|Frontier's "Invest Mongolia Tokyo 2018"||Frontier Securities||Tokyo Japan|
|"Open to Export" ICC WTO International business award||ICC WTO||London|
Petro Matad said it had started drilling the Wild Horse-1 exploration well in the Baatsagaan Basin in Western Mongolia.
The well was targeting a substantial prospective resources of 480m barrels of oil.
The total depth of the well was 2,200m and it was expected to take between 30 to 45 days to drill and log.
'In the latter case, this would see drilling operations continue into December,' the company said.
'Although winter weather in the area is milder than in Eastern Mongolia, some modifications have been made on the rig to enhance its operability in low temperatures and the company is confident that this will enable completion of well operations before the winter drilling shutdown.
President Battulga has delivered remarks at the Global Leaders Investment Summit.
H.E. Mr. Mukhisa Kituyi, Secretary General of the UN Conference on Trade and Development (UNCTAD),
H.E. Mr. Alain Berset, President of the Swiss Confederation,
Esteemed Heads of State and Government,
Distinguished delegates and guests,
Ladies and gentlemen,
I am delighted to participate in this august event being held on the occasion of the 10th anniversary of the World Investment Forum, which serves as a platform for exchanging views and ideas on how to improve the world trade and investment environment and step up investment cooperation.
I wish to congratulate the UN Conference on Trade and Development (UNCTAD) and the Swiss Government on the successful organization of this Summit.
Ladies and gentlemen,
According to the UNCTAD’s World Investment Report 2018, global flows of foreign direct investment fell by 23 per cent last year. They fell by 41 per cent as of the first half of this year compared to the same period last year. There is no increase in foreign investment flows to developing countries. These figures make this Summit all the more important and timely.
We, the international community, defined Sustainable Development Goals (SDGs) to be achieved by 2030 in all sectors and areas, such as poverty reduction, education, health, environment, and energy. Over the first 2-3 years of Sustainable Development Goals’ implementation, investment flows have fallen substantially, and there is an increasing backlash against liberalization of global trade and investment in some countries. With those trends, we are virtually pushing Sustainable Development Goals towards the edge of the cliff.
I would like to emphasize that an emerging technological divide between developed and developing countries in relation to the new industrial revolution poses a daunting challenge for landlocked developing countries like Mongolia in their efforts to achieve sustainable development and implement goals set in the 2030 Agenda for Sustainable Development. Therefore, our delegation is pleased to have an opportunity to jointly seek solutions to global and regional challenges at this Forum and its sessions.
Distinguished delegates and guests,
Ladies and gentlemen,
In 2016, Mongolia adopted its own “Sustainable Development Vision – 2030” based on the 2030 Agenda for Sustainable Development. Since then, we are developing and implementing our national-level and intersectoral development policies in line with the “Sustainable Development Vision – 2030″. We are planning to present a National Voluntary Report on the implementation of the 2030 Agenda for Sustainable Development in 2019.
Furthermore, we are in the middle of formulating an integrated investment policy in strict conformity with Sustainable Development Goals. The new policy will help enhance the structure of the relevant authorities and their coordination, and increase the effectiveness of investment.
From my own country’s experience, I can say with confidence that investment has an enormous impact on development. After reaching its peak in 2011 and 2012, foreign direct investment in Mongolia fell sharply due to an unstable investment policy, impacting negatively on its economic growth. We have learnt lessons from this bitter experience and given it special attention at all levels of government by taking step-by-step targeted measures at both national and international levels.
To illustrate, Mongolia established an Investor Protection Council and a Public-Private Consultative Committee mandated to improve the legal environment for investment, promptly resolve complaints and grievances related to bureaucracy and illegal actions and take precautions against any risks.
We also focused on developing a win-win investment agreement that ensures our country’s interests on an equal footing by formulating a model bilateral investment agreement in accordance with the recommendations made by UNCTAD.
Foreign direct investment in Mongolia has been increasing over the past few years. A 2.5 times increase was recorded last year. Economic growth reached 5.3 per cent last year and 6.3 per cent in the first half of 2018.
However, there is still a critical need to promote and attract more investment in sectors crucial for the implementation of Sustainable Development Goals, such as agriculture, processing industries and infrastructure. In order to address this issue, we are working to improve the legal environment for accessing the markets of our trading and investment partner countries and increase investment from those countries to Mongolia.
