Building Erdenet-Ovoot rail structure approval grantedPolitics
Ulaanbaatar /MONTSAME/ At Monday’s regular meeting, the cabinet decided to grant five-year approval to Northern Railways LLC, a subsidiary of Australia-based Aspire Mining Ltd., for building the basic structure of 581 km Erdenet-Ovoot railway.
Monitoring over the concession agreement project was assigned to Minister of Road and Transport M.Zorigt. The project on building basic structure of railway, connecting Erdenet city of Orkhon aimag and strategic Ovoot coal deposit in Tsetserleg soum of Khovsgol aimag, has been added to the government concession list, in frames of the realization of зarliament’s decision on creating a 770km rail line to connect Erdenet and Artssuuri port. The new rail line is to commercialize the mineral deposits located in northern region of Mongolia and to enhance railway access to Russia.
Erdenet-Ovoot railway is planned to have one main station and eight junctions and is estimated to have 22.2 million tons of freight per year and 16 pairs of trains per day capacity. Northern Railways is building the basic structure on “design-build-operate-transfer” (BOT) terms, with 30-year concession agreement.