finding and certifying the coal deposit took six years, while permits and agreements with Sinosteel for construction took 4-6 years, and four years were necessary to secure financing. After evaluating alternatives globally, power generation from coal became the most reliable, affordable, and stable energy source despite its intensity, leading to a partnership with Sinosteel. An agreement was made to sell energy to Russia and China 20-30% cheaper than their prices, maintaining this rate for 28 years. By ensuring energy availability, the primary focus will initially be on hospitals, schools, and infrastructure, creating a foundation for other sectors. This is the beginning of our construction endeavors, with the water resources, coal deposits, and reliable energy being vital supports for Mongolia’s industrial development. Soon, various factories and a brand-new city will emerge in Booroljuut, marking our company’s contribution to the nation’s progression. Kh. Nyambaatar, Mayor of Ulaanbaatar, stated that his investor-friendly policies enabled the issuance of domestic and foreign bonds, with Booroljuut being one of the key energy projects funded by these bonds. The city, lacking 200 MW last winter, sees Booroljuut and the Baganuur Battery Storage Station as significant steps toward energy sufficiency. In the coming years, several public-private partnerships are forming solid foundations for energy, transportation, water, and sewage infrastructure which are critical for housing, metro development, and high-speed road construction in Ulaanbaatar. The goal is to address these needs and ensure the city’s energy demands are met through targeted investments.

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A 50 MW Capacity Battery Storage Plant to Be Commissioned in Baganuur District

Published: 2024-10-08 | Translated from: montsame.mn

In Ulaanbaatar, a 50 MW capacity battery storage plant being constructed in Baganuur District of the capital city will be commissioned on the 30th of next month. This facility will help ensure uninterrupted electricity supply to consumers during peak winter load periods and will reduce greenhouse gas emissions, being environmentally friendly. Additionally, surplus electricity produced at night will be stored and supplied back to the central system during peak load periods during the day. The construction of this plant will be carried out by China's Envision company, with a contract signed at the beginning of this month. The domestic company, Monhorus International, will act as a subcontractor, according to the information from the Information and Communications Department of the UB City Administration.

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T.Dorjhkhand: Energy Tariff Changes to Be Announced on November 1

Published: 2024-10-08 | Translated from: gogo.mn

During the opening of the Boroogreen Power Plant, Deputy Prime Minister T.Dorjhkhand, who heads the National Committee for Energy Reform, was asked about the initiatives to be undertaken within the framework of energy reform. - What objectives has the government set to achieve in the framework of energy reform? Mongolia's energy sector is currently operating at a loss of about 500 billion MNT, with a cumulative deficit of 1.8 trillion MNT. Due to the energy factories, mines, coal transporter UB Railway, etc., all levels are experiencing losses. Without energy, the economy cannot expand. Therefore, the government aims to achieve energy reform and become independent in energy during its full term in office. Independence does not mean we will not get energy from Russia or China. The most important issue is that government-controlled energy prices have led to losses in this sector, preventing investors from entering. The government has announced its intention to integrate the energy sector into the market system, increase supply, and change tariffs. There may be some initial pain. As supply increases, prices will eventually decrease. Mongolia is positioned as a sector that can generate real income by exporting energy, following the mining industry. - The government has announced an increase in energy tariffs. By how much will they increase? Price tariffs are a sensitive issue. It's more of a political decision than an economic one. That's why we've been sitting down and calculating very carefully. We're analyzing which areas, whether it's SMEs, the mining sector, or citizens, will bear more burden and how to adjust for it. We will decide by considering all possibilities, including how much to increase to attract investors. We are gathering proposals from many sources, including international organizations and the industry. A conclusion will be drawn and officially announced by the National Committee on November 1. - What policy will be followed when increasing tariffs? To increase the efficiency of the sector without causing any difficulty for the public, the initial step will be to bring tariffs to the level of actual costs, then index them in line with inflation to fit the market environment. With such changes, investors are interested in entering. Our country has abundant energy resources. Many foreign organizations and companies have proposed to build green energy sources. For example, they suggest constructing a 1 GW solar power source in 1.6 years. Solar and wind sources can be built very quickly. Energy reform isn't just about raising tariffs. Tariffs are just one of many issues. In the short term, tariffs will be adjusted. In the medium term, the sector will move to a structure with transparency and private sector participation to increase energy efficiency. In the long term, the aim is to produce products by utilizing energy resources and export them. This entire effort is comprehensively what the energy transition is. Countries that have undertaken energy transitions have followed this type of path. During the opening of the Boroogreen Power Plant, Deputy Prime Minister T.Dorjhkhand, who heads the National Committee for Energy Reform, was asked about the initiatives to be undertaken within the framework of energy reform.

