Belt and Road debt trap spreads to Central Asia www.asia.nikkei.com

MOSCOW -- As Beijing bankrolls projects in Central Asia to promote its Belt and Road Initiative, countries in the region are at risk of granting China valuable concessions to ease their heavy debt burdens.

Turkmenistan faces an economic crisis, with reports leaking from the country of long queues snaking outside of grocery stores, one-month waits for flour and road closures by housewives demanding food.

The country's currency is officially quoted at about 3.50 to the dollar, but the manat has weakened rapidly on black markets to 18 or 19, local sources say. In addition to a shortage of daily necessities, the government forced hefty price increases on gas and water. Inflation has hit 300% by one estimate.

Some think the current crisis is worse than the turbulence that immediately followed the Soviet Union's collapse.

Turkmenistan relies on natural gas exports for 70% of its revenue. The nation's drift toward China accelerated in 2009 when it opened a pipeline to the Asian power through Uzbekistan and Kazakhstan while relying on funds from Beijing to fund gas field development and infrastructure construction. The loans total about $8 billion, according to the CIS Institute think tank, with money for repayment coming from gas export proceeds.

But Turkmenistan's revenue from natural gas exports last year was reportedly half the level of 2015 as Russia halted shipments from the country and Iran suspended imports due to a contract dispute. Lax spending on infrastructure and corruption have contributed to the decline in the nation's finances as well. Some predict that Turkmenistan will have to hand over gas fields to China as repayment for its debts.

Central Asian countries are bolstering relations with Beijing as they vie for a piece of the Belt and Road Initiative, which stretches from China to Europe. Borrowing from Beijing has ballooned in all but Kazakhstan, which receives direct investment from various countries, and Uzbekistan.

Neighboring Tajikistan handed over a gold mine to China in April as remuneration for $300 million in funding to build a power plant.

Kyrgyzstan reportedly has a contract with a state-run Chinese bank for a power plant in the capital of Bishkek that includes a clause giving Beijing control of wide-ranging assets if the country defaults on its repayments. China is also thought to be demanding concessions in negotiations for railway construction funding.

Hidden risks in Belt and Road projects came to light after Sri Lanka in 2017 gave China the operating rights to the Hambantota port for 99 years as the island nation struggles to repay debts.

China aims to become the dominant force in Central Asia in order to drive down the price of acquiring resources, said Andrei Grozin, who heads the Central Asia department at the CIS Institute.

Beijing also plans to invest in infrastructure and agriculture projects in former Soviet states like Ukraine that seek integration with the European Union, increasing its influence in Eastern Europe as antagonism between Moscow and Washington grows.

Ukraine and China agreed to $7 billion in joint projects at an intergovernmental commission in late 2017. Construction of highways and grain export bases is progressing.

"A pro-China faction is quietly rising," said a high-ranking Ukrainian official, as investment from the U.S. and Europe slows due to a virtual state of war between Kiev and Moscow.

China is targeting Ukraine's military technology, a field in which Kiev has excelled since the Soviet era. After a Chinese company took a 41% stake in Motor Sich, a manufacturer of engines for military transport vehicles and helicopters, Ukrainian courts froze the deal.

Beijing signed a free trade agreement with Georgia last year and is investing in ports and transportation projects there. The Caucasus republic, along with Ukraine, has a free trade agreement with the EU. Georgia recently opened a railway from Azerbaijan to Turkey that is expected to serve as a vital artery for China's Belt and Road, connecting China and Central Asia with Eastern Europe while bypassing Russia. China is negotiating a free trade agreement with pro-Western Moldova as well.

Moscow seems to tolerate China's growing clout in Russia's sphere of influence. Some think Moscow prefers China to democratic and economic reforms promoted by the U.S. that emphasize transparency and rule of law. Concern exists that more Chinese money will stall Western reforms in these countries.

Aspire to develop low ash coking coal project in Mongolia www.spglobal.com

Singapore — Aspire Mining Wednesday announced plans to develop a new low ash coking coal project in Mongolia.

Mongolia: Riding Reindeer And Hunting With Eagles In East Asia's Most Fascinating Destination www.forbes.com

Let’s start with getting there. Which is no easy feat. (Pro tip: book your flight through Hong Kong and take advantage of the great lounges there. Hello, Cathay Pacific’s six lounges.).

