Vietnamese delegation to visit Mongolian meat processing factories

Not long ago, Vietnam expressed interest in importing meat from Mongolia. A Vietnamese delegation from the Quarantine Inspection Agency will conduct a working visit to Mongolia on May 20 to become acquainted with the activities of meat processing factories.

On Wednesday, representatives from the Ministry of Food and Agriculture, State Specialized Inspection Agency, and Mongolian Meat Association discussed challenges faced in meat export. Currently, Mongolia exports meat and meat products to Russia and China.

Unuudur spoke with Executive Director of the Mongolian Meat Association M.Jadamba regarding meat export.

How much meat does Vietnam want to import from Mongolia per year?

First of all they will determine the capacity of domestic meat processing factories, and check if meat is being processed in accordance with their standards. Currently, it is uncertain how much meat they want. We expressed our interest in exporting mainly meat from small livestock. They also want to import frozen meat from small livestock, like sheep or goat.

Will domestic meat processing factories meet Vietnam’s requirements?

The capacity and technology of meat processing factories meet standards, but factories lack circulating capital for purchasing meat. If we only regulate this issue, we don’t have to worry about capacity.

How much money do the factories need?

Estimates show that factories need between 160 billion  to 180 billion MNT for annual assets.

How about this year’s export to our neighbors?

It is poor. We are exporting a small amount of horse and beef to Russia and China. The prices are low, so exporting meat to Russia is not efficient. They want to purchase meat at much lower costs than our domestic market. Our neighbors prefer purchasing live animals. In the last month, over 100 horses were exported to China.

Source :http://ubpost.mongolnews.mn/

Mongolia and Bulgaria business forum held to boost cooperation

In the scope of Bulgarian President Rosen Plevneliev’s visit, yesterday a Mongolian-Bulgarian Business forum was held at the Ministry of Foreign Affairs. The sides shared experience in the business sector and possibilities for building a joint factory in Mongolia.
Prime Minister Ch.Saikhanbileg gave opening remarks at the forum, underlining that the two countries have political interests and can cooperate in “win and win” principles. The Prime Minister noted that the two countries have similar sectors with great potential for development.
“Bulgaria is leading in the information technology sector, and Mongolia can share its achievements. We can cooperate in many sectors, including medicine production, agriculture, in introducing to Bulgarian roses to Mongolia, and a subway system. Our disadvantage is that Mongolia is a landlocked country, but we have two big ‘seas’. Mongolia’s ‘sea’ gateways are the big Russian and Chinese markets. Mongolia will provide Bulgaria with an opportunity to export their goods to China, in return, Mongolia will have a chance to enter the European market. We will fully support cooperation in the business sector between the two countries,” he added.
On Monday, Mongolian President Ts.Elbegdorj held a meeting with his Bulgarian counterpart.
During a press conference held on Monday, the Bulgarian President said, “Bulgaria has great experience in the medicine production sector, so we are talking about establishing a joint factory. This sector has great prospects. Bulgaria also has experience in solar, wind, and hydropower stations, as well as food production. So we see that we have possibilities to build a joint factory and export to the Chinese market. Furthermore, we can cooperate in the defense industry.”
In response President Elbegdorj said, “I’ll point to three things that will define the importance of the visit. Our countries have had traditional economic relations. Many years have passed since this relationship went into hibernation. This visit is stimulating our relations. Both Mongolia and Bulgaria have a little money. The private sector has money and wants to cooperate. Our duty is to connect the state and the private sector. We believe that by connecting them, industry and business relations will be created.
“There are various products that are being exported to the European market from Bulgaria, we see possibilities for developing and collaborating in this business in Mongolia. Minister of Food and Industry R.Burmaa will conduct a visit to Bulgaria shortly. I believe that she will show that there are many other ways to cooperate in the business sector. Also, we are discussing a visit to Bulgaria by Governor of UB E.Bat-Uul. He will study a subway system that was built at a low-cost in a short time. We also will collaborate in the educational and environmental sectors.”
The business forum took place in the presence of representatives from the Employers Association, Information and Software Association of Bulgaria, and Bulgarian businesses. The Mongolian side was represented by the Ministry of Mining; the Information Technology, Post and Telecommunications Authority; Invest Mongolia Agency; and other business sector delegates.
The business forum concluded the Bulgarian President’s official events in Mongolia, and he will head back to Bulgaria today.

