A new rail link connecting Mongolia and China is in the making. The line will connect the Mongolian border point Shivee Khuren and the Chinese border point Ceke. Construction started on 27 May and the works are expected to finish by October 2023. The new line will cover a distance of 7,1 kilometres, and once completed, it will become the second cross-border railway between China and Mongolia.

According to Chinese governmental sources, upon completion, the Shivee Khuren-Ceke cross-border line will stimulate the transportation of bulk goods like coal and copper mine in particular. Currently, this border crossing is already under operation but with a missing rail link since transport takes place by road. Chinese officials had confirmed since 2016 the opening of a railway border crossing in this location. However, the actual construction took seven years to begin.

Another two new China-Mongolia railways

Besides the ongoing construction of the Shivee Khuren-Ceke railway, another two new border crossing railways are already on the table.

The Gashuunsukhait (Mongolia)-Ganqimaodu (China) border crossing that opened in 2004 and relied on road transport is undergoing a rail transformation too. Telenged Baast, the Mongolian rail freight operator from Monlogistic, told RailFreight.com that “the construction of the Mongolian side of the railway was completed last year, but connection issues with the Chinese side have yet to be finalised.” Once completed, this rail border crossing could become a strategic point for the coal and mining trade between Mongolia and Russia.

Additionally, Mongolia opened a new railway line on the way to China last November, connecting Zongbayan to the border city of Khangi, both in Mongolia. This line is planned to connect with the Chinese border city of Mandula; however, the link has not yet been finalised and expects official approval to be recognised as a cross-border line. As a result, the last mile of this railway line is still in limbo. Once the two parties reach an agreement and complete their paperwork, a new route could be established, sharing the loads between Erenhot and Zamiin-Uud, the only rail border crossing between the two countries.

I had scheduled a meeting with Narantuya Sharkhuu on a bitterly cold and windy day in a small, cozy café. Ulaanbaatar, the city we call home, holds the distinction of being the coldest capital city in the world. True to its reputation, the temperature hovered near 0 degrees, despite it being late May. Narantuya, a tall and elegant lady in her late 40s, greeted me with the most enchanting smile when she spotted me. She was dressed in attire commonly seen on mountain hikers.

Narantuya is a woman of many talents and responsibilities. She is a seasoned accountant, a certified yoga instructor, a government agent of the micro-district, and the head of her local Homeowners' Association (HOA). She is also one of the leading voices advocating for proper waste sorting in Ulaanbaatar.

In 2019, her community faced the alarming prospect of losing the playground land adjacent to their apartment building, which had been their home for over two decades. Corruption deeply embedded within Mongolian politics allowed companies to illegally bribe authorities, resulting in the unauthorized fencing of public spaces and the construction of commercial estates against the wishes of the residents. Unfortunately, such practices are all too common in Ulaanbaatar. Given the prime location of her neighborhood, situated close to the city's central point, the imminent threat of losing this small yet precious green space became increasingly apparent.

Ulaanbaatar is home to over half of Mongolia's 3.3 million population, with seventy percent of its residents living in ger districts without central heating or a plumbing system. The remaining population predominantly resides in apartment complexes, resembling the aesthetic of most eastern European cities. One can easily distinguish between old and new buildings by examining the spaces between them. Over the past 30 years, rather than expanding the city outward, new structures have been erected within the gaps of existing buildings, resulting in a concrete jungle with minimal green space.

During this crucial moment, when the public space near her home faced the potential threat of being transformed into a shopping center or even a nightclub, Narantuya united with the residents of the affectionately nicknamed 'the tall three' apartments to resist the encroachers. The community fought against them for months, and their struggle even gained media attention, shining a spotlight on their battle for the small patch of land. Initially, 'the tall three' had a homeowners' association (HOA), but suspicions arose that it had been compromised or influenced by the opposing side. As a result, the residents decided to disband the existing HOA and establish a new one.

At that time, Narantuya was employed as an accountant in a private company and had no intention of getting involved with the HOA, let alone spearheading a waste sorting rally in her neighborhood. She and her husband had moved to one of the 'the tall three' apartments in 1998, shortly after their marriage, and together they raised four children. Naturally, she developed a deep affection for the area and its community.

After successfully defending their land and removing the corrupt HOA, Narantuya voluntarily stepped up to serve as the financial advisor for the newly formed 'Altayn Baraa' HOA. Recognising the importance of her expertise and driven by her love for the community, she took on the responsibility of managing the association's finances. However, Narantuya had not initially planned to stay in the HOA indefinitely. That changed when the newly elected head of the HOA neglected their responsibilities, failing to show up for work. As a result, all the burdens and tasks fell onto Narantuya's shoulders. She found herself unexpectedly thrust into a position of leadership within the HOA, which compelled her to reconsider her plans and commit herself to the community for the time being. She accepted the role of 'Altayn Baraa' HOA's head.

When Narantuya began her role, she encountered a disheartening situation—the 40-year-old apartment complex was in a state of disrepair. The hallways were dimly lit and neglected, and waste management was a significant concern. Narantuya had a strong desire to revitalize the neighborhood and bring about positive change. However, she felt overwhelmed by the daunting task ahead and struggled to determine the best place to begin the transformation process. Narantuya lacked basic knowledge about waste recycling processes and logistics. Unaware that recycling plants typically send their own trucks to collect the plastic collected by the HOA, she used to personally cover the costs of hiring trucks to transport the plastic bottles.

