Today (Jan 13) marks the 30th anniversary of Mongolia's first democratic constitution. A communist country for most of the 20th century, Mongolia has today proven itself a buoy of democracy in a region and era where authoritarianism, corruption and disinformation are on the rise. Since its adoption, the constitution has institutionalized Mongolia’s democratic system.

To honor the occasion, the International Republican Institute (IRI) is highlighting Mongolia’s recent democratic milestones and showcasing how its programming helped the country achieve them.

Prior to Mongolia’s June 2020 parliamentary elections – which saw a 76 percent turnout – IRI conducted a nationwide youth poll to gauge public sentiment on democracy in the pre-election period. After the survey concluded, the findings showed overwhelming support for strengthening the country’s democracy. Despite 60 percent of surveyed Mongolians acknowledging little confidence in their current political parties, the overwhelming majority (94 percent) believes inclusivity is an essential component of democratic resilience.

After the June parliamentary and October local elections, Mongolia saw women make up 17 percent of the State Great Hural, 15 percent of the Citizens’ Representative Khurals, 18 percent of the Capital City’s Citizens’ Representative Khurals and fill six leadership positions in the capital. And, it was recently announced that Mongolia will have its first woman seeking to become a presidential candidate this upcoming campaign season.

As the nation prepares for the pivotal election in June, new and expanded opportunities for increased public engagement show that Mongolians intend to consolidate their recent democratic gains. To support the country in these efforts, IRI’s Strengthening Women and Youth Engagement in the Electoral and Political Processes of Mongolia (SWYEEPPM) program remains dedicated to increasing representation in Mongolia. For instance, through the SWYEEPPM program, local partner Parent Teacher Association of Mongolia (PTAM) is training deaf and disabled Mongolians to act as domestic election observers in the country’s first-ever initiative to enable the participation of Mongolians with disabilities in the electoral process.

Another local partner, Youth Policy Watch, is building the capacity of youth and women coalitions to lead advocacy initiatives that promote women’s issues and their engagement with political parties and elected officials. In a similar vein, partner Globe International Center is conducting trainings for youth and women journalists to counter misinformation and promote ethical journalism ahead of the upcoming election. These activities, which are just a few examples of programming IRI is currently implementing in Mongolia, bolster the ideals of representative government and encourage political participation through a variety of vehicles.

In addition to enhancing political inclusivity, Mongolia’s government has also increased its efforts to promote anti-corruption initiatives – especially amidst increased allegations of corruption at the highest levels of government. In December 2019 and 2020, the State Great Hural (SGH) passed two election laws that disqualify any Mongolian convicted of corruption from vying for office in both presidential and parliamentary elections. The 2020 law also created provisions for using indelible ink on voters’ hands, increasing polling center transparency and guaranteeing full paper ballot audits in some polling places to promote election integrity.

Additionally, the State Great Hural also approved a revision for how territorial and administrative units will now be governed by decentralized organizational structures (like working groups and standing committees) rather than by political groups. These laws are just a few examples of how the government has attempted to thwart malign influence, corruption and nepotism ahead of the upcoming elections.

Through its elections, democratic laws and inclusive civil society programming, Mongolia has proven it wants to be accountable to its people and to the constitution it drafted 30 years ago. Despite its democratic nascency, the country’s resilience proves that it won’t fold to geopolitical or autocratic pressures (both foreign and domestic, near and far), and will continue to be an example of a successful democracy in Asia that encourages citizen activism and the civic participation of its people.

by Wallis Stanfield

Solongoo Bayarsaikhan, Deputy Chief at Cabinet Secretariat yesterday, January 13, gave information on the official position of the Mongolian government on the situation surrounding the Oyu Tolgoi copper and gold mine project.

In December 2019, the working group was set up to hold talks with investors of the Oyu Tolgoi project with the aim of improving Oyu Tolgoi-related agreements, including Investment Agreement, Shareholders’ Agreement and Underground Mine Development and Financing Plan in line with Mongolia’s legislations. Solongoo is a member of the Government working group.

“The government of Mongolia supports the Oyu Tolgoi underground mine development, which is viewed as holding benefits to the Mongolian economy because 80 percent of Oyu Tolgoi's value lies beneath the surface, and it is expected to become the fourth largest copper mine in the world after the underground starts its production. The working group has been studying the financial estimate of the benefits Mongolia to receive from the project.”

