Law on Public-Private Partnership Comes into Force www.montsame.mn
The Law on Public-Private Partnership, previously regulated by the Law on Concession, came into force on January 1, 2024.
According to Minister of Finance Javkhlan Bold, the main goal of the Law on Public-Private Partnership is that the government will not compete with the private sector, but will provide long-term support to the implementation of infrastructure projects.
Deputy Minister of Economy and Development Tuvdendorj Gantumur highlighted multiple gains as a result of the implementation of the Law on Public-Private Partnership. These include:
· Promotion of competition in the public services sector by attracting the private sector,
· Introduction of financial instruments to meet growing needs,
· Reduction of the budget burden in the long term
"To improve Mongolia's economic competitiveness in the world, many projects aimed at improving and accelerating the development of infrastructure such as power plants, roads, railways, and public transport are included in Mongolia's medium-term development policy document "New Revival Policy." It requires improving the business environment and state potential through approving new laws and revising or amending laws. In this context the Law on Public-Private Partnership was approved, ” stated Deputy Minister G. Tuvdendorj.
As Deputy Minister G. Tuvdendorj stressed by eliminating violations of financial discipline, not properly regulated in the Law on Concession, the Law on Public-Private Partnership brings the legislative framework into line with international standards.
Under the Law on Public-Private Partnership, government organizations will not compete with private sector organizations.
Under the Public-Private Partnership Law, the private sector will be supported in 7 areas and the government's actions must be clear, transparent, and concise. Deputy Minister G. Tuvdendorj emphasized that by signing a long-term contract the government guarantees the fulfillment of all obligations under the contract.
Under the Law on Public-Private Partnership, the government will support the projects that have completed the feasibility study and meet the high requirements of the government.
The Public-Private Partnership Law regulates:
- providing land for private construction and investment
- solving price issues, especially price liberalization in the energy and civil aviation sectors
- development based on economic and business principles
- providing opportunities to attract private sector investment
Published Date:2024-01-06