News Headlines

MNT35 billion spent for free trade zones from state budget


2017-04-20 13:04:02
Image
Ulaanbaatar /MONTSAME/ A total of MNT35 billion has been spent for three free economic zones of Altanbulag, Zamyn-Uud and Tsagaannuur since their establishment, said Deputy Prime Minister U. Khurelsukh. Yesterday, April 19, the Deputy PM made a report on the activities of the free zones and future perspective at the Parliamentary Standing Committee on Economics. 77 per cent of the funding has been invested for infrastructure development of the Altanbulag free zone, which is running regular activities.
With a soft loan from the Chinese Government, infrastructure improvement project of Zamyn-Uud has been implemented since 2010, and in the framework of the project,  facilities of heating, electricity, water supply, sewer system, roads and communication are being newly built or renovated. The project costs USD58.8 million and the project performance is 95 percent.
A private sector investment has started to be made in the Altanbulag free zone, as legal environment has been established to make investment partly in the zone, according to the order No.48 by the Minister of Industry and Trade in 2006. A total of MNT6.2 billion has been invested from the private sector for the Altanbulag free zone, while private sector investment has not been made in Zamiin Uud and Tsagaannuur free zones.
13 companies are operating in the Altanbulag free zone among 49 companies, which made investments and 16 companies have paid MNT24.6 million for land fee last year. The Zamiin-Uud free zone has 13 companies registered and they got land certificates to use 23.6 ha of land. The Zamiin-Uud free zone allotted MNT319 million to the state budget as land fee in 2015 and 2016, while the Tsagaannuur free zone allotted MNT68 million in 2016 for land fee of 5 companies for 115 ha of land.
Deputy PM U.Khurelsukh also introduced planned works to intensify the activities of free zones to encourage domestic and foreign investment. He underlined the necessity to start a joint establishment of free zone with bordering countries. The  Deputy Prime Minister's Office and Ministry of Foreign Affairs have developed necessary studies and they are holding talks with the People’s Republic of China to establish a joint free zone.

B.Ooluun