Once you’ve finally arrived in Ulaanbaatar, the country’s capital and the starting point for pretty much all the best adventures, get your last fill of life’s little luxuries – maybe hit the spa, or indulge on Korean barbeque, because life outside of the city is much simpler, but that’s exactly what you’re there for.

And while it’s common that Mongolians in the city speak English, don’t expect much of that once you get outside of the capital. Traveling with a translator is certainly not a bad idea, but you just might surprise yourself with how much communicating you can actually do with simple hand gestures and a few key phrases.

And even though you’ll want to travel here in June, July and August, keep in mind that unexpected changes in the weather, like blizzards in the far north, aren’t out of the question.

So, what makes Mongolia one of the most fascinating destinations in East Asia? Well, these adventures, to start.

Visit the Tsaatan Tribe

Spending time with the Tsaatan Tribe, the last nomadic tribe that herds and rides reindeer in the world, is like something out of a fairy tale. Besides a landscape that goes from beautiful rolling steppe to treacherous bogs and rocky mountainsides in minutes, there’s just something magical about seeing someone ride up to the teepee you’ve made home for a few days on a reindeer. Getting there is no small feat – my journey included a flight from Ulaanbaatar to Mörön, two-days of off-roading in a UAZ-452 Russian furgon, and two-days on horseback. But once you’re there, you’re a part of the tribe. Drinking reindeer milk tea, making noodles, herding in the reindeer at night, milking them in the morning, riding them to visit the neighbors or forage for juniper – it’s one of those experiences that will have you pinching yourself every few minutes.
Go to the Kazakh Eagle Hunters

Wolf-skin cloaked nomads wielding beautiful golden eagles and 4,000 years of tradition – that’s just the beginning of what’s so fascinating, and alluring, about paying a visit to the Kazakh people in the western part of the country. Not to mention, watching as an eagle soars through the air at speeds upwards of 200 mph is pretty bucket list-worthy. Once a year, in the Bayan-Ulgii Province located in the Altai Mountains of Western Mongolia, the Golden Eagle Festival brings out the best Kazakh hunters from the area, pitting them against one another in competitions that test the speed, agility and accuracy of their golden eagles. It’s an experience you won’t find anywhere else in the world.

October’s Golden Eagle Festival (October 6th – 7th, 2018) is an ideal time to visit.

There are plenty of ways to live in Chenggis Khaan’s footsteps (or as we call him in the west, Genghis Khan). You can do a day tour from Ulaanbaatar and get an idea of the history, economy and political climate of Khaan’s day, which is an easy introduction to Mongolia’s past.

But, for those looking for a little bit more (okay, a lot more) adventure, do it right and travel back to the 13th century and take on the steppe by horse. Horses played an integral role in Khaan’s success, thanks to his supply point route messenger system (called the Yam system), which acted as a relay messenger system for horses. Every 14 to 40 miles riders can switch horses (or pass on documents and goods to a fresh rider), eat and find shelter. This is the system that helped Khaan conquer the largest contiguous empire in history, from Eastern Europe to Southeast Asia and China, in his prime.

From Khentii National Park, where the steppe meets the forest, to visiting with a nomadic family in the valley of Jargalant River, trekking through the country this way is certainly one of the coolest (and most bragworthy) ways to experience Mongolia.

Companies like Discover Mongolia offer ‘Follow in the Steps of Genghis Khan’ horse treks.

Cross the Gobi

One of the greatest parts about visiting Mongolia is the diversity that you can find in the terrain across the country. The steppe and the mountains in the north are one thing to experience, but the Gobi Desert in the south is something completely different, and just as spectacular.

The fifth largest desert in the world, and the largest in Asia, the Gobi isn’t all sand – there’s plenty of exposed bare rock here as well, making it one of the most unique (and challenging) terrains you’ll find anywhere. Set off by horseback to cover the most ground and discover wild Bactrian (two-humped) camel, horses and wild gazelle along the way, along with the last desert-inhabiting bear, the Gobi bear.

Stay in traditional gers during your journey (and keep in mind that desert nights can get cold), meeting with nomadic families all along the way, learning about the history and culture of the country firsthand.