Work for the Russo-Sino-Mongolian highway continues

The working group on the construction of the Russia-Mongolia-China highway will cooperate with Mongolia's Land Affairs, Construction Geodesy and Cartography Agency.

Geotechnical research and detailed projections for the construction of the Mongolian portion of the highway - or 1,000 kilometer highway from Altanbulag-Ulaanbaatar-Zamyn-Uud is underway now.  As reported by officials, plans for the construction of the nation's first international standard transit highway are due for completion. Last week, Chinggis Land Group, the Implementing Agency of the Government of Mongolia, together with the Land Affairs, Construction Geodesy and Cartography Agency have signed a memorandum of understanding (MoU) on cooperation.

Under the MoU, the sides will receive professional and methodological assistance for road construction and project activity, engineering research, registration of a dependence area, and topographic drawings of the highway. The Land Affairs, Construction Geodesy and Cartography Agency will create an information database of the highway and dependence area at a stage-by-stage level; will give advice on the implementation of the project, budget, and regarding technical inspection issues; carry out research and elaboration work; and cooperate according to study conclusions and recommendations. 

Under the MOU the sides will also cooperate on the introduction of so-called "smart" road system.

Cashmere export to increase

Last Friday, Minister of Industry D.Erdenebat met with representatives of the cashmere sector to talk about measures to be taken in order to increase cashmere product export.
Mongolia signed an economic partnership agreement (EPA) with Japan at the beginning of the year, which is expected to open up opportunities for Mongolia to export domestic products without taxes. Minister Erdenebat is calling on the cashmere sector to actively participate in the state and private sector meeting between Mongolia and Japan that will take place in June.
The Minister underlined that cashmere producers will be provided with loans to increase the export of cashmere products. The loans are intended to be spent on technical and technology upgrades, as well as for improving product design and quality, underlined Minister Erdenebat.
Analysts say that exporting products to Japan, a country which has lead the way for economic growth and development in the region, will advance trade cooperation between the two countries.

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.

Cabinet calls for completion of road construction ahead of high-level summits

At the regular Cabinet meeting held yesterday, some development projects and measures for Ulaanbaatar were introduced and ministers were asked to intensify efforts to complete road construction projects ahead of high-level international summits that will take place in Ulaanbaatar in 2015 and 2016.
Foreign high-level visitors and representatives will pay visits to Mongolia in July and August, and the Organization for Security and Co-operation in Europe’s (OSCE) Forum for Security Cooperation will be held in September 2015, and Mongolia will host the Asia-Europe Meeting (ASEM) Summit in 2016.
A road junction in Dambadarjaa, the reinforcement of a concrete bridge in Shargamorit, 16.3 km road expansion and renovation of the road to Khandgait, 11 km of road maintenance from Uliastai to Gachuurt, and the construction of a 1.7 km road from Auto Checkpoint No.22 to the Auto Mall are being funded by the city budget and scheduled for completion in 2015.
The ministers were also assigned with establishing agreements with investors on implementing projects including a 17.5 km road from Bayanzurkh Checkpoint to the Nalaikh and Choir intersection, and a 3.4 km road expansion from the Gachuurt junction to the Bayanzurkh tollgate.

