Oct 29, 2024 84 min read Daily News Summaries

Mongolia News Summary for October 29, 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

The Importance of Supporting Investors in Amending the Nuclear Energy Law

Published: 2024-10-28 | Translated from: news.mn

During the government meeting last week, it was decided to urgently submit and discuss in the State Great Khural the draft law on amendments and supplements to the Law on Nuclear Energy and other related laws. In this context, let's share an interview with Physics Doctor N. Tegshbayar about the uranium mining and export project called Zuun-Ovoo, which is about to be jointly implemented by Mongolia and France for the first time during the Regional Development Forum. - The investment agreement negotiations are underway for the Zuun-Ovoo project, which Mongolia is planning to implement jointly with France. From a professional perspective, how do you see the significance of this project? - This is not France's project alone; it is a joint project between France and Mongolia. Furthermore, it is a joint Asian-European and global project. At the very least, this project will direct global investment towards the Gobi region, enhance competitiveness, and make a significant contribution to development. On the other hand, collaborating with France means working with a permanent member of the United Nations Security Council. This can be a leverage for Mongolia to protect its national security policy and independence through diplomatic discussions. With French investment coming in, European and eventually global investment interest will increase. Moreover, by having its own uranium mines, Mongolia will have taken a step closer to having a nuclear power plant, opening the way to breaking free from energy dependence. This project has many significant benefits. There is positive anticipation that the investment agreement negotiations will be successful, and the project will soon be implemented. - There is still a need to provide the public with accurate scientific information about this uranium mining project, considering that uranium is radioactive. But is the public's common understanding relatively changing? - There is a message being conveyed to the public that sulfuric acid water is being injected underground to pollute it. However, uranium was present in Mongolia since the Earth's formation. It's not something that becomes unusable once you start mining. Whether mined or not, places with uranium are already radioactive. We did not bring and sow it here. Chemically, it is toxic, and radiologically, it is toxic. It becomes a technical environment whether water, milk, or a diluted sulfuric acid solution is introduced into such an environment. We aim to dissolve and extract the uranium underground, not to add more pollution. With divine protection, our ancestors have left us a vast beautiful land. We aim to utilize this raw material to reach a new stage of intense development like the Arabs and Kazakhstan, or to become competitive like China. Therefore, the public needs to acquire a scientific understanding. Take Kazakhstan as an example; it started off at the exact same baseline as Mongolia 30 years ago, and today it has become the world's leading uranium exporter. A recent public referendum showed 71% of their citizens support having a nuclear power plant. This is because citizens understand that a nuclear power plant is a green energy source, and with its help, people will rid themselves of emissions and greenhouse gases. Therefore, as a professional, I can say there are no physical issues with the Zuun-Ovoo project to be implemented in Ulambadrakh soum of Dornogovi aimag. However, from an economic perspective, the principle of mutual benefit is the key. - Mutual benefit is the most important for investors. Especially since this is the first uranium mining project to be implemented in Mongolia, the Nuclear Energy Law can be considered an indicator of whether this project will progress or stall. The government has announced it will urgently discuss amendments to the Nuclear Energy Law in the State Great Khural. What is your position on this change? - Yes, the changes in the law and how it will be implemented will directly indicate whether our country is interested in implementing this project. Last year, during high-level official visits between Mongolia and France, both sides signed a protocol. Therefore, we must move the project forward on our part. Any amendments to the law should only include provisions that are favorable to, and encourage the project, for investors. Therefore, I would like to appeal to members of parliament not to include provisions that hinder investment. Perhaps parliament and party groups should bring in professionals to ask while discussing the bill. During the introduction of the Regional Development policy, the Prime Minister mentioned developing the country based on scientists. Similarly, the need to have scientists' input on the uranium project is undeniable in parliament. - Did the amendments and additions to the law include any provisions that may create doubts for investors? - There is one provision that requires caution. It states that a special permit holder will place the monetary resources for mine and plant closure, and post-closure maintenance in a government account in accordance with the procedure specified in Article 34.6 of the law. This basically means that today, the project implementers are required by law to prepay for the funds needed for environmental restoration and closure of the plant at the end of the project, which may occur 30-40 years later. - Why do you believe this provision requires caution? - If a change is made to place the cash in a special state fund, it will require at least 300 million dollars. The Zuun-Ovoo deposit's feasibility study estimates the restoration fund to be over 300 million dollars. This additional requirement of placing such a large amount of cash creates a risk of further delaying the implementation of the project. Detailed risks include increased project costs, difficulty obtaining loan financing, additional financial burden on the project, potential rise in the price of extracted raw materials, and ultimately making the project unfeasible. For the Zuun-Ovoo deposit, the French side proposed to provide a guarantee through a well-known international bank and place it in a special account. This would relieve the financial burden on the deposit and provide the capital without increasing project costs. However, if we insist that this money be placed in cash in an account, it becomes inappropriate. - So does this mean that if 300 million dollars is placed in our state treasury in cash, the government will conduct plant closure and environmental restoration with it after the project concludes 30-40 years later? - If such a provision is legislated, that is what will happen. Placing the future restoration funds meant for use at the mine closure after 30-40 years in the state fund account assigns the responsibility of long-term management to the government, which acts as a significant burden. By transferring restoration responsibility from the extractor to the state, it risks the extracting company becoming negligent towards environmental issues. Another big risk is whether this money will be there 40 years later. Today's 300 million dollars placed may become 2.1 billion dollars 40 years from now, surpassing the construction cost of the deposit. What if this amount is used to cover budget deficits over 40 years and this risk leads to the restoration not being carried out? Hence, if we want the party implementing the project to be responsible, seeking a bank guarantee would ensure that both the bank and the implementer carry their responsibilities. - Is there such a practice internationally? What principles do other uranium mining countries follow? - Placing future restoration costs in the state fund account does not exist in other uranium mining countries. Creating such a requirement that is not found in international practice may lead new mining investors, including domestic investors, to turn away from Mongolia. Only in 2023 did Nigeria express such a requirement after a coup d'état. It will likely give investors the impression that Mongolia is not interested in implementing this project if it becomes the second country to have such a nonsensical requirement that does not exist worldwide and has political undertones, unrelated to mining. Creating this precedent as the second country could detriment Mongolia's interests. Internationally, project implementers secure guarantees through major banks, and if unable to fulfill contractual obligations, the bank bears responsibility. Adding such a provision to the Nuclear Energy Law is a very negative stance for investors. - You've mentioned that investment agreement negotiations are proceeding successfully. With uranium demand rising and the nuclear energy market expanding, what consequences could arise if such a legal change takes effect? - Generally, the benefit of any significant project decreases the longer it is delayed. If the newly proposed provision is implemented in the law, it will delay the Zuun-Ovoo project by 2-3 years. With the uranium market consistently growing, it is advantageous for our country to implement the project as quickly as possible. - So, for our country, the most fitting option would not be to receive restoration costs in cash but to obtain a bank guarantee and start the project as quickly as possible, right? - Yes, if such a requirement is introduced in the uranium sector, it inevitably risks spreading to other sectors. If incorporated into the Mineral Resources Law, it may potentially initiate the process of driving away both foreign and domestic investments from all types of mineral extraction sites. Thus, having a legal provision in which audits are conducted yearly under foreign auditors' financial audits in accordance with the law would mitigate risks for Mongolia.

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Introducing: The New Governors of 21 Provinces

Published: 2024-10-28 | Translated from: news.mn

The first sessions of the Citizens' Representative Khural of provinces, the capital, districts, and cities have been held, appointing new governors. News agency previously provided information about the governors of the capital and nine districts. Now, we bring you the information of the governors of 21 provinces. The candidates for governor, who received the majority of votes in the provincial and district Citizens' Khural, will be confirmed by the Prime Minister. Khovd Province Governor M. Amarsanaa The first session of the Citizens' Representative Khural of Khovd Province was held, and M. Amarsanaa from the Democratic Party was nominated for the position of provincial governor. He received majority support from the delegates, and his name will be forwarded to the Prime Minister for confirmation. Amarsanaa has been elected to the provincial Citizens' Khural three times and served as Deputy Governor of Khovd Province from 2012 to 2016. He has also worked as the Head of the Democratic Party of the province. Khentii Province Governor D. Ayurbun The first session of the Citizens' Representative Khural of Khentii Province was held, and D. Ayurbun was appointed as the provincial governor. In 2023, he was elected as the head of the province's Democratic Party. From 2012 to 2013, he was an Advisor to the Governor of Khentii Province, from 2013 to 2016, he was Deputy Director and First Deputy Director of the National Radio and Television Network, from 2017 to 2018, he served as Head of the Administration and Management Department, and Director of Local Contract Management and Human Resources at G-Mobile LLC, and from 2018 to 2023, he worked as Director of Human Resources at Magnai Trade LLC. Since 2020, he has been working as the founder and director of Khaan Oil Group. Umnugovi Province Governor N. Enkhbat The first session of the Citizens' Representative Khural of Umnugovi Province was held, and N. Enkhbat was nominated and appointed as provincial governor by majority vote. Born in 1985 in Umnugovi Province, he is an economist by profession. He graduated in economics and business management from the Mongolian State University of Agriculture and holds a master's degree in business administration. From 2013 to 2014, he graduated in government management from the Academy of Management. He completed language training at Oxford in England in 2014-2015 and advanced his studies in government management at Kookmin University in Seoul, South Korea, in 2018. From 2020 to 2023, he served as Deputy Governor of Umnugovi Province and, since 2023, has been the chairman of the Citizens' Representative Khural of Umnugovi Province. Since 2012, he has been elected four times as a representative to the Citizens' Representative Khural of Umnugovi Province. Selenge Province Governor N. Lkhagvadorj At the first session of the ninth election of the Citizens' Representative Khural of Selenge Province, N. Lkhagvadorj was reappointed as provincial governor. He has been elected twice as a representative to the provincial Citizens' Khural and served as the provincial governor from 2020 to 2024. He was born in Mandal soum of Selenge Province. He graduated from "Ikh Zasag" International University in legal studies from 2007 to 2010 and from the Academy of Management in government management from 2015 to 2016. From 2005 to 2012, he was the director of "Javrai" LLC, then an assistant and representative to a member of the Parliament. He has held various elected positions: member and leader of Mandal soum’s Citizens' Representative Khural from 2009 to 2020, chair of Mandal soum’s Youth Association from 2009 to 2016, member of the Young Leaders Conference from 2012 to 2016, leader of Mandal soum's National Wrestling Association since 2011, and member and leader of the Selenge Province's Youth Organization since 2015. Since 2021, he has been serving as the head of the Selenge Province’s Youth Organization. Bayankhongor Province Governor D. Munkhsaikhan At the first session of the ninth election of the Citizens' Representative Khural of Bayankhongor Province, D. Munkhsaikhan was appointed as provincial governor. He has been elected three times as a representative to the provincial Citizens' Khural and served as provincial governor from 2020 to 2024. He graduated in business administration from the Mongolian University of Trade and Industry in 1999 and in government management from the Academy of Management in 2002. Work Experience: - Human Resources Officer at the province's Governor's Office from 2000 to 2001 - Field Coordinator at World Vision International from 2001 to 2003 - Branch Director at “Mongol Post” LLC from 2003 to 2005 - Head of the Province’s Specialized Inspection Agency from 2007 to 2012 - Director of "Ikh Bogd Zam" LLC from 2012 to 2018 - Director of the Financial Department of "Erdenes Mongol" LLC from 2018 to 2020 Orkhon Province Governor B. Zorigtbayar At the first session of the ninth election of the Citizens' Representative Khural of Orkhon Province, D. Zorigtbayar was nominated to be presented to the Prime Minister for confirmation as provincial governor. He has served as the governor of Jargalant soum, Orkhon Province, for the past eight years. He is an economist and demographicist by profession. Work Experience: - 2007-2010: Economist at Khaan Bank, Jargalant Soum, Orkhon Province - 2011-2015: Director of the Accounting Center of the State Bank, Orkhon Province - Since 2016: Governor of Jargalant Soum, Orkhon Province Elected Positions: - 2012: Representative of the Citizens' Representative Khural of Jargalant Soum, Orkhon Province - 2016: Representative of the Citizens' Representative Khural of Jargalant Soum, Orkhon Province - 2020: Representative of the Citizens' Representative Khural of Orkhon Province and Jargalant Soum He served as the Deputy Head of the Mongolian People's Party's Bureau in Jargalant Soum from 2015-2021 and has been acting as the Head since 2021. D. Purev-Ochir is being considered for appointment as governor of Bulgan Province. As for Khuvsgul Province, the Citizens' Representative Khural will be organized on November 1 to appoint a governor.

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Will Politicians Disagree and Turn Off the Country's 'Light'?

Published: 2024-10-28 | Translated from: news.mn

As the cold approaches and temperatures drop below zero, avoiding power restrictions and maintaining uninterrupted heating have long been crucial issues for Mongolians. Due to the actions of politicians and sector ministers protecting their own interests, the energy sector today is sitting under a red light. At this time, when a coalition government has been formed, there are ambitious plans to offset the losses in the energy sector and move forward with some projects. Deputy Prime Minister G. Dorjhand is leading the National Energy Subcommittee appointed by the coalition government. The Government of Mongolia and the subcommittee have announced that they are working on major reforms to address the losses in the energy sector. In this context, it has been decided to align energy prices and tariffs with market principles to reflect real costs. In other words, in order to cover losses this year, it was deemed necessary to bring prices to actual cost levels, as presented by the Energy Regulatory Commission. It costs 280 tugriks to produce 1 kWh of energy, but households are charged 140 tugriks for it. Thus, it’s inevitable that the energy price needs to cover its cost, implying an additional 140 tugriks is needed. Another issue is that households living in the protected mountain areas, who may forget they have left their heating on, and elderly citizens living in areas like 7 Buudal, pay the same price of 140 tugriks per kWh for electricity and also benefit from the same night-time tariff discounts. The core idea here is to index the electricity price based on consumption and set it at differentiated rates. The Energy Regulatory Commission initially argued for changing the price by indexing it, which is related to this idea. Indexed tariffs based on consumption could serve as a genuine incentive for energy conservation. For many years, motivated by political influence, the energy sector was strangled by "subsidized" prices that didn’t even reach production costs. Yet today, political "clowns" are growing in number, unable to understand this price and tariff reform. If they continue to strangle and bring down the energy sector, which is essential for national independence and strategic importance, none of these political "clowns" will dare step forward to take responsibility. For those politicians who craftily use "the people" as rhetoric for their plans, the trap they are laying by strangling the energy sector with price disparities is a clear sign that they do not truly care about us, the people. If this continues, the sector is forecast to face a loss of 274 billion tugriks by 2024, with the three coal mines supplying power stations in the central region suffering losses of 81 billion tugriks. Furthermore, 19% of thermal power plants and equipment and 40% of transmission networks are already past their intended life, which could lead to sudden shutdowns. How many loving politicians will bring candles then? Because the new high-capacity power sources are not operational, power restrictions are likely to continue this winter. Although we offset our energy demand with imports, in 2023 our country experienced a shortage of 115 MW, necessitating inevitable restrictions that were quite clear. By 2023, we had spent 197 million dollars or 678 billion tugriks on imported energy. Had we sufficiently maintained and expanded domestic sources, foreign currency of this magnitude might have remained in our country. This year, there are many staged works to adjust the price disparities, move forward with some projects, and move towards eliminating power restrictions and compensating for losses in order to integrate new energy sources. Especially now, the coalition government must eschew political games and bring the collapsed energy sector onto the path of recovery—because the time has come. If we continue to swallow the hollow rhetoric of political "clowns," we may be left only with the possibility of warming by fire and cooking on stoves.

