Ulaanbaatar
Mongolia-China expo introduces upcoming mega-projects
Economy
Hohhot /MONTSAME/ During the 2nd Mongolia-China Expo taking place in Hohhot, Inner Mongolia, the National Development Agency (NDA) has introduced legal environments and investable mega-projects.
In accordance with the law on investment approved in 2013, both foreign and domestic investors were provided with tax and non-tax support impartially. For instance, Mongolia is providing four types of support depending on the investment volume and location of the sector. The officials mentioned that the investors could receive four certificates on stabilizing tax rate, such as VAT, corporate tax, customs tax and fee for exploitation of mineral resources, within 5-18 years. Also, it was highlighted that the investors could sign investment agreement which reflects conditions for stabilizing tax environment and regulatory and financial support with the Government as a legal guarantee when investing over MNT 500 billion.
General Director of the National Development Agency B.Bayarsaikhan said, “Mongolia received a total of USD 17 billion investment between 1990 and 2017. Around 50 percent of the 13,696 business entities with foreign investment, which is 6640, were from China. In the period, China made investments of USD 5.1 billion to Mongolia. Although Mongolian market is fairly small for business, it is geographically located between two giant markets. It is also considered Mongolia has strategic advantage for being close to major markets, such as Japan and the Republic of Korea. This unique location enables Mongolia to manufacture final products at low cost and export not only to the two neighbors but also to major markets in the world,”
The following is the list of priority projects with economic significance necessary for Mongolia presented at the forum:
Road and transport sector:
In accordance with the law on investment approved in 2013, both foreign and domestic investors were provided with tax and non-tax support impartially. For instance, Mongolia is providing four types of support depending on the investment volume and location of the sector. The officials mentioned that the investors could receive four certificates on stabilizing tax rate, such as VAT, corporate tax, customs tax and fee for exploitation of mineral resources, within 5-18 years. Also, it was highlighted that the investors could sign investment agreement which reflects conditions for stabilizing tax environment and regulatory and financial support with the Government as a legal guarantee when investing over MNT 500 billion.
General Director of the National Development Agency B.Bayarsaikhan said, “Mongolia received a total of USD 17 billion investment between 1990 and 2017. Around 50 percent of the 13,696 business entities with foreign investment, which is 6640, were from China. In the period, China made investments of USD 5.1 billion to Mongolia. Although Mongolian market is fairly small for business, it is geographically located between two giant markets. It is also considered Mongolia has strategic advantage for being close to major markets, such as Japan and the Republic of Korea. This unique location enables Mongolia to manufacture final products at low cost and export not only to the two neighbors but also to major markets in the world,”
The following is the list of priority projects with economic significance necessary for Mongolia presented at the forum:
Road and transport sector:
- Project on reconstructing Ulaanbaatar-Darkhan route 204.6 km auto road with a total cost of USD 766 million.
- Tavantolgoi-Gashuunsukhait route 250km highway project worth USD 220 million. The project will be implemented in Tsogtsetsii, Khanbogd, Bayan and Ovoo soums of Umnugobi aimag. Around 400-500 vehicles transit through this road and by reconstructing 250 km long auto road into a highway, the export cost of coal will reduce 8 US Dollar per ton and will be able to export up to 30 million tons annually.
- Baruun-Urt-Bichigt route 272 km long paved road project worth USD 81.5 million. The road will run from Baruun-Urt soum to Asgat and Erdenetsagaan soum of Sukhbaatar aimag, and reach Bichigt border checkpoint. The National Development Agency held a competition for consensus projects on August 16 to be held for two months.
Mining and heavy industry:
- Project on copper and molybdenum processing factory: the budget is set at USD one billion.
- Project on establishing Fluoride processing factory on the foundation of “Chuluut Tsagaan Del” mine, which will be implemented in Bayantsagaan soum of Tuv aimag. The project is estimated to earn back its full investment within two years with an annual production revenue of USD 16.6 million and pure profit of USD 5 million.
- Infrastructure project of Baganuur Industrial Technology Park.
- Copper processing factory project: Planned to be built in Khanbogd soum, Umnugobi aimag.
- Project of coal deep processing and synthetic gas producing factory
- Construction and urban planning sector:
- Project on developing Yarmag sports complex and new residential area.
- Implementing camping site project in the tourism sector, which will help develop regional area and improve its citizens’ livelihood.
Food, agriculture and light industry sector:
- Project on establishing Light Industrial and Technology Park in Emeelt. The project cost is USD 322.1 million.
- Edermatser cluster project, which aims to establish 285 milk delivery department, 50 small factories, five processing plant and an international standard-met laboratory in 108 soums of 10 aimags to support production of milk and milk products.
- Animal husbandry and a healthy meat export zone project worth USD 21 million.
- Waste Recycling Eco park project.
B.Tugsbilig