Along with agriculture, renewable energy and tourism are the key sectors which Mongolia set to develop rapidly. We proposed to our Northeast Asian partner countries to implement a project called “Northeast Asian Energy Super Grid” designed to supply electricity to Northeast Asian countries using Mongolia’s huge potential to produce renewables such as solar and wind energy. We invite you to work together with us in these sectors and make investments that will introduce new eco-friendly technologies.
Agreement on establishment of Mongolia-Tianjin transportation and logistics center signed www.montsame.mn
Ulaanbaatar/MONTSAME/ Chinese delegation headed by Li Hongzhong, Member of Politburo Standing Committee of the Communist Party of China and Communist Party Chief of Tianjin is visiting Mongolia these days. Within the visit, two sides signed a general agreement on cooperation for the project ‘Mongolia-Tianjin's Dongjiang transport and logistics center’.
The general agreement was signed by L.Khaltar, Deputy Minister of Road and Transportation Development and B.Tsengel, CEO of ‘Mongolian Railway’ State-Owned Shareholding Company from Mongolian side and by Mr. Wang Weidong, Director of Municipal Development and Reform Commission of Tianjin and Mr. Zhang Ruigan, Chairman of ‘Tianjin Port’ Group from Chinese side.
A joint working group of Mongolia and Tianjin is working to ensure preparations to establish Dongjiang transport and logistics center.
Ulaanbaatar /MONTSAME/. As of 2012, there was 4,256 hectars of area that was left unrehabilitated, while now such area has increased by two times, becoming 8,800 hectars.
Thus, the Ministry of Environment and Tourism is organizing a discussion on the topic at the seminar on ‘Environmental protection and mine rehabilitation’, which is being organized for the second day at the Novotel Hotel.
Minister of Environment and Tourism N.Tserenbat gave opening remarks at the seminar, “In the draft on mine rehabilitation, we included responsibility insurance for mining companies. By doing this, the company will also be supervised by the insurance company, and there will be no more issues like this as a result.
The head of the Environment and Natural Resources Management Department at the Ministry of Environment and Tourism G.Nyamdavaa said, “To bring in more responsibility, our department has formed a team that is making a draft on mine rehabilitation. The bill will state the measures that must be taken in certain cases as well as where and what must be done for rehabilitation.
Currently, of the 27,405 hectars of area that have been used for mining, 1,100 sites or 8,871 hectars of area is deemed in need of rehabilitation.
Ulaanbaatar /MONTSAME/ In accordance with the revised regulations on nighttime electricity tariff discount for ger district households, nighttime electricity tariff of ger districts in Capital city is to be cut by 100 percent whereas of the centers of each aimag and soum that have a population of over 10 thousand by 50 percent during cold seasons.
The regulation will take effect starting from November 1, 2018 until April 1, 2019. The tariff discount will apply to the consumption between 21:00 and 06:00.
As estimated, about 120 thousand households received nighttime electricity discount last year. The maximum consumption to get discounted electricity per month is be different for households depending on transmission- level voltages.
President meets with Roberto Azevedo, Director-General of the World Trade Organization www.montsame.mn
Ulaanbaatar /MONTSAME/ On the sidelines of the World Investment Forum taking place in Geneva, Switzerland, President of Mongolia Khaltmaagiin Battulga visited the World Trade Organization headquarters and met Director-General Roberto Azevedo on October 22.
During the meeting, President Battulga mentioned that Mongolia had been a member of the World Trade Organization for more than 20 years since joining in 1997 and exchanged views with the Director-General on the development of the trade industry. President Battulga discussed the state of the global economy, the trade tensions between countries, and the trade and economic policy of Mongolia and affirmed Mongolia’s commitment to strengthening the multilateral trading system.
Director-General Roberto Azevedo stressed that it was important for Mongolia to diversify its economy and the market and that human resources development is also equally important, therefore, mentioning about the over 150 Mongolian public servants who participated in long and short-term training courses of the World Trade Organization last year. The Director-General expressed his interest to visit Mongolia next year to oversee the progress of bilateral cooperation.
The best places in the world are often the hardest to get to. I’ve found this time and time again at places such as the Clouds Mountain Gorilla Lodge in Uganda, the Galapagos Safari Camp in Ecuador, Nihi Sumba in Indonesia, and the Explora resort in Patagonia. Now on my list is the Three Camel Lodge in Mongolia, a wildly obscure and pristine luxury ger camp set in Mongolia’s expansive Gobi Desert. I’ve long wanted to see Mongolia, and the Three Camel Lodge provides an unmatched way in which to experience it.
