Mongolian Economic Forum embellishes 3-Pillared Development Strategy www.theubpost.mn

The public and private sector convened on March 28 at the “Uniting Power” pre-session for the Mongolian Economic Forum.

State officials presented speeches on the government’s actions, policies, strategies and future targets at the forum, promoting stronger public-private partnership.

One of the highlights of the forum was Head of the Cabinet Secretariat G.Zandanshatar’s presentation on Mongolia’s Three-Pillared Development Strategy, enacted in 2015 with the intention to develop the nation through 27 criteria of nine chapters and three fundamental goals to be achieved by 2050.

The strategy is aimed to establish a just, disciplined, responsible and stable government system, enhance economic competitiveness through a general national development policy, and improve public livelihood. For sustainable economic development, projects will be targeted at food exportation, agriculture, tourism, industry and infrastructure. For governance reform, the government plans to revise the Constitution and reform the legal governance and public services. For public livelihood improvement, a package law to support wealth creators, Development Program for Mongolians, and Policy to Reduce Unemployment and Poverty will be executed.

The government has decided to launch Smog-Free Ulaanbaatar 2020, Shine Khuduu (New Countryside) and Tavan Tolgoi projects along with projects for Industrial and Technical Park for Agriculture, Oil Refinery, Central Wastewater Treatment Plant, Recycling Factory, and New Ulaanbaatar International Airport. Although the government is set on financing these projects through the state budget, private investments, foreign loans, and grants, it has not provided an estimate for their total cost or budget.

Participants were intrigued to find out that the Three-Pillared Development Strategy is expected to open 263,000 new jobs, especially since Mongolia’s unemployment rate fluctuates between 100,000 and 150,000 people.

“One in every three people in Mongolia live in poverty. The biggest cause of poverty is unemployment. Creating new jobs will reduce unemployment,” stated S.Mungunchimeg, the deputy minister of labor and social protection.

TAX REFORM

Another keynote speech was focused on the package tax law reform. Minister of Finance Ch.Khurelbaatar relayed that through the reform, the government hopes to relieve financial burden on entities, raise tax collection base, and mold a legal environment with longer reporting time.

He reported that enterprises, public and private organizations and individuals proposed 1,082 amendments to laws related to tax and that 19 percent of proposals are ready for submission to Parliament. The government rejected 26 percent of all submitted proposals because they requested either excessive discount or exemption.

“A sustainable economy is starting with the tax law package reform,” Ch.Khurelbaatar claimed. He believes that revising tax laws will lessen burden on small and medium-sized enterprises.

According to the Ministry of Finance, 398,000 out of over 100,000 registered companies account for 85 percent of the total tax revenue of Mongolia. Minister Ch.Khurelbaatar reassured that tax revenue will not diminish if the tax rate is lowered.

During the discussion, President of the Mongolian National Chamber of Commerce and Industry B.Lkhagvajav explained, “Lowering tax rate will uncover the underground economy and increase tax revenue.”

Ch.Khurelbaatar declared that the package tax law reform will be approved before the end of July and related procedures and regulations will be passed in November after public discussion sessions. If these laws are enacted, they will take effect starting next year.

The main event of the Mongolian Business Forum will kick off on May 21 and 22 in Ulaanbaatar.

2018 development projects determined www.theubpost.mn

The Ulaanbaatar mayor’s council went over road construction projects, strategies for tackling traffic, and development projects for the education sector planned for this year last week.

City to focus on reducing traffic
Deputy Mayor in charge of Infrastructure and Ger Area Development P.Bayarkhuu introduced that the construction of an overpass at the intersection of the Traffic Police Department will be completed in 1.6 years, starting next month. To reduce traffic expected during the construction work, eight sub-roads will be newly built or expanded with 1.3 billion MNT. For example, 393 million MNT is required to build a 0.4-kilometer road connecting Mahatma Gandhi Street to Sun Road, 198.2 million MNT to build 0.3-kilometer road connecting Niislel Khuree Avenue to the National Academy of Governance, and 31.6 million MNT to build permanent traffic barriers along the 0.3-kilometer road between Khunnu Street, Saruul Town and Soyolj. Other plans include the construction of a 0.14-kilometer bridge between Road Workers’ Street and 13th microdistrict.

Traffic is one of the most pressing challenges in Ulaanbaatar. Around 80 percent of all vehicles in Mongolia are driven in the capital, with some 40,000 imported each year. However, research shows that not a single car has been sent to the wreckage yard in recent years, reported Ulaanbaatar Mayor S.Batbold.

“Two large overpass projects will be launched in Ulaanbaatar, meaning that traffic will increase tremendously. We will pay special attention to this matter. We hope that the public will understand this and be patient as road constructions commence. With public support, spring development projects will be completed within a short period of time at highest efficiency and quality,” he said.

