In accordance with the Resolution No. 22 of April 24, 2023 of the Board of Directors of the Development Bank of Mongolia, capital equal to USD 75.0 million has been raised from foreign investors by issuing private bonds in OTC market. On May 12 of this year, an agreement was signed with "Mopane Securities" LLC, registered in London, and the aforementioned capital has been raised.

It was informed that investment without risks associated with foreign currency rate or issuing securities in MNT provides an opportunity to diversify the resources of the Development Bank and protect against the risk of foreign exchange rate fluctuations.

Out of USD 500 million “DBM 2023” bond USD 99.7 million was redeemed.

In 2018, the Development Bank of Mongolia issued USD 500.0 million worth "Euro" bonds or "DBM 2023" bonds with 7.25 percent interest rate to the international market independently without government guarantees. The bond is listed on the Singapore Stock Exchange and is publicly traded in international markets.

In order to implement proper debt management in the Development Bank, it was decided to partially cancel the purchase of "DBM 2023" bonds according to Resolution of the Board of Directors No. 52 of 2022 and Resolution No. 3 of this year. In line with the above decisions, the Development Bank has been implementing partial bond cancellation since October 2022. During this period, the bank canceled bonds with a total issued price of USD 99.7 million. As a result, the balance of the "DBM 2023" bond has decreased from USD 500 million to USD 400.2 million.

The Development Bank has saved USD 13.8 million in its current portfolio by redeeming "DB 2023" bonds with an issued price of USD 100.0 prior to its maturity date at a weighted average price of USD 92.4. Specifically, until October 23 of this year or the "DBM 2023" bond repayment deadline, USD 7.54 million has been saved from the principal amount and USD 6.34 million from interest costs respectively.

Thirteen children have been hurt after being blown off an inflatable slide by strong winds in western Mongolia, Xinhua quoted the National Police Agency on Monday.

The incident happened in Ulgii soum, an administrative subdivision of Bayan-Ulgii province on Saturday, the agency said in a statement.

Two of the injured children are still unconscious and being treated in the intensive care unit of a local hospital, it said.

As for the upcoming International Children’s Day, the police agency warned parents to let their children play after carefully checking the safety of such slides in streets and squares.

The Tsagaannuur Free Zone became permanent by decree of the Mongolian government dated from 2022. The official opening of the free zone will take place on June 5.

An international trade fair will be held from June 5 to June 7.

Entrepreneurs and enterprises from Russia, China and Mongolia will take part in the exhibition and exchange experience, promoting their products. The parties are also expected to sign a cooperation agreement in future.

The working group, established by the decree of the governor of Bayan-Olgiy province of 2023, is working on preparations to open the Tsagaanuur free zone and the international trade fair.

A section of the Asian Highway AN-4 or the western vertical axis was put into operation in the Tsagaannuur free zone, which is located 65 km north of Bayan-Olgiy province.

The construction of a 7.1 km railway connecting the Mongolian port Shiveekhuren with the Chinese port Sekhe started on May 27. Shiveekhuren border port, located in Gurvantes soum of Umnugobi aimag is a strategically important port through which 48 percent of Mongolian export coal is transported to China.

According to the Governmental Resolution No.186 of May 17, a permit for the construction of the basic structure of the Shiveekhuren-Sekhe port cross-border narrow-gauge railway was granted to "Nariinsukhait Railway" LLC, and the construction is scheduled to be completed by October of next year.

Prime Minister of Mongolia L. Oyun-Erdene attended the opening ceremony of the construction and delivered a speech.

The Prime Minister underlined that connecting Shiveekhuren-Sekhe ports by railway is of exceptional strategic significance since it is a part of the western vertical axis railway of Mongolia in route of Shiveekhuren-Nariinsukhait-Artssuuri, which will be the cross-border railway of the "Economic Corridor" of Mongolia, the Russian Federation, and the People's Republic of China.

