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BCM HIGHLIGHT
MEETING BETWEEN THE EXECUTIVES OF THE BUSINESS COUNCIL OF MONGOLIA AND THE DEVELOPMENT BANK OF MONGOLIA
The Business Council of Mongolia’s (BCM) Board of Directors and Development Bank authorities met on March 25 and discussed possible future cooperation.
Board of Directors expressed their views on the possibility of further cooperation between the private sector and the Development Bank and discussed further cooperation with the Development Bank in the framework of the New Revival Policy and other projects and programs. In addition, it was agreed that the Development Bank should develop and improve its governance, strengthen its human resources, and should have sufficient financial resources to successfully implement major projects and programs.
In the near future, BCM plan to hold its Monthly Meeting in cooperation with the Development Bank and other relevant organizations on a wider range of topics. The meeting will also discuss and bring the views of experts and professionals on the challenges facing the Development Bank, and international experiences that overcome similar issues.
Source: BCM
ECONOMY
MONGOLIA CUTS ECONOMIC GROWTH ESTIMATE TO 2.6 PCT IN 2022
Mongolia cut its forecast for gross domestic product (GDP) growth in 2022 to 2.6 percent from 5.1 percent estimated early this year, local media reported on Friday, citing the country's central bank.
"The production of industries that use imported raw materials is expected to slow significantly compared to the previous year. In addition to declining mining exports, output is also declining," the Bank of Mongolia said, noting that these factors have contributed to the reduction of the 2022 economic outlook.
Mongolia's economy has been largely dependent on its export-oriented mining sector.
The Asian country's GDP expanded 1.4 percent year on year in 2021, according to the National Statistics Office.
Source: Xinhua
PREPARATIONS COMPLETED TO START CONSTRUCTION OF ERDENEBUREN HPP
The western region of Mongolia consumes 35 MW of power annually, while the Erdeneburen HPP will have a capacity to provide 90 MW. The Energy Minister pointed out at the beginning of the presentation that the plant is projected to have three times more capacity than the western region’s annual consumption.
He said, "With the commissioning of this plant, we will be able to supply domestic green energy to the western region sustainably. All the necessary preparation works to commence the construction phase are finished. The only challenge we are facing right now is the relocation of the 1,251 farmers and herders or 270 households who currently reside in the area. Under the effective law, they will only be compensated based on the value of their fixed assets. Therefore, the government is considering increasing the compensation. The final decision will be made at the next week’s meeting and in consultation with the Prime Minister”.
Source: Montsame
MEETING OF THE FINANCIAL STABILITY COUNCIL
An irregular meeting of the Financial Stability Council was held in the first quarter of 2022. The meeting was chaired by B. Javkhlan (Minister of Finance) and attended by D. Bayarsaikhan (Chairman, Financial Regulatory Commission), B. Lhagvasuren (Governor, Bank of Mongolia), S. Baatarsuren (CEO, Deposit Insurance Corporation), and other relevant experts.
In the meeting, J. Ganbayar (Head, Macro-economic Policy Division, Ministry of Finance) presented ‘Impact of Russian and Ukrainian military operations on the economy of our country’. B. Bayardavaa (Director, Monetary Policy Department, Bank of Mongolia) talked about ‘Mongolia's economic outlook and proposals for some measures’. Thereafter, E. Anar (Director, Settlement Department, Bank of Mongolia) introduced the ‘Settlement sanctions imposed on Russia from other countries’. Afterwards, Financial Stability Council members discussed further policy measures and decided to submit relevant information to the National Security Council of Mongolia.
Source: FRC
STRENGTHENING MONGOLIA'S FOOD SECURITY POST-COVID-19
The coronavirus disease (COVID-19) pandemic has disrupted the global and local food supply chains. In Mongolia, rising food prices, food shortages, inadequate storage facilities, and limited quality logistical resources have put primary producers, processors, importers, wholesalers, retailers, consumers, and households at a disadvantage.