You can also take on the desert by van, if horses aren’t exactly your thing.

Nomadic Expeditions leads tours from Ulaanbaatar to the Gobi and back by van.

Travelers interested in visiting the Gobi Desert can cross it by either horse or van. (Credit: Shutterstock)

Motorbike or Road Trip Across the Country

Whether you want to follow the trail of Chinggis Khaan, hightail it across the steppe or set off through the Gobi, there’s no wrong way to see Mongolia. And each of these trails are wildly different – just remember: the only thing you can ever count on here is the unexpected. From the weather to the bumpy terrain across the flatlands of the steppe, barren and unforgiving dessert in the Gobi, and everything in between along the Chinggis Khaan route, this will certainly be an unforgettable adventure for one reason or another.

President Kh. Battulga to meet with Vladimir Putin in September www.gogo.mn

President Kh. Battulga will attend the fourth annual Eastern Economic Forum, which will be held from September 11 through 13 in Vladivostok.

Russia could become global leader in coal exports – Putin www.rt.com

Russian President Vladimir Putin has announced plans to expand the country’s coal exports on the global markets.
“Last year, domestic companies exported more than 190 million tons of coal,” the president said, noting that Russia is currently the world's third biggest exporter.

ADB to help Ulaanbaatar transform its ger areas into eco-districts www.montsame.mn

Ulaanbaatar /MONTSAME/ The Asian Development Bank’s (ADB) Board of Directors has approved USD 80 million loan to help transform ger areas in Ulaanbaatar into affordable, low-carbon, climate-resilient and livable eco-districts.

ADB will additionally administer a USD 95 million loan and a USD 50 million grant from the Green Climate Fund (GCF), as well as a USD 3 million sector grant from the High-Level Technology Fund (HLTF).
A third of Mongolia’s population live in urban ger areas, or settlements of low- and middle-income households. These districts suffer from poor sanitation, inadequate solid waste management, and limited water supply, which pose health and environmental hazards. A heavy reliance in these ger areas on coal and biofuels for heating and energy generates large carbon dioxide emissions and worsens air pollution, especially during winter.
“About 850 thousand people live in Ulaanbaatar’s ger areas and have poor access to urban services,” said ADB Senior Urban Development Specialist Mr. Arnaud Heckmann. “This project will improve the lives of around 100 thousand people, including 10 thousand direct beneficiary households that will have access to green housing units, by financing 20 new environmentally friendly districts with good services, green spaces, and access to shops and jobs.”

Incremental growth and migration are increasing the population living in these poor conditions because affordable housing options for low- and middle-income households are very limited. A 2016 survey by the Capital City Housing Corporation estimated housing demand at 150 thousand units, while available affordable housing stock is about 4000 units, with 60 percent of ger area residents willing to move to apartment units if acceptable and affordable solutions are proposed.

The project is a large-scale initiative to provide sustainable and comprehensive solutions to transform sub-standard, highly vulnerable, highly emitting, and polluting ger areas into affordable, climate-resilient and livable eco-districts.

The Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Sector Project will build 1,500 social housing units along with key infrastructure such as roads, water, sewerage, and heating pipes, as well as green houses for urban farming and public and green spaces; social and public services; and rooftop solar panels and a smart monitoring system for building performance and renewable energy control financed by the HLTF. The solar panels will produce about 40 percent of all electricity demand.

The project will also provide USD 75.7 million out of the GCF loan to the eco-district and affordable housing fund (EDAF) that will make long-term loans to commercial banks, which will be passed on to real estate developers to build an additional 8,500 homes—including 5,500 affordable and 3,000 market rate units—and commercial activities, and to provide low-cost mortgages. The loan to EDAF is expected to leverage around USD 300 million more in investments from developers, commercial banks and beneficiaries. The Asset Management Company of the Development Bank of Mongolia will manage EDAF on behalf of the Ministry of Finance. The GCF grant will be used to provide performance-based grants to qualified developers for climate change mitigation and adaptation features.

