Ulaanbaatar
Law on Public-Private Partnership Comes into Force
Economy
Ulaanbaatar, January 4, 2024 /MONTSAME/. The Law on Public-Private Partnership, previously regulated by the Law on Concession, came into force on January 1, 2024.
According to Minister of Finance
Javkhlan Bold, the main goal of the Law on Public-Private Partnership is that
the government will not compete with the private sector, but will provide
long-term support to the implementation of infrastructure projects.
Deputy Minister of Economy and
Development Tuvdendorj Gantumur highlighted multiple gains as a result of the
implementation of the Law on Public-Private Partnership. These include:
- · Promotion
of competition in the public services sector by attracting the private sector,
- · Introduction
of financial instruments to meet growing needs,
- · Reduction
of the budget burden in the long term
"To improve Mongolia's
economic competitiveness in the world, many projects aimed at improving and
accelerating the development of infrastructure such as power plants, roads,
railways, and public transport are included in Mongolia's medium-term
development policy document "New Revival Policy." It requires improving
the business environment and state potential through approving new laws and revising
or amending laws. In this context the Law on Public-Private Partnership was approved,
” stated Deputy Minister G. Tuvdendorj.
As Deputy Minister G. Tuvdendorj
stressed by eliminating violations of financial discipline, not properly
regulated in the Law on Concession, the Law on Public-Private Partnership
brings the legislative framework into line with international standards.
Under the Law on Public-Private Partnership, government organizations will
not compete with private sector organizations.
Under the Public-Private
Partnership Law, the private sector will be supported in 7 areas and the
government's actions must be clear, transparent, and concise. Deputy Minister
G. Tuvdendorj emphasized that by signing a long-term contract the government guarantees
the fulfillment of all obligations under the contract.
Under the Law on Public-Private
Partnership, the government will support the projects that have completed the
feasibility study and meet the high requirements of the government.
The Public-Private Partnership Law regulates:
- providing land for private
construction and investment
-special permit issuance
- solving price issues, especially
price liberalization in the energy and civil aviation sectors
- development based on economic and
business principles
- providing opportunities to attract private sector investment