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Discussions on Expanding the Ulaanbaatar-Lun Road to 4 Lanes with Kuwait

Published: 2024-10-08 | Translated from: isee.mn

The State Secretary of the Ministry of Road and Transport Development, S. Batbold, met with Walid Al-Bahar, Acting Director of the Kuwait Fund for Arab Economic Development, along with other relevant officials. State Secretary S. Batbold emphasized the investment of concessional loans and grants from the Kuwait Fund in Mongolia's infrastructure sector, particularly for road construction and the renovation of regional airports. He introduced some projects planned in the infrastructure sector following the Mongolian President's 2022 decree on "Rebuilding the City of Kharkhorum." Specifically, plans have been made to renovate the 382 km road from Ulaanbaatar to Kharkhorum, starting with the expansion of the 101.7 km road from Ulaanbaatar to Lun into a 4-lane road. He mentioned that an estimated $362 million is needed for this project. Moreover, under the government's 2024-2028 action program, it has been proposed to expand and renovate the 101.7 km Ulaanbaatar-Lun road into not just four, but six lanes. He indicated that there are changes being made to the project's feasibility study and financing, expressing a desire to resolve the project's funding in collaboration with the Kuwait Fund for Arab Economic Development. The plan is for the Ulaanbaatar-Lun road to be a six-lane, first-class road. Since 1996, Mongolia and the Kuwait Fund have been collaborating. Over the years, major projects in roads, energy, and health sectors have been successfully implemented with $76 million in financing from the Kuwait Fund. In the road sector alone, projects such as the Darkhan-Erdenet in 2002, the Erdenet-Bulgan-Unt in 2010, and the Unt-Tarialan in 2015 were successfully executed, with a total of 415 km of roads built with $58 million funding. Currently, the two governments are jointly implementing a project to expand and renovate the "Undurkhaan" airport in Khentii province. Walid Al-Bahar, Acting Director of the Kuwait Fund for Arab Economic Development, expressed the Fund's readiness to collaborate on Mongolia's significant projects and programs. He stated that due to the high overall cost of funding the 101.7 km 6-lane Ulaanbaatar-Lun road renovation project, it is possible to involve not only the Kuwait Fund but also funds from Arab countries, the Asian Development Bank, and other international investor organizations. He also mentioned that additional information about the project will be received shortly and conveyed the Ministry of Road and Transport Development's proposal to international investor organizations, pledging assistance in obtaining additional financing for the project's implementation.

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Volume of Cargo Transported by UBTZ Exceeds Last Year's Figures

Published: 2024-10-08 | Translated from: ikon.mn

The joint-stock company 'UBTZ', which plays a crucial role in the social and economic development of Mongolia, has transported a total of 24.7 million tons of cargo from the beginning of 2024 to the present day. This is 662,800 tons more than the same period last year. During the same period, 17.8 million tons of cargo were loaded, which is 184,300 tons more compared to the same period last year. In just the past week, compared to the same period last year, local cargo was 34,300 tons more, exports increased by 65,800 tons, and imports went up by 43,200 tons. However, transit showed a slight decrease of 0.1 thousand tons. Despite this, since the beginning of the year, a total of 2,453 trains have passed through our country, which is 235 more trains than in the same period last year. The increase in train exchanges at border stations has been important for boosting our transport volume. Last week, a total of 111 trains were received and 108 trains were dispatched through the broad-gauge route at the Zamiin-Uud – Eren station, which is an increase compared to the same period last year. Meanwhile, at the Naushki-Sukhbaatar station, 49 trains were received and 48 trains were dispatched, showing a slight decrease compared to the same period last year. With the cold season approaching, UBTZ is paying special attention to organizing the prompt transportation of coal to thermal power plants and increasing coal reserves. Currently, TPS-2 has a coal reserve for 38 days, TPS-3 for 22 days, TPS-4 for 25 days, TP Erdenet for 34 days, the Erdenet Processing Plant for 45 days, TPS Darkhan for 28 days, and TPS Amgalan for 34 days. Approximately 1,200 wagons of UBTZ are operating for energy coal transport. Last week, 32,333 passengers were served by train. From the beginning of the year to today's date, 1,694,297 passengers have traveled by train. Source: 'UBTZ' JSC Warning to Media Outlets: Broadcast, radio, social, and web media organizations must cite their source (ikon.mn) if they use our information in any form, either wholly or partly.