A key element of the project is the voluntary land swapping approach for implementing the eco-districts. Under this approach, households owning or renting a plot of land within the proposed eco-district perimeter can choose to participate or not on the mechanism. If they opt to participate, households will have access to a housing unit in the eco-district, through land and asset swaps, rent-to-own schemes, or affordable rental arrangements. If they choose not to participate, the eco-district design will be adjusted to avoid affecting the non-participating household. A community participation plan, which includes skills training and linkages with job opportunities for poor households, will also be implemented.

Institutional and policy improvements, meanwhile, will guide the transformational impacts of the project with respect to regulations, standards, and sector capacity for climate-responsive urban planning; increased performance, energy efficiency, and renewable energy in buildings; improved supply and access to low-carbon affordable housing; sustainable green housing finance; and eco-efficient urban services.
The project is expected to be completed by the end of 2026 and will cost a total of USD 570.1 million.

Source: adb.org

Mongolia provides quick entry services to facilitate Belt and Road Initiative www.xinhuanet.com

ULAN BATOR, Aug. 28 (Xinhua) -- Mongolia has implemented three measures to support the Belt and Road Initiative (BRI), a senior foreign ministry official said.

Johor Sultan given warm welcome in Mongolia www.thestar.com.my

PETALING JAYA: The Johor Sultan was accorded a warm welcome inside a purpose-built traditional home or “ger”, pitched inside the State House in Ulaanbaatar.

Toyota to invest $500m in Uber in driverless car deal www.bbc.com

Japanese carmaker Toyota is to invest $500m (£387m) in Uber and expand a partnership to jointly develop self-driving cars.

The firm said this would involve the "mass-production" of autonomous vehicles that would be deployed on Uber's ride sharing network.

It is being viewed as a way for both firms to catch up with rivals in the competitive driverless car market.

The deal also values Uber at some $72bn, despite its mounting losses.

That is up 15% since its last investment in May but matches a previous valuation in February.

According to a press release issued by the firms, self-driving technology from each company will be integrated into purpose-built Toyota vehicles.

Uber halts self-driving tests after death
Uber settles with Waymo on self-driving
The fleet will be based on Toyota's Sienna Minivan model with pilot trials beginning in 2021.

Shigeki Tomoyama, executive vice president of Toyota Motor Corporation, said: "This agreement and investment marks an important milestone in our transformation to a mobility company as we help provide a path for safe and secure expansion of mobility services like ride-sharing."

Both Toyota and Uber are seen as lagging behind in developing self-driving cars, as firms such as Waymo, owned by Alphabet, steam ahead.

Uber has also scaled back its self-driving trials after a fatal crash in Tempe, Arizona, in March, when a self-driving Uber SUV killed a pedestrian.

Since then, the ride-hailing giant has removed its autonomous cars from the road and closed its Arizona operations.

Uber's troubled self-driving car efforts are in need of external help, and this deal with Toyota might provide that expertise. It's of course a terrific opportunity for Toyota, too.

It was reported earlier this month that Uber was sinking around $1m-$2m into its autonomy work every single day. The results of that effort have not been something to be proud of - one fatal crash, one very expensive lawsuit, and not a lot of self-driving compared to the leader in this sector, Waymo.

Sharing the burden, and R&D cost, will delight Uber's investors as it aims for its initial public offering next year.

Meanwhile, shares in Toyota spiked at reports of the deal. Not surprising. Many analysts think personal car ownership will drop dramatically when the self-driving, ride-sharing future is fully upon us - with major companies instead purchasing enormous fleets of vehicles. Toyota, then, may have just secured its biggest ever customer.

The deal extends an existing relationship with Toyota, and furthers Uber's strategy of developing autonomous driving technology through partnerships.

The US firm has also teamed up with Daimler, which hopes to own and operate its own self-driving cars on Uber's network.

On Monday, Uber said it planned to focus more on its electric scooter and bike business in future, and less on cars - despite the fact it could hurt profits.

Revenue from its taxi business is rising but the cost of expansion into new areas such as bike sharing and food delivery has meant losses have grown rapidly.

Sultan of Malaysian state of Johor visits Mongolia www.akipress.com

The Sultan of Malaysian state of Johor Mr Sultan Ibrahim Almarhum Sultan Iskandar will visit Mongolia. 
It is the Johor Sultan’s first official visit to Mongolia, which will not only enhance relations between Johor and Mongolia, but also explore investment opportunities for both sides, Bernama news agency reported.