Russia- Mongolia-China highway construction to begin soon

The construction of a highway passing through Ulaanbaatar from Altanbulag to Zamiin Uud will soon commence. The project was awaiting approval on the placement of the highway, but on April 2, the plan was partially approved in accordance with an order from the Minister of Roads and Transportation.
The highway will pass through 24 soums of six provinces, and two districts of Ulaanbaatar. On April 24, the State Secretary of the Ministry of Roads and Transportation J.Bat-Erdene delivered official letters to governors of the six provinces.
When approving the plan for the 1,000 km highway on April 2, the Cabinet left 97 km unapproved, but an official source reports that the remaining part of the highway will soon be resolved.
On March 9, 2014, Chinggis Land Development and the Ministry of Economic Development established a concession agreement on building the highway with build-operate-transfer conditions.
The company worked on a feasibility study for the highway and conducted research on geology, geodesy, and hydrogeology. The highway will be a two-way six-lane road. Preliminary estimates suggest that 10 to 12 billion USD will be required for its construction.
Chinggis Land says its investment will be coming from long-standing cooperation with international investment foundations, banks, and financial organizations. The first round of investment is expected to be deposited in May.
Sixty to 70 percent of the investment will be spent on highway construction, while the remainder will be spent on development work along the highway. There are plans for many trade and service centers, resorts, tourism and business complexes, as well as new settlement zones, and modern eco cities to be developed along the highway.

Russia wants more cooperation in the energy sector

At a meeting with Energy Minister D.Zorigt held on Friday, Russian Ambassador to Mongolia Iskander Azizov conveyed the willingness of Russian companies to cooperate with Mongolia in the energy sector.
Beginning the meeting, the Ambassador introduced Biotek Company, a Russian energy company that has processed a modern system of producing energy. He said that the system gives remote areas greater access to reliable and cheap energy, saving up to 70 percent of fuel consumption. Ambassador Azizov underlined that the company’s products can be useful to Mongolia’s energy sector.
Azizov also provided updated information about ASEN Company, which was selected for renovating a turbine at Darkhan’s thermal power station. The company has delayed the work for two years, not fulfilling the established agreement.
According to the Russian embassy, the company is expected to complete all work by the end of this year. Currently, ASEN exported auxiliary equipment to Mongolia. Representatives of the company report that the main equipment for installation, such as the turbine and turbine generator, are being shipped to Mongolia. The equipment is expected to arrive in Mongolia within two to three weeks.
In response, Minister Zorigt thanked the Ambassador for paying attention to these projects, and for providing information about Biotek Company, promising to study the company’s activities.
At the end of the meeting, Ambassador Azizov added that Russia’s Soyuz Company and Renova Group are willing to cooperate in thermal power station projects in Ulaanbaatar. These companies have estimated that the capacity of Thermal Power Station IV can be expanded by 150 megawatts.
The Ambassador added that these companies are ready to perform an extension of the plant, and underlined that political support can be provided as well.

Mongolia’s top 100 businesses recognized with honors

The Government of Mongolia, together with the Mongolian National Chamber of Commerce and Industry (MNCCI), organized an awards ceremony for the top 100 businesses in Mongolia, on Wednesday.

The ceremony has been held regularly since 2011. This year, Prime Minister Ch.Saikhanbileg, Minister of Finance J.Erdenebat, and Minister of Industry D.Erdenebat attended the event, handing over prizes to the authorities of top businesses.
The PM said that one of the priorities of the Cabinet is to improve the business environment, support businesses, take company governance to a new level, revise the legal environment for employers and business owners, improve the investment environment, support the operations of foreign and domestic partnerships, and cooperate with employers and businesses.
He pointed out that the contributions to the economy by the top 100 companies are tremendous, highlighting that the private sector comprises approximately 70 percent of domestic production, and about 90 percent of all jobs, playing a key role in strengthening the state budget.
The top hundred businesses in 2014 were selected based on official quantitative indicators, including taxes paid to the state, sales, the size of its workforce, and financial performance. These figures were taken from the Ministry of Finance, General Department of Taxation, Mongolian Customs, and the General Office of Social Insurance.
The Office of Media and Public Relations of the Cabinet reported that the companies selected as the top 100 entities generated 2.5 trillion MNT for the state budget in 2014, making up 30 percent of its total.