To support the government’s response plan, the Asian Development Bank (ADB) conducted a study to understand the extent of the COVID-19 disrupted food supply chains and impacted food security. A total of 362 households, 56 retailers, 21 wholesalers, and 35 other supply chain actors were surveyed between June and August 2021. This article shares the findings of this study and provides insights on how policy makers can build a more resilient food supply chain in Mongolia.
High international market prices affected imported goods in late 2020 and beyond. On average, national food prices increased by 21% from January 2020 to October 2021.
Source: Development Asia
MONGOLIA’S IMPORT FROM INDIA REACHES USD 30 MILLION
Mongolia-India cooperation meeting themed ‘Expanding 3T Horizons for India and Mongolia – Trade-Technology-Tourism’ was held at the Mongolian National Chamber of Commerce and Industry (MNCCI) on March 25, 2022
The meeting was attended by Ambassador Extraordinary and Plenipotentiary of the Republic of India to Mongolia M.P. Singh, former Ambassador Extraordinary and Plenipotentiary of Mongolia to the Republic of India G.Ganbold, other relevant officials, and business representatives.
In his opening remarks delivered at the meeting, MNCCI President O.Amartuvshin emphasized the great potential that the two countries have for trade and economic cooperation in the fields of oil, tourism, pharmaceuticals, and information technology.
Mongolia imports a variety of medicine, pharmaceuticals, animal vaccines, tea, sugar, telecommunications equipment, and trucks from India. The import reached USD 30 million last year. On the other hand, Mongolia mainly exports minerals such as coking coal, fluorspar, copper concentrate, iron ore, and uranium, which totaled about USD 200 thousand in 2021.
Source: Montsame
REVIVAL OF URBAN AND RURAL AREAS: ‘NEW RING ROAD’ TO BE ESTABLISHED
During the discussion on ‘Revival of Urban and Rural Areas’ held ahead of the Mongolian Economic Forum 2022, Governor of the Capital City and the Mayor of Ulaanbaatar D. Sumiyabazar announced that a total of 26 measures in nine types of operations are planned to be implemented in Ulaanbaatar city.
These include as follows:
- With the expansion and renovation works of main road network, the traffic congestion index will be reduced by 15-20 percent and road capacity will be increased by 35 percent.
- With the introduction of the unified smart system for traffic management and control, it will become possible to create a real-time information system of the traffic situation.
- The introduction of a new type of high-capacity public transport will increase the number of passengers by 30 percent compared to 2020 and reduce traffic movement by 50,000-60,000 vehicles.
- Legal framework for tax incentives will be improved for entities that have taken measures to reduce congestion.
Source: Montsame
IMPROVING THE POLICY FRAMEWORK FOR FINANCIAL ASSURANCE FOR MINE CLOSURE IN MONGOLIA - PAPER
Highlights
•The mining sector is the main pillar of Mongolia's economy, accounting for over 20% of its GDP.
•The existing mining legal framework in Mongolia is weak with no requirements for mine closure plans and financial assurance.
•The study is the first one, attempting to assess financial assurance for mine closure in Mongolia through a case study.
•The total funds required to rehabilitate the existing areas affected by mining will be a heavy burden on country's economy in the future.
•If we assume that 1% of the total area under mining licenses will be exploited, almost double of Mongolia's GDP in 2019 will be required to rehabilitate this area.
Source: Science Direct
AS COUNTRY FIGHTS COVID-19, HERDERS FACE ANOTHER VIRUS - EDITORIAL
Herders call it the COVID-19 of livestock. It spreads swiftly, through dust kicked up by cattle hooves and car tires, and through the meat and blood of livestock. In the first two years of the pandemic, its spread abated, but now, Mongolian herders say, foot-and-mouth disease is back with a vengeance.
On an early February morning in Orkhon province, Togtokh Buduukhai stepped out of his yurt and peered into the distance, shielding his eyes with his hand. Then he hurried toward the veterinarian examining his animals and picked up a 2-year-old calf on the way. “This one is a little thin and unable to gain weight,” Togtokh said. “Please test it.”