Some traffic restrictions will be placed from April 15 to October 1 to prevent traffic, according to P.Byarkhuu. Officials are debating two traffic restriction proposals. The first is to launch a driving restriction based on the last digit of license plates only in Baga Toiruu. In specific, vehicles with license plates ending with an odd number can drive along this road on Mondays and Wednesdays, while those ending with an even number drive on Tuesdays and Thursdays. On Fridays, large markets such as Narantuul and Bumbugur will be closed. Officials believe this will enable smoother passage on other roads.

The second option is to allow cars with license plate ending with an odd number to drive from Sapporo intersection to Officers’ Palace on Mondays and Wednesdays, whereas those ending with an even number on Tuesdays and Thursdays and all cars on Fridays. Offiicials decided to conduct a public pollto determine which option to take.

Schedule for infrastructure projects released
City officials outlined a general schedule for infrastructure projects at the meeting. It includes 241 projects for 10 directions, according to B.Oyuntuya, the head of the Engineering Infrastructure Planning Division of the General Ulaanbaatar Urban Development Office.

“Investment for infrastructure projects to be carried out is expected to increase this year. Project targeted at developing ger areas will intensify in summer with loans from international financial organizations. They will be implemented according to a general schedule. Associated organizations must follow the new schedule, avoid causing hindrance to local residents, and deliver precautionary announcements and notices on time,” stated Ulaanbaatar Mayor S.Batbold.

He reminded that hot water outages must not prolong for a month like in previous years and should last a week at most. “We’re striving to do repair and maintenance work for pipes without cutting off hot water if possible,” the mayor said.

18 new schools to be built
This year, the city administration plans to build 18 new schools and expand 27 schools, according to Deputy Mayor Sh.Ankhmaa.

The construction of nine new schools and expansion of 25 schools will be executed with state funds. Seven new schools will be built with a grant from the Chinese government and the rest of the projects with a grant from the Japanese government. Construction work has been scheduled for 56 kindergartens — 42 kindergartens will be newly constructed and 10 kindergartens expanded with state funds, two kindergartens with a discounted loan from the Asian Development Bank, and another two kindergartens with a discounted loan from UNICEF.

Moreover, the government has projected financing for three elementary school and kindergarten complexes and five sport halls in the state budget.

Sh.Ankhmaa reported that Beijing Construction Engineering Group has started assembling framework for five of the seven schools to be built with the Chinese grant.

“Our plan is to reduce general education school shifts to two and increase availability of kindergartens to up to 85 percent by 2020. Many educational projects have been planned for 2018. Right now, land issues for 17 schools and kindergartens need to be resolved. These matters will soon be introduced to the government,” said Mayor S.Batbold.

Mongolia agrees with Kazakhstan to establish gold refining plant www.montsame.mn

Ulaanbaatar /MONTSAME/ A resolution of the 7th meeting of the Mongolia-Kazakhstan Intergovernmental Commission has reflected the issue of establishing gold refining plant in Mongolia.

Coal miners' export price varies significantly www.gogo.mn

Erdenes Tavan Tolgoi JSC (ETT), which plans to export 10 million tons of coal in 2018, has failed to reach a deal with Chalco. As of March, the company is selling coal at USD 68.1 per ton at the mine, informed Ariunbold Dorj, CEO of ETT. Presently, Mongolyn Alt LLC, SouthGobi Sands and Usukh Zoos are mining in Nariinsukhait residual deposits.

IAAC arrests three suspects for law-breaking www.montsame.mn

Ulaanbaatar /MONTSAME/ The Independent Authority Against Corruption (IAAC) has arrested three suspects in the course of its investigation of the Oyu Tolgoi Investment Agreement.

Russia & Saudi-led OPEC working on deal to corner oil market for decades www.rt.com

Moscow and Riyadh, backed by OPEC, are negotiating a deal that would allow them long-term control of oil prices. If successful, Russia and Saudi Arabia would manage oil markets for the next two decades.
At the moment, Russia and OPEC are signing agreements on oil production cuts on a yearly basis. However, the next deal could be much longer.

Going down: Bitcoin & crypto market dropping into danger territory www.rt.com

Bitcoin fell below $7,000 on Friday, moving closer to the lows the world's number one virtual currency reached in February.
The value of all cryptocurrencies has now dipped to $250 billion – having lost an astonishing $580 billion in value from record highs late last year. This is fueling fears among some investors that the crypto-bubble is about to burst.

Rio Tinto optimistic on China growth www.chinadaily.com.cn

The nation's efforts to reduce overcapacity in the steel industry will benefit global mining giant Rio Tinto Group Plc and others, rather than hurt their business interests, according to its CEO Jean-Sebastien Jacques.

China starts building Cambridge standard schools in UB www.news.mn

The Ministry of Education, Culture, Science and Sports (MECSS) is currently engaged in modernising the school system across Mongolia. Over the next two years a total of 142 kindergartens and 97 schools are expected to built in the country.

Mongolia to build 700MW electric power plant www.akipress.com

Mongolia will build an electric power plant at the Baganuur coal mine under the concessional agreement, Mongolian media report.