The top 10 of the selected 100 businesses in 2014:
1. Erdenet Mining Corporation
2. MCS Group
3. Khaan Bank
4. MobiCom Corporation
5. Trade and Development Bank
6. Golomt Bank
7. Khas Bank
8. Mongolyn Alt
9. NIC LLC
10. Sod Mongol Group

Baganuur mine’s capacity to double

By Ch.KHALIUN

The extraction capacity of Baganuur mine is expected to double with the opening of the region’s new 700 MW power plant, a necessity to ensure sustainable operations at the new plant.
The mine has not seen technical upgrades since 1983, and its current extraction capacity stands at four million tons of coal per year. A total of 37 billion MNT has been earmarked for investment in the mine over the last two years.
On April 16 and 17, Minister of Industry D.Erdenebat visited the Baganuur mine, becoming acquainted with the mine’s activities, coal reserves, and necessary work for expansion.
The Minister said, “The issue to be concerned about is if the Baganuur mine will have coal when the first building of the plant opens in two years.” He also emphasized that the government will be paying close attention to the issue.
Heavy industry will be centralized in the Gobi region in the future, and the ministry believes that the power station will greatly contribute to ensuring power supply for area factories.
D.Erdenebat added, “We won’t decide on the expansion issue of the mine just by talking. Currently, an investment of over 100 billion MNT is necessary for the mine’s expansion. Even though it is impossible to resolve this issue now, because of the economic crisis, focusing on this issue is the Cabinet’s duty. Beginning the power plant’s construction and opening it will provide jobs to many Baganuur residents.”
The Cabinet gave Invest Mongolia Agency permission to build the Baganuur power plant under a concession agreement with Baganuur Power LLC on build-operate-transfer conditions.
The agreement stated that construction of the power plant will take four years, while the operational lifespan of the plant will be 21 years.

Science and Technology Campus to be established in Baganuur

Minister D.Erdenebat talked about plans to establish a Baganuur Science and Technology Park through a concession agreement.
The issue of mitigating UB’s rapidly growing population and moving universities from UB by establishing student campuses in Baganuur has faced two governments. The goal is to move the Mongolian University of Science and Technology from UB, and establish a research-based student campus in Baganuur.
Supporters believe that the campus would play a vital role in developing industry through a cluster system.
A visit to Baganuur was conducted by officials from the Ministry of Industry, Ministry of Energy, and Ministry of Health and Sport.