Foot-and-mouth disease is common in Mongolia. The highly contagious virus, which affects cloven-hoofed animals, induces a high fever that can last up to six days, and blisters on the mouth and feet of infected animals.
Source: Global Press Journal
CAN NATIONWIDE EARLY SCREENING ACHIEVE DESIRED RESULTS? - EDITORIAL
The government of Mongolia plans to conduct a nationwide early screening, testing, and diagnosis of common communicable and non-communicable diseases based on age, gender and health risks from May 1. This has created expectations among citizens that they will be covered by free medical examinations. The biggest concern is whether the program will be implemented efficiently and bring enormous socioeconomic benefits to society as anticipated.
This is not the first time that an early screening program has been implemented in Mongolia. In 2018, the country covered its citizens with preventive medical examinations with funding from the Health Insurance Fund. However, it failed to meet even 10 percent of the target. In other words, citizens’ participation was very low. In this year’s state budget, 60.8 billion MNT has been allocated from the Health Insurance Fund for the nationwide program.
Source: The UB Post
POLITICS
L.OYUN-ERDENE: THE GOVERNMENT WILL FULLY SUPPORT INSTRUMENTS TO INCREASE GREEN FINANCING
L. Oyun-Erdene, Prime Minister and Chairman of the National Committee in charge of climate change and reduction of desertification, gave a keynote speech at the opening of the panel discussion ‘Green Finance-Regional Forum’ being organized as part of the series of discussions ahead of the Mongolian Economic Forum 2022.
In his speech, PM Oyun-Erdene expressed confidence that the forum would approve the national roadmap for sustainable financing within the framework of ‘New Revival Policy’, issue final recommendations for presentation at the plenary session of the Mongolian Economic Forum 2022, and play an important role in elevating the public-private partnerships against climate change to a new level.
He stressed, “In Mongolia, the frequency of natural disasters has doubled, 76 percent of the total territory has been struck by desertification, and 90 percent of pastures are at the risk of desertification. In addition, the country is among the 20 countries with the lowest water resources. The indication is worsening every year.”
Source: Montsame
See also: Green Financing Regional Forum starts at State House
U. Khurelsukh: Mongolia will reduce greenhouse gas emissions by 22.7 percent by 2030
USD 6.3 billion to be required to reduce greenhouse gas emissions
Call for collaboration in mitigating climate change and combating desertification
UNDP Associate Administrator Keynote Address at Green Finance Regional Forum
INTRODUCTION TO MONGOLIA’S LAW ON DIGITAL SIGNATURES
A newly revised Law on Electronic Signatures was adopted in December 2021 and will come into force on May 1st, 2022.
The Revised Law distinguishes between electronic signatures and digital signatures. The Law provides that an electronic signature shall be used for electronic information that has been converted from paper form to electronic form by means of an information system, or created, sent, received, stored or accessed in an electronic environment (except for those classified as state secrets).
Generally digital signature is characterized by a unique feature that is in digital form like fingerprint that is embedded in a document. The Law provides that digital signature is a form of an electronic signature, and is an information that is encrypted and converted into digital signature by using private key and can be verified and validated by using a public key. With regards to legal entities, pursuant to the Law legal entities shall use digital seals, which must meet the requirements for digital signatures.
Source: LehmanLaw Mongolia
UNITED NATIONS AND ASIAN DEVELOPMENT BANK ONBOARD "NEW REVIVAL"
The ADB has declared public support for the government’s “New Revival” policy. The Asian Development Bank (ADB) has assisted in providing Mongolia over USD 3.9 billion in financing over the years, supporting development in key sectors across the national economy. Recently, Mongolia was paid a visit from country coordinator for the ADB Pavit Ramachandran, along with an ADB Senior Urban Development Specialist. As part of assistance with the “New Revival” program, the ADB is expected to provide additional funding for public transportation upgrades, an urban revival program, a rural development program, as well as green development initiatives. The rural development program is planned to provide new funding for small and medium local businesses in rural areas of the country. There are also plans to move forward with development on a “satellite city” outside of the capital Ulaanbaatar in hopes of relieving urban congestion in Mongolia’s largest city.