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Discussion on Expanding Ulaanbaatar-Luun Road to Four Lanes

Published: 2024-10-08 | Translated from: montsame.mn

The State Secretary of the Ministry of Road and Transport Development, S. Batbold, received Waleed Al-Bahar, the acting director of the Kuwait Fund for Arab Economic Development, and other relevant officials. State Secretary S. Batbold highlighted the investment from the concessional loans and grants provided by the Kuwait Fund, which is being used in our country's infrastructure sector, particularly for road construction and the renovation of regional airports. He also introduced some of the plans in the infrastructure sector following the 2022 decree by the President of Mongolia regarding the "Reconstruction of Kharkhorum City." Specifically, a plan to renovate the 382 km road from Ulaanbaatar to Kharkhorum is in place, with the initial step being the expansion of the 101.7 km Ulaanbaatar-Luun road to four lanes. An estimated 362 million USD is needed for this project. It was also noted that according to the government's 2024-2028 action program, the Ulaanbaatar-Luun road will be expanded from four to six lanes. Changes to the project's technical and economic feasibility studies (TEFS) and financing arrangements are being made. There is an expressed desire to solve the project's financing in cooperation with the Kuwait Fund. The project aims to make the Ulaanbaatar-Luun road a six-lane, first-class highway. Since 1996, Mongolia has been collaborating with the Kuwait Fund, successfully implementing major projects in road, energy, and health sectors with a 76 million USD investment from the fund. For example, in the road sector, successful projects include the Darkhan-Erdenet road in 2002, Erdenet-Bulgan-Unt road in 2010, and Unt-Tarialan road in 2015, with a total of 58 million USD funding to build a total of 415 km of road. Currently, the governments of the two countries are jointly implementing a project to expand and renovate Khentii province’s "Undurkhaan" airport. The acting director of the Kuwait Fund for Arab Economic Development, Waleed Al-Bahar, expressed readiness to cooperate on significant projects and programs of importance to Mongolia, mentioning that due to the high overall budget for the 101.7 km six-lane road project, there is a possibility of attracting other international investment organizations besides the Kuwait Fund, such as Arab nations' funds and the Asian Development Bank. He also offered to assist in obtaining additional financing for the project's implementation by relaying the ministry's proposals to international investor organizations and receiving supplementary information about the project in a short timeframe.

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4.5 Billion Tugriks Budgeted for the Road to Khurgan's Agricultural Farm

Published: 2024-10-08 | Translated from: news.mn

A budget of 4.5 billion tugriks has been allocated for the construction of a road from the 32nd khoroo of Songinokhairkhan district to Khurgan's agricultural farm in the Emeelt direction. Information about which company won the tender will be announced, and the road work is expected to start soon. The length of the new road will be increased from the initially planned 2.6 kilometers to 4 kilometers, with its financing secured. Three years ago, "Enigma Construction" won the tender for this route but did not complete the work due to increased costs. Previously, News.mn reported that due to the pit dug for construction, public transportation could not reach its final stop, and children had to walk many kilometers to school. Therefore, authorities have announced that the road company tender contract was canceled in 2023. The three buses servicing the Shand-Khurgan route provide service to residents from Emeelt to Tavan shar. Students and kindergarten children walk more than a kilometer to reach bus stops, and bus drivers have also pointed out the difficulties in performing their duties.

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Traffic in Ulaanbaatar Leading to Educational Lag in Students

