economic outlook & investment opportunities in mongolia · pdf filechoir fez zamiin uud...

BEKHBAT SODNOM

Director General

Department of Innovation and Public Private Partnership

Ministry of Economic Development

Tokyo, Japan

February 3, 2014

Economic Outlook & PPP Projects

in Mongolia


Economic overview

PPP & Concessions

Content


Ministry of Economic development was established to regulate among

others:

–Economic development policy and planning

–Integrated sectoral policy & regulations

–Foreign economic cooperation, ODA

–Domestic and foreign trade

–Investment policy and implementation

–Public Private Partnership & Concessions

–Innovation & High technology

–Free Trade Zones


DEPARTMENT OF INNOVATION AND PUBLIC PRIVATE

PARTNERSHIP

To develop and formulate national policies towards the innovation system, free zones and public private partnerships, to provide a policy guidance and regulate the implementation.

• DIVISION OF INNOVATION AND HIGH TECHNOLOGY

• DIVISION OF FREE ZONES

• DIVISION OF CONCESSIONS

Free Zones

Tsagaan Nuur FTZ Altan Bulag FTZ

Choir FEZ

Zamiin Uud FEZ

Economic Overview

• One of the fastest growing

economies

• Mining sector extension and

investment to the

infrastructure development

• Oyu Tolgoi & Tavan Tolgoi

mining field operation

• $1,5B bond issued by the

Government of Mongolia

Our economic growth was increased 6 to 10% in the past years,

excluding the economic growth in 2011, 2012 which has

increased to up to 17.5% and 12.3% respectfully

2013-2016 economic growth is expected to be around 16.2%

including the dramatic growth of industrial sector and growth of

services and agriculture sectors

The Government of Mongolia is planning to implement larger

scale development projects funded by the Government bonds:

such as establishment of industries:

construction materials;

concentrated minerals and other commodities;

and improvement of infrastructure.

Economic Growth

PPP & Concessions

Growing investment needs in infrastructure in line with the

Government priority projects

Accelerate economic growth by leveraging the financial

resources, technology and management know-how of private

sector

To liberalize the economy further through the more

participation of private sector in government investment plans

PPP legal framework in place

State Policy on PPP

Adopted by the Parliament in 2009 in order to promote private

sector participation in all areas of national economy

The Law on Concession

Adopted by the Parliament in 2010, which defines all

processes of PPP implementation. The Government has also

approved several regulations regarding the detailed bidding

process and evaluation of bid proposals.

PPP Project List

In 2010, the Government approved the list of 121 concession

projects. The revised list is approved in Sep 2013, which

consists of 50 projects.

What is in the pipeline?

Major infrastructure projects such as Power plants, Paved

roads and Highways

The PPP project pipeline is updated with more bankable and

the Government priority projects

It is important to structure any investment projects with

proper risk allocation between the Public and Private sectors

and we will implement PPP program according to

international best practices

The pipeline consists of 50s projects submitted by line

ministries and 4 projects submitted by private sector

PPP projects by sectors

Infrastructure – 7 Energy -12

Road and transportation – 17 Environment – 4

Pipeline transport – 2 Education - 2

Airport – 2 Health – 1

Culture and sport - 3

What is in the pipeline?

PPP projects by types

BOT – 8 BT – 19

BOO – 11 OTHER - 12

Ongoing projects

“Nariinsukhait – Shiveekhuren” road project

• Project description: 50KM MINING ROAD PROJECT

• Concession type: BOT

• Duration: 17 YEARS

• Total cost: MNT 88.0 BLN

• Concessionaire: “RDCC” LLC

• Location: UMNUGOBI AIMAG

Ongoing projects

“Telmen power plant” project

• Project description: 100MWT POWER PLANT PROJECT



• Total cost: $183.0 MLN

• Concessionaire: “New Asia Group” LLC

• Location: ZAVKHAN AIMAG

Approved projects

“Altanbulag-Ulaanbaatar-Zamyn-Uud highway” project

• Project description: 997 KM HIGHWAY PROJECT



• Total cost: $5.0 BLN

• Concessionaire:

• “CHINGGIS LAND DEVELOPMENT GROUP” LLC

• Location: DORNOGOBI, GOBISUMBER, TUV, DARKHAN,

BULGAN, SELENCE AIMAGS

“Altanbulag-Ulaanbaatar-Zamyn-Uud highway”

Approved projects

“Tuul-Songino power plant” project

• Project description: USE THE TREATED WASTE WATER

FOR 100 MW HYDRO CHARGED POWER PLANT



• Total cost: RMB 1.0 BLN

• Concessionaire: “MORIT IMPEX” LLC

• Location: ULAANBAATAR,

SONGINOKHAIRKHAN DISTRICT

Projects at the negotiation stage

“Tavantolgoi-Khanbogd-Hangi” road project

• Project description: 435 KM MINING ROAD PROJECT



• Total cost: MNT 440.0 BLN

• Preferred bidder: “MCCC” LLC

• Location: UMNUGOBI, DORNOGOBI AIMAG

Projects at the negotiation stage

POWER PLANT #5” (CHP5) project

• Project description: 450 MW POWER PLANT PROJECT




• Preferred bidder:

“GDF SUEZ, SOJITZ, POSCO,

NEWCOM” LLC

• Location: ULAANBAATAR, BAYANZURKH DISTRICT

Projects in the pipeline

Chandgana power plant

• Project description: 600 MW POWER PLANT NEAR

CHANDGANA COAL DEPOSIT, KHENTII AIMAG.

• Concession type: BUILD-OPERATE-TRANSFER



• Location: MURUN SOUM,

KHENTII AIMAG


Dalanzadgad airport

• Project description: REDESIGN AND BUILD EXISTING

AIRPORT AT DALANZADGAD.

• Concession type: DESIGN-BUILD-OPERATE-TRANSFER


• Total cost:

• Location: DALANZADGAD SUM,

UMNUGOBI AIMAG


International horse racing stadium

• Project description: BUILD HORSE RACING VENUES MEETS

INTERNATIONAL STANDARD

• Concession type: BUILD-OWN-OPERATE

• Duration:

• Total cost: $100 MLN

• Location: SELENGE SUM,

TUV AIMAG

Thank you


Web: www.med.gov.mn

Email: [email protected]

[email protected]

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