On the basis of revised definitive estimate for the underground mine development announced by Rio Tinto on December 16, 2020, which extended the date when sustainable production to be achieved to October 2022 for development capital of USD 6.75 billion, already USD 1.4 billion higher than the first estimation, the underground’s economic benefits for Mongolia are likely to decline, underlined Ms. Solongoo.

“It is calculated that Mongolia will not receive dividend payments until 2051 and will incur debts of USD 22 billion. In addition, Oyu Tolgoi is estimated to pay profit taxes or corporate income taxes only in four years until 2051. Therefore, the Mongolian government has sent a letter to the investor side to have careful discussions to enhance the economic benefits of the project to Mongolia."

Under the parliament’s 2019 resolution No. 92 aimed at protecting the rights and interests of Mongolian people in the exploitation of Oyu Tolgoi deposit, the government has been forwarding certain proposals and demands to investors and talks are underway, according to the Deputy Chief.

However, she reaffirmed that the government has never expressed any position to stop the ongoing Oyu Tolgoi project. “I believe the situation will not become dire of having to stop the project and this matter could be settled in a mutually beneficial manner. Both Rio Tinto and Turquoise Hill Resources have also expressed that the issue is in no way under that serious circumstances of ending the development".

“The government has put forward proposals to coordinate and lower the management services payment received from Rio Tinto in line with performances, and reduce shareholder loans interest rates with LIBOR plus 6.5 percent with a view to increase Mongolia’s benefits” added the Deputy Chief.

Oyu Tolgoi Board of Directors has decided to set up an independent committee made up of experts nominated by Erdenes Oyu Tolgoi LLC and Turquoise Hill Resources to review the causes of cost overrun and delay in the Oyu Tolgoi underground development. “Once the experts are selected, the committee is expected to make conclusion on the matter within six months,” says Solongoo.

According to her, Oyu Tolgoi company’s current copper production from its surface mining with sales revenue of USD 1.1 billion equals to half of the total copper export of Mongolia.

On January 14, 2021, the United States, through the United States Agency for International Development (USAID), signed a MNT 8.5 billion ($3.0 million) expansion of the bilateral agreement with the Ministry of Finance of Mongolia to promote good economic governance; reliable, efficient and affordable energy; and sustainable, private sector-led growth in Mongolia.

These new funds bring the total value of the United States’ contribution of this 17-year agreement to nearly MNT 360 billion ($126 million).

“The United States and Mongolia share a commitment to inclusive democratic governance, the growth of small and medium enterprises, and a financially sustainable energy sector,” Ambassador Michael Klecheski said.

“As a friend and third neighbor, the United States will continue to support Mongolia’s good governance, economic growth, and sovereignty. The expansion of this long-standing agreement is the latest demonstration of how the U.S. – Mongolia strategic partnership is making a real positive impact.”

The expanded bilateral agreement will help grow and diversify Mongolia’s economy by continuing to assist small and medium enterprises (SMEs). USAID will work with the government and private sector to foster an environment conducive to the growth of SMEs, including easier access to financing and improved corporate governance, capacity-building training on transparency and accountability, and the provision of small grants to disadvantaged enterprises.

USAID, lead U.S. government agency for international development and disaster assistance, will also initiate a new sustainable energy program that will provide focused capacity building and technical assistance. The program will help establish a competitive, diversified, modern and financially sustainable energy sector that will help move Mongolia toward energy independence.

USAID, building on the success of previous programming, will also continue to back the Government of Mongolia’s efforts to reduce corruption, increase transparency, improve administrative reform, and promote a culture of civic participation and education, thereby contributing to an improved climate for private sector growth.

Jan. 14 (Xinhua) -- Ten more COVID-19 cases were recorded in Mongolia in the past 24 hours, bringing the national caseload to 1,479, the country's National Center for Communicable Diseases (NCCD) said Thursday.

"A total of 15,899 tests for COVID-19 were conducted across the country yesterday and 10 of them were positive," said Amarjargal Ambaselmaa, head of the NCCD's Surveillance Department, at a press conference.

Nine of the latest cases were locally transmitted, and the remaining one was imported from Afghanistan, said Ambaselmaa.