Published: 2024-10-08 | Translated from: ikon.mn

Teachers have pointed out that the traffic congestion in the capital city is causing students to fall behind in their educational content. On the occasion of "World Teachers' Day," the "Teachers for Children" forum was organized by the Capital City’s Democratic Party. The forum discussed with teachers about Mongolia's education system, the issues faced by children, and the proposal initiated by members of parliament to issue a "Child Development Card." Teachers shared their views on how pressing issues in Ulaanbaatar are affecting children's education, upbringing, and health. "Due to traffic congestion in the capital, students have started to miss classes in recent years, leading to a lag in educational content. Additionally, classes are overcrowded, with too many students in one class, making it impossible for a teacher to work with each child individually in 40 minutes. Therefore, class sizes need to meet proper standards," they said. Lack of proper places for spending leisure time is leading senior students to fall into bad habits and addiction to mobile phone usage, which greatly impacts their educational success. Teachers emphasized the need for an educational program that combines theory and practice suited to the specific characteristics of Mongolian children. They also noted that direct communication between parents and children is essential. The Education Institute has been researching the developmental characteristics of Mongolian children since 2013, emphasizing that physical development is crucial to the quality of education. Thus, the implementation of the "Child Development Card" project is seen as effective in properly initiating children’s intellectual, physical, and artistic development. Teachers noted that the "Child Development Card" is also meaningful for the development of teachers themselves. The second part of the discussion revolved around the topic "Should an Integrated School System be Developed?" Due to the inability of elementary students to study near their homes, parents spend hours in traffic transporting them, resulting in increased burdens and decreased opportunities for caretakers to provide attention. Consequently, the possibility of setting up elementary schools within a 500-meter radius of homes, as included in the Democratic Party's platform, was discussed. In European countries, there are 8 children per teacher in primary education, whereas in China, there are 15 children per teacher. In contrast, we have 50-60 students per class. Teachers continue to face difficulties due to the lack of opportunities to study and develop each child, as well as the absence of a needs-based educational policy. Thus, there was support expressed for establishing a primary school for every 80-100 households. Furthermore, the implementation of the "Child Development Card" project is expected to increase collaborative opportunities between senior and young teachers.

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Society

Renovation of School No. 18 in Darkhan City with Japanese Government Grant Aid

Published: 2024-10-08 | Translated from: ikon.mn

Under the "Grassroots - Human Security Grant Aid" program of the Government of Japan, a project has been initiated to renovate Secondary School No. 18 in Darkhan City, Darkhan-Uul Province. As part of this project, the roof of the school's main building will be repaired. The roof has significantly aged and deteriorated, causing water leakage that has made it difficult for the school's 1,338 students and 91 teachers and staff to study and work in a healthy and safe environment. The project aims to create a healthy and safe educational environment once implemented. The agreement to implement the project was signed by Masaru Igawahara, Ambassador Extraordinary and Plenipotentiary of Japan to Mongolia, and B.Azjargal, Governor of Darkhan-Uul Province. The Government of Japan has been implementing the “Grassroots - Human Security Grant Aid” program in Mongolia since 1990, for 34 years to date. This project is the 605th under the "Grassroots Grant Aid" and the 25th project to be implemented in Darkhan-Uul Province. The maximum approved funding for this project is 100,138 USD. Source: Embassy of Japan in Mongolia Notice: Media outlets (Television, Radio, Social, and Websites) must mention the source (ikon.mn) when using our information in any form, fully or partially.

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600,000 Households Need Housing

Published: 2024-10-08 | Translated from: news.mn

Currently, 32.1% or 302,237 of the 941,547 households in Mongolia live in housing with engineering infrastructure. Meanwhile, 29.7% or 279,639 households live in neighborhoods lacking full engineering infrastructure, and 38.2% or 359,671 reside in traditional yurts. Therefore, approximately 600,000 households require housing, as discussed during the meeting of the National Housing Committee’s working group held yesterday. The discussion covered whether increasing mortgage financing would raise housing prices, how to involve international organizations in this program, and the possibility of additional funding. Members of the working group include representatives from the Ministry of Family, Labor and Social Protection, the Ministry of Construction and Urban Development, the Mongolian Bank, the Mongolian Mortgage Corporation, the State Housing Corporation, and the Association of Mongolian Banks. Next year, more than one trillion MNT is planned to be allocated for mortgage financing. This financing should primarily reach the target groups. In addition to urban housing development, there is demand to provide affordable housing to citizens and civil servants living and working in rural areas, where infrastructure in over 90 soums has been resolved but construction remains insufficient. The Mongolian Bankers Association proposed environmentally friendly solutions, suggesting energy-efficient 'green' housing that could attract additional international funding. Meanwhile, the Ministry of Construction and Urban Development suggested options such as long-term rental housing to households wanting to enter housing, in addition to mortgages, to prevent price increases. According to research by the Mongolian Mortgage Corporation, 155,000 households have moved into housing with mortgage loans since 2013. Of the families that took loans, 30% have repaid their loans and upgraded their residences. Internationally, there is a practice where homes purchased via mortgage loans can be resold, and state companies buy them to enable further opportunities for the next consumers. These and other proposals will be consolidated into a specific solution. Relevant laws and regulations need amending to achieve this, as stated by the Minister of Family, Labor, and Social Protection L. Enkh-Amgalan.