Most of Mongolia would be considered “remote,” and that’s an understatement. One can drive for hours on dirt roads (most of which Mongolia is) and never spot a person, road sign, cell tower, or ger. Half of Mongolia’s three million people live the centuries’ old nomadic lifestyle, and this way of life relies on felt padded ger “tents,” herds of animals, and the gifts of nature such as rain, wind, and river systems. To a Westerner tourist, this nomadic lifestyle is utterly romantic and unbelievable all at once, and Three Camel Lodge, despite its many comforts, does a good job at showcasing this simple, pristine way of life.
Three Camel Lodge rests in the flat “steppe” region of the Gobi-Altai Mountains of Gurvansaikhan National Park, about 300 miles from the capital, Ulaabaatar. The best way to get to the lodge is one hour by SUV from Dalanzadgad, a very small regional airport. Three Camel Lodge does a tremendous job in ensuring guests don’t get lost (no roads, as mentioned above), and each party is given a guide from the airport to manage each stay. Ours was lovely, spoke great English, and worked with our talented driver to spot eagles and herds of camels in the distance during our excursions. Every day, we had an adventure of riding two hump Bactrian camels in the sand dunes or hiking a mountain to view petroglyphs. My favorite sunset excursion was to the orange hued Flaming Cliffs, the legendary area also known as Bayanzag where dinosaur eggs were discovered nearly a century ago.
secretly enjoyed the lodge as much as the daily adventures. The property’s 40 gers, each meticulously handmade with wood, felt, and traditional colorful furniture, are surprisingly spacious. All the gers faces south, a Mongolian tradition, and my travel companion and I loved playing guitar and reading books while gazing out at the endless grasslands every afternoon.
This was a rare treat, and since there’s no wi-fi or cell service at the lodge, one can truly soak up the quiet, majestic beauty of the land at Three Camel Lodge. Also rare, given the extraordinary location of the resort, are the fantastic stone en-suite bathrooms complete with camel milk lotions, 24-hour electricity through the property, a luxury movie theater at the main lodge, and a full-service restaurant and bar lounge. There’s even a ger dedicated to Mongolian massage, a tradition practiced for hundreds, if not thousands, of years.
Although luxury is an attribute of Three Camel Lodge, the camp’s other notable asset is its dedication to sustainability, both environmentally and culturally. Jalsa Urubshurow, the founder and owner of Three Camel Lodge and a Mongolian-American, created Nomadic Expeditions, the sister company of Three Camel Lodge, in 1992. Nomadic Expeditions remains dedicated to taking travelers sustainability to obscure, unbelievable places throughout Asia, including Bhutan and Tibet. A decade later, Three Camel Lodge opened with the same ethos. Today, the Lodge recycles its organic waste to local farms for use as fertilizer, builds and supports greenhouse projects, employs 100% local Mongolians, and assists local families with goods and supplies to weather intense winters. In addition, Three Camel Lodge launched a ‘No Plastic Bags in the Gobi’ program that works with locals and small businesses to encourage the use of cloth shopping bags. I always prefer to stay at a property that doesn’t diminish its setting but instead enhances and cherishes it, and Three Camel Lodge is a pillar example....
Meeting with Arancha Gonzalez, Executive Director of the International Trade Center www.president.mn
On the sidelines of the 2018 World Investment Forum taking place in Geneva, Switzerland, President of Mongolia Khaltmaagiin Battulga met Arancha Gonzalez, Executive Director of the International Trade Centre, on October 22nd.
President Battulga began the meeting by expressing gratitude to the International Trade Centre staff and Executive Director Arancha Gonzalez, emphasizing the Centre’s assistance provided to Mongolia in foreign trade and private sector development over the last two decades.
Executive Director Arancha Gonzalez appreciated her meeting the President of Mongolia and discussed the economic relations between the International Trade Centre and Mongolia, while expressing readiness to intensify the Centre’s cooperation with Mongolia and work with Mongolia in all possible areas.