PM Oyun-Erdene said, "The economy continues to recover day by day due to the restoration of the port, the disintegration of the corrupt system, and the revelation of the hidden economy. The economy, which was -4.6 percent in 2020, grew by 1.6 percent in 2021, 4.8 percent in 2022, and 7.9 percent in the first quarter of 2023. The state budget revenue was exceeded by MNT 1.1 trillion, foreign exchange reserves reached USD 3.8 billion, and the gross domestic product per capita reached USD 5,000 for the first time. Today, in the scope of the Port Revival, as part of the "New Revival Policy," we are starting the construction work to connect Shiveekhuren Port of Mongolia with Sekhe Port of China by railway through public-private partnerships, which will make an important contribution to the economy of the country.”

With the completion of the Shiveekhuren-Sekhe port cross-border railway, the port's export capacity, including coal export will double reaching 20 million tonnes. In this way, based on free market competition, it will become possible to export the coal, mined in the region saving time and costs, and procure to the main export markets, as well as to increase the value of the mineral deposits in the Gobi region and open up new opportunities for economic turnover.

On the day, Prime Minister L. Oyun-Erdene got acquainted with the work of transporting coal with driverless smart transport or AGV at Shiveekhuren port. The transport has been in operation since December 2022 and can transport 6.5 million tons of coal per year.

The meeting of the council of Governor of the capital city was held on May 25, and led by Deputy Governor in charge of the Social Sector, Green Development, and Air and Environmental Pollution Z.Tumurtumuu. At the meeting, the issue of determining the location and size of public tenure land was presented.

In order to ensure the right of citizens of the capital city to live in a healthy and safe environment, to improve land use, and to increase the number of public land, sidewalks, and green areas, and garages are being demolished and registered as public land according to the resolution of the Citizens’ Representative Khural. In this context, since 2019, 227.97 hectares of land in 145 locations have been registered for public tenure. Currently, a survey was conducted on the land use situation, and it was discussed at the council meeting to register 7.72 hectares of land in 47 locations as public tenure.

Council members emphasized that this work is a good example, and the minutes of the meeting were taken to discuss this decision by the Citizens’ Representative Khural.

Changes to be made to temporary gathering and evacuation points during disasters

In the territory of the capital city, 192 temporary gathering places and 31 evacuation locations and sizes have been approved by the Citizens’ Representative Khural’s resolutions. However, due to the construction of buildings in those locations, changes in the administrative units of some districts, and the increase in earthquake activity, there was a requirement to re-determine the location and size of the evacuation and temporary gathering areas. Based on the these reasons and the proposal submitted by the National Emergency Management Agency, a draft resolution of the Citizens’ Representative Khural was processed to re-approve 164.6 hectares of 203 locations for temporary gathering and 1430.4 hectares of 33 evacuation locations.

Council members said that attention should be paid on not to change those locations again. The minutes of the meeting were taken to discuss this decision by the Citizens’ Representative Khural.

Proposal submitted to add the location of the ger areas housing project

Within the framework of the goal of reducing air pollution, providing housing in the ger areas, and ensuring the right of citizens to live in a healthy and safe environment, the project for redevelopment and housing the ger areas is implemented. About 50% of the citizens of Ulaanbaatar live in ger areas, which occupies an area of 23,206 hectares.

By the resolution of the Citizens’ Representative Khural, 85 partial areas of 28 locations in the territory of eight districts of the capital city were approved as the location of the project for redevelopment and housing of ger areas. It occupies 18,843 units or 1,631 hectares of land. 148,323 households apartment, 60 schools, 92 kindergartens, and 14 hospitals are planned to be built and put into operation in those areas. As of this year, 45 contractors are operating in 51 partial areas of 18 locations. Currently, 3,023 units of land have been vacated and 16,671 households apartment have been put into use.

In this context, 158 hectares of land in the 14th and 18th khoroos of Chingeltei district, 14th and 15th khoroos of the Sukhbaatar district, and 162 hectares of land in the 7th-11th, 28th and 40th khoroos of the Songinokhairkhan district have been proposed to be the location of the redevelopment and housing project.

Minutes of the council meeting were issued, and the issue of determining the location, size, boundaries, and purpose of the redevelopment and housing project of the ger areas was decided to be discussed by the Citizens’ Representative Khural.

MEDIA AND PUBLIC RELATIONS DEPARTMENT OF THE GOVERNOR’S OFFICE OF THE CAPITAL CITY

On the occasion of the 98th anniversary of the Air Force, Buyant-Ukhaa Air Show was held on May 26 and 27.