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19 Corruption Cases Transferred to Court

Published: 2024-10-28 | Translated from: unuudur.mn

The Investigation Department of the Anti-Corruption Agency reviewed 82 complaints and information with criminal characteristics. Of these, 18 complaints and information have been transferred to the prosecutor's office with a recommendation to open investigation cases, 7 complaints and information have been transferred with a recommendation to refuse opening investigation cases, and 57 complaints and information are currently under review. Additionally, out of 908 ongoing criminal cases, 19 cases were proposed to be transferred to court, 18 cases to be closed, and 2 cases to be transferred according to jurisdiction. The prosecutor's office has been notified of these proposals, and 2 cases are being jointly investigated. Currently, 867 cases are under investigation. Two investigator's notices were issued to relevant organizations to eliminate the causes and conditions that contributed to the occurrence of criminal offenses.

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Opposition to Energy Price Increase

Published: 2024-10-28 | Translated from: unuudur.mn

The Mongolian Trade Union Confederation (MTUC) held a press conference last Friday opposing the increase in energy prices. "Minister B. Choijilsuren recently announced an increase of 64% for electricity and 28% for heating. While there is no dispute that reform is needed in the energy sector, we don't want to burden the public. The Energy Regulatory Commission needs to be thoroughly monitored to see if they are realistically calculating the prices and tariffs. A drastic increase in energy prices would lead to many businesses closing," said B. Ragchaa, the deputy president and acting president of MTUC. Therefore, he emphasized that the authorities should reconsider their decision to raise the prices. Additionally, the union demands that political parties holding seats in parliament fulfill their campaign promises. Specifically, MTUC noted that political parties promised to increase the value of labor and create more jobs during the election campaign but have not fulfilled these promises. About this, B. Ragchaa stated, "Human resource policy in our country has already deteriorated, and it's reached a catastrophic level. Highly educated and skilled personnel are fleeing abroad. The main reason for this is that the valuation of labor is low. We hoped that the coming years would bring special attention to resolving this issue, but instead, budget projects have been presented to spend money on ineffective things. Ineffective expenditures should be cut from the budget, and focus should be on improving the valuation of labor."

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The Ruling Party is Feeding Its Structure Through the Budget

Published: 2024-10-28 | Translated from: news.mn

A conversation with Member of Parliament D. Purevdavaa. – During the amendment of the 2024 budget, some members of the State Great Khural criticized that they were not given enough time to familiarize themselves with the budget. Now, the government of Mongolia has introduced the 2025 budget proposal to the State Great Khural. Have you been able to fully acquaint yourself with next year's budget? What areas need attention in next year's budget? – Members elected from the 2014 parliamentary elections took their oath on July 2 and an extraordinary session of the State Great Khural was held in August to discuss amendments to this year’s budget. At that time, the budget amendment materials were handed to the MPs at the last minute. Due to changes in the structure of the new government, amendments were made. As it is discussed and approved by the State Great Khural, time should be given to familiarize with the amendments. Since a large volume of material was given in a limited time, and since 80% of the 126 MPs were new members, many issues remained unclear but were approved. As for the budget for 2025, it was formally submitted by law before September 1. It was provided both electronically and in paper form to the members, and it is now being discussed in the State Great Khural. Just over a month ago, during the amendment of the 2024 budget, the expenditure was increased from MNT 27 trillion to MNT 30 trillion. For 2025, the draft aims for expenditures of around MNT 38 trillion, revenues of MNT 36 trillion, and a budget deficit of MNT 1.9 trillion. The current increment from MNT 27 trillion at the beginning of the year to MNT 38 trillion a year later shows a significant expansion over a short period. The main issue is that the government’s proposal predicts economic growth of 8% with GDP reaching MNT 95 trillion. However, independent analysts and the Budget Stability Council estimate growth at 6.6-7%, with the World Bank estimating around 6.6-6.7%. If there is a discrepancy from the government's estimates, the government’s ministers and the Ministry of Finance cannot provide an explanation. They suggest that in case of risks arising from fluctuations in copper and coal prices, the MNT 1.5 trillion in the Accumulation Fund and an additional MNT 600 billion expected to be accumulated will be used to overcome these risks. Personally, I think the funds in the Accumulation Fund are insufficient to stabilize these risks. On the other hand, with optimistic GDP growth projections, the tax revenue proportion is expected to surpass GDP growth rates. Thus, in a risky situation, significant burdens will fall on taxpayers, employers, and citizens. Additionally, there is discussion on raising the price tariffs of electricity and the minimum wage. Following the increase in electricity and heating tariffs, entities will raise the prices of their goods and services, which will create economic difficulties. This might shrink the ability to pay taxes, as some researchers and MPs have warned. – The government’s expenditure, particularly operational costs, is increasing annually. It seems to continue growing. – The state is becoming more bloated. There were possibilities to streamline it. For instance, substantial investment has been made over the past eight years to digitize state operations. While there have been successes, the concern arises as to why certain state structures have not streamlined and reduced costs despite such digitalization. For example, under the implementation of the “New Revival Policy,” a state-owned enterprise was established to manage this policy. Numerous state-owned enterprises still exist. There's an opportunity to reduce the number of these enterprises. Moreover, the government aims to implement 14 mega projects in the coming years. The criteria for selecting these projects are unclear. It's crucial for jointly run governments to implement projects contributing long-term sustainable revenue for the government. However, it is questionable how much time is required for investments to return to the national budget by establishing satellites, drilling through Bogd Mountain, or building bridges. Conversely, will operational costs increase in the long term? Nor has anyone calculated the expected income and expenditure. Only now are feasibility studies being conducted. Essential projects such as expanding power plants, energy sources, and water supply in the Gobi desert should be implemented. Without reliable power, regardless of a thousand solutions you talk of, it’s futile. Therefore, the prioritization of projects implemented by the government and the domestic and foreign funded projects scheduled for next year remain unclear regarding their economic benefits. The parties in the coalition government are forcefully trying to pass the 2025 budget with a majority. – Do you see any possibility to cut down on next year’s budget expenditure? – Of course. This year’s budget was projected as an optimistic election year budget with expenditures set at MNT 27 trillion. It was MNT 20 trillion in 2023 and increased by MNT 7 trillion for a total of MNT 27 trillion. Recently, another amendment increased it to MNT 30 trillion. Meanwhile, in 2025, under the claim of launching a new 30-year leap of development, it reached MNT 38 trillion, adding MNT 18 trillion in a single year. However, I see various types of expenditures in next year’s budget that can be cut. For example, MNT 500 billion is allocated for purchasing equipment. Each ministry is buying equipment. Schools and kindergartens often procure equipment, chairs, desks, and boards when they open. But that's typically done within a single year. Yet the fund allocated for equipment renewal is proposed every year with MNT 400-500 billion. The majority ruling coalition appears to be making substantial expenditures without consideration, including expensive trips abroad and organizing conferences involving billions of tugriks. It's obvious any minister or head will strive for increased budgetary control. However, this is excessive. Officials have financial control, personnel control, and special permit or license-related control. Therefore, officials’ budgetary control is expanding. Human resources in ministries are increasing, training many unskilled civil servants. Under the guise of regional development, everything is hidden, and through regional development imagery, government ministers’ whims are encapsulated with federal funds. The ruling people's party, together with the Democratic Party and the National Labour Party, is exploiting Mongolia’s financial resources when able. As the budget grows, the space for private enterprises constricts. From next year’s budget projection, what opportunities and pressures do you see for SMEs and the private sector? – There’s a critical point that the state shouldn’t compete with the private sector. But as the budget expands, public companies grow and expand. For instance, if the state starts building housing, private businesses in this sector will face hardships. Numerous legal amendments accompanying the budget are unclear in their outcomes. For example, there’s a plan to implement tax relief for 90% of certain policies. But no information on which sectors, how, or why is forthcoming from working groups. Secondly, they propose exempting building materials not producible domestically from customs duties. If businesses are currently planning to produce local building materials and haven't yet begun operations, they might suffer. The policy should focus on manufacturing value-added, finished products domestically. On the other hand, some unclear bills entering the parliament are akin to budget theft, contradicting stated policy. Faulty implementation of tax reduction and customs exemption could disturb market equilibrium, leading to arbitrary decisions influenced by officials’ personal biases. These ambiguities are coming to light as the 2025 budget undergoes discussion in the parliament. – The government is targeting the implementation of 14 mega projects over the next four years. How confident are you that this will happen? Budget expenditures, including operational, subsidies, and maintenance costs, increase annually. Social and health insurance funds operate with significant deficits. Massive amounts are allocated from the state budget to cover these deficits, which is a policy blunder. Moreover, it is time to conduct detailed studies on the activities and efficiencies of state-owned enterprises. Do some chronically unprofitable state enterprises need to exist? The expenses managed by ministers, secretaries, and budget executive authorities have risen year after year. Based on this, it seems the budget is being used to fund party structures and provide them with jobs and income. The ruling people's party, having won the election with a broad structure, is implementing the policy of keeping its thousands of members employed and paid through the budget. The party structure is being fed through the budget. If the government had digitized and streamlined its operations, savings would be expected. There should be results showing that using modern equipment has reduced salary expenses and reduced staff. Today, are 22 ministries necessary? Creating government structures for every issue, like traffic congestion or air pollution, is just another way to waste money. Former posts like Traffic Congestion Minister have been converted into posts for organizing events. Going forward, it’s unpredictable what new institutions will be established under different guises to squander taxpayer money. Instead of yearly expanding their rights to manage budgetary resources, past budget spending needs assessment, and accountable persons need to be held responsible for inefficient use. For instance, an audit report indicated that the executives of Erdenes Tavantolgoi JSC had wasted funds amounting to trillions on the 2023 budget. Today, no one discusses this issue. Before implementing new mega projects, it's better to review and assess those projects enshrined in the budget with allocated funds but not yet realized. Projects like cable cars and celestial highways have been inaugurated but where are they now? Even fuel factories that were planned are nowhere in sight. These unsuccessful projects have extended their list innumerably. Therefore, there was an opportunity to reduce the number of mega projects and lower risks.

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BREAKING: O. Amgalanbaatar has started collecting signatures to remove L. Gantomor from the leadership of the Democratic Party; D. Jargalsaikhan has signed alone

Published: 2024-10-28 | Translated from: isee.mn

The Democratic Party suffered a defeat in the local, provincial, and municipal council elections. As a result, there is ongoing demand for accountability from the chairman of the Ulaanbaatar Democratic Party, T. Battsogt, and other leaders who led the party to defeat, requiring them to resign. T. Battsogt announced, "I will accept responsibility and resign from my position as chairman of the Ulaanbaatar Democratic Party. Besides me, party leaders L. Gantomor and N. Ganibal should also be held accountable. I will bear responsibility together with L. Gantomor." As for L. Gantomor, although he led the party during the 2024 parliamentary elections and defeated the MPP, he managed to improve on past achievements, which earned him the continued trust of party members and allowed him to remain in his position. Specifically, the Democratic Party's National Policy Committee held an extraordinary session on July 7, which decided on this matter. Only three months ago, L. Gantomor received the trust of 90 percent of the National Policy Committee members to remain as the party leader, but now T. Battsogt is dragging him down to take responsibility together. Recently, members of the Democratic Party in the Mongolian Parliament began collecting signatures to remove L. Gantomor from the party leadership. According to sources, the signatures are being collected on official letterhead by Member of Parliament O. Amgalanbaatar, and only D. Jargalsaikhan from Bayankhongor has signed so far. The fact that T. Battsogt initiated this call and O. Amgalanbaatar and D. Jargalsaikhan are continuing it suggests who the orchestrator of this action is. After the parliamentary election results, H. Battulga planned to take over the Democratic Party, and a first step was to run his people in the capital's city council elections, aiming for success. However, failing and ending up with only four representatives on the city council, H. Battulga's dream to expand representation, take over the Democratic Party, and aim for the 2027 presidential election has temporarily collapsed. On the other hand, it's true that L. Gantomor neglected the local elections, making no supporting statements or actions. Therefore, taking advantage of the Democratic Party's defeat, it is likely that H. Battulga's followers have already moved to corner L. Gantomor and take control of the party, which might explain the signature collection effort. However, from January 1, 2024, the newly amended law on political parties took effect. Political parties established before this law came into force must register their rules, programs, and internal organization with the Supreme Court by July 1, 2024, in compliance with the new law. The Supreme Court will conduct political party registrations according to this law and the approved rules. Following these requirements, the Administrative Division of the Supreme Court declined to register N. Nontuibaayar as chairman of the Green Party during its decision on September 3, 2024. Thus, the Democratic Party also cannot just remove L. Gantomor following these legal requirements, and even if a new leader is appointed, the Supreme Court might not register them following Nontuibaayar's case scenario. Currently, the Democratic Party is legally bound to make rule amendments rather than replace its leader.

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Unmissable, Undistractable Law!