Ulaanbaatar – Investment 2015 focuses on partnership and development of UB

By Ch.KHALIUN

On Wednesday, the Ulaanbaatar – Investment 2015 business forum took place under the slogan “Partnership for Development”, focusing on state and private sector partnership and development of the capital city.
The forum was jointly organized by the Ulaanbaatar Chamber of Commerce (UCC) and City Governor’s Office. State and business representatives discussed the city’s tourism center, and cooperation in making UB more safe, healthy, and green. It was attended by parliament and government members, representatives from the City Council, international organizations, and entrepreneurs.
As of today, Ulaanbaatar generates 63 percent of the nation’s GDP (13.3 billion MNT), and 1.3 million people live in the city. Estimates suggest that the population of UB will continue to grow, reaching 1.5 million by 2020, and 1.7 million by 2030.
With growth, the city’s energy consumption will increase from nearly 1.5 million kWh to 5.8 million kWh by 2030. UB serves as the main business center of Mongolia, but there are many unresolved issues such as air pollution, poor infrastructure, traffic congestion, and population centralization.
The forum participants said that by improving cooperation between the state and private sector pleasant conditions for living, doing business, and drawing investment will be created in UB. In 2013, Parliament approved a general plan for UB development through 2020, and a document for development trends through 2030. Approximately 25.4 trillion MNT is necessary for developing the city in accordance with the plan.
UB Mayor E.Bat-Uul said, “If we don’t cooperate with the private sector, we won’t be able to implement objectives of the plan through 2030. Mutual trust is vital in cooperating with investors.” During the forum, the Mayor proposed transferring urban development initiatives to the private sector.
Many forum attendees agreed that the problem with projects implemented by state and private sector partnership (SPSP) is that equality doesn’t work. The state doesn’t bear any monetary risk, while the private sector bears all the risk, including repayment of loan interest. From now on, the sides will have the same responsibilities in accordance with agreements.
An international court of arbitration will be established in UB to solve agreement disputes, and a corporation dedicated to Ulaanbaatar’s development will be created to oversee SPSPs. Representatives from the private sector will have a dominant position on the board of the corporation.
President of the UCC J.Od introduced ten principles that are necessary in implementing effective SPSPs, determined by the Urban Land Institute, an organization that provides leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.
Projects that are to be implemented in UB must be definite, and companies need to make all information transparent. The sides should jointly determine their vision, understanding the interests of their partners and main participants, and correctly estimate the risk and profit. Not following these principles leads to the failure of partnerships, J.Od reminded the forum’s attendees.
Chairman of the City’s Procurement Office Yu.Idertsogt said, “We will focus on making all information about bids transparent in accordance with law, and balancing the composition of the Committee of Inquiry.” He also promised that purchasing by the city will be fair.
In order to implement Ulaanbaatar’s general plan for development 25.4 trillion MNT is necessary, but only two trillion MNT is available from the state and city budget. In the last three years, approximately 900 billion MNT was spent on development projects in UB without the private sector’s participation.
From 2013 to 2014, 23.6 billion MNT was approved for spending, and 515 projects are ready for implementation. The total cost of these projects stands at 1.6 trillion MNT, and the private sector has proposed implementing 142 projects for 946 billion MNT cost.
In 2015, 37 projects will be undertaken by the private sector, 30 of which have been announced through a selection process and are starting preparations for project implementation.
Head of Invest Mongolia Agency L.Narantuya introduced major projects that need the private sector’s participation, calling for investment.
General Director of the UCC O.Amartuvshin introduced the initiatives of the UCC. The UCC worked on the Khan City 2025 project, proposing to make Ulaanbaatar a vital city center in Asia.
Mayor E.Bat-Uul said that projects to be implemented with the private sector’s participation can be introduced to international financial organizations like Asian Development Bank (ADB) and European Bank for Reconstruction and Development for consideration for funding.
Permanent Representative of the ADB Robert Schoellhammer pointed out that the location of UB is strategic in Eastern Asia and should be considered an advantage in business. He pointed out that developed countries focus on partnership to draw investments for major projects.
After the plenary session, Mayor E.Bat-Uul and J.Od signed a declaration of city and private partnership for development.

SouthGobi Sands awarded best social insurance premium payer

By Ch.KHALIUN

On Monday, the Social Insurance General Office (SIGO) organized an event honoring the state’s best social insurance premium payers, naming SouthGobi Sands LLC as the nation’s best.
SIGO traditionally organizes an award ceremony for honoring leading national employers paying social insurance premiums to support employers and encourage social responsibility.
Eleven companies that involved all of their employees in social insurance, paid premiums on time, and released reports on social insurance contributions, successfully fulfilling their duties as required by the law, were selected for honors for 2014.

1. SouthGobi Sands
2. Boroo Gold
3. Transwest Mongolia
4. Air Traffic Services of the Civil Aviation Authority of Mongolia
5. Erdenet Factory
6. Bayan Airag Exploration
7. Energy Resources
8. Thermal Power Plant IV
9. MIAT
10. Petro China Dachin Damsag
11. Khaan Bank

Executive Director of SouthGobi Sands Ch.Munkhbat said, “Our company has over 350 employees, of which 99 percent are Mongolians. In times when market conditions and coal sales have decreased, we followed the policy to fully pay our employees’ social insurance. The General Department of Taxation released the best tax payers of the last five years, and our company is ranked ninth. Today we were awarded as the best social insurance premium payer, and we are happy.”