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Environment

Expenses for Environmental Protection by Enterprises to be Deducted from Taxes

Published: 2024-10-08 | Translated from: unuudur.mn

Enterprises will benefit from tax incentives provided by the Law on Corporate Income Tax, which encourage their participation in environmental protection activities as part of their corporate social responsibility. E. Battulga, the State Secretary of the Ministry of Environment and Climate Change, reported this initiative. Specifically, Article 22.9 of this law states that investments in fixed assets unrelated to income-generating activities but aimed at supporting corporate social responsibility—such as financial aid and donations given to unrelated parties—can be deducted from taxes imposed under Article 20.1 of the same law. These non-income-generating activities include protecting, properly using, and restoring natural resources like forests, wildlife, and water, as well as reducing air, water, and soil pollution and combating desertification. Therefore, the law has been amended to deduct from income tax the expenses that enterprises invest in these areas within that tax year. However, the amount of these deductions should not exceed one percent of the taxable income for the relevant year. This provision has been in effect since August 30 of last year and will continue until January 1 of 2035.

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Hurricane Milton Reaches Most Dangerous Level

Published: 2024-10-08 | Translated from: news.mn

Hurricane Milton was a Category 1 storm on Sunday but has rapidly intensified into a Category 5 hurricane heading toward the US Gulf Coast, according to the National Hurricane Center (NHC). Although Hurricane Helen caused significant damage in Florida last week, Hurricane Milton is now approaching the state at 281 km/h. State authorities have warned residents to stay cautious and have initiated the largest evacuation operation. Governor Ron DeSantis has urged citizens to participate actively in the evacuation process and to leave the hurricane danger zone as quickly as possible. Hurricane Milton is expected to be much stronger than Hurricane Katrina in 2005. With Hurricane Helen having claimed 225 lives, officials are worried that Milton will be "like a monster." Governor DeSantis stated, "We believe that Hurricane Milton will be the most life-threatening. To become a Category 5 storm from Category 1 within just 24 hours is terrifying. Residents are urged to leave the state or move in the opposite direction of the hurricane's path." Hurricanes are categorized by wind speed into five levels. A Category 1 storm is the least dangerous, while a Category 5 storm is the most dangerous and reaches disaster levels. Experts typically declare a state of emergency starting from Category 3. SOURCE: BBC

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Raw Material of Briquettes to be Tested

Published: 2024-10-08 | Translated from: news.mn

Improved briquettes have been introduced to the market in Ulaanbaatar since 2019. Officials claim that the quality and standards of these briquettes have been continuously improved each year, but citizens remain skeptical about their quality and safety. As a result, "Tavantolgoi Fuel" company decided in an urgent meeting to send samples of the middlings, the raw material for the briquettes, to an independent laboratory for testing. Briquettes are made by pulverizing raw coal and using binders to form them. About 20-30% of the briquettes produced by "Tavantolgoi Fuel" consist of binder raw materials. 50% of this binder is sourced domestically, while the remaining 50% is imported from China. Since the introduction of briquettes in 2019, 147 people have died from carbon monoxide poisoning between then and the first six months of 2023. Additionally, last year, the emergency services received reports of over 2000 citizens being exposed to carbon monoxide. On social media, information has spread claiming that the binder chemicals have hazardous ingredients. At the time, the customs laboratory tested the binder substance, and mine laboratories found no problems when testing the fuel, as reported by "Tavantolgoi Fuel" LLC's senior advisor G. Badamkhatan. Therefore, it was announced previously that this year, briquettes were produced according to the previous standard without changes to the ingredients of the binder. Sales of briquettes began at sales points from September 15 of last year. Distribution of briquettes is handled by 200 transportation vehicles from 29 companies delivering to contracted sales points. Prices have not changed, with a 25 kg sack of briquettes costing 3750 MNT, and a ton priced at 150,000 MNT. Last year, 650 briquette sales points operated in the seven districts of the capital, while this year, a total of 670 points will be operational.

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Regulations for Exporting, Importing, Transporting, Producing, and Selling Hazardous Chemicals Updated

Published: 2024-10-08 | Translated from: montsame.mn

The procedure for exporting, importing, transporting across borders, producing, and selling hazardous chemicals has been newly approved. In relation to this, an online meeting was organized to provide guidance to the state inspectors of the Environment Department in provinces and the capital city. According to the regulation, the state inspector of environmental control of the capital city will have to assess whether the standards for the storage facilities of chemicals are met. Accordingly, the Chief State Inspector of Environmental Control issued the directive 01/19 on "Conducting Preventive Inspections in Chemical Storage Facilities" and forwarded it to the environmental departments of provinces and the capital city. Following this, preventive inspections will be conducted, and state inspectors will have the opportunity to assess whether the storage facilities for chemicals meet the standards. Therefore, citizens and businesses engaged in the activities of exporting, importing, producing, and selling hazardous chemicals should submit their requests to their respective local environmental departments to obtain the evaluation from state inspectors as required by Article 9 of the Law on Toxic and Hazardous Chemicals, and to receive necessary guidance and advice. This information was provided by the Ministry of Environment and Tourism.

