Some railway projects to be implemented under ‘design-build-operate-transfer’ concession agreements

2022-03-17 10:28:45

Ulaanbaatar /MONTSAME/ ‘Artssuuri-Nariinsukhait-Shiveekhuren Railway’ and ‘Choibalsan-Khuut-Bichigt Railway’ special purpose companies will be established to implement the Artssuuri-Nariinsukhait-Shiveekhuren, Khuut-Choibalsan, and Khuut-Bichigt railway projects with the involvement of ‘Mongolian Railway' state-owned shareholding company.

At its regular meeting on March 16, the Cabinet ordered Minister of Road and Transport Development L.Khaltar to meet with and select from foreign and domestic investors interested in cooperating on the projects to be implemented under  ‘design-build-operate-transfer’ concession agreements.

The special purpose companies will be granted concessions, get relevant permissions to implement the projects and carry out the construction works in collaboration with the private sector with the selection of investors to fund and cooperate on the projects.

Mongolian Railway company will transport on the railway upon the completion of the construction and when the concession agreements expire, the ownership of the basic structure of the railway will be transferred to Mongolian Railway.