Internationally, this type of air show is widely held, and air force aircraft exhibitions and air shows are also distinguished by the fact that they promote and present the profession of this industry to the public.

For our country, the show was held on a large scale for the first time on the 12-hectare runway of Buyant Ukhaa Airport.

During the two days of the show, many exciting events happened such as parachute demonstrations, aircraft displays, parades, high-altitude search and rescue demonstrations, vintage and modern aircraft displays, and art performances.

Among these, the organizers highlighted MiG-29 combat aircraft the most. There are six MiG-29 aircraft in our country, which were first ordered in 2011 and received in 2018. The maximum speed of the MiG-29 aircraft is 2,450 km/h, and the flight altitude is 18,013 meters.

At the airport, 28 types of airplanes, both large and small were presented, and you could enter and take pictures freely. A total of 15 parachutists from the Mongolian Parachute Sports Association and NEMA performed.

In addition, festival participants were offered a 30-minute flight around Ulaanbaatar and also, small aircraft flied around Buyant-Ukhaa.

The show consisted of two parts, where an air show and other activities aimed at families and children took place, and after 17:00 there was a music festival featuring international DJs and Mongolian singers and rappers. The organizers emphasized that it is a rare opportunity to listen to a DJ set at a special national facility.

Afterwards, there was a dog show, which exhibited of trained dogs of NEMA in practice and how they could smell illegal substances and tricks by jumping and running.

As the 98th anniversary of Air Force takes place, it’s important to give some information regarding the first airplane. In 1924, there was a decision made by the administrators of Ulaanbaatar city to purchase an airplane. At that time, Mongolia’s economic situation was difficult, so they started collecting donations from citizens to buy airplanes.

In order to buy airplanes for the country, citizens donated everything from gold and silver items to horses. A native of Bogd Khan mountain province (now Bulgan province) Lama Navaan, once gave the largest donation (500 horses) for the purchase of a plane.

Thus, on May 25, 1925, Mongolia was able to purchase with public funds, the six-seater “Yunkers F-13” (YU-13) aircraft manufactured in Germany. The plane was driven by four Russian pilots led by A. Lapin from Ulaan-Uud and landed at the aerodrome specially prepared for by the Consulate. This is how the history of Mongolia’s air force began. Even great writer D.Natsagdorj, wrote his famous story “Surprised by Culture” about this important event.

A month after receiving the first plane, two more “Yu-13” planes were added. Soon after that, the arrival of three “R-1” fighter planes marked the establishment of the first flying squadron named after Sukhbaatar.

Interestingly, even before A. Lapin, in June 1921, at the request of the Provisional Government of Mongolia, two airplanes of the aviation detachment commanded by F. Astakhov landed on the north bank of the Selenge River near the Ahai Monastery, which was the first time Mongolians heard of and saw the magic of an aircraft.

The Asian Productivity Organization (APO) successfully concluded the 65th Session of its Governing Body (GBM) with representatives of 19 APO member economies attending in Ulaanbaatar, Mongolia, 24–26 May 2023. This marked the first in-person assembly in three years, symbolizing a promising return to normalcy after the shift to virtual meetings due to the pandemic.

This year’s GBM was generously hosted by the Mongolian Productivity Organization (MPO) and Government of Mongolia, demonstrating their commitment to sharing the productivity vision not only with the region but also beyond and taking a significant step toward the possible expansion of the APO’s reach to Central Asia. Their dedication, both as members and regional influencers, continues to play a crucial role in promoting and improving productivity throughout the Asia-Pacific. Notable guests from Mongolia included the Vice Chief Cabinet Secretary Byambasuren Urgamal and Economic Advisor to the President of Mongolia Davaadalai Batsuuri.

One of the highlights of the meeting was the official handing-over ceremonies under APO flagship programs to mark their launch. The National Agriculture and Food Research Organization (NARO) of Japan was recently designated as the new Center of Excellence (COE) on Climate-smart Agriculture, showcasing how technology can revolutionize productivity in the agricultural sector, while the latest APO-accredited Certification Body (CB), the Productivity Certification Body of Pakistan (PCBP), is now offering certification to qualified specialists to drive productivity agendas. The handing-over ceremonies and special presentation on the COE created further interest in those flagship programs among APO members.