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SOUTH GOBI: A Project to Irrigate the Desert with Surface Water Will Be Supported and Implemented

Published: 2024-10-08 | Translated from: montsame.mn

The "Gobi Water" project continues its implementation across South Gobi province. Aiming to collect surface water for watering wildlife and using it in agriculture, the project has plans for constructing pond reservoirs in the soums of Khanbogd, Bayandalai, Bayan-Ovoo, Khankhongor, Dalanzadgad, Gurvantes, and Sevrei. With a budget allocation of 1.9 billion Mongolian tugriks from the local budget for 2022-2023, reservoirs of varying capacities have been built: Dalanzadgad (18,000 cubic meters), Bayandalai (46.8 cubic meters), Sevrei (7.5 cubic meters), Gurvantes (3.3 cubic meters), Nomgon (1.8 cubic meters), and Bayan-Ovoo in Khankhongor (78,714 cubic meters). By accumulating and utilizing surface water resources, the project not only increases air and soil moisture and underground water reserves but also revitalizes the regional ecosystem and biodiversity, reduces soil erosion, and, consequently, helps mitigate desertification. In the territory of Mandal-Ovoo soum, near the Ongi Monastery in South Gobi province, plans include constructing two surface water collection reservoirs, a 110 km pipeline to transport water by gravity flow from the reservoir to Ulaan Lake, and a further 248 km water conveyance facility from Ulaan Lake to Tavantolgoi, involving four pump stations. The water transport route totals 358 km and uses a paired ductile iron pipeline with a steel alloy.

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Innovation

"Mongolia Mining 2024" Exhibition Includes Representatives from Over 20 Countries

Published: 2024-10-08 | Translated from: montsame.mn

Representatives from over 20 countries are participating in the "Mongolia Mining 2024" exhibition.

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Mongolia Mining-2024: A Platform for Collaboration and New Technology

Published: 2024-10-08 | Translated from: montsame.mn

The international "Mongolia Mining-2024" mining exhibition expo opened today at the "Buyant Ukhaa" sports arena. Mining is one of the major sectors of Mongolia's economy. To sustain and develop this sector, both foreign and domestic investments are necessary. Particularly, the advancement in mining technology and the supply of equipment play a crucial role. This expo is unique in that it showcases all these elements comprehensively in one place, as highlighted by the chairman of the exhibition organizing committee, T. Battulga, who is also the executive director of "Minex Mongolia" company. It is distinguished by its feature of presenting all necessary services, technical equipment, and know-how needed for mining operations. It also fosters business collaboration. The "Mongolia Mining-2024" expo provides an international standard environment to meet all these requirements. The expo has been held uninterrupted for the 13th year, except for the COVID-19 years, becoming a stable operation within the sector. Over 2,000 people, organizations, and businesses registered to participate in the opening, organizers informed. In addition, numerous companies and representatives from countries such as China, Russia, Belarus, Japan, Australia, Canada, Germany, South Korea, Kazakhstan, and India are participating in "Mongolia Mining-2024," which is also noted as a business tourism event. This year's "Mongolia Mining-2024" features participation from about 250 companies from over 20 foreign countries and nearly 3,000 representatives both foreign and domestic. The exhibition program lasting three days includes: The opening day features greetings from the Minister of Industry and Mineral Resources Ts. Tuvaan, Australia's Ambassador to Mongolia Katie Smith, and Andrew Herod, director responsible for operations of the main sponsor "Transwest Mongolia". The Asian Economic Development Organization will sign a memorandum of understanding with Mongolia's Mining Professional Associations, marking the collaboration. Presentations on Australia's mineral strategies, exploration, geological surveys, and geotechnical programs will be delivered, along with discussions on legal and regulatory reforms of the mineral resources. Follow @montsame.mn

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Issuance of Entry Information to Mongolia is Being Efficiently Organized

Published: 2024-10-08 | Translated from: isee.mn

In connection with the 2024 second round of military recruitment taking place across Mongolia, the Border Protection Agency has been efficiently organizing the provision of information and references to citizens who have entered Mongolia. The information and references are issued at the one-stop service center of the General Authority for Border Protection during business days from 08:30 to 17:30. Citizens need to present the following documents: - Military summons notice - National ID card Please note that the citizen making the request must be present with their ID card. Citizens also have the option to obtain information and references online via the E-Mongolia.mn web portal. When obtaining information online, it is recommended to fully enter the citizen's details.

