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Wednesday, July 6, 2011




Mongolia Briefing is a magazine and daily news service about doing business in Mongolia. We cover topics relating to the Mongolian economy, the market in Mongolia, foreign direct investment and Mongolian law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates


Politics

Presidential Elections in Mongolia: Ts.Elbegdorj Re-elected

By Elena Fehrbach

As a result of the 2013 presidential elections, the General Election Commission (GEC) of Mongolia has announced the victory of Ts.Elbegdorj, who has been re-elected for a new term.

Ts.Elbegdorj and the Democratic Party, which he is representing, gained 50.23 percent of votes. B.Bat-Erdene from the Mongolian People’s Party is the second voted candidate with 41.97 percent of votes. N.Udval, the Minister of Health of Mongolia and the only female candidate for the post of the President held 6.5 percent of votes. Ms. Udval is representing Mongolian People’s Revolutionary Party. Total share of the population participating in the elections was 66.49 percent. Continue reading

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Update on the Allocation of the Government Bond

By Elena Fehrbach

Jun. 14 – Mr. N. Altankhuyag, the Prime Minister of Mongolia, has provided an updated decisions related to the allocation of the Government Bond, also known as the Chinggis Bond.

According to the resolution of the Government of Mongolia and the Policy Council of the Chinggis Bond, US$50 million will be spent to build Thermal Power Plant at Tavan Tolgoi coal mine with capacity of 450 megawatts. The start up of the Plant is expected in 2017. Continue reading

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Ulaanbaatar Welcomes the Official Inauguration of the City Procurement Office

By Elena Fehrbach

May 23 – The City Procurement Office of Ulaanbaatar or Tender Agency has been officially inaugurated in Ulaanbaatar. The authority is aiming to work with the State and local funds to organize the procurement of goods and services.

The Agency has been established in October 2012 and D. Terbishdagva, the Deputy Minister has been in charge of it. During the inauguration ceremony, D. Terbishdagva and N. Altankhuyag, the Prime Minister, have presented the report on the Agency activities over the last 6 months. N. Altankhuyag stated at the ceremony that the work performed by the Agency has become transparent, fair and more economically efficient and since now, the tenders will be organized under the transparent and fair management. Continue reading

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Terms for Low Interest Housing Loans Approved

By Elena Fehrbach

May 5 – The Government of Mongolia has approved 8 percent interest rate for long- term housing loans. The duration of the loan can be up to 20 years for the purchase of both old and new houses and apartments with the total area not more than 80 square meters. The compulsory condition is the provision of deposit in the amount of 10 to 30 percent of the purchase amount. Continue reading

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Fuel Prices in Mongolia Expected to Stabilize

By Elena Fehrbach

May. 2 – The Government of Mongolia is expecting the fuel prices in Mongolia to stabilize due to diversification in the quantity of fuel suppliers. The current situation in Mongolia is almost 100 percent fuel dependence from Rosneft, one of the key fuel producers in Russia. Such direct dependence causes unexpected fluctuations in fuel price due to company’s corporate and regional conditions. The Deputy Minister of Mongolia is discussing the amendment to the fuel purchase agreement allowing Mongolia to buy fuel from Rosneft based on international market prices. Continue reading

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The Status of Construction and Urban Development Projects

By Elena Fehrbach

Apr. 20 – Total 2013 year budget for urban infrastructure development including electricity, heating, potable water supply and sewage is 240 billion MNT (equivalent to 171 million USD). The funds will be sourced from both the State and Ulaanbaatar city budgets. In the interview to journalists, Ts. Bayarsaikhan, Minister of Construction and Urban Development informed that 17 new apartment complexes will be built this year, and the next year budget is expected to be approximately the same budget number as this year. The first apartments complex is planned to be open soon this year. The Ministry is also planning to build housing projects aimed for certain categories of people, such as senior aged people or young families. The housing project for senior aged people will be located in the southern part of Ulaanbaatar, the area with cleaner air compared to other parts of city. Continue reading

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Proposal to Develop Tavan Tolgoi Supported by Government

By Elena Fehrbach

Apr. 15 – Ch. Saikhanbileg, Minister of the Cabinet of Mongolia met Francisco J. Sanchez, the Under Secretary for International Trade of the U.S. Department of Commerce to discuss economic and trade cooperation between 2 countries. During the meeting, the Minister noted that Mongolia is willing to widen the economic relationship between Mongolia and USA. One of the important steps taken by the Ministry recently is introduction of the amended Strategic Foreign Investment Law creating encouraging investment opportunities for private companies. Continue reading

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Foreign Labor Force Quota Ratio for 2013

By Elena Fehrbach

Apr. 4 – The new foreign labor force quota ratio for different types of business activities has been recently introduced. The quota outlines what per cent of employees can be foreign citizens in a company operating in Mongolia. The ratio will vary depending on the actual business activity, the number of Mongolian employees and paid-in capital. The new rules are only applied to HG type work visas. Below are the changes introduced for 2013.

The quota ratio has changed for some of the business activities, such as:

  • Support activities for mining industry: quota reduced to 20 per cent in some cases from 25 per cent the previous year
  • Accommodation services: some percentage increases
  • Food and beverage service activities: 10 per cent for all possible activities
  • Health activities: 1 per cent fluctuation depending on the entity size
  • Other personal service activities: 1 per cent fluctuation depending on the entity size
  • Trade and repair of motor vehicles and motorcycles sector: increase to 20 percent from 5- 10 per cent Continue reading
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