Ulaanbaatar
Standing committee consults intergov’t agreement on financial cooperation with Hungary
PoliticsUlaanbaatar /MONTSAME/ At its meeting on Wednesday, the parliamentary Standing committee on economy consulted an intergovernmental agreement on financial cooperation to be established with Hungary.
An agreement on a general programme on the financial cooperation was established on January 13 of 2010 between the governments of Mongolia and Hungary and was ratified by our parliament on May 6 of that year.
This programme says that a project would be implemented with a 25 million US dollars soft loan to renovate the “Biokombinat” state-run medicine factory which was established in 1973 with Hungary's technical and economic assistance. The loan’s repayment term is 17.5 years, a term of completing the basic payment is four years, said D.Zorigt MP, the Minister of Energy.
After the establishment of the agreement in 2010, Mongolia’s former Ministry of Food, Agriculture and Light Industry organized a tender for realizing the project in two phases, but this tender was annulled because a selected company did not provide the advance and a performance guarantee.
At the 5th meeting of the Mongolia-Hungary intergovernmental commission held September 23 of 2015, the sides reconsidered an issue of realizing the project with the soft-loan from the Hungarian side. The countries concurred to co-implement the project on the same terms of the general programme on financial cooperation which was established in 2010.
After consulting the agreement, the Standing committee decided to convey its proposals and conclusions to the Standing committee on security and foreign policy over the agreement.