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Michael Goldsmith: Mongolians are actively participating in cyber security level assessment research

Published: 2024-10-08 | Translated from: ikon.mn

Minister of Digital Development, Innovation, and Communication Ts. Baatarkhuu met with Fiona Blyth, the Ambassador Extraordinary and Plenipotentiary of the United Kingdom of Great Britain and Northern Ireland to Mongolia, and researchers from the Cybersecurity Capacity Center of the University of Oxford. The researchers from the University of Oxford have started a study to determine the current level of cyber security in Mongolia. Minister Ts. Baatarkhuu expressed confidence that this study will make a valuable contribution to determining future measures to be taken. He also emphasized that the Government of Mongolia is developing a unified government website, www.gov.mn, based on the best practices of the United Kingdom. Fiona Blyth praised the work being done to develop a unified government website to provide citizens with open, transparent, and prompt public information and services. She expressed gratitude for focusing on cyber security and starting cooperation between the two countries. Michael Goldsmith, Director of the Cybersecurity Capacity Center at the University of Oxford, noted that to determine the current level of cyber security in Mongolia, representatives from over 100 organizations in the public, private, and international sectors were interviewed. He highlighted that Mongolians are participating actively in the research. He mentioned that the research results will be released by the end of the year and will be presented in collaboration with the Ministry of Digital Development, Innovation, and Communication. Additionally, Minister Ts. Baatarkhuu emphasized the goal of transforming the "E-Mongolia" academy into a center for big data and artificial intelligence, creating a legal and regulatory environment for artificial intelligence, and developing new laws such as for space studies. He also expressed a desire to collaborate with the United Kingdom to provide young people with skills in coding. Ambassador Fiona Blyth highlighted that the United Kingdom is collaborating extensively with Mongolia in the field of education and that cyber security research is the foundation for partnership to accelerate digital transition and provide digital skills for young people. Source: Ministry of Digital Development, Innovation, and Communication Notice: Media organizations (Television, Radio, Social, and Web pages) must mention their source (ikon.mn) if they fully or partially use our information.

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Order Your Passport Online

Published: 2024-10-08 | Translated from: unuudur.mn

If your passport or national ID has expired, or if you need to order a new one, you no longer need to go to a "One-stop service" center in person. These services have now been moved online. However, it's been observed that some citizens are still unaware of this change and are causing delays by physically waiting at their district's One-stop service centers, according to national registration officials. For passport photos, you no longer need to develop them and provide them to a registration officer as before. It's sufficient to send your photo and registration number to the photo.burtgel.gov.mn website from the photography studio. After doing so, you can pay for your passport fee using "E-Mongolia," and your order will be confirmed. If you cannot access the service online, districts have implemented a "Fast" system at One-stop service centers that allows you to pay the fee by card or select other payment options. Incidentally, the fee for obtaining a new or renewing an electronic passport is 83,600 MNT.

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Health

Request for Kuwait's Support in Establishing Oncology and Infectious Disease Branch Hospitals