Source: LehmanLaw Mongolia
LATEST ON COVID-19 IN MONGOLIA
Below are headlines from the past week concerning Covid-19 in Mongolia:
Source: Various
NINE MEMBERS OF THE MPP TO BE INVESTIGATED
D.Amarbayasgalan, the General Secretary of the Mongolian People’s Party, said that nine members of the MPP have been ordered to be investigated by law enforcement agencies.
On March 23, the General Investigation Committee of the Mongolian People's Party held a meeting to discuss the issues of the members regarding the Development Bank loan.
The resolution obliges the following members involved in the Development Bank loan to submit their request to the law enforcement agencies to have their guilt investigated by April 10. Herein:
- S.Byambatsogt, Member of Parliament
- Kh.Gankhuyag, Member of Parliament
- G.Amartuvshin, Member of Parliament
- G.Damdinnyam, Member of Parliament
- Ch.Undram, Member of Parliament
- M.Bilegt, Former Member of Parliament
- A.Sukhbat, Former Member of Parliament
- Ts. Garamjav, Former Member of Parliament
- Sh.Lkhamsuren, Former Deputy Minister
Members will be suspended from the party if they do not apply for legal investigation by April 10. If convicted, the member will be expelled from the party in accordance with party rules.
Source: GoGo News
AUSTRALIA: NEW WORK AND HOLIDAY MAKER ARRANGEMENT WITH MONGOLIA
A new Work and Holiday Maker (WHM) arrangement will allow up to 100 young Mongolians and 100 young Australians each year to enjoy a 12-month holiday in each other’s country, during which they may undertake short-term work and study.
Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs, Alex Hawke, signed WHM agreements with Mongolia and Brazil today, the first since the COVID-19 pandemic began.
Working holiday makers support regional Australia by providing local businesses with access to more workers. Working holiday makers often fill labour gaps in agriculture, hospitality and healthcare, supporting critical industries and contributing to the Australian economy.
“This reciprocal visa arrangement with Mongolia highlights the vibrant relationship between our two countries,” Minister Hawke said.
“Australia and Mongolia have much in common. We share democratic values, cooperate on issues such as regional security—and we are committed to further developing our people-to-people links,” he said.
Source: Ministry of Home Affairs, Montsame
MONGOLIA ESTABLISHES FUND FOR NATIONAL TREE-PLANTING CAMPAIGN
Mongolia has established a fund to support its national tree-planting campaign, local media reported on Thursday, citing the presidential press office.
The nationwide campaign to plant at least 1 billion trees by 2030 was officially launched last year as Mongolian President Ukhnaa Khurelsukh told the United Nations General Assembly that the country aims to combat climate change and desertification.
The purpose of the fund is to create a structure and system to provide sustainable financing for afforestation, tree planting and other environmental activities, and member organizations of the Mongolian Bankers Association are expected to donate at least 2 billion Mongolian Tugriks (679,000 U.S. dollars) annually to the fund.
In addition, green loans in the banking sector will be increased to 10 percent by 2030, according to the presidential press office.
Forest only covers 7.9 percent of Mongolia's 1,564,116 square km of land currently.
Source: Xinhua, Montsame
See also: D.Sumiyabazar: Public participation in tree planting is vital
KYRGYZSTAN INTENSIFIES CO-OP WITH MONGOLIA IN ALL AREAS, INCLUDING ROAD AND TRANSPORT
The 4th meeting of the Mongolian-Kyrgyz Intergovernmental Сommission on trade-economic, scientific-technical and cultural cooperation was held in Ulan Bator on March 28-29, the press service of the Ministry of Transport of Kyrgyzstan said, Trend reports with reference to Kabar.