Mongolia has so far recorded two COVID-19-related deaths and 909 recoveries. Enditem

Fitch Ratings - Hong Kong - 13 Jan 2021: Fitch Ratings has affirmed China-based toll-road operator Inner Mongolia High-Grade Highway Construction and Development Company Ltd.'s (IMHCD) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BBB-'. The Outlook is Stable.

IMHCD was founded in 2004 and is wholly owned by the Department of Transport of the Inner Mongolia Autonomous Region in China. The company primarily engages in toll-road operation and development, and has other ancillary businesses, such as service area operation and advertisement. IMHCD had CNY107.4 billion in total assets and CNY21.3 billion in net assets at end-September 2020.

KEY RATING DRIVERS

'Very Strong' Status, Ownership and Control: IMHCD is registered as a limited liability company and is 100% owned by Inner Mongolia's Department of Transport. IMHCD's major strategic decisions must be reported to the Department of Transport and the provincial government, which assigns IMHCD projects under its regional development plans, including highway network development.

'Strong' Support Record: IMHCD receives ongoing monetary and non-monetary government support as the government's primary transportation infrastructure construction arm. IMHCD's major monetary support comes from the central and local governments, and includes financial grants and capital injections sourced from the vehicle-purchase tax and other taxes. Non-monetary support is provided through exclusive concession rights to operate toll roads and favourable tax and accounting treatment. Fitch expects the government to continue offering support to IMHCD for undertaking ongoing highway development projects.

'Moderate' Socio-Political Default Implications: The Inner Mongolia government has designated IMHCD as the flagship toll-road operating and development company at the autonomous-region level. By end-June 2020, IMHCD managed 37 toll roads, including 2,153 km of highways, representing 30%-40% of the total highways in operation in Inner Mongolia. The company has also been commissioned to undertake five new highway projects in the region, with total planned investment of CNY22 billion. Fitch believes highways are indispensable to local residents for transportation and mobility as Inner Mongolia is sparsely populated. IMHCD's financial failure could delay progress in transportation infrastructure construction, which will have 'Moderate' socio-political repercussions for the government.

'Very Strong' Financial Default Implications: IMHCD is the largest functional government-related entity (GRE) that is wholly owned by the autonomous region's government. The company has actively raised funds from the domestic and international capital markets to fund the development of the region's major transportation network. Fitch believes a default by IMHCD could significantly hurt the creditworthiness of the autonomous region's government and the financing activities of other local GREs.

'b' Standalone Credit Profile: IMHCD's Revenue Defensibility and Operating Risk are assessed at 'Weaker' and 'Midrange', respectively, considering its high geographic and industry concentration, as well as the low flexibility in adjusting toll rates. Its 'Weaker' financial profile is constrained by its stretched net debt to EBITDA of above 20x over the forecast period to 2024 as well as ongoing debt-funded capex.

In June 2020, IMHCD entered into a debt optimisation programme with a consortium of 12 banks, led by China Development Bank, a policy bank. Under the programme, IMHCD will replace CNY76.3 billion of debt that it raised for 34 of its managed toll-roads with new bank loans with 30-year tenor and lower interest rates. The debt involved represented over 90% of IMHCD's outstanding debt at end-September 2020. The first batch of loans of CNY24.0 billion has been released to IMHCD. Fitch believes the programme will alleviate IMHCD's near-term refinancing pressure and enhance its overall liquidity position.

DERIVATION SUMMARY

IMHCD's ratings are assessed under Fitch's Government-Related Entities Rating Criteria, reflecting Inner Mongolia Autonomous Region's ownership, direct control and strong support of the company. Fitch has also factored in the socio-political and financial implications for the government if IMHCD were to default.

The ratings of IMHCD also consider its Standalone Credit Profile, which is assessed at 'b' under the Public Sector, Revenue-Supported Entities Rating Criteria.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

- An upward revision in Fitch's credit view of Inner Mongolia Autonomous Region's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations.

- A stronger assessment of the socio-political implications of a default, enhancing the government's incentive to provide legitimate support.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

- A lowering of Fitch's credit view of Inner Mongolia Autonomous Region's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations.