Published: 2024-10-08 | Translated from: ikon.mn

Minister of Health T. Munkhsaikhan received a delegation led by Waleed Shamlan Al-Bahr, Acting Director General of the Kuwait Fund, and other relevant officials to exchange views on future cooperation between the two countries in the health sector. At the beginning of the meeting, Minister T. Munkhsaikhan expressed gratitude for the successful construction and equipment supply of the new building for the Burn Center, a branch of the National Trauma and Orthopedic Research Center, with grant aid from the Kuwait Fund. He noted that the operation of the Burn Center at full capacity has reduced the workload of the National Trauma and Orthopedic Research Center by 30% and provides high-level burn and frostbite treatment, making it a major hospital providing medical services nationwide. Furthermore, during the meeting, the Minister expressed interest in collaborating with the Kuwait Fund on two projects. Specifically, as part of the Mongolian Government's Action Program for 2024-2028, there are plans to establish branch hospitals of the National Cancer Center and the National Center for Infectious Diseases. Although the locations for these hospitals have been allocated by the city's Governor's Office and preliminary designs and studies have been completed, they have not been resolved due to financial constraints. Mongolia registers over 7,000 new cancer cases per year, 60% of which are diagnosed at late stages. Projections indicate that by 2040, cancer incidence will increase by 108% and mortality by double, highlighting the urgent need to establish an oncology branch hospital. Additionally, the National Center for Infectious Diseases is located in central Ulaanbaatar, posing a high risk of becoming a focal point for infections among the population during pandemics. Relocating this hospital away from urban areas will reduce the risk of disease spread. The Minister expressed the country’s desire to resolve the necessary financing for the establishment of these branch hospitals through the support of the Kuwait Fund and requested assistance from Waleed Shamlan Al-Bahr, Acting Director General of the Kuwait Fund. In response, Waleed Shamlan Al-Bahr stated that they are willing to explore all possible means of collaboration in the health sector and that these requests can be officially submitted for discussion to find solutions, focusing on resolving the necessary financing positively. Source: Ministry of Health Notice to Media: Media organizations (TV, Radio, Social and Web pages) must cite the source (ikon.mn) when using the information in any form, in full or in part.

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Today's Stories

Politics

Economy

Diplomacy

Infrastructure

Society

Environment

Innovation

Health

Politics

Report: The Discarded 100,000 Electoral "Right" from the Ballot Box

Kh. Bolormaa: False information about the budget of the Sukhbaatar district related to the elections is being spread

Local Council Election Voting Will Be Held From 7:00 to 20:00

The National Coalition Begins to Fill the Space of an Opposition Force

Assignment: The 100,000 Voting “Right” Lost from the Ballot Box

Economy

A National Wealth Fund Beneficial to Every Citizen

Foreign Trade Surplus in the First Nine Months of 2024

As of the first nine months of 2024, foreign trade turnover reached 20.4 billion USD

"Erdenes Tavantolgoi" JSC Trades 128 Thousand Tons of Coal on the Exchange

L. Enkh-Amgalan: A Decision Was Made to Increase the Minimum Wage to 792,000 Tugriks

E.Boldkhangai: In the Construction Industry, the Market Seeks Out Its Companies

The decision to increase the minimum wage has not been finalized

The Number of Tourists Visiting Mongolia Has Increased by 16,000

Diplomacy

President U. Khurelsukh to Make State Visit to Turkmenistan

Possibilities to Import Electricity and Natural Gas through a Visit to Turkmenistan and Strengthening the Cooperation of the Ministries of Foreign Affairs

Infrastructure

Energy Reform and Survival Strategy!

Position: Importance of Focusing on Infrastructure to Attract Foreign Investment

AUDIT: Budget Allocation Needed for Development Projects

The design and feasibility study for the new six-lane road connection from Yaarmag to 'TETs-IV' to the First Neighborhood is complete

REPORT: The Booroljuut Power Plant to Begin Supplying Electricity Next Month

A 50 MW Capacity Battery Storage Plant to Be Commissioned in Baganuur District

T.Dorjhkhand: Energy Tariff Changes to Be Announced on November 1

Discussions on Expanding the Ulaanbaatar-Lun Road to 4 Lanes with Kuwait

Volume of Cargo Transported by UBTZ Exceeds Last Year's Figures

Discussion on Expanding Ulaanbaatar-Luun Road to Four Lanes

4.5 Billion Tugriks Budgeted for the Road to Khurgan's Agricultural Farm

Traffic in Ulaanbaatar Leading to Educational Lag in Students

Society

Renovation of School No. 18 in Darkhan City with Japanese Government Grant Aid

600,000 Households Need Housing

Environment

Expenses for Environmental Protection by Enterprises to be Deducted from Taxes

Hurricane Milton Reaches Most Dangerous Level

Raw Material of Briquettes to be Tested

Regulations for Exporting, Importing, Transporting, Producing, and Selling Hazardous Chemicals Updated

SOUTH GOBI: A Project to Irrigate the Desert with Surface Water Will Be Supported and Implemented

Innovation

"Mongolia Mining 2024" Exhibition Includes Representatives from Over 20 Countries

Mongolia Mining-2024: A Platform for Collaboration and New Technology

Issuance of Entry Information to Mongolia is Being Efficiently Organized

Michael Goldsmith: Mongolians are actively participating in cyber security level assessment research

Order Your Passport Online

Health

Request for Kuwait's Support in Establishing Oncology and Infectious Disease Branch Hospitals

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