Tuesday, May 12, 2015

MP Erdenechimeg provides updates on Tavan Tolgoi progress

Last week, a working group was established to decide if the Parliamentary resolution on measures to advance activity at the Tavan Tolgoi coal deposit, investment negotiations, and other appendix agreements need to be discussed at the Parliamentary session.
The working group is chaired by MP L.Erdenechimeg, and consists of nine members including A.Bakei, Su.Batbold, O.Baasankhuu, D.Gankhuyag, S.Gan­baatar, B.Narankhuu, D.Sumiyabazar, M.Sonompil, and B.Choijilsuren.
On May 4, the working group presented the ongoing progress of their work at the Democratic Party meeting. MNB spoke with MP L.Erdenechimeg regarding TT issues.
Today the working group introduced the ongoing process of TT review. How is the process going?
Last week, it was decided that the TT issue would be submitted to Parliament, and the working group was established. The working group consists of 10 representatives from all political parties. Last Friday, six members of the working group held a meeting, assigning a sub-group. On Saturday and Sunday the sub-group continued working, and this week the Cabinet will send official letters to Mongolian Railway (MTZ), the Ministry of Roads and Transportation, and the Financial Regulatory Committee to get references.
There are rumors going around that Energy Resources Company will be included in the negotiations.
Energy Resources is an open company, all information about the company is available on the Internet. You can see their financial report for 2014 on their website. It was clearly stated that the company’s investment developments of one billion USD are being collateralized to several foreign companies.  Also, the introduction of the TT project includes that Energy Resources invested one billion USD in Umnugovi Province, including developments such as a coal washing plant, mining facility, water supply, and power distribution. Moreover, the company made an investment raising bonds valued at 600 million USD. All shares of MMC Corporation in Luxembourg and Hong Kong, as well as Energy Resources’ shares are being used as collateral for this 600 million USD, so we need to finish payments on TT projects by 2017. We also need to see if we can involve a company with such a debt. We hired special experts to accurately study this issue, and sent requests to Energy Resources and other companies to get information regarding this issue.
People have said that the working group violates the law.
MPs are also critical on this issue, they say that such a working group has not ever been established before. According to the Speaker of Parliament, establishment of the working group didn’t violate the law, and such a working group can be established in accordance with the law on parliamentary procedures.
When will the working group make its final conclusions? 
We will make conclusions after receiving answers from the Cabinet, Energy Resources, and Minister M.Enkhsaikhan.

No comments:

Post a Comment