President Battulga presented a proposal to collaborate with the Centre on organizing the 2020 World Export Development Forum in Mongolia, introducing Mongolian-made products to international markets through improvement of the competitiveness of SMEs, and diversifying Mongolia’s export. The President spoke about the existing opportunity to bring technology in from Europe, especially to manufacture products using raw materials of animal origin and supply them to East Asian and other markets. President Battulga also made a proposal regarding implementation of the International Trade Centre’s Women and Trade and Youth and Trade programs, which are highly important in promotion of employment and business among women and young people, in Mongolia.
At the end of the meeting, Executive Director Arancha Gonzalez informed President Battulga of her upcoming visit to Mongolia and expressed her appreciation of Mongolia’s proposal to host the 2020 World Export Development Forum.
Along with the submission of the draft of 2019 State Budget, the Minister of Finance Khurelbaatar Chimed announced that the bill allocated around MNT 500 billion to the Future Heritage Fund (FHF). However, the fund, which was supposed to have over MNT 800 billion in its initial plan, is still under deficit and the fiscal plan may affect the Government’s initiative to create the treasury until 2030. Approved by the Parliament in 2016, the Law on Future Heritage Fund took effect last year. The purpose of the fund is to save certain portion of mining sector revenue to cover budget deficit and major debt repayments. Finance Minister Khurelbaatar previously announced that the fund will not be touched until 2030 with the revised plan for the fund. The FHF was previously called the Human Development Fund (HDF), which was responsible for several social welfare, such as the child money program, and had an accumulated debts of MNT 1.71 trillion by the FHF was established. The Government’s idea was to finance the fund from the State Budget in an amount equal to about 70 percent of mining revenue. Accordingly, a total of MNT 357.7 billion was allocated last year and MNT 508.7 billion is expected to be financed this year. But the balance of FHF is currently under deficit as the fund’s asset was drawn for fiscal balance and HDF debt repayments.
10 percent of FHF net profits to be drawn to budget starting from 2030
On the contrary, the budget bill expects around MNT 3 trillion from mining sector in revenue. This is around 76.4 percent higher than 2018 expectation of MNT 1.7 trillion. The draft expects to fulfill this amount by exporting 42 million tons of coal and 1.4 million tons of copper. Thus, failure to fulfill this target may affect potential financing to the fund.
According to the Ministry of Finance, the budget estimation is calculated in a triennial basis. The draft of 2019 budget bill allocated about MNT 1.1 trillion to the fund, of which MNT 600 billion will be spent to settle HDF debts and MNT 553 billion will remain in the fund according to a spokesperson of the Ministry of Finance. As for 2020, the ministry currently estimates MNT 754.5 billion financing for the fund and MNT 774.4 billion in 2021. The FHF will be financed from the State Budget until 2030 and will continue to operate as a sovereign wealth fund. The fund’s 10 percent of net profit will be drawn to the State Budget starting from 2030 according to the Law on FHF. Additionally, Finance Minister Khurelbaatar previously noted that the first MNT 500 billion will be circulated to raise fund as same as wealth funds of other countries and remarked, “We are currently studying Singaporean Temasek Holdings and Government Pension Fund of Norway.” Regarding the management, the Law on Future Heritage Fund states that a state-owned enterprise Future Heritage Fund Corporation will be responsible for the fund’s operation. A spokesperson of the Ministry of Finance informed that the ministry is currently drafting the rules and regulations of the corporation....
Sub-regional Workshop by UNCTAD and ITTLLDC succesfully organized in Ulaanbaatar, Mongolia www.news.mn
Sub-regional Workshop on “Fostering Structural Transformation and Export Diversification in Selected Asian Landlocked Developing Countries” was jointly organized in Ulaanbaatar, Mongolia, from 16 to 17 October 2018 by the International Think Tank for Landlocked Developing Countries, UN Conference on Trade and Development and the Government of Mongolia.
During the workshop, the International Think Tank for LLDCs, in cooperation with UNCTAD, introduced research results on structural economic transformation and export diversification, which is identified as Priority 5 in the Vienna Programme of Action for LLDCs.
Government representatives from Mongolia, Lao PDR, Bhutan, Kazakhstan, Kyrgyz Republic and Uzbekistan made presentations on the challenges, policies and best practices to diversify their economies.
The outcome of the workshop will help guide trade policy formulation and implementation at the national and sub-regional levels. It will contain a synthesis of the identified areas of trade potential, local gaps and limitations, together with policy recommendations aimed at addressing the challenges facing countries of the sub-region.
The results of the workshop will also feed into the mid-term review of the implementation of the Vienna Programme of Action for LLDCs in 2019.