Mongolia to openly announce 100 projects to develop the economy

2021-05-11 13:12:16

Ulaanbaatar /MONTSAME/. The Government of Mongolia is currently planning to implement 100 projects on recovering the economy after the pandemic.

“A discussion will be held to receive suggestions from the public and entities from today on May 11,” announced Prime Minister L. Oyun-Erdene during his report on the works implemented by the Government in the first 100 days since its formation. Furthermore, as the Government cannot single-handedly implement large-scale projects, the 100 projects aimed at developing the country’s economy in 2021-2030 will be announced to the public.

He said, “The current Government does not have the capacity to implement even the first 4 or 5 projects. The Gashuunsukhait railroad will be commissioned on July 1 next year. With the construction of the Tavantolgoi Thermal Power Plant completed, we will be able to reduce our costs by USD 300-400 million. The pipeline of the oil refinery will also be constructed. The Government will spend its reserves with the implementation of projects on Erdeneburen hydropower plant, the fifth thermal power plant, and the extension of the third thermal power plant as well as the Ulaanbaatar-Darkhan road construction. However, these 100 projects need to be implemented. It is not necessary for the Government to implement them alone. 

Coal takes about 37-40 percent of Mongolia’s total export. More specifically, gold, copper, iron ore, and coal make 93 percent of the country’s export. However, the price of our main export, coal, is estimated to drop from USD 300 million to USD 200 million in 2020-2040, decreasing by 33 percent. As countries of the world are working towards reducing its coal use, all we have is 10 years to put in all our efforts. If we lose this window of opportunity, issues will begin to arise starting from the state budget. Thus, it is of utmost importance that we launch our 100 projects without losing any time. By successfully implementing the projects, it is projected that the current economy will grow by 3 times and the GDP per capita will increase to USD 8-10 thousand.”

The Government plans to reform the current policy for the mining sector. More specifically, while Mongolia conducted operations on exploration and extraction, works will begin to be more focused on value-added mining products. Plans such as the construction of a coal washing plant at Tavantolgoi is also included in the measure of works to be implemented in the policy framework. “With the plant being put into operation, it will become possible for the price of coal to increase from USD 60-63 to USD 80-100 by transporting it to Gashuunsukhait,” said the Prime Minister. Furthermore, large-scale construction works such as a copper concentrate plant, oil refinery, and metallurgical plant are planned to be completed. In order to increase sales, a decision was also made to establish a Mineral Exchange, which will allow the mineral resources extracted from large deposits to be openly traded on the global market. Moreover, the profits of its sales will be brought to citizens and entities by providing support for education, healthcare, pension, SMEs, and businesses through the Sovereign Wealth Fund, Development Fund, and Unified Accumulation Fund. The legal framework regarding this matter is currently being developed.

Additionally, the sectors of agriculture, energy, information technology, and the creative industry will be developed. The cultural sector must have a method of supporting many more artists and bands such as The Hu to form and have success as well as the filming of Hollywood movies in Mongolia through a tax policy, highlighted Prime Minister L. Oyun-Erdene. The 100 projects will also include projects on resolving the transport and logistics issue of Mongolia as a landlocked country alongside social reform. Moreover, matters such as improving the quality of life, merging public universities, reforming the educational sector, transitioning into a system that involves all citizens in annual check-ups, and 25 changes to be made in order to improve governance will be resolved. 

Meetings have begun between the government and representatives of top entities and donor organizations starting from today.