Ulaanbaatar, August 30, 2023 /MONTSAME/. As part of his weekly series of meetings held every Monday morning, the Prime Minister of Mongolia met with representatives of the road sector on August 28, 2023.

At the onset of the Meeting, the Prime Minister introduced the “New Revival Policy.” Furthermore, he emphasized the importance of participants' input regarding the challenges within the road sector. He stated that the Monday morning meetings are designed to provide a platform for representatives from various sectors to share information and address their concerns.

The representatives from the road industry conveyed their pressing concerns to the Prime Minister. These included the need for stable investments in the sector, salary increases for employees, a reduction in social insurance premiums during winter months due to seasonal work, allocation of a budget for significant road repairs, and the establishment of a research and academic institution.

S. Gankhuyag, Chief Engineer of NBCC Company, said, “As a Board Member of the Highways Council, I am closely involved in the governance of our newly established council, which consists of 11 members. In Mongolia, there is a network of 23 road funds that generate revenue from eight different sources. Currently, only the earnings from tollbooth services are accessible for public scrutiny, while the remaining sources remain undisclosed. The annual requirement for road repairs and maintenance is 110 billion MNT. However, only half of this amount receives approval from the state budget. By introducing transparency to the revenue streams of the road fund, it becomes feasible to access the full 110 billion MNT.

The toll charges for using roads are the lowest in our country. The lack of funds is reflected in the maintenance quality. A significant road construction challenge we face is obtaining clearance for privately-owned land. With the intention of selling their land at higher prices, landowners demand inflated compensation rates. This impasse hinders reaching agreements with citizens and consequently delays our projects. Addressing the matter of land valuation requires standardization," highlighted Ch. Altanzaya, the Director of Khuvch Road Company.

S. Ochirbat, Director of ICT Sain Consulting Company, said that the issue of the road fund and road maintenance requires insulation from political influences. While politicians often emphasize the construction of roads, they frequently overlook the subsequent maintenance aspect. A viable solution to improve road maintenance lies in the targeted allocation of taxes collected from fuel importers into the road fund. Although this provision was outlined in previous legislation, governmental amendments have modified this practice. It is crucial to acknowledge that the ongoing issues and disputes are likely to persist until a change is made in this system.

L. Bakthuu, an Engineer at Classic Road LLC, pointed out the labor shortage within the road sector. He emphasized that a considerable number of young individuals are opting to seek job opportunities in South Korea instead of accepting the monthly salary of 4 million MNT offered by road companies in Mongolia.

At the conclusion of the Meeting, Prime Minister L. Oyun-Erdene assigned the Minister of Road and Transport Development with the responsibility of presenting the matter concerning the autonomous functioning of the road fund to the Cabinet. He additionally remarked, "Upon devising a resolution, we will address the allocation of the budget for significant repairs during the upcoming year's budget deliberations." Furthermore, he stated, "Companies that display negligence after securing tenders will be placed on a blacklist, rendering them ineligible for any government procurement opportunities." The Prime Minister underlined that companies adhering to their responsibilities will distinguish themselves.