- A significant weakening of the socio-political or financial implications of a default, our assessment of the government's support record or a dilution of the government's shareholding or control.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit [https://www.fitchratings.com/site/re/10111579].

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Members of the San Carlos Apache tribe in Arizona on Tuesday said they have sued the Trump Administration to block a pending land swap that would give Rio Tinto the land it needs to build its Resolution Copper project.

Apache Stronghold, a non-profit organization that filed the lawsuit in the U.S. District Court in Phoenix, said it sought to stop the publication of a final environmental impact statement that will trigger the transfer of Oak Flat land to Resolution Copper.

Oak Flat, or Chi’chil Bildagoteel, is central to the Apache tribe’s traditional religion and identity. The land is located about 70 miles east of Phoenix in the Tonto National Forest.

“Giving away our sacred land by the US Government for destruction by a foreign mining company destroys our ability to practice our religion,” Apache Stronghold said in an emailed statement.

In a separate letter to the US Department of Agriculture obtained by Reuters, tribe chairman Terry Rambler said the department had failed to consider “substantial new information about cumulative impacts to groundwater resources,” particularly at the proposed tailings dam site.

He requested the department hold off publication until all new information had been considered: “At stake are potentially disastrous environmental impacts,” Rambler said.

Resolution Copper said it was reviewing the complaint.

“We remain committed to ongoing engagement with Native American Tribes to continue shaping the project and deliver initiatives that recognise and protect cultural heritage,” it said in a statement.

It has said that it anticipates the Oak Flat campgrounds will be open for at least the next several decades, and possibly longer, if it decides to go ahead with the project.

Minority partner BHP Group had no immediate comment.

US President Donald Trump’s outgoing administration plans to approve the land swap on Jan. 15, clearing a long-time hurdle for a project that is opposed by many Native Americans.

The statement is slated to be published on Friday, five days before Trump is replaced by President-elect Joe Biden.

While Biden has not spoken publicly about the project, he promised Arizona tribal leaders in October that they would “have a seat at the table” in his administration.

(By Derek Francis, Ernest Scheyder and Melanie Burton; Editing by Christopher Cushing)

The Red Cross has forecast that the extreme winter under way in Mongolia is set to be one of the worst on record and the most challenging for a decade.

Mongolia’s National Agency for Meteorology and Environmental Monitoring, meanwhile, has warned that more than 60% of the country is at risk of experiencing an extreme winter, with temperatures forecast to plummet to extreme lows of -50C for days on end. On January 12, local media reported that more than 500 Bactrian camels had so far been killed amid the extreme winter cold in the central Mongolian province of Uvurkhangai. Other regions have reported rapid death rates among small livestock this winter season.

Mongolia’s extreme winters in which large numbers of livestock perish are known as dzuds (or zuds). They threaten the health and livelihoods of thousands of Mongolian herders living in the country’s remote central and southern provinces. A dzud is caused by the double impact of drought in the summer followed by harsh winter conditions. Without summer rain, the grass does not grow and millions of livestock cannot put on enough weight to survive the winter. Herders are unable to stockpile sufficient harvests to feed the animals.

Mongolian Red Cross Society secretary general Bolormaa Nordov said: “Dzuds are devastating for the herder families who rely on their animals for almost everything, whether it’s meat and milk for food or the cashmere and skins they sell to buy supplies or pay school fees. Losing their animals means they can quickly fall into poverty.”

Experts note how dzuds force herders to move to urban settlements and leave their livelihoods behind.

The unwelcome news of the coming dzud has triggered the release of nearly 290,000 Swiss francs (about $314,000) from the International Federation of Red Cross and Red Crescent Societies (IFRC) disaster relief emergency fund. This will allow the Mongolian Red Cross to support 2,000 herder families in a bid to prevent major stock and economic losses through the distribution of cash grants and animal care kits.

The release of these funds come as part of the IFRC’s forecast-based financing approach.

Jan. 13 (Xinhua) -- China has maintained its position as Mongolia's biggest trading partner in 2020, according to data released by Mongolia's National Statistics Office on Wednesday.

Bilateral trade between Mongolia and China amounted to 7.4 billion U.S. dollars last year, accounting for 57.5 percent of Mongolia's total foreign trade.

In addition, China remained Mongolia's top export destination and import supplier in 2020, accounting for 72.5 percent and 36.1 percent, respectively.

