Cabinet approved to sign three concession agreements on road construction from Tavantolgoi during its regular session yesterday. Accordingly, a concession on establishing 250 km long heavy duty road in Tavantolgoi-Gashuunsukhait route with Tal Nutgiin Khugjiliin Zam LLC under “Design-build-use-transfer” terms. The company is obliged to construct the road within 2.5 years once the agreement enters into force and will transfer to the State after using for 12 years. The Government will not issue any financial support or guarantee for Tal Nutgiin Khugjliin Zam LLC in constructing the road. Cabinet views that the establishment of the road is expected to increase in and outflow of the coal export route, which accounts for 50-60 percent of total coal export, and reduce environmental impact. Furthermore, another concession on establishing 270 km road from the end of Tavantolgoi-BaruuNaran route to Tsagaan Del border checkpoint will be signed with Undrakh Gobi LLC under “Design-build-use-transfer” terms. As the previous agreement, the Government will not be providing financial support or guarantee. After discussing the process of Tavantolgoi-Khanbogd-Khangi route road, the Cabinet ordered the Director General of National Development Agency Bayarsaikhan Banzragch to establish a concession with Nako LLC as specified on the Parliament’s 73rd resolution of 2018.

Published Date:2018-11-01