NEXI provides overseas investment insurance for Mongolia’s new airport www.news.mn
Nippon Export and Investment Insurance (NEXI) is providing overseas investment insurance for the new airport in Ulaanbaatar. A joint venture has been established to run the Chinggis Khaan International Airport for period of 15 years under a concession agreement with New Ulaanbaatar International Airport LLC. This is first time that the operation of a Mongolian airport has been entrusted to a private enterprise.
The overseas investment insurance provided by NEXI will cover political risk on the equity investment of the four Japanese partners for 15 years. According to NEXI, Mongolia is foreseeing medium- to long- term growth predominantly in its capital of Ulaanbaatar, which serves as the county’s political, economic and commercial core. The Mongolian government considers the new airport a vital infrastructure project. It is the hub for passengers and cargo transportation in northeast Asia, and is expected to contribute to Mongolia’s development, particularly in the tourism and distribution industries.
The airport, located in Tuv province to the south of Ulaanbaatar city was opened on 4 July. Following an opening ceremony, the first flight from Ulaanbaatar to Tokyo’s Narita International Airport took off.
Support for the new airport is in line with the Infrastructure System Overseas Promotion Strategy 2025 of the Japanese government. This is the first project with the assistance of the Ministry of Land, Infrastructure, Transport and Tourism in which the Narita International Airport Corporation will be operating an airport located outside of Japan.
Published Date:2021-08-05