Mongolia traded with 146 economies across the world in 2020. Enditem

Ulaanbaatar /MONTSAME/. In an effort to vaccinate the population, the government of Mongolia has been working actively since July 2020, reports the Ministry of Health.

One of the steps being taken is applying for the COVAX Facility, multilateral initiative aimed at accelerating the development and manufacturing of the coronavirus vaccines and guaranteeing fair and equitable access for every country in the world.

On July 16, 2020, Mongolia submitted its expression of interest to have access to safe and effective COVID-19 vaccines under the COVAX mechanism, which helped the country to join 92 countries that are eligible to be supported by the COVAX Advance Market Commitment (AMC).

In connection with this, Mongolia is preparing to vaccinate 60 percent of its population within the framework of the national plan on receiving and distribution of vaccines against COVID-19 and immunization activities, approved by the Deputy Prime Minister of Mongolia, and is expecting to receive 20 percent of the vaccines needed under the COVAX initiative, according to the Health Ministry.

On December 10, 2020, the COVAX Facility Secretariat reaffirmed that Mongolia is one of the participating countries of the COVAX AMC, a financing instrument aimed at supporting the participation of 92 lower and middle income economies in the COVAX Facility.

On January 8, 2021, the Health Ministry in cooperation with international partners World Health Organization, UNICEF, World Bank and Asian Development Bank has conducted complex assessment on the country’s readiness to introduce COVID-19 vaccines in line with the COVID-19 Vaccine Introduction Readiness Assessment Tool, referred to as the VIRAT/VRAF 2.0. The result showed Mongolia is prepared to receive and use COVID-19 vaccines.

In addition, Mongolia has approved COVID-19 vaccine registration regulation this week, and registered three coronavirus vaccines currently available - Pfizer and BioNTech, AstraZeneca and Moderna in its drug registry.

Ulaanbaatar /MONTSAME/. According to the preliminary result of the annual livestock census of 2020, head of livestock in Mongolia totaled 67.1 million, of which 4.1 million horses, 4.7 million cattle, 472.9 thousand camels, 30.0 million of sheep, and 27.7 million goats.

Compared to the previous year, the total number of livestock decreased by 3.9 million (5.5%), of which number of goats decreased by 1.5 million (5.3%), sheep by 2.2 million (6.9%), cattle by 21.8 thousand (0.5%), and horses by 122.1 thousand (2.9%), but the number of camels increased by 521 (0.1%).

In terms of flocks of livestock, sheep account for 45.5% of the total number of livestock, with goats for 41.3%, cattle for 7.1%, horses for 6.1% and camels for 0.7%. It shows that the proper ratio traditionally set at 75:25 between sheep and goat was still lost with the ratio 52:48 in 2020.

Khovd, Dornogobi, Selenge, Uvs, Dornod, Sukhaatar, Bayan-Ulgii, Darkhan-Uul, Orkhon aimags, and Ulaanbaatar city showed an increase of livestock by 10.0-208.2 thousand respectively, compared to the previous year.

The reduction in the livestock amount was mainly due to the decrease in Uvurkhangai aimag by 1146.4 thousand (20.4%) head of livestock, Bayankhongor aimag by 805.0 thousand (17.3%), Arkhangai aimag by 768.3 thousand (12.5%), Khuvsgul aimag by 539.9 thousand (8.9%), Dundgobi aimag by 352.0 thousand (8.6%) and Gobi-Altai aimag by 286.9 thousand (8.0%) respectively.

In summer of 2020, most territories of the country were affected by drought. Also, a high risk of dzud, increased demand for hay and fodder, and overgrazing led to the increased meat production and livestock supply to the market, which caused a reduction in the herd size.

It was also influenced by the decrease in dams (206.9 thousand) and survived offspring (809.9 thousand) and the rise in natural losses of adult animals (944.5 thousand) as compared to previous year.

According to the 2020 preliminary result, the number of total households with livestock was 242.0 thousand, with an increase of 8.7 thousand (3.7%). By the number of animals, households with up to 50 animals increased by 7.4%, families with 51-200 animals and with 201-500 increased by 13.1% and 0.6% respectively, while families with 501-999 and over 1000 animals decreased by 8.2% and 17.4% respectively