Published: 2024-10-28 | Translated from: news.mn

The Government of Mongolia has submitted a draft law on Nuclear Energy to the State Great Khural for urgent consideration. According to the resolution approved by the State Great Khural in 2024, the program aims to revise laws governing investments and business activities to protect the rights and interests of investors. It also seeks to improve the legal environment for supporting businesses and to include the establishment of investment agreements for the exploitation of the Zuuvch Ovoo and Dulaan Uul uranium deposits. A working group has been formed to cooperate with France's Orano Mining company to establish an investment agreement for the exploitation of the Dulaan Uul uranium deposit in Dornogovi province, and a considerable amount of time has passed since its establishment. The head of the Cabinet Secretariat is leading this working group. According to the latest information from the head of the Cabinet Secretariat, N. Uchral, the group has reached an understanding on previously contentious issues, leading to the submission of amendments to the Nuclear Energy Law, as changes in some laws on the Mongolian side are required. The Nuclear Energy Law consists of eight chapters and 51 articles, and it has been amended 15 times before. The law aims to clarify multiple issues such as the Government of Mongolia's share in companies holding special licenses for deposits of strategic radioactive minerals, fees for resource usage, taxation, and operational requirements. These amendments are being made to eliminate ambiguities and uncertainties in the law, according to the lawmaker proposing the amendments. According to the law, the entry and transit of radioactive waste and nuclear fuel through the borders of Mongolia are prohibited. The amendments include substituting resource usage fees for strategic mineral reserves, changing the type of government-owned shares, and outlining the amount of state investment introduced or to be introduced. Required monetary resources for mine and plant closure, reclamation, and post-closure maintenance are to be deposited in a government account, and related procedures are to be approved by the government. Investment agreements can be established for up to 20 years, and the resource usage fee for radioactive minerals shall be 5.0 percent of the sales valuation of processed uranium ore. Depending on market price increases, this fee may be adjusted from 0-9 percent, with the State Great Khural setting special fees based on the uniqueness and market conditions of the deposits. In connection with amendments to the Nuclear Energy Law, changes will also be made to the General Taxation Law, Investment Law, and Company Law. During President U. Khurelsukh's state visit to France, more than 420 proposals needed agreement, with 223 additional proposals attached. Since then, six sub-working groups have been active. The Prime Minister emphasized performing environmental risk assessments and assigning shared responsibility for risks to investor parties. Government secretary N. Uchral stated that there is a mutual understanding on 51 percent of the current draft agreement. Mongolia will hold a majority stake with 51 percent of the uranium utilization agreement with France, without Mongolia providing any financing, as France will cover 100 percent of the costs. The duration is 40 years, with 30 years for extraction and ten years for restoration. The total approved reserves of the Zuuvch Ovoo and Dulaan Uul areas are 100,345 tons, with over 70,000 tons estimated as accessible. The Zuuvch Ovoo project has the potential to extract 2,500 tons of uranium annually. This reserve is one of the largest globally recorded in over 20 years. The government action program prioritizes concluding the investment agreement with France's "Orano Mining," a key player in "Badrakh Energy," a Mongolian-French joint venture, which is pressing for urgent consideration in the State Great Khural. It is crucial to appropriately evaluate economic benefits when entering investment agreements to prevent mistakes of the past and ensure Mongolia can benefit. The next major project after Oyu Tolgoi, public vigilance, and oversight from both joint government bodies and members of the State Great Khural are imperative. Though the contract is urgent, careful consideration of every detail is necessary. "Badrakh Energy" is one of the top three global uranium producers and a joint venture between Mongolian and French state-owned enterprises. Through "Mon Atom," the Government of Mongolia holds a 34 percent stake. The company commenced exploration in 1997, discovered the Dulaan Uul deposit in 2006, and the Zuuvch Ovoo deposit in 2010. Three special exploitation licenses were achieved in 2016, pilot construction began in 2018, and production began in 2021-2022. With full operation, an annual production capacity of 2,500 tons of uranium is anticipated. For details on the nuclear energy law amendments, click HERE.

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Budget Prioritized by Interests, Not Importance

Published: 2024-10-28 | Translated from: unuudur.mn

The Mongolian Parliament is discussing the draft budget for the upcoming year. Last week, the second discussion was held. The government has proposed a unified budget with an income of 36.8 trillion MNT, expenses of 35.8 trillion MNT, and a primary balance showing a profit of 1.9 trillion MNT. This unified budget is comprised of the state, national wealth, health, and social insurance funds. Additionally, the budget for provinces, towns, the capital, and districts will be included. Local budgets are discussed and approved by their respective local self-governing bodies. The Parliament must approve the unified national budget by November 15. At first glance, the income appears to exceed the expenses, suggesting a "decent" allocation. Compared to the consistently deficit-laden budgets of the past, this is an optimistic outlook. Furthermore, the coalition government's platform includes 14 major mega-projects set to begin in 2025. As the Prime Minister has announced a regional development approach for the country, essential infrastructure foundations have been planned in the budget. This includes significant expenses like the oil refinery that has been discussed for years. However, it seems the government is also prioritizing the "critical" task of building cinemas in towns. During the budget discussions, several "issues" have arisen—neglecting important tasks, forgetting them, or pushing forward discretionary building budgets. Investment lists appear to be prioritized by interests rather than significance or necessity. Building Cinemas in Towns and Offering Free Shows Such initiatives are evidently included in next year's budget, specifically in the package for the Minister of Culture, Sports, Tourism, and Youth. In Jargalant Sum of Khovd Province, building a state-funded cinema is considered essential to meet the "necessary" cultural service needs of the region's people. Several billion MNT have been allocated for this purpose. Additionally, it is mentioned that vouchers for free cultural services will be distributed. This implies that cinemas will be built with budget money, providing free shows to citizens as an educational initiative. MP J. Bayarmaa raised questions regarding the specifics of the cultural services, suggesting that they include free access to films and plays. She inquired about the exact purpose of the government offering free cinema viewing and noted that her budget reduction proposals were not considered. The Minister of Culture, Sports, Tourism, and Youth, Ch. Nomin, explained that a survey conducted in November 2023 with 50,000 children indicated a demand for free cultural service vouchers. These vouchers will allow not only for cinema and theater attendance but also the purchase of books and participation in clubs. Promoting free services might indeed encourage a dependency mindset. The controversy surrounding Minister Ch. Nomin's budget actions does not end there. Last week, it was revealed that the budget discussion for the upcoming year was held at her owned "Terelj" hotel for 50 million MNT. While she has renounced ownership as a Member of Parliament, she "didn't know" why the budget meetings took place at her hotel, leaving the matter to the contracting organizations. Regarding the cinemas, she stated, "Local citizens are entitled to cultural services." While cultural enlightenment through cinema is valid, the question remains whether building cinemas in towns is of primary importance. Instead, building or expanding schools and kindergartens or upgrading medical equipment would have a tangible impact on citizens' lives and children's education. In today's age of internet and mobile phones, everyone can access the movies they desire. Privatization or private sector involvement in cinemas should suffice without government intervention. Such actions suggest a return to communism. Despite this, Prime Minister L. Oyun-Erdene, leader of the coalition government, proclaimed intentions to continue the work of S. Zorig, a leader of the democratic revolution, under the program titled "Courage for Rapid Development." This budget prioritization contradicts those statements, reflecting a discrepancy that citizens notice. Additionally, there is a proposal to build a cheese factory for 20 billion MNT in the Khuvsgul Province under the package for the Minister of Agriculture, Food, and Light Industry. The government should formulate policies, not engage in business. Members warned against meddling in small and medium enterprises. Poorly Researched Budget and Intelligence Supervision All actions should be based on research and analysis. However, in our country, this has been neglected for some time. Emotional, disconnected decisions are abruptly imposed on citizens. After public criticism, these decisions are revoked within days. This careless approach has persisted in the development of the national budget. One of next year's main goals is to build a government service center complex. In revising this year's budget, 100 billion MNT was allocated for preparing its feasibility study. Construction of the complex, detailed for 2025, is budgeted at 210 billion MNT with total costs reaching 676 billion MNT over the years through 2027, slated to be built on the road to Khushigiin Khundii, at Nomtiin Am. Government administrative staff will relocate there to serve citizens. However, how citizens will access such a distant site is unclear. MP G. Uyanga-Khishig remarked, "There is a significant issue here. How was the 676 billion MNT calculated without completed feasibility studies? Provide clear information about this." During parliamentary sessions, she received no concrete answers. The complex is intended under the "New Zuunmod" city plan for a one-stop service center. Meanwhile, the project will proceed under the General Intelligence Agency's supervision, according to Deputy Director of the Cabinet Secretariat B. Solongo. MP J. Bat-Erdene questioned, "Why is the General Intelligence Agency involved? Is everything done in the name of the intelligence agency now, from this tender onward?" B. Solongo replied, "The parliamentary resolution mandates the General Intelligence Agency's supervision. We are complying with the resolution." This matter raises concerns about hidden agendas or disruptions lurking behind the word "intelligence," reminiscent of the "Green Bus" acquisition. Regarding Election Promises in the Political Platform In the parliamentary elections, the MPP's platform promised to keep the budget deficit within 25% of GDP. The DP also pledged to maintain it at 20%. The third coalition partner, the HUN party, also vowed to curb extravagant expenditures. However, the newly proposed government project shows expenses equating to 37% of GDP. MP N. Altankhuyag commented, "The proportion of budget expenses to GDP has been rising continually in recent years. It's nearing 40% soon. This indicates excessive government interference in private sector business, essentially establishing communism." When MP O. Tsogtgerel reminded about these election promises, Finance Minister B. Javkhlan responded, "Adjusting the GDP ratio is possible step by step. Achieving these goals requires supporting foreign and domestic investors and the private sector, or wealth creators. The 2025 budget aims to complete ongoing projects and build energy, roads, and transportation infrastructures. The private sector will benefit and have opportunities to expand production and services. The 2025 budget also legally limits operating expenses to not exceed 30%." Moreover, it was noted that the salaries and pensions of civil servants will be increased by 6%, aligned with inflation. MP J. Bayarmaa questioned, "There are 226,000 civil servants. However, the draft states that salaries for 230,000 civil servants will cost 7.5 trillion MNT. Are we increasing the number of civil servants by 4,000? What happened to the promise of a lean government?" During the parliamentary discussions on the government's proposed project, water will be filtered, unnecessary items will be excluded, and amendments made. However, few representatives notice and voice objections, often failing to gain support even when proposing budget-saving suggestions, suggesting that substantial changes are unlikely. Attention should be given to financing major, clearly numbered projects to advance, yet the principle of starting with small projects prevails here. There's suspicion projects beneficial not to the state but to certain groups are being pushed forward.

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HUN Party: The Uranium Project Must Be Implemented Without Delay

Published: 2024-10-28 | Translated from: news.mn

The political council of the HUN Party in the State Great Khural (Parliament) held a meeting today, discussing two issues. The first was listening to information from the National Energy Committee regarding energy sector reforms. Member of Parliament M. Naidalaa stated, "The energy sector has become a drag on Mongolian society. Therefore, energy reform is essential. When talking about energy reform, people often focus on price tariffs, which is an issue, but a minor one. The most important issue is governance. We need to ensure that state-owned companies, from power plants to coal mines and distribution, are working efficiently. Only by improving efficiency can reforms take place. Since 2001, the legal framework that regulates foreign and green investments in the energy sector has not been updated. A working group has been appointed to carry out legal reforms in the energy sector. HUN will lead the energy reforms. It should be resolved with the participation of other political parties, coalitions, and citizens. The reason HUN joined the coalition government was for energy reform." The second issue discussed was the uranium project to be conducted with the French company "Orano." A working group led by Minister N. Uchral is currently working on this project, and we received information related to the contract. The HUN Party believes that the uranium project to be implemented in collaboration with the French side should be carried out without delay. Lessons learned from major projects implemented in Mongolia, such as Oyu Tolgoi and the oil refinery, should be carefully assessed to avoid repeating mistakes and to implement the uranium project without delay. The contract should contribute to the development of Mongolia, ensure that the nation's resources reach the people equitably, and be executed flawlessly.

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Economy

Trade Between Mongolia and Kazakhstan Increases by 117 Percent in 2023, Reaching $76.7 Million

Published: 2024-10-28 | Translated from: gogo.mn

At the invitation of President U. Khurelsukh, Kazakhstan's President Kassym-Jomart Kemelevich Tokayev is making a state visit to our country on October 28-29. During this visit, the first meeting of the "Mongolia-Kazakhstan Joint Business Council" was held in the grand hall of the Mongolian National Chamber of Commerce and Industry (MNCCI). The meeting discussed ways to deepen the trade, economic, and investment cooperation between the business communities of both countries. In 2019, the total trade turnover between Mongolia and Kazakhstan was $35.3 million. Several memorandums of understanding were also signed. More than 10 Kazakhstani companies related to agriculture, food, foreign trade, and light industry have come to organize B2B meetings with our businesses to expand their cooperative business relations. The executive director of MNCCI, T. Duuren, noted, "In recent years, trade, investment, and business relations between the two countries have been increasing. The total trade turnover between Mongolia and Kazakhstan was $35.3 million in 2019, but in 2023 it increased by 117 percent to $76.7 million. This is the result of our strategic partnership and offers opportunities for greater success in the future. MNCCI intends to further expand economic cooperation, balance trade, implement joint projects and programs between the two countries, increase investment, facilitate trade, and address transport and logistics issues. Opening logistical opportunities between Mongolia and Kazakhstan is beneficial to the economies of both countries. Establishing new transportation routes between Mongolia and Kazakhstan can utilize the geographical location and road and rail networks of both countries to provide short transportation times. By establishing logistics centers, products can be stored, sorted, and transported quickly," he said. The business relationship between the two countries holds great potential. This meeting deepened and clarified cooperation directions. Opening the inaugural meeting, Kazakhstan's Minister of Digital Development, Zh. H. Madiev, said, "We rank 24th in the world in e-governance. We have established the largest technical hub in Central Asia, 'Astana Hub'. It provides a wide range of services for all types of products. Over 1,500 regular participants from 436 companies take part there. The main goal is to introduce businesses and startups to technology and the Central Asian market. We can collaborate on introducing our experience in Mongolia and developing IT and digital technology. We wish to include Mongolian startups in this system and involve them in training. We see opportunities for introducing innovation and technology by understanding the characteristics of the markets of both countries,” he said. Additionally, the Chairman of Kazakhstan's Foreign Trade Chamber, M. R. Karimsakov, emphasized during the President's visit to Mongolia, "The initiation of cooperation is opening a great opportunity to develop the economies of our two countries. Kazakhstan's national chamber represents and protects the rights of enterprises to governmental, international, and foreign organizations. We adhere to an open-door policy for foreign investment, maintain a stable and predictable tax system, improve the judicial system, and create a fair business environment. Together with the Kazakhstan government, we developed a National Electronic Investment Platform to attract foreign investment and engage with them. It helps companies attract investors, develop businesses, and find foreign partners. On September 13 of this year, we established the Kazakhstan-Mongolia Business Council in electronic format, marking a significant stage in our bilateral relations. This opened opportunities for business executives of both countries to collaborate, formalizing the economic cooperation between the two nations," he said.

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Mongolia-Kazakhstan: Permanent Business Mechanism Established

Published: 2024-10-28 | Translated from: montsame.mn

Ulaanbaatar - At the invitation of the President of Mongolia, Khurelsukh Ukhnaa, the President of the Republic of Kazakhstan, Kassym-Jomart Kemelevich Tokayev is making a state visit to Mongolia today. As part of the visit, the Mongolia-Kazakhstan business meeting is taking place at the Mongolian National Chamber of Commerce and Industry (MNCCI), where an official business council was established, and agreements and memorandums were exchanged. This formalized the business cooperation between Mongolia and Kazakhstan, establishing a permanent mechanism, as noted by participants of the meeting. T. Duren, CEO of the MNCCI, said regarding this matter, "The proposal to establish the council was first raised at the meeting of the Shanghai Cooperation Organization (SCO), where the leaders of the two countries directed to make this a reality to further expand and enhance cooperation. Accordingly, the chambers of commerce and industry of the two countries are taking responsibility for this council and are holding the first meeting today. Soon, a Mongolian business delegation will visit Kazakhstan to formalize cooperation directly," he said. Another reason for establishing this council is to revive the economic and business relations between Mongolia and Kazakhstan, which have been inactive for the past 10 years due to the global pandemic and weakened old relations. As of 2023, trade turnover between Mongolia and Kazakhstan, which was 76.7 million USD, has increased to 123 million USD today. The head of the Foreign Trade Chamber of Kazakhstan, M. R. Karimsakov, who is responsible from the Kazakh side, expressed his hope that the newly established Mongolia-Kazakhstan Business Council would become a major tool and platform to support and strengthen cooperation between the two countries. He noted that there is great potential for continuing traditional friendly relations between the two countries and collaborating in many sectors, including mining, tourism, and information technology, among others. Ahead of the state visit of Kazakhstan's President K. Tokayev, the business meeting included the participation of more than 60 business and industry representatives, including Kazakhstan's Minister of Digital Development J.Kh. Madiev and Chairman of the Investment Committee of the Ministry of Foreign Affairs G.A. Oszankulov. Six contracts and agreements were made between the two sides in the fields of information technology and tourism. In particular: - A partnership agreement between Kazakhstan's "QazBioPharm" and Mongolia's "GDP Vetland" for supply cooperation. - A cooperation agreement between Mongolia's "NCD Group" and Kazakhstan's "Evergreen Investment". - A memorandum of understanding between "Cuprum Energy" and "Stepcopper" companies. - A memorandum of cooperation between the management company of the Zamyn-Uud free zone and Kazakhstan's "Khorgos" International Cross-Border Cooperation Center.

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"Altanshireet" Industrial and Technological Park Gains Opportunity for Tax Payment Extension and Exemption

Published: 2024-10-28 | Translated from: montsame.mn

According to the Law on the legal status of industrial and technological parks and the Law on Customs Tariffs and Customs Taxes, a legal framework has been established to provide tax and non-tax support from the state to parks engaged in heavy industry. The "Altanshireet" Industrial and Technological Park, operated by "Infinity Space" LLC, has signed a trilateral agreement on October 25, 2024, with Minister of Finance B. Javkhlan and Minister of Industry and Mineral Resources Ts. Tuvaan. This agreement, based on Government Resolution No. 337 of 2023, relates to the "Procedure for Extending Tax Payment Deadlines, Allowing Partial Payment, and Exempting from Tax". With this agreement, the park's management is provided with the opportunity to extend the customs and VAT payment deadlines for four years for construction materials, infrastructure, and equipment that cannot be sourced from domestic production and are imported to create the park's core assets. These materials and equipment, once registered as core assets and used in the main activities of the park, will be exempt from customs taxes, offering substantial financial support from the state to heavy industry enterprises and organizations engaged in technological and industrial park operations.

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J. Batsuuri: We Will Increase the Source of Mortgage Loans to 1.2 Trillion Tugrik Next Year

Published: 2024-10-28 | Translated from: montsame.mn

The Minister of Construction and Urban Development, J. Batsuuri, emphasized during his speech at the "Future of Housing in Mongolia-2024" international forum that the source for mortgage loans will be increased to 1.2 trillion tugrik next year. This source will be incrementally increased annually, aiming to involve 60,000 households in the loan scheme by 2028. In doing so, more than 50 percent of the loans will be provided to rural areas, with plans to bring 150,000 housing units into service over the next four years. In cooperation with the Mongolian Green Finance Corporation, investments from international financial sources will be raised, and preferential loans will be provided to citizens who have upgraded their self-built houses to reduce heat loss. Additionally, a legal framework will be established to provide state support of up to 30 million tugrik to households with fully resolved infrastructure. The forum, organized jointly by the MOCUD, the World Bank, and the Ministry of Finance, examined multi-faceted housing solutions suitable for our country, discussed redesigning ger districts, and reviewed sustainable, accessible, and effective housing financing, along with good international practices related to these topics. For example, during the "Evaluating the Current State and Solutions of Mongolia’s Housing Policy" discussion, N. Bayarsaikhan, the president of the National Association of Mongolian Builders NGO, noted, "Everyone knows that the biggest factor driving up construction prices is corruption related to land. It takes 3 to 5 months to obtain permissions to start construction or to get fire safety approvals. There is an urgent need to address foundational issues and implement reforms." E. Batbold, Head of the Housing Policy and Regulation Department at the Development and Housing Division of the MOCUD, remarked, "Due to our country's climatic conditions, the construction period is short. There are issues related to time lost in obtaining building permits. Measures are being taken to digitalize construction permits and develop insurance-based business models. In other countries, insurance companies act as major external regulators. A unified electronic system is being developed to minimize human involvement in the process of issuing construction-related permits." During the autumn session of the State Great Khural, efforts are being made to draft, propose, and pass a package of legislative bills related to the Construction and Urban Development Law, and the National Housing Law. Mortgage loan repayments amount to approximately 600 billion tugrik annually, and 500-600 billion tugrik will be added to the mortgage loan source through the National Wealth Fund.

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Report: Vegetable prices rise, meat prices drop

Published: 2024-10-28 | Translated from: news.mn

Autumn is drawing to a close, and people have started to prepare their winter provisions. During the summer, meat prices tend to decrease a bit. However, meat prices often fluctuate during the winter supply preparation period. Therefore, a report has been prepared from some markets and shopping centers that supply meat to the residents of the capital. According to the National Statistics Office, the average price of mutton with bone is 14,255 MNT per kilogram, and beef with bone is 17,727 MNT per kilogram. Compared to the previous week, the price of beef with bone decreased by 1.4%, averaging 17,727 MNT, and the price of boneless beef decreased by 0.5%, averaging 20,334 MNT. On Friday this week, meat prices in shopping centers were observed to have decreased. Specifically, at the "Bayanzurkh" market, located in the city center: - Boneless beef is sold for 15,000 MNT. - Boneless beef leg meat is 17,500 MNT. - Mutton with or without bone is 12,000-15,000 MNT. - Horse meat is 12,000 MNT. - Camel meat is 11,000 MNT. No goat meat was available. Some vendors mentioned, "We don't sell goat meat," while others said the supply of goat meat decreased due to the goat "goen" disease. According to the General Veterinary Office, this infectious disease was recorded in Mongolia at the beginning of July. A study was conducted involving about 300 herder households regarding the spread of this disease, and about 11,000 goats from approximately 74 households were culled on record A. Goat "goen" disease spreads from one living goat to another. It has a long incubation period and shows no symptoms. The disease may have been transmitted from animals of the gazelle family, and a significant outbreak has occurred in Khatanbulag soum, Dornogovi aimag. It is not possible to examine all the animals in the outbreak area. According to the National Statistics Office, compared to the average prices from the previous month: - The price of mutton with bone decreased by 986 MNT per kilogram. - Beef with bone decreased by 410 MNT. - Boneless beef decreased by 268 MNT. - Horse meat with bone decreased by 21 MNT. However, the price of goat meat with bone alone increased by 613 MNT. With the onset of the cold season, the movement of people in shopping centers has increased. Vendors say that mutton is the most purchased meat by consumers. Additionally, due to its low price, the sale of camel meat has also increased. Camel meat is the cheapest among meats sold at the counters, averaging 10,000-11,000 MNT per kilogram. In terms of composition, camel meat is similar to beef but is somewhat lighter in color, coarser, and its fat is yellowish. When asked about the taste quality of camel meat, a consumer said, "Camel meat has a slight taana-like taste. While other meats almost contain no carbohydrates and glycogen, camel meat contains a small amount. Due to this content, camel meat places a lighter load on the digestive tract and stomach compared to other meats." Another consumer mentioned, "I got used to buying it because it is cheap." Even though meat prices have decreased in shopping centers, citizens say that the prices of common goods have increased. For instance, potatoes that were being sold for 1,100 MNT a month ago increased to 1,500 MNT. According to data from the Capital City Statistics Department, compared to last week, Mongolian potatoes are 1,362 MNT, Mongolian cabbage is 2,278 MNT, Mongolian onions are 3,223 MNT, Mongolian carrots are 2,549 MNT, and beets are 2,935 MNT on average. In the past week, the price of each vegetable increased by 1.2-4%. Meanwhile, the average price of a 1 kg pack of "Altan Taria" flour ranges from 4,100 MNT for the highest quality, 3,170 MNT for the premium grade, 2,351 MNT for grade 1, and 1,435 MNT for grade 2. Rice prices range from 3,500-4,500 MNT, while Russian eggs are 580 MNT, and Mongolian eggs are sold for 650 MNT. At the "Bars" shopping center, which attracts a lot of customers, the average price of a 1 kg pack of "Altan Taria" flour sold is as follows: 4,000 MNT for the highest quality, 3,000 MNT for premium grade, 2,300 MNT for grade 1, and 1,500 MNT for grade 2.

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Corporate Income Tax Law: Provisions for Deductions and Exemptions

Published: 2024-10-28 | Translated from: gogo.mn

According to Article 22.9 of the Corporate Income Tax Law (CITL), "Taxpayers may deduct from their taxable income any expenses incurred for investments in fixed assets that are subject to depreciation, financial support granted to unrelated parties, and donations within the framework of social responsibility as stipulated in Article 20.1 of this law. The deductible amount shall not exceed one percent of the taxable income for the tax year." The recent amendments to this law include: ☑ 22.9.1. Protection, enhancement, proper use, and restoration of natural resources such as forests, wildlife, and water, reduction of air, water, and soil pollution, and mitigation of desertification. ☑ 22.9.2. Provision of care services for the elderly, persons with disabilities, and children, ensuring and protecting their rights, creating accessible environments for persons with disabilities, and establishing and utilizing playgrounds and parks for children. ☑ 22.9.3. Protection and restoration of cultural heritage, operation of museums and libraries, creation, performance, and dissemination of music, films, crafts, and stage art, and establishment and utilization of cultural creative industry complexes. ☑ 22.9.4. Establishment, utilization, protection, maintenance, and landscaping of public roads, spaces, and parks, and support for the development of public transport. ☑ 22.9.5. Compensation for damages caused by force majeure and equivalent disasters. ☑ 22.9.6. Construction, utilization, and organization of Olympic sports events, provision of financial support to Olympic sports federations registered with the Mongolian National Olympic Committee, and registered professional sports teams, athletes, and coaches. ☑ 22.9.7. Scholarships for students studying in foreign and accredited domestic universities in areas prioritized by the government of Mongolia, and trainees of professional and technical education institutions. ☑ 22.9.8. Scholarships granted for research and analysis purposes to universities and scientific academies. ☑ 22.9.9. Operation of public and local government-owned education and health organizations. ☑ 22.9.10. Operation of special funds established by the government. ☑ 22.11. The requirements and standards for construction, projects, and activities eligible for tax benefits under Article 22.9 will be approved and supervised by the government member responsible for the sector. Source: Communication Center for the General Department of Taxation.

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Measures to Increase the Funding for Mortgage Loans by 35%

Published: 2024-10-28 | Translated from: ikon.mn

Increasing the interest rate on mortgage loans based on the size of the apartment can increase the funding by 35%. The international forum "The Future of Housing in Mongolia 2024" is being held today. Opening the forum, the World Bank's Mongolia Manager, Taehyun Lee, said, "Housing is not just about buildings. The environment in which we live and the way we live together are based on housing issues. Our well-being depends on it, and the well-being of the state depends on it, so it's important that housing and housing systems are equitable, accessible, and sustainable." He emphasized that this is directly related to the well-being of the citizens of Mongolia. With a proper system, everyone should benefit equally regardless of where they live. Much depends on this for the future. On the much-pursued housing programs in Mongolia, the Head of the Department of Housing Development at the Ministry of Construction and Urban Development, E. Batbold, provided insights. He stated, "There are over 983,000 households in Mongolia, 46% of them residing in Ulaanbaatar. Of the population, 32% live in public-purpose apartments, 38% in houses, and 29% in yurts. We focus our efforts and policy implementations on transitioning those living in yurts and houses to better housing." When examining household incomes, it was found that 56% of households living in yurts and 54% of those living in houses have average or below-average incomes. It's necessary to implement the policy of housing in phases based on household income levels. Since 2007, the government has implemented housing programs for 40,000 and 100,000 apartments. In 2015, a rental housing program was introduced to include citizens with average and below-average incomes. The mortgage program began in 2010 with a loan for 4,000 apartments at an initial interest rate of 8%. It was very successful, and by expanding it since 2013, 8% and now 6% interest loans are provided. Over 118,000 households have been housed under this program. Additionally, since 2017, land has been allowed as a down payment for apartments, accommodating 107 families. In 2020, after program evaluations, considering it low-risk, the interest rate was reduced to 6%. From 2023, under the rural revitalization initiative, rural residents can obtain loans at 3% interest for the first three years and a down payment reduced to 12%. The rental housing program for low-income households accommodated 3,054 families nationwide; though high in demand, it ceased in 2015-2016 and has not received further funding. As per officials, one of the primary challenges when participating in the mortgage program was the rising prices of housing which failed to align with the income growth of citizens. Regarding the impact on the construction sector, between 2003 and 2009, on average, 4,000-6,000 apartments were built each year. However, after the program began in 2013, this number significantly rose, reaching its peak in 2014-2015 with over 23,000 apartments annually. Challenges were outlined by officials as housing programs face issues such as: - Over half of those in houses or yurts have average or below-average income. - There is no robust process in place for developing master development plans for the regions. Out of 330 soums, 117 have no plans. - Consequently, this impedes planning new housing neighborhoods or expanding detached houses. - With the rental housing program halted, there’s been no policy for low-income citizens. - There is a lack of a mechanism to measure the demand and supply balance in the market. Proposed Solutions: - Utilizing the National Wealth Fund to support housing options for citizens. - Implementing an income-tiered mortgage program. - Establishing a National Housing Corporation to manage the mortgage program. - Implement the "My Rental Housing" program to provide citizens with rental housing. - Promote energy-efficient and environmentally-friendly housing designs under "Live Well in Your Courtyard." - Supporting nature-friendly housing with independent and sectional sources. By 2024-2028, focus will be placed on middle-income and first-time homeowners first. Adjusting the program in line with household income will align mortgage recipients primarily to middle or above-middle-income households. Thus, introducing limitations to prioritize middle-income and first-time buyers. Also, it is vital to adjust loan interest rates based on the size of the dwelling, for instance adjusting to 6% for under 60 sq.m. and increasing for larger spaces. Legislative and policy changes are essential to enable an increase in mortgage funding by up to 35%. The international forum is being held at "Shangri La" hotel, jointly organized by the Ministry of Family, Labor and Social Welfare and the Ministry of Construction and Urban Development in collaboration with the World Bank.

