Concession agreement to be established for Zuunbayan-Khangi railway project www.montsame.mn
At today's Cabinet meeting, the State Procurement Agency was authorized to conclude a concession agreement for the Zuunbayan-Khangi railway project with the project implementing entity.
Minister of Road and Transport Development L.Khaltar was assigned to take immediate measures to resolve the issue of giving licenses related to the implementation of the concession project in accordance with the relevant law and regulations.
Resolution No. 28 of the Government of Mongolia dated January 12, 2022, tasked to conclude a direct contract for the Zuunbayan-Khangi railway project in accordance with the Concession Law.
The basic structure of the Zuunbayan-Khangi railway will start at the Zuunbayan station of the Ulaanbaatar Railway in Zuunbayan bagh, Sainshand soum, Dornogovi aimag, and run to the Hangi port, connecting it to the Chinese port of Mandal.
With the commissioning of the Zuunbayan-Khangi railway, the transportation distance from the Yeruu station of the Ulaanbaatar Railway to the Baotou station in China will be shortened from 1,722 km to 1,404 km by 306 km and the transportation cost of iron ore will be reduced by USD 4-8. In addition to making Mongolia's iron ore competitive with Chinese and Australian iron ore prices, the project is significant to increase exports, imports, and transit freight traffic, create new international railway crossings, and create more than 1,600 jobs.
Published Date:2022-03-09