Ulaanbaatar
IAAC investigates into non-compliance with Oyu Tolgoi agreement
Politics
Ulaanbaatar /MONTSAME/ An investigation has been launched into the matter of non-compliance with a provision in the 2009 Investment Agreement between the Government of Mongolia and Rio Tinto Group.
A criminal case has been opened by the Investigation Division of the Independent Authority Against Corruption (IAAC) on this matter. The Provision 7.3 of the Oyu Tolgoi Investment Agreement states that Investor will, within 4 years of Commencement of Production, secure its total power requirements for the OT Project from one or more of the following sources within Mongolia.
However, the Government signed the Southern Region Power Sector Cooperation Agreement (SRPSCA) in 2014, invalidating the above mentioned provision. Oyu Tolgoi LLC has been importing energy from China. The SRPSCA has recently been cancelled by the Government of Mongolia.
Officials behind the invalidation of the Provision 7.3 of the Investment Agreement will be investigated, the IAAC said on March 5.
A criminal case has been opened by the Investigation Division of the Independent Authority Against Corruption (IAAC) on this matter. The Provision 7.3 of the Oyu Tolgoi Investment Agreement states that Investor will, within 4 years of Commencement of Production, secure its total power requirements for the OT Project from one or more of the following sources within Mongolia.
However, the Government signed the Southern Region Power Sector Cooperation Agreement (SRPSCA) in 2014, invalidating the above mentioned provision. Oyu Tolgoi LLC has been importing energy from China. The SRPSCA has recently been cancelled by the Government of Mongolia.
Officials behind the invalidation of the Provision 7.3 of the Investment Agreement will be investigated, the IAAC said on March 5.
Kh.Aminaa