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Oil Prices Drop 5% After Israeli Strike on Iran

Published: 2024-10-28 | Translated from: gogo.mn

Brent crude oil is trading at $72 per barrel. Due to the situation in the Middle East, oil prices have decreased by more than five percent, with Brent crude oil trading at $72 per barrel, while WTI crude oil is trading at approximately $68 per barrel. The Iranian news agency clarified that the strike by Israel did not affect oil or nuclear infrastructure, so operations continue normally. Oil prices remain highly volatile due to geopolitical risks in the Middle East, a supply surplus, and weak demand in China. Additionally, the instability of Brent crude oil has reached its highest level this year, with 148,000 transactions carried out as of Monday, a significantly high number.

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E. Batbold: Priority will be given to determining households eligible for mortgage loans

Published: 2024-10-28 | Translated from: itoim.mn

The World Bank and the Ministry of Construction, Urban Development, and Housing co-hosted the "Future of Mongolian Housing-2025" forum. During this event, the Minister of Construction, Urban Development, and Housing, J. Batsuuri, stated, "By 2028, 150,000 housing units will be put to use. Of these, 60,000 will be financed through mortgages, with half of them built in rural areas. Additionally, individual compound houses that meet the new standards and regulations will be included in the mortgage scheme." In connection with this, we interviewed E. Batbold, the head of the Housing Department at the Ministry of Urban Development and Housing, regarding the housing program to be implemented in 2025. - What projects will be implemented under the housing program in 2025? - The government will organize housing operations in three forms: rental housing programs, mortgage loans for individual houses, and public rental housing. Particularly, we are focusing on housing citizens with individual homes. While commercial banks have regulations for providing mortgage loans for individual housing, issues related to environmental friendliness and the longevity of the real estate have delayed lending activities. To address this, our ministry has established a technology transfer center to provide professional advice and guidance on how to build individual houses professionally. We are also organizing the preparation of companies that can build according to model designs that meet construction standards and regulations, as well as training experts to oversee these projects. Furthermore, we have approved an evaluation methodology called "Best ger" which complies with international standards for energy consumption and resilience to natural disasters. In 2025, we will also make available 1008 rental apartments under the framework of ger district redevelopment, with a focus on mitigating issues faced by citizens related to redevelopment. - Does this mean no mortgage loans will be issued in the city center? - Rather than saying that mortgage loans will not be issued in the city center, there is a need to diversify the financial sources for mortgage loans. Therefore, under the "New Revival Policy" approved by the government, at least 50% of the total financing will be allocated to rural resettlement projects. 50% of the remaining amount will be directed towards citizens who wish to purchase houses in Ulaanbaatar city's sub-centers, as part of ger district redevelopment projects. The remaining amount will continue to finance mortgage loans in the city center. However, certain restrictions will be set for borrowers. Priority will be given to first-time homebuyers, particularly young families, in line with the Prime Minister's initiative to designate 2025 as the Year of Youth. If any funding remains, it will be directed towards those seeking to buy additional or larger homes. - From next year, there is an emphasis on green projects. What exactly does a green project entail? - According to Ulaanbaatar city's master development plan until 2040, it is feasible to plan energy-efficient and environmentally friendly individual housing units for about 60,000 of the 200,000 households currently in ger areas, as the infrastructure is already complete. Additionally, these homes will not contribute to air and soil pollution. If we develop these products, there is potential to secure concessional loans from international organizations, providing an alternative source of funding for our mortgage loans. Thus, by developing such products and attracting green funding from foreign markets, we can create a separate source to offer citizens concessional mortgage loans for individual housing, eliminating the queue and overlap with public housing clients. - How much mortgage funding will be issued in 2025? - We plan to finance 1.2 trillion MNT in 2025, which could accommodate about 12,000 households. Initially, our goal is to finance around 1,000 individual housing units annually. Since 2013, mortgage loans have been issued in rural areas. If we look at the total figures, about 900 loans have been issued so far. Therefore, we have set an ambitious target for 2025. More than simply issuing loans, there are many preparatory measures we must take. For example, as the demand for individual housing loans increases, there is a risk of price inflation in this sector. Therefore, it is essential to increase the number of citizens and businesses that build green individual homes. Currently, there are more than 100 companies providing such services. - With mortgage loans available for individual housing, are there any relaxed requirements for citizens looking to purchase homes? - The price is the primary difference between individual housing and public housing. The basic requirements for loans, such as income, debt-to-income ratio, down payment, and loan terms, will remain unchanged. The average price of public housing in Ulaanbaatar as of the third quarter of 2024 is 3.9 million MNT, whereas the average price for individual homes built by companies is 2.9 million MNT, nearly 30% less. Therefore, the ambition to develop individual housing is also aimed at reducing the loan amount required by citizens by 30%, thereby enabling significant monthly savings for citizens. - Thank you for the interview.

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Diplomacy

Robert Floyd, Executive Secretary of CTBTO, and Delegation Received

Published: 2024-10-28 | Translated from: montsame.mn

The Minister of Foreign Affairs, B. Battsetseg, held a working visit to Mongolia during which she received a delegation led by Robert Floyd, Executive Secretary of the Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO). The parties exchanged views on the relations and cooperation between Mongolia and the CTBTO, noting the organization's important role in strengthening global peace and security. They also emphasized the importance of bringing the Comprehensive Nuclear-Test-Ban Treaty into force, exchanging views on future cooperation in ensuring nuclear safety and maintaining a nuclear-free status, according to the information from the Ministry of Foreign Affairs.

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A Celebration Event was Held for the 75th Anniversary of Diplomatic Relations Between Mongolia and China

Published: 2024-10-28 | Translated from: montsame.mn

The Embassy of Mongolia in China, in collaboration with the Chinese Association for Friendship with Foreign Countries, organized a reception in Beijing on the 18th of this month to celebrate the 75th anniversary of the establishment of diplomatic relations between Mongolia and China. At the event, Mongolia was represented by Prime Minister L. Oyun-Erdene, and China was represented by Li Hongzhong, a member of the Political Bureau of the Central Committee of the Communist Party of China and Vice Chairman of the Standing Committee of the National People's Congress. They both delivered opening speeches. The event was attended by about 600 guests, including representatives from Chinese state and government departments, businesses, enterprises, heads of foreign diplomatic missions residing in China, as well as Mongolian citizens living and working in China. During the ceremony, artists from Mongolia and China performed, including the "Chelugun" ensemble—the cultural envoy of Mongolia playing the Morin Khuur, and artists from China's Radio National Orchestra, who gave a joint performance. Source: Ministry of Foreign Affairs Follow @montsame.mn

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Infrastructure

Richard Buangan: Mongolia Can Become an Independent Energy Exporter

Published: 2024-10-28 | Translated from: gogo.mn

The discussion "Accelerating Mongolia's Energy Transition" was organized by the American Chamber of Commerce in Mongolia. In this discussion, the U.S. Ambassador to Mongolia, Richard L. Buangan, discussed supporting Mongolia's energy transition efforts and the opportunities in the renewable energy sector in the country. After his speech, certain aspects regarding the reforms in Mongolia's energy sector and possibilities of cooperation with the U.S. were clarified. - Could you please provide some information about the content of your presentation today? - It was about how we were involved in developing Mongolia's energy needs alongside democracy 35 years ago. Also, it essentially serves as a call for businesses and the government to prioritize the need to introduce renewable energy in Mongolia. Mongolia is a country with a lot of potential in solar, wind, and water resources. This is the only path to achieving a sustainable energy future. The current state of Mongolia's energy, with coal-fired power plants built in the 60s and 70s nearing their end of life, not only in Ulaanbaatar but elsewhere, also continues to rely on high-cost fuel that adversely affects the health of Mongolians. Hence, the international diplomatic community is urging Mongolian decision-makers to understand this at the policy-making level. However, this is also a call to action for both the Mongolian business community and the government to recognize renewable energy and transform their energy grid for the benefit of future generations of Mongolians. - What are your thoughts on Mongolia's energy resources, particularly in terms of renewable energy? - Mongolia is a country with great potential in solar, wind, and water resources. If Mongolia can develop the technology and path to utilize these renewable energy sources, it can not only fulfill its domestic needs but also become an energy exporter to other Asian countries. This is a significant transformation. Thus, it can become an independent energy exporter. I believe Mongolia has great energy resources. - Is there a prospect for cooperation between the U.S. and Mongolia in the energy sector? - Yes, there is a possibility. This is one of the points we wish to convey. The U.S. government and U.S. businesses are beginning discussions with the Mongolian government and business sector on how to collaborate. We can do this as a partnership. Specifically, supporting the capacity building of Mongolia and training Mongolian engineers and experts in methods to develop and improve their energy grid. This is not just a government-level partnership, but a private sector partnership where American and Mongolian private sectors can unite, study new technologies, and allow companies to enter market niches. Therefore, we see it as a collaboration among the U.S., Mongolia, and other international partners. With cooperation from Europe, EPRD, the European Union, Canada, and others, they all have the opportunity to support Mongolia's energy reforms. The government hopes to implement this tariff reform considering the private sector and public opinion in a fair, transparent manner. - You're likely aware that Russia has proposed building a nuclear power plant in Mongolia. Could you share your thoughts on this matter? - We are aware that Mongolia is discussing energy cooperation with other countries, including Russia. Mongolia should make its sovereign decision considering its people's and national interest. A strong aspect of the third neighbor policy is the ability to interact with partners, neighbor or not, and with the freedom to choose either or both. Hence, Mongolia should have the freedom to sign a uranium agreement with France or implement a solar power station and solar renewable energy projects with another third neighbor. This is based on its sovereignty and should not be restricted due to having only two neighbors. - You are aware of the decision to increase electricity prices in Mongolia. What are your thoughts regarding the increase in heating energy prices for households and businesses? - Yes. We are well aware of the Mongolian government's tariff plans. We hope they carry this out responsibly and fairly. We hope this considers the population of Mongolia, particularly the ordinary citizens and consumers who will bear this cost. Also, we hope the government implements it transparently, without negatively impacting the people and economy of Mongolia. However, this is something Mongolia must do. Given the current instability in coal and artificial electricity prices, energy pricing issues need resolution. If Mongolia wants to attract more investment into the renewable energy sector, it needs to be competitive with all other energy sources like thermal coal, currently supported by energy tariff subsidies. Therefore, we think it's a good thing. We hope the government will implement this tariff reform by considering private sector and public opinion, fairly and transparently. - On the other hand, if the U.S. announced an electricity price increase, how do you think citizens would react? What are your thoughts on this? - Electricity import to the U.S. depends on the state. For example, in my home state of California, many states are investing more in renewable energy. To do so, they must ensure a level playing field for everyone. Therefore, they are paying significant attention to state involvement in the energy sector. This requires the government to play a responsible role to ensure equal competitive conditions. We cannot rule out a third compact agreement under the Millennium Challenge Corporation. This is something we might share with Mongolia from our experience. In my presentation today, I mentioned the challenges the U.S. faces with coal and thermal energy. This is a challenge for us too. There are discussions among business circles, politicians, and decision-makers on how much to invest in the renewable energy sector. Many Americans do not appreciate the importance and impact of renewable energy. This is an important topic to discuss with other democratic countries worldwide. Thus, this is an important topic to share with other democratic countries around the world. Looking at the opportunities, I believe we can learn from our experiences and share potential solutions. Just as there are energy price issues in the U.S., there are similar issues in Mongolia. We can collaborate in this area by utilizing our opportunities and involving other countries. I believe that Mongolia can do this, as it is a necessary reform. - Do you foresee the third compact agreement under the Millennium Challenge Corporation being implemented in the energy sector? - We are truly proud of our investments through the Millennium Challenge Corporation. We are investing 463 million USD. This project, which creates an advanced water filtration facility, is being implemented as part of the partnership between Mongolia and the U.S. Once fully operational, this means increasing the accessibility of clean water in Ulaanbaatar by 80%, providing clean water to 1.5 million residents in the capital. In this era where Mongolia's clean water resources are dwindling, this is a critical investment to make. Hence, new opportunities and solutions will likely emerge during this uncertain future. This might be the third project under the MCC. It could be another project funded by the U.S. government agencies like the U.S. International Development Finance Corporation (DFC) or the Export-Import Bank, to assist in significant public infrastructure projects in Mongolia. But we have other ways similar to the MCC's water purification project to support large-scale public infrastructure projects in Mongolia. Thank you for taking the time to provide information.

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"C" Permit for Coal Transportation and Notification from China!

Published: 2024-10-28 | Translated from: news.mn

According to Government Resolution No. 362, starting from 2023, "C" permits for international coal transportation have been issued by "Erdenes Tavantolgoi" JSC and other mining enterprises. However, the Chinese side has issued a statement saying, "If companies continue to issue the 'C' permit, no new agreement will be made in 2025." Minister of Road and Transport, B. Davaasuren, has provided initial information to Members of Parliament on this issue. Therefore, this matter will be brought for discussion at this week's Government meeting. The "C" permit for coal transportation is a crucial tool for exporting Mongolian coal to China and earning foreign currency. If China's warning is not heeded, Mongolia may face uncertainty in exporting 83.3 million tons of coal next year. Currently, with a lack of railroad connections, there is no choice but to transport coal by truck across the border. Thus, whether to restore the previous regulatory system of issuing "C" permits by the National Center for Auto Transport or find another mechanism will be decided by the end of this week. The Chinese side has stated that the "C" permit issuing issue was originally agreed upon with the administrative headquarters of Mongolia. Hence, if companies continue to issue the permits, there will be no further agreements in 2025. Since the government's decision to transfer the right to issue "C" permits to mining enterprises, transport companies have not remained silent. For example, at the beginning of October 2023, representatives of "Mongol Transport Union" held a press conference demanding lawful issuance of international coal transport "C" permits. They stated, "It's not true that international coal transport permits are openly given. The number of applications each quarter is increasing. Last quarter, it was 14,000 vehicles, and this quarter it's 18,000. Due to this large number of vehicles, 'Erdenes Tavantolgoi' is not a company that implements the Road Transport Law, hence the issues. Actually, the Ministry of Road Development, National Auto Transport Center should be responsible for implementing this. 'Erdenes Tavantolgoi' is merely a mining company with no connection to auto transport and has no professional team or experts involved, yet they proportionally distribute the 'C' permits." Moreover, N. Bayarkhuu, head of the Transport Union of "Bayan Zam" company, stated, "4680 'C' permits are only issued by 'Erdenes Tavantolgoi' JSC. In this process, a privilege called extended transport was created, giving a daily transport advantage. 40 'C' permits are exchanged for a four-room apartment. A guarantee of the 'C' permit issuance has also been claimed." Former Minister of Road Development, S. Byambatsogt, mentioned, "Before the Covid-19 pandemic, the price for the 'C' permit was two million MNT, now it's reached 20 million MNT. Whereas Mongolian drivers transport once every ten days, some company's drivers transport daily. In the past, obtaining a 'C' permit at Tavantolgoi-Gashuunsukhait faced bureaucracy, but now every port and mine has issues. There should be no bureaucracy." Initially, the government approved Resolution No. 362 to stop the corruption surrounding the 'C' permits that followed the National Auto Transport Center, making mining companies responsible for issuing the permits. As a result, based on the agreement between China and Mongolia, the international freight transport permits passing through Gashuunsukhait border have been limited to 7800 'C' permits each quarter, fitting within this quota. 60% or 4680 'C' permits are issued by "Erdenes Tavantolgoi" JSC, 25% by "Energy Resource" company, and the remaining 15% by the small local "Tavantolgoi" company. "C" permits have been issued electronically. However, within less than two years of implementation, this system is facing warning signs to change.

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L. Gantomor: The Capacity of Gashuunsukhait Port Has Tripled

Published: 2024-10-28 | Translated from: gogo.mn

During a session of the regular autumn plenary of the State Great Khural of Mongolia, information about the implementation of the "New Revival Policy," which includes the Port Revival Policy, was shared in accordance with the regulatory framework for government information hearings. Firstly, within the scope of improving the hard and soft infrastructure of the ports to enhance cargo and passenger throughput and increase exports, the following tasks have been accomplished. With the investment from the state budget and a grant from the People's Republic of China, expansion and renovation works were carried out at Zamiin-Uud and Gashuunsukhait ports, bringing them into operation. At Zamiin-Uud, the number of gates for imported vehicles in the passenger transport complex was increased from 8 to 20, and for exports from 4 to 24. Additionally, modern control systems connected to a central management center, automatic vehicle registration smart gates, high-capacity X-ray machines, and other border control equipment were installed, allowing for the quick and efficient passage of passengers and vehicles and improving convenience for citizens. For the new freight transport complex at Zamiin-Uud, the import gates were increased from 3 to 22 and export gates from 2 to 5. Furthermore, 28 buildings, complete lines of engineering infrastructure, 11 km of power supply lines, substations, road and street lighting, communication alarms, and fencing security systems were completed and put into operation. The facilities and road areas at Gashuunsukhait were expanded and renovated, increasing the import gates for passenger and freight vehicles from 1 to 3 and export gates from 1 to 3. For coal transport vehicles, the export gates were increased from 6 to 10, aligning with international standards and featuring smart gates, truck scales, heavy-duty roads, X-ray machines, disinfection facilities, dog search stations, laboratories, and security alert systems. As a result, the port's throughput capacity has tripled. Moreover, within the framework of the expansion and renovation projects at Gashuunsukhait, residential housing for border control employees, substation buildings, external heating, clean and waste water pipes, wastewater treatment plants, and boiler houses in Khairkhan bagh, Umnugovi aimag, have been built, and their completion is at 90%, Minister L. Gantomor reported.

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AmCham Mongolia Hosts "Accelerating Mongolia's Energy Transition" Meeting and Discussion

Published: 2024-10-28 | Translated from: ikon.mn

ULAANBAATAR, MONGOLIA - The American Chamber of Commerce in Mongolia (AmCham Mongolia), in collaboration with the U.S. Embassy, organized a high-level meeting and panel discussion on the topic "Accelerating Mongolia's Energy Transition." In his opening remarks, Richard L. Buangan, the U.S. Ambassador to Mongolia, highlighted the tremendous potential Mongolia has due to its clean energy resources, despite having a smaller population compared to other countries in Central Asia. He noted that there is a massive opportunity to support future mining projects and potentially export to the Asian continent. Mongolia is at the center of this vision, he emphasized. Ambassador Buangan also acknowledged that some skepticism exists around the clean energy transition due to concerns about the reliability, stability, and sufficiency of energy derived from solar and wind sources. This is a legitimate concern, especially considering the responsibilities of the Ministry of Energy and the pressure associated with ensuring warmth and electricity during the harsh winter months. He stated that Mongolia cannot realistically transition from coal to renewable energy overnight, and coal will remain a part of Mongolia's energy mix for years to come. Deputy Prime Minister Togmid Dorjhand gave a presentation on the Mongolian government's energy reform initiatives, the challenges in the sector, ways to address them, progress on mega-projects, and opportunities for Mongolia to become a regional energy exporter. The panel discussion included key representatives from the Asian Development Bank, European Bank for Reconstruction and Development, Greaka Group, and the Ministry of Energy. The panelists shared their thoughts on some of the challenges that need to be addressed to optimally achieve the energy transition. The Country Director of ADB, Shannon Cowlin, stated that the world is shifting from economies reliant on coal and traditional fuels to ones powered by clean, renewable energy. However, each country's unique characteristics and resources must be accounted for, and appropriate strategies developed for each transition. The Country Head of EBRD, Mr. Hannes Takash, expressed their active involvement in the global green movement. Since 2022, all activities have aligned with the Paris Agreement. The main strategic focus in the energy sector is to increase renewable energy from megawatts to gigawatts, with the aim of introducing a cleaner, more advanced, and resilient energy system. He affirmed their readiness to support Mongolia's green transition. At the end of the meeting, new member organizations, Greaka Group and Omnicapital LLC, were welcomed, and membership certificates were presented. About AmCham Mongolia: AmCham Mongolia is an independent, membership-driven NGO that works to expand and strengthen business partnerships between the United States and Mongolia, protect their interests, and attract American investment to Mongolia. It is the official chapter of the American Chamber of Commerce, considered the world's largest business federation with over 3 million members. It is also a member of the Asia-Pacific Council of American Chambers of Commerce, which unites American chambers of commerce in 25 countries in the Asia-Pacific region.

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The "Cranes-1" field capable of producing 200 barrels of oil per day has been put into operation

Published: 2024-10-28 | Translated from: isee.mn

The "Cranes-1" oil field in the "Matad-XX" area of "Petro Matad" company, located in Matad soum, Dornod province, has been transferred to production and was officially inaugurated last Friday. The opening ceremony was attended by officials from the Ministry of Industry and Mineral Resources, including State Secretary S. Javkhlanbaatar, Chairman of the Mineral Resources and Petroleum Agency L. Bayarmandal, Head of the Petroleum and Products Department B. Tuvshinjargal, Head of the State Administration Management Department Sh. Ganhuyag, and Head of the Petroleum Operations Department S. Tuvshinbayar. The oil reserves of the "Cranes-1" field were recorded in the unified mineral reserves fund with a proven reserve grade of 1.15 million tonnes in 2021, of which the proved recoverable reserves were registered as 137.9 thousand tonnes. "Petro Matad" LLC has planned to extract 200 barrels of oil per day from this field on a trial basis in 2024. The company has completed the hydraulic fracturing work and the installation of the surface facilities of the wells.

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If More Buildings are Constructed Around Yarmag, Residents Will Have Difficulty Reaching the New Airport

Published: 2024-10-28 | Translated from: gogo.mn

"If more buildings are constructed around Yarmag, residents will have no way to reach the new airport." N. Bayarsaikhan, President of the Mongolian Builders National Association NGO, spoke at the "Future of Mongolian Housing 2024" international forum, addressing the current state of Mongolia's construction industry and housing. He stated, "The construction sector in Mongolia is growing at the speed of light, but on the other hand, many errors are emerging. These errors involve all stakeholders in the construction sector. There is enormous potential in the construction industry. If this potential is managed correctly, it can enter the global market with the capability of contractors. "MORTGAGE LOANS HAVE BECOME THE 'LOOT' OF PEOPLE ABLE TO DO BUSINESS" "As the financing amount for mortgage loans increases, the price of housing tends to rise. What is the reason for the increase in housing prices? Is there a possibility for them to decrease? "The mortgage program is designed for households with middle to low income. However, it has become the 'loot' of people capable of trading and doing business. It is necessary to review this program and make adjustments regarding loan allocation. Many factors contribute to the rise in housing prices. Firstly, the construction period is very short. It only lasts during the warm season, from June to September. Therefore, it is necessary to calculate costs and research ways to reduce them for quick construction. Secondly, there is the issue of land speculation. A group of people uses political influence to secure parcels of land, which they then sell at higher prices. These costs affect the overall cost of construction. Moreover, construction companies operate by taking out commercial loans. These loans have an annual interest rate of 25 percent. Although construction stops in the winter, the interest continues. "State administration is issuing Assignments A to construction companies for some interest." Thirdly, there is the bureaucracy around building permits. The current permission system began being enforced from the Soviet era. It is said to have an outdated legal framework. For a construction company to get permission, it must physically go and attend meetings. In the summer, due to events like Naadam, centenary celebrations, or scheduled breaks, meetings at government offices may not occur. During this time, the labor and financial expenses of construction companies continue. If a housing program is to be implemented, the fundamental systems and factors affecting construction costs must be brought up to international standards and require new standards and solutions. This would allow for a reduction in housing prices. It is essential for buyers and government officials to understand that construction companies operate under these high costs, rather than assuming they are making enormous profits. "The government announced plans to redevelop and re-plan ger districts to provide housing. However, densely packed buildings are being constructed in some parts of the capital, leading to poor living conditions. What is your opinion on this issue? "The city planning office should make a redevelopment plan for ger districts, formalizing exactly how buildings should be constructed in these areas. However, due to certain interests, city planners are issuing Assignment A to construction companies, disregarding the law. Essentially, construction companies buy the land from 2-3 households in the ger district set for redevelopment and then construct densely packed, tall buildings on it. According to planning regulations, buildings should have garages, access roads, and playgrounds. However, these rules are being breached, resulting in high, dense buildings. Government agencies that enforce regulations are breaking the law. "Can it be said that there is almost no state control or inspection at the time of obtaining construction permits or during the building process? Is it only after construction that state inspectors accept the buildings? "There is a way to regulate without the state participating in inspection. A legal framework involving the designer, independent consulting company, and construction company working together needs to be established. In other words, the designer and consulting company should supervise, while the contractor should adhere to quality standards during construction. "Construction companies have full potential to enter the global market." This system needs to be introduced. Currently, project acceptance ends like a celebration with meal gatherings. Legalization of this process is necessary. There are many examples in the capital city. Around Natur and 100-Aild, buildings are densely packed with no space to walk. Government management issues permits there. Businesses are profit-oriented. This is the essence of business. The enforcing agency needs to address these issues openly. "Many buildings are being constructed around Yarmag. Does this align with the city expansion policy?" "Buildings are being constructed where infrastructure exists. Heating permissions are given there. The state should be flexible with its infrastructure regulation. Suitable land for building should be sold through public auctions. The area around Yarmag and Niseh is a corridor leading to the new airport. However, due to granting construction permits without demographic studies and a general plan, adverse effects are observed. A quarter of Yarmag's total land has been built on. If more buildings are constructed in the remaining area, residents will have no way to reach the new airport. Thank you for the information.

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Mongolia Becomes Self-Sufficient in Energy Consumption but Keeps Doors Open for Imports

Published: 2024-10-28 | Translated from: gogo.mn

In 2023, Mongolia's total energy consumption reached 11 billion kWh, with over 70% being supplied domestically and 22.3% being imported. A significant portion of the government's 14 mega projects, which are financed by trillions of tugriks, are energy-related projects. These projects aim to make Mongolia self-sufficient in energy and even an energy-exporting country, but officials emphasize the need to consider some critical aspects that must not be overlooked. Keeping the Door Open for Imports In the first nine months of the year, the cost of imported energy to Mongolia increased by 3.1% compared to the same period last year. In 2023, 11 billion kWh of total energy consumption was reported, with over 70% supplied domestically and 22.3% imported, according to the Energy Regulatory Commission. In comparison, in 2012, Mongolia produced over 90% of its energy needs domestically, importing 7.6%. N. Tavinbekh, the State Secretary of the Ministry of Energy, stated that even if Mongolia becomes fully self-sufficient in energy supply, it will not close the door to imports. For security reasons, they emphasized the importance of maintaining infrastructure to import energy from its two neighboring countries and possibly a third-party neighbor. Additionally, according to Deputy Prime Minister T. Dorjhand, there are plans to make the terms of electricity purchase agreements clearer and work with international organizations to provide guarantees for imports. A Sector that Lacks Courage The public is eagerly awaiting the government's plan to reform energy prices so that they cover costs. The Energy Regulatory Commission indicated a few days ago that studies are underway to increase electricity prices by 30% and heating prices by 50-70% starting next month. The energy sector has been neglected for the past 30 years due to a lack of political courage to implement substantial reforms, as highlighted by Member of Parliament S. Tsenguun, who actively expressed his views on this issue. He stressed that the fundamental reform of transitioning the sector to free market principles is necessary, as it affects everyone. Politicians have tended to avoid dealing directly with the systemic changes to the energy market, given the sensitivity of public reception. However, all policies implemented by the government are fundamentally related to energy, and the delay in energy projects poses risks to mega projects. Ensuring energy security is crucial because Mongolia remains heavily dependent on imports from its two neighboring countries. Producing energy domestically will allow Mongolia to manage its energy sources independently and set its tariffs.