The year 2021 marked a turning point and brought the seed of change for Narantuya. 'Altayn Baraa' HOA was approached by the team from Sustainable Plastic Recycling in Mongolia (SPRIM), a project funded by the EU under its SWITCH-Asia programme. The HOA was in one of the target pilot areas of the project, which aimed to establish an efficient waste management system for plastic waste and promote the development of the plastic recycling industry.

Narantuya and her team actively participated in the awareness-raising activities and received training on proper waste sorting techniques from the SPRIM project. As part of the pilot programme, they were provided with several sorting bins to facilitate the process.

When questioned about the challenges of encouraging residents to adopt the habit of waste sorting, Narantuya responded, "There were absolutely none. While there were some minor obstacles, overall, it was a remarkably positive experience." The initial and most difficult step was introducing the concept of waste sorting to the community. Fortunately, Narantuya had participated in the 'Training of Trainers' programme organised by the SPRIM project. This training equipped her with the essential knowledge and skills to persuade and engage people, emphasising the importance of environmental consciousness and shedding light on the gravity of the current environmental situation and the dire consequences if we don’t start acting now.

After gaining awareness of the alarming state of waste management through Mongolian waste data and statistics, there was no turning back for the residents. The realisation of the severity of the situation ignited a strong sense of enthusiasm among the community to embrace waste sorting practices. Remarkably, children were the quickest to adapt to this new "regime." Their eagerness and willingness to participate influenced their friends and schoolmates throughout the area, rapidly spreading the habit of waste sorting.

Narantuya also understood the significance of repetition and reinforcement in ensuring that waste sorting practices were ingrained in the residents' minds. She took proactive measures by placing notices emphasising the importance of sorting waste throughout the apartment complex. Additionally, she actively shared educational posts in residents' Facebook groups and organised meetings to ensure that people had ample opportunities to fully comprehend and memorise waste sorting and recycling facts. By employing various communication channels and engaging the community through consistent messaging, Narantuya aimed to create a lasting impact and promote a deep understanding of the importance of waste sorting and recycling.

Nowadays, even the most resistant and stubborn individuals, including the elderly, actively participate in waste sorting. They bring their glass jars and plastic bottles in separate bags and diligently deposit them into the appropriate recycling bins. This positive behavior change is a testament to the collective efforts and the widespread adoption of responsible waste management practices in the community.

According to Narantuya, approximately 80% of the residents in 'the tall three' apartments now participate in waste sorting. As a result, people have become more conscious of their consumption habits and the amount of waste they generate. This heightened awareness has contributed to a significant improvement in the cleanliness of the apartment area and halls. The positive transformation in waste management practices has not only enhanced the overall living environment but has also had a positive impact on the property's value as well as the neighborhood relationship.

Narantuya and the community occasionally organise second-hand selling or swapping events for gently used clothes, toys, and other household items in their once almost-lost public space, which has become a massive hit.

Last summer, just before the new school term, we held one of those events, and parents were so happy to buy school uniforms for their children for a fraction of the original cost. Children swapped or sold toys they were no longer interested in. It's an effective way to teach ethical consumption practices to both children and adults, emphasising the importance of letting go of things that no longer serve them and handing them over to their next owner. The events foster a sense of community, sustainability, and responsible consumer behavior among the participants, Narantuya said.

Narantuya understood that the gatekeepers and cleaners of the HOA might not have been entirely enthusiastic about shouldering additional workload, as they were already burdened with numerous tasks. However, through the implementation of proper knowledge, training, planning, and the introduction of incentives, Narantuya successfully integrated waste sorting into their daily responsibilities.

At 'Altayn Baraa' HOA, none of the revenue generated from recycling is retained by the HOA itself. Instead, the funds are divided among the cleaners, gatekeepers, and other workers involved in waste management duties. Narantuya firmly believes that these individuals deserve to receive whatever bonus they can through this positive change. "It's not much, but they should be recognised and appreciated for their hard work and dedication. Some of these people have worked with us for over 20 years," she said.

Narantuya now teaches yoga in the mornings, serves as a senior agent of the 15th khoroo in the Bayanzurkh district of Ulaanbaatar, and continues to lead the 'Altayn Baraa' HOA. She happily shares her knowledge and expertise with anyone willing to learn about the environmental and pollution challenges faced by Mongolia. Furthermore, Narantuya actively encourages other HOAs to come and learn from their successful waste management practices.

Looking ahead, Narantuya envisions uniting HOAs across Ulaanbaatar and implementing mandatory waste-sorting practices. She believes that the efforts of only one or two organisations will not yield significant results. To effectively combat the plastic pollution issue, collaboration, teamwork, and unity among various groups are crucial. Her determination to make a lasting impact extends beyond her immediate community and encompasses a broader vision for a cleaner and more sustainable Ulaanbaatar.

Mongolia faces significant challenges in its labor market, including an aging population, low workforce participation, high unemployment rates, and low labor productivity. Recently, the Prime Minister met with private employers to discuss labor force issues and wage policies. As Mongolia seeks solutions, striking a balance between policy reