Legal Framework for Domestic Companies Involved in Major Construction Projects Improved

Society
g.amrida@montsame.gov.mn
2025-05-20 11:05:41

Ulaanbaatar, May 20, 2025 /MONTSAME/. On May 16, 2025, the Governor’s Office of the Capital City of Mongolia and the Mongolian National Construction Association signed a Memorandum of Understanding on Cooperation in Improving the Legal and Regulatory Framework to enhance the participation of domestic construction companies in major infrastructure projects, support young engineers, and strengthen human resource development in the sector. 

Regarding the Memorandum, First Deputy Governor of the Capital City Davaadalai Tumendalai stated, “We have signed a Memorandum of Cooperation with the Mongolian National Construction Association outlining cooperation in four key areas:

  • Cooperate in introducing exemplary contracts, laws, and legal frameworks regarding construction company associations to Mongolia; 

  • Reforming the laws and regulations surrounding the country’s infrastructure sector. These reforms will create more opportunities for Mongolian companies to get involved in large-scale projects. Updating the financial and legal frameworks will enhance domestic manufacturers’ purchasing power and ability to implement projects;

  • Establishing a Memorandum of Understanding to support Mongolian construction workers involved in 24 major development projects and other ongoing infrastructure constructions in Ulaanbaatar, which would pave the way for future collaboration;

  • Collaborating with the Association on a public outreach campaign to promote engineering as a career, and encourage youth to pursue it; helping students take pride in their profession and contribute to national development, not only in Ulaanbaatar but throughout Mongolia. 

We have also submitted a proposal to Parliament to amend the Law on Procurement of Goods, Works, and Services with State and Local Funds. Preparations are also underway to revise and update legal frameworks related to infrastructure, including those concerning railways, roads, construction, and energy. These revisions are being drafted to align with global standards, as Mongolia currently lacks a legal environment conducive to the implementation of large-scale projects. In light of this, we recognize the urgent need to modernize our legal framework and adopt innovative approaches to infrastructure development.”

President of the Mongolian National Construction Association N. Bayarsaikhan emphasized, “In recent years, housing construction in Mongolia has progressed rapidly in response to growing market demand. According to statistics, over 20,000 housing units were commissioned in the past year alone. The scale of this development is expected to grow even further. It is therefore essential to ensure that these economic and social benefits are retained within the country by involving domestic companies in the process.

Our construction sector is primarily driven by private companies, which means their input, initiatives, and solutions are crucial. The Mongolian National Construction Association has long been working to address these issues. With the aim of further improving the sector, we are pleased to have signed this Memorandum of Cooperation.”