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International and Domestic Flights Switch to Winter Schedule

Published: 2024-10-28 | Translated from: gogo.mn

International and domestic flights transitioned to the winter schedule. According to the Civil Aviation Authority, during the winter season of 2024-2025, 35 international transit carriers plan to operate 124,439 flights, while 12 international arrivals and departures carriers plan to operate 4,604 flights. Additionally, "MIAT" Corporation is scheduled to conduct 660 domestic flights.

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Infrastructure of Mega Projects Limits Wildlife Pastures and Watering

Published: 2024-10-28 | Translated from: gogo.mn

The infrastructure associated with mega projects is restricting wildlife from grazing and accessing water sources. Scientists and researchers presented information on the wildlife of Mongolia's Gobi Desert, including the wild camel, Gobi bear, Przewalski's horse, wild ass, Mongolian saiga, and black-tailed gazelle, along with their habitats, at the Development Center for Teachers and Students at the National University of Mongolia. The main objective of the discussion today is organized around improving the water supply for wild animals. Discussions focused on enhancing the Gobi ecosystem, increasing water sources with good pasturage, constructing ponds, building more solar-powered wells, and expanding grazing areas to improve the habitat of these animals. Regarding the threats facing the "Gobi's Marvelous Six"—a group representative of other wild animals in the region—the challenges include pasture and water scarcity, illegal hunting and trade, droughts, and infectious diseases. How wild animals use water sources includes drinking, cooling down, temporary resting, seeking shelter, and in some cases, hibernation around certain water sources. Measures to increase water supply include reviving springs and increasing flow, weather modification for rain, creating solar-powered wells, building reservoirs to store rain and snow water, and establishing new wells. It is crucial for conservation to enable the "Gobi's Marvelous Six" species to migrate freely over vast areas. Mining operations overlap with the habitats of endangered wild animals and, while economically beneficial, have a severely negative impact on wildlife. The corridor-like infrastructures connecting these mega projects, such as railways and highways, block animals that migrate to pastures and water sources. Therefore, experts suggest the need for tunnels, level crossings, and bridge crossings to allow animals to roam and access water freely. Mongolian saiga belong to a genus that is found only in Mongolia, roughly the size of a goat with a large prominent nose. As of now, there are about 15,500 Mongolian saigas. During the winter of 2016/17, about 54% of the total saiga population died due to a goat plague-like disease within just 2-3 months. Infrastructure that is not wildlife-friendly can prevent access to pastures, lead to entanglement and death in fence wires along infrastructures, and increase the risk of fatalities. There have been incidents of saigas being hit by vehicles on the asphalt road going from the Altai to Khovd city. The wild camel population as of 2012 is between 400-600, distributed in two regions in China and the Gobi-Altai region of Mongolia. Mongolia conducts extensive health studies on these camels, and two breeding centers have been established, one in Zavkhan-Ust with 48 camels and another in Tolibulag, Bayankhongor aimag, with seven camels. Przewalski's horse is the ancestor of the Mongolian horse. It became extinct in 1969 but has been reintroduced to its native habitat since 1992, and it is now in its 32nd year. These horses have a broad frame, a short mane, and an upright tail. One has 66 chromosomes, while the other has 68. Out of three locations for reintroduction in Mongolia, there are currently over 310 in Hustai National Park, over 300 in the Gobi Strictly Protected Area, and around 150 in Khomiin Tal, making a total of about 750 reintroduced horses. The black-tailed gazelle is beautiful and coexists with the Saiga in desert areas. As of 2017, about 40,000 black-tailed gazelles exist in Mongolia. Black-tailed gazelles spread over large areas including North Africa, the Arabian Desert, Central Asia, Xinjiang in China, and Mongolia, which forms the easternmost range of their global distribution. In Mongolia, they inhabit the mountain valleys, the Gobi-Altai flats, and the eastern desert areas like Zuun Gobi and Khanbogd in Omnogovi Aimag. They favor flat terrains, but their numbers have decreased recently due to illegal hunting. Mongolia has observed an "Onager Protection Day" on October 25th every year, recognizing the importance of protecting the 80,000 or more onagers that inhabit the southern Gobi, eastern provinces, and the western regions. The Gobi bear, or Mazaalai, is a rare animal found only in Mongolia's Gobi. Worldwide, only about 50 individuals remain, making it extremely rare. The Parliament of Mongolia has initiated several projects aimed at wildlife protection, encouraging herders to reside away from crucial habitats, avoid contaminating drinking areas, manage livestock numbers responsibly, and promote environmental care by not littering. Protecting the environment requires the participation of every citizen of Mongolia. The organizers call for collective engagement in the noble cause of preserving the natural world and its pristine state for future generations.

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N. Bayarsaikhan: The government's permits are leading to unplanned urban development

Published: 2024-10-28 | Translated from: ikon.mn

The Ministry of Family, Labor, and Social Protection, the Ministry of Urban Development, Construction, and Housing, and the World Bank jointly organized the "Future of Mongolia's Housing 2024" international forum today. At the conclusion of the panel discussion on "Evaluating the Current State and Solutions of Mongolia's Housing Policy," we highlighted the position expressed by N. Bayarsaikhan, President of the National Association of Construction of Mongolia. He said, "There is a deviation in housing development. A single construction company buys the land of three households and then constructs on the site. In this case, it is the city that gives the architectural planning assignment for that land. If this practice isn't legally stopped, it will decrease the value of the areas planned for large developments, and the construction companies will design densely-packed buildings to recoup their investment from the expensive land, leading to unlivable high-rise developments. This needs to be legalized. There are also aspects to consider when building energy-efficient private homes in the ger districts. International practices, for example in the Federal Republic of Germany, not only specify the number of floors but also the maximum height, stating that it should not exceed a certain meter. In some cities, as Mongolians say, even the angles of the roof ridges are prescribed. If we don't enforce such standards, attractive plans disappear as seen in places near Zaisan, 100 Ail, and around the Natur Center due to selling land. These anomalies are happening because of the permissions granted by the state, or more specifically, the city administration, which lead to unplanned cities," he expressed his position. During the discussion, Member of Parliament G. Luuvsanjamts said, "Priority should be given to solving the mortgage loans without a queue for three groups. Young families with two or more children should have their issues resolved first without waiting. Our goal is to provide warm housing that doesn't emit smoke to all citizens, so this group should be prioritized. Low and middle-income citizens, people with disabilities, and the elderly should not be living in ger districts burning fuel, leading to high utility expenses. Housing in newly established sub-centers should be prioritized if they apply for housing there," he said. Warning: Media organizations (TV, Radio, Social, and Web pages) must cite the source (ikon.mn) when using our information in any form, fully or partially.

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Society

The "REACH" Humanitarian Aid Project Implementation in Bayan-Ulgii and Khovd Provinces

Published: 2024-10-28 | Translated from: ikon.mn

The "REACH" humanitarian aid project, aimed at assisting herder households affected by the harsh winter, was implemented in Bayan-Ulgii and Khovd provinces in collaboration with the Embassy of the Federal Republic of Germany and People in Need NGO. This project sought to address the educational, health, and child protection needs of children from herder families affected by the severe winter livestock losses. The project was managed locally by the Child and Family Development and Protection agencies in these provinces, with participation from child protection teams across 18 districts. A study by the UN Disaster Risk Reduction Department revealed that climate change and environmental degradation are increasingly leading to adverse actions against children, including violence and neglect, impacting their physical and mental health. During difficult times, attention from herder parents and guardians to their children decreases, increasing the likelihood of neglect. The "REACH" project focused on addressing these issues by visiting 270 remote herder households, conducting risk assessments involving over 800 children and parents, and providing advice and information to mitigate the identified risks. In addition to household visits, the project also included assessments of dormitories in 18 schools, providing advice and information to dormitory teachers, school principals, and social workers to ensure children's safety in dormitory living conditions. As part of the initiative, 3,400 children were provided with school supplies and nutritional supplements, while 260 sets of selected books were distributed to dormitories in each district to support the development and future investment in herder children. One-time cash assistance was also provided to 270 herder households to support essential educational and health needs of their children. Due to global warming, the average temperature in Mongolia over the past 80 years has increased by 2.1 degrees Celsius, which is twice the global average rate. The effects of this rapid warming are felt in the increased frequency and severity of harsh winters, known as "zud." The National Statistics Office reports that 8.1 million livestock perished nationwide last winter due to these conditions. Additionally, the project highlighted a significant child protection risk arising from the zud, prompting attention from various international organizations working in policy for the "Child Protection in Emergencies MNS 6948:2021" national standard, enacted to ensure child protection measures during disasters. Over the past decade, approximately 700 children in Mongolia have died due to natural disasters, emergencies, and household accidents. These incidents largely result from inadequate supervision by parents and caregivers, lack of access to kindergartens and schools, and unavailable safe recreational spaces for children. The "REACH" project identified risks such as unsupervised children while herding or visiting neighbors, children riding motorcycles, and children being left in the care of other children. The "REACH" project, implemented in Bayan-Ulgii and Khovd provinces, highlighted the importance of conducting child protection risk assessments among herder families. Although detection falls under preventive child protection services, there is no dedicated budget for this work, and the joint team members often overlook its necessity and significance, responding only to identified cases. The project demonstrated the effectiveness of these assessments, which were conducted by district joint teams and provincial Child and Family Development and Protection specialists, emphasizing the need for continued collaborative efforts. Consequently, expanding this activity to visit not only at-risk households but all herder households for child protection risk assessments, providing information and advice to herders, and introducing the joint teams remains essential to furthering child protection efforts. This need is evident given the current conditions.

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Judgment and Auction Recordings of JDU Chairman Ya. Erdenesaikhan’s Illegal Order and Evaluation Committee

Published: 2024-10-28 | Translated from: itoim.mn

The head of the Small and Medium Enterprise Agency, Ya. Erdenesaikhan, has been revealed to have violated laws in the management and spending of state budget funds. Following the Cabinet Secretariat's instruction, he approved and allocated 2.1 billion tugriks for a project to promote the "New Cooperative Movement" and to disseminate timely information about cooperative work to the public. In doing so, Erdenesaikhan issued an order to amend the procurement plan of the 2024 budget of his organization on April 22, 2024, adding a new list of projects and activities for the "New Cooperative Movement." He allocated 1.78 billion tugriks for advertising the movement through media channels and 362 million tugriks for publishing magazines about the movement, catalogs showing good cooperative practices, stickers, bags, and newspapers. It appears that Ya. Erdenesaikhan violated the procedure for purchasing goods, works, and services using state budget funds. The comparative purchasing method allows for a maximum limit of 70 million tugriks for goods, and 20 million tugriks for direct purchases. If the budget exceeds these thresholds, open tender procedures must be applied according to governmental regulations for goods, works, and services. However, Erdenesaikhan allocated 2.1 billion tugriks by ignoring these requirements, indicating possible bias toward specific project agreements. For instance, he directly awarded a contract for the highest sum of 500 million tugriks to National Social Media LLC for nationwide live broadcasts. Another notable matter is that an Evaluation Committee tasked with overseeing the procurement activities for the "New Cooperative Movement" and selecting contractors was established by the Chairman of the SMEDA on May 20, 2024. Yet, on that very day, names of 10 media outlets designated for direct purchasing were announced, and financial orders along with execution agreements were issued. From this, it seems likely that the 10 media outlets awarded contracts were predetermined, suggesting potential financial favoritism to specific projects and measures. Whether Ya. Erdenesaikhan will face any responsibilities or scrutiny for these actions, possibly favoring others by violating procurement rules, is a question that the Anti-Corruption Agency has been unable to answer, as no information could be obtained.

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Published: 2024-10-28 | Translated from: isee.mn

An event called the “Mongolian Family Day,” dedicated to Mongolian citizens living and working in South Korea, took place on the 26th of this month, or last Saturday. This event was jointly organized by the Ministry of Family, Labor and Social Protection and its affiliated agencies. According to research, about 56,000 citizens from our country reside in South Korea, and roughly 15% of them live with their families. Furthermore, over 17,000 of the citizens living there are working illegally with visa violations. Additionally, only about 2,000 out of the more than 56,000 citizens pay social insurance premiums. During the “Mongolian Family Day,” information was provided to citizens about how to participate in social insurance services electronically, and how to receive disability benefits, pregnancy, and maternity payments.

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Evidence of Legal Violations by Small and Medium Enterprise Chairman Ya. Erdenesaikhan and the Established Evaluation Committee

Published: 2024-10-28 | Translated from: itoim.mn

Evidence has emerged of Chairman Ya. Erdenesaikhan of the Small and Medium Enterprise Agency violating the law in managing state budget funds. He allocated and spent 2.1 billion MNT on projects and events to promote, introduce to the public, and disseminate timely information on cooperative movements named "New Cooperative Movement." To achieve this, Ya. Erdenesaikhan issued an order to amend the procurement plan for the 2024 budget of his organization, by adding a list of projects and events for the "New Cooperative Movement." He allocated 1.78 billion MNT for public promotion of the "New Cooperative Movement" through media channels and 362 million MNT for the publication of journals, catalogs, stickers, bags, and newspapers highlighting the movement's positive practices. Chairman Ya. Erdenesaikhan violated procurement laws when acquiring goods, works, and services with state budget funds. Specifically, it is regulated that the maximum budget cost for procurement through a comparative method is 70 million MNT for goods, and the maximum budget cost for direct procurement is 20 million MNT. However, open tender procedures must be used for procurement exceeding the threshold costs set by the Government's rules for goods, works, and services. Instead, Chairman Ya. Erdenesaikhan violated both the comparative and direct procurement methods and the State Procurement Law by allocating 2.1 billion MNT. Notably, even before listing the goods, works, or services, it appears that the client had predetermined certain projects and programs. For instance, 500 million MNT was allocated directly by contract to National Social Media LLC under the guise of nationwide live broadcasts. Another peculiar issue is that the Evaluation Committee responsible for overseeing the procurement activities related to bolstering the "New Cooperative Movement" and selecting contractors was established by the order of the Small and Medium Enterprise Agency's chairman. Yet, on the same day, orders were issued to allocate financing to 10 press names for direct procurement, and contracts for work execution were established. From this, it can be concluded that the probability is high that the finance was earmarked for projects or events whose clients were initially known, as demonstrated by the contracts established with the 10 media outlets for direct procurement. The issue of whether any accountability will be enforced or investigations conducted into Chairman Ya. Erdenesaikhan's possible abuse of procurement procedures, designed to benefit others unlawfully, with state and local property remains unresolved. When queried, the Anti-Corruption Agency could not provide an informant for further explanation.

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Meeting with Journalists Regarding Changes to Regulations in the State Palace

Published: 2024-10-28 | Translated from: isee.mn

Secretary General of the State Great Khural (Parliament) B. Baasandorj, Deputy Chief of Staff of the State Great Khural E. Lkhagva, Head of the Internal Control Department of the State Great Khural’s Secretariat B. Tögstsengel, and other related officials met today with representatives of media organizations that cover the State Great Khural’s operations. Secretary General B. Baasandorj stated that it is important for the public, parliament, and journalists to share goals and work in mutual understanding, as such collaboration plays a crucial role in the development of a classical parliament. Therefore, in order to make parliamentary operations more open and transparent, the Secretariat of the State Great Khural has drafted projects to amend the procedures for covering and reporting on the State Great Khural’s activities, special entry procedures to the State Palace, and the regulations to be followed in the State Palace. This meeting was organized to introduce these draft regulations to the media and gather feedback. In the future, the Secretariat of the State Great Khural plans to regularly hold meetings to present laws being discussed in parliament at the request of journalists and looks forward to working together in cooperation. Following presentations on the draft regulations by the Head of the Internal Control Department B. Tögstsengel, Senior Reference Specialist of the Media Department G. Bürenjargal, and Senior Reference Specialist of the Public Relations Department G. Kherlen, representatives of media organizations expressed their opinions. At the end of the meeting, Deputy Chief of Staff E. Lkhagva stated that the feedback and suggestions provided by journalists and media organization workers regarding the draft regulations will be conveyed to the relevant officials and that they are committed to working together. This was reported by the State Great Khural’s Media Department.

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Environment

Darkhan-Uul Province Joins “World Without Plastic Waste” Initiative

Published: 2024-10-28 | Translated from: gogo.mn

“MCS Coca-Cola” company aims to introduce recycled packaging water and beverages to the Mongolian market for the first time starting next year. Within this framework, MCS Coca-Cola LLC, TML Plastics Factory, and Total Distribution LLC signed a memorandum of cooperation with the governor's office and the Department of Education of Darkhan-Uul Province. Darkhan-Uul Province has a high usage of plastic bottles for water and beverages due to its population density and urban culture. Therefore, the province's development program up to 2030 includes improvements in waste management. As part of the cooperation, plastic waste will be received at the TML Plastics recycling collection point located in Khotol, Darkhan-Uul Province. Educational institutions at all levels will also implement activities promoting waste sorting and recycling. “TML Plastics” is a world-class plastic recycling facility for water and beverage bottles, established in 2021 at the initiative of “MCS Coca-Cola.” Meanwhile, MCS Group's Total Distribution LLC will handle transportation activities as part of social responsibility efforts. Darkhan-Uul Province is the first province to sign a cooperation memorandum and plans to expand this collaboration to other provinces to promote plastic waste recycling nationwide. It is noted that 40% of water and beverage plastic waste originates from rural areas. Plastic collection point in Darkhan city: Darkhan-Uul Province, Orkhon Street, 2nd bag, Enkhtal Khotol, 45th Street.

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Uyanga Lianhua Development Joins Efforts to Reduce Greenhouse Gases

Published: 2024-10-28 | Translated from: ikon.mn

Fighting climate change by increasing forest resources, the lungs of the Earth, is a vital part of the objectives to reduce greenhouse gases. Mongolia has also joined the significant goal of reducing greenhouse gases, and to contribute, the Uyanga Lianhua Development NGO has initiated tree plantation projects across the country in collaboration with the Forestry Agency and "Green Forever Land" LLC by signing a tripartite memorandum. Within the framework of this memorandum, "Uyanga Lianhua Development" NGO, in collaboration with the tree nursery company "Green Forever Land" LLC, has launched the "Green Ant" project aiming to improve and restore school and kindergarten grounds by creating green spaces with various trees and shrubs. In the past weeks, they planted trees and shrubs in schools and kindergartens in Nalaih District. To successfully implement the Green Ant project that started in Nalaih District, the importance of the project was introduced to schools and kindergartens, followed by signing a memorandum with the District Governor's Office. Beyond increasing green spaces around children, the Green Ant project aims to provide environmental education. As part of this objective, schools and kindergartens participating in the project receive greenhouses complete with irrigation systems. This enables children to engage in planting experiments, cultivating trees and shrubs, and gardening, fostering a sense of care and responsibility towards nature, and understanding the importance of planting trees. We express our heartfelt gratitude to the parents, school administration, staff, and partners who actively participated in tree planting activities in collaboration with Uyanga Lianhua Development NGO, thereby contributing to the reduction of greenhouse gases in our country. Please see the following footage for the ongoing tree planting activities in schools. Notice: Media organizations (Television, Radio, Social, and Web pages) are reminded to mention their source (ikon.mn) when using our information fully or partially.

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Innovation

Kazakhstan's 'Nitec' to Collaborate with 'E-Mongolia Academy'

Published: 2024-10-28 | Translated from: isee.mn

A delegation headed by Madiyev Zhaslan Khasenovich, the Minister of Digital Development, Innovation, and Aerospace Industry of the Republic of Kazakhstan, is paying a working visit to Mongolia. During this visit, Minister Madiyev Zhaslan Khasenovich and his delegation will familiarize themselves with the operations of the "E-Mongolia Academy" and exchange experiences in the digital sector. They will implement a joint cooperation plan, establish connections between private sector organizations, and strengthen collaboration. Meetings will focus on the unified state service system "E-Mongolia" and other systems such as "Khure" and "Dan," along with exploring ways to expand and develop intersectoral cooperation between the two countries in digital governance, information technology, and space technology. Discussions will also cover opportunities to enhance systems based on artificial intelligence for future collaboration. Globally, technologies like GPT Agents, GPT Chat, Large Language Models, AI agents, and AI robots based on artificial intelligence are being widely used. Countries are increasingly leveraging artificial intelligence in sectors such as health, education, the environment, defense, agriculture, transportation, mining, production, and services. The future collaboration between Kazakhstan's Nitec (National Information Technologies) and the "E-Mongolia Academy" will enable the exchange of experiences, improvement in service quality, and increased accessibility through the use of artificial intelligence. This will help tackle pressing issues and challenges similar to those faced by other countries around the world, thereby enhancing internal capabilities across all sectors.

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Cooperation with Kazakhstan to Increase Export of Information Technology Industry

Published: 2024-10-28 | Translated from: isee.mn

The Minister of Digital Development, Innovation, and Communications of Mongolia, Ts. Baatarkhuu, met with the Minister of Digital Development, Innovation, and Aerospace Industries of the Republic of Kazakhstan, Madiev Jaslan Khasenovich. At the beginning of the meeting, Minister Ts. Baatarkhuu expressed appreciation for the importance Mongolia places on President Kassym-Jomart Kemeluly Tokayev's visit, during which both countries agreed to expand cooperation in the information technology sector. He noted, "Kazakhstan is emerging as a major player in information technology in the region. Mongolia has successfully digitalized public services. Now, we are focusing on developing the digital economy and increasing the export of our information technology industry. We are also preparing to discuss draft laws on artificial intelligence, space, and drones at the parliamentary session. In addition, we are interested in learning from Kazakhstan's experience in creating drone testing zones and wish to collaborate in this area." Kazakhstan's Minister of Digital Development, Innovation, and Aerospace Industries, Madiev Jaslan Khasenovich, stated that Kazakhstan places great importance on digital development. He said that nations today are making ambitious strides in the era of rapid artificial intelligence advancement. "Our ministry has approved a 5-year strategic plan for artificial intelligence. We will soon present a draft law on artificial intelligence. Our strategy includes creating high-performance computers domestically and internationally, organizing online and classroom training, hackathons, and training 300,000 people by 2025 in this field. We are also working to establish a campus with research and development laboratories for artificial intelligence dedicated to startups." In addition, Kazakhstan hosts one of the world's largest spaceflight centers and collaborates with many countries in space research. "We wish to cooperate with Mongolia in all sectors," he emphasized. Kazakhstan is currently ranked 24th in the UN e-Government Development Index and has made progress in cybersecurity and innovation indices. The country aims to introduce 5G networks in over 20 cities by 2025. Together with Azerbaijan, Kazakhstan is working on transmitting an internet flow via fiber optic cables through the Caspian Sea to improve internet bandwidth. It is estimated that this will reduce the internet load connecting Asia and Europe by 20%. Furthermore, Astana Hub nurtures over 1,500 startup companies, currently exporting $600 million in products and services annually, with plans to increase this to $1 billion by 2026. Astana Hub operates in 16 branches across Kazakhstan and successfully operates in countries such as the USA, Singapore, and Saudi Arabia. The parties agreed to collaborate in these fields and to establish a memorandum of understanding during the high-level visit.

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Three Days Left to Register for the Fulbright Scholar Program

Published: 2024-10-28 | Translated from: ikon.mn

Registration for the Fulbright 2025-2026 Scholar Program opened in March of this year. The U.S. Embassy has reminded applicants that there are only three days left until registration closes. This program offers scholars the opportunity to conduct research at an institution in the United States for a period of 6-9 months. Requirements: - Must be a citizen of Mongolia - Must hold a doctorate degree or have received equivalent training and specialization - Must have more than 10 years of work experience - Must have advanced English proficiency (TOEFL IBT score of 85 or an IELTS score of 6) For more details, click here. Warning: Please note that if media outlets (television, radio, social networks, and websites) use our information in whole or in part, they must cite their source as ikom.mn.

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Health

Renewal of Prescription Drug Registry

Published: 2024-10-28 | Translated from: news.mn

The Human Drug Council of the Ministry of Health held a meeting discussing issues regarding the differences in conditions for dispensing drugs registered in the national drug registry of Mongolia, as well as the current status of drug stockpiles for recalls and shortages. Specifically, a review was conducted of the dispensing conditions information of 172 drugs, the national registration numbers, and discrepancies in dispensing conditions in instructions provided by manufacturers, as recorded in the electronic "LisMed" program. This review involved inquiries from a total of 61 organizations, and the results were presented by the Agency for Medicines and Medical Devices Control and Regulation. Therefore, the Human Drug Council decided to reconvene this week to finalize decisions on amendments to the dispensing conditions of these drugs.

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Arts

DORNOGOVI: Joint Art Performance by Mongolia and China

Published: 2024-10-28 | Translated from: montsame.mn

This year marks the 75th anniversary of the establishment of diplomatic relations between Mongolia and the People's Republic of China. As part of the commemorative activities for this historic relationship, the "Saran Khokho" theater in Dornogovi Province, in collaboration with the neighboring Ereen city's "Ulaanmuchir" ensemble, organized an art performance in Sainshand city on October 26. Over 60 artists from both countries participated in the performance.

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Today's Stories

Politics

Economy

Diplomacy

Infrastructure

Society

Environment

Innovation

Health

Arts

Politics

The Importance of Supporting Investors in Amending the Nuclear Energy Law

Introducing: The New Governors of 21 Provinces

Will Politicians Disagree and Turn Off the Country's 'Light'?

19 Corruption Cases Transferred to Court

Opposition to Energy Price Increase

The Ruling Party is Feeding Its Structure Through the Budget

BREAKING: O. Amgalanbaatar has started collecting signatures to remove L. Gantomor from the leadership of the Democratic Party; D. Jargalsaikhan has signed alone

Unmissable, Undistractable Law!

Budget Prioritized by Interests, Not Importance

HUN Party: The Uranium Project Must Be Implemented Without Delay

Economy

Trade Between Mongolia and Kazakhstan Increases by 117 Percent in 2023, Reaching $76.7 Million

Mongolia-Kazakhstan: Permanent Business Mechanism Established

"Altanshireet" Industrial and Technological Park Gains Opportunity for Tax Payment Extension and Exemption

J. Batsuuri: We Will Increase the Source of Mortgage Loans to 1.2 Trillion Tugrik Next Year

Report: Vegetable prices rise, meat prices drop

Corporate Income Tax Law: Provisions for Deductions and Exemptions

Measures to Increase the Funding for Mortgage Loans by 35%

Oil Prices Drop 5% After Israeli Strike on Iran

E. Batbold: Priority will be given to determining households eligible for mortgage loans

Diplomacy

Robert Floyd, Executive Secretary of CTBTO, and Delegation Received

A Celebration Event was Held for the 75th Anniversary of Diplomatic Relations Between Mongolia and China

Infrastructure

Richard Buangan: Mongolia Can Become an Independent Energy Exporter

"C" Permit for Coal Transportation and Notification from China!

L. Gantomor: The Capacity of Gashuunsukhait Port Has Tripled

AmCham Mongolia Hosts "Accelerating Mongolia's Energy Transition" Meeting and Discussion

The "Cranes-1" field capable of producing 200 barrels of oil per day has been put into operation

If More Buildings are Constructed Around Yarmag, Residents Will Have Difficulty Reaching the New Airport

Mongolia Becomes Self-Sufficient in Energy Consumption but Keeps Doors Open for Imports

International and Domestic Flights Switch to Winter Schedule

Infrastructure of Mega Projects Limits Wildlife Pastures and Watering

N. Bayarsaikhan: The government's permits are leading to unplanned urban development

Society

The "REACH" Humanitarian Aid Project Implementation in Bayan-Ulgii and Khovd Provinces

Judgment and Auction Recordings of JDU Chairman Ya. Erdenesaikhan’s Illegal Order and Evaluation Committee

Mongolian Families Living in South Korea Can Receive Social Insurance Benefits

Evidence of Legal Violations by Small and Medium Enterprise Chairman Ya. Erdenesaikhan and the Established Evaluation Committee

Meeting with Journalists Regarding Changes to Regulations in the State Palace

Environment

Darkhan-Uul Province Joins “World Without Plastic Waste” Initiative

Uyanga Lianhua Development Joins Efforts to Reduce Greenhouse Gases

Innovation

Kazakhstan's 'Nitec' to Collaborate with 'E-Mongolia Academy'

Cooperation with Kazakhstan to Increase Export of Information Technology Industry

Three Days Left to Register for the Fulbright Scholar Program

Health

Renewal of Prescription Drug Registry

Arts

DORNOGOVI: Joint Art Performance by Mongolia and China

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