In line with the monitoring and evaluation framework of the APO Vision 2025, the GBM approved a "pause-and-reflect" exercise to ensure that the APO is on the right track to achieving its goals and objectives, adapting to the changing environment, and continuing to add value to member economies.

The prosperity and growth seen in the region are dependent on the tireless efforts of productivity champions, and the APO recognizes their significant contributions through its productivity award schemes. Established in 1978, with the most recent revisions approved by the GBM in 2021, the APO now offers three categories, Regional Award, Meritorious and Distinguished Award, and the National Award. For more details, visit https://www.apo-tokyo.org/about-the-apo-awards/.

In closing, APO Alternate Director and NPO Head for Malaysia Dato' Abdul Latif Haji Abu Seman expressed profound gratitude for the delegates’ robust discussions and contributions over the course of the meeting. "We will carry forward that spirit of collaboration, lessons learned, and decisions taken to continue working toward our goals," he pledged. He was delighted to extend an official invitation to delegates to Malaysia as the host of the 66th GBM.

The annual GBM continues to be central in strengthening relationships among the diverse APO members and their commitment to the shared mission of enhancing productivity in the Asia-Pacific.

About the APO

The Asian Productivity Organization (APO) is a regional intergovernmental organization dedicated to improving productivity in the Asia-Pacific region through mutual cooperation. It is nonpolitical, nonprofit, and nondiscriminatory. Established in 1961 with eight founding members, the APO currently comprises 21 member economies: Bangladesh; Cambodia; the ROC; Fiji; Hong Kong; India; Indonesia; I.R. Iran; Japan; the ROK; Lao PDR; Malaysia; Mongolia; Nepal; Pakistan; the Philippines; Singapore; Sri Lanka; Thailand; Turkiye; and Vietnam.

The APO is shaping the future of the region by fostering the socioeconomic development of its members through national policy advisory services, acting as a think tank, institutional capacity-building initiatives, and knowledge sharing to increase productivity.

Mongolia was the main source of northern China’s worst sandstorms in five years from January to April, and may have contributed as much as 70% of the dust floating over capital Beijing, China’s environment ministry said on Monday.

Northern China is routinely hit by heavy sandstorms in the spring, with conditions worsened by deforestation and higher regional temperatures. It has tried to shield its major cities by planting extensive new forest known as “shelterbelts.”

But with the number of sandstorms rising again since 2017, the focus has gradually shifted to China’s northern neighbor, Mongolia, where a changing climate together with overgrazing and overmining have caused conditions to deteriorate.

China experienced as many as 12 large-scale sand and dust storms in the first four months of 2023, said Jiang Huohua, vice-head of the monitoring office at China’s Ministry of Ecology and Environment.

Over that period, 267 Chinese cities in 27 provinces and regions suffered more than 4,800 days of sandstorms, the highest in five years, he said.

“Several large-scale dust processes occurred this spring, and the major sources are mainly the Gobi desert in southern Mongolia and sand sources in our country’s northwest,” he added.

“Expert analysis estimates that Mongolia can contribute up to 70% of the dust concentrations in Beijing and more than 50% of the dust concentrations in northern China and other central and eastern regions,” he said.

Around 77% of Mongolian land is regarded as degraded due to climate change and overgrazing, as per a 2021 assessment cited by the United Nations Development Programme. The country has also seen average temperatures rise by 2.2 degrees Celsius between 1940 and 2015, with rainfall plummeting 7% over the same period, according to a 2021 scientific study.

Mongolia has vowed to plant a billion trees over the 2021-2030 period, but officials in Ulaanbaatar complained earlier this month that the government has yet to provide sufficient funding, the official Montsame news agency reported.

China and Mongolia agreed to strengthen cooperation on preventing and controlling sandstorms during a meeting between Chinese Foreign Minister Qin Gang and his Mongolian counterpart Batmunkh Battsetseg in Beijing this month.

(Reporting by David Stanway; Editing by Sriraj Kalluvila)