The meeting was chaired by Chairman of the Mongolian section of the Intergovernmental Commission, Minister of Road Development and Transport Haltar Luvsan and Chairman of the Kyrgyz section, Minister of Transport and Communications of Kyrgyzstan Erkinbek Osoev.
During the meeting, the sides agreed to intensify cooperation in trade and economic, investment, road and transport, agricultural, tourism, cultural and scientific and humanitarian spheres as part of expanding friendly relations and cooperation between Mongolia and Kyrgyzstan.
They noted the importance of improving transport and logistics conditions to stimulate trade and investment, and noted that the direct flights opened this month will be an important impetus for cooperation.
Source: Trend.az
See also: Investment and mining relations with Kyrgyzstan to be developed
CITIZEN TRAFFIC THROUGH MONGOLIAN AND RUSSIAN BORDER CROSSINGS OPENED
The Government of the Russian Federation approved Resolution #5656 on March 29, and all Mongolian-Russian border crossings are open to citizen traffic.
The Embassy of the Russian Federation in Mongolia announced this in a written note №36 / ko on March 30, 2022 at 11:00 am. Therefore, citizens are able to travel through all road ports of the two countries starting from 12:00 PM, March 30.
The Russian Embassy in Ulaanbaatar has announced that Mongolian citizens traveling to Russia will be allowed to cross the state border if they have a PCR test which was made within the last 48 hours.
Source: GoGo News, Montsame
POLICIES TO REDUCE TRAFFIC CONGESTION IN ULAANBAATAR DISCUSSED
Ahead of the Mongolian Economic Forum 2022, discussions are taking place on six main topics for the ‘New Revival Policy’ being implemented by the Government of Mongolia.
On March 25, a discussion on the topic ‘Revival of Urban and Rural Areas’ was organized and the discussion touched on the policies to reduce traffic congestion in Ulaanbaatar city.
The discussion was moderated by Deputy Director of Bloomberg TV B.Batmanlai, while the panelists were Member of the State Great Khural E.Bat-Amgalan, Deputy Minister of Road and Transport Development J.Bat-Erdene, Capital City Road and Transport Projects Manager B.Odsuren, JICA Representative Taiga Koizumi, Consultant of Shunkhlai group B.Byambasaikhan, and Architect Z.Tuya.
Deputy Minister of Road and Transport Development J.Bat-Erdene: “Traffic congestion depends on many factors. It is very important to ensure the coherence of activities, goals, and objectives related to traffic congestion. In other words, it is important to align projects and activities in the capital city with government policies”.
Source: Montsame
STEFANIE BURRI: “AN ALL-INCLUSIVE APPROACH IS CRUCIAL FOR PEACE AND SUSTAINABLE GROWTH” - INTERVIEW
Mrs. Stefanie Burri, Head of Swiss Cooperation in Mongolia, was interviewed to discuss about SDC’s activities including its support to combat gender-based violence in Mongolia.
Welcome, Mrs. Stefanie Burri, to our MONTSAME Agency. We invite you to discuss the very important topic of gender equality in Mongolia.
-Thank you very much for inviting me to discuss the important topic of gender equality and inclusion and how Switzerland addresses these issues globally and in Mongolia. The Swiss Agency for Development and Cooperation (SDC) joined this year’s Equal Respect campaign launched by the National Agency for Gender Equality and UNFPA. This campaign combines the observance of International Women’s Day with Mongolian Soldiers Day. I want to take this opportunity to congratulate all the girls, boys, women, and men of Mongolia.
Source: Montsame
DEFACTO REVIEW, MARCH 22 - VIDEO
Highlights of the week:
- The war protest at the Russian Embassy in Ulaanbaatar
- The Economic pre-forums held in Ulaanbaatar
- The Central Bank raises the monetary policy rate by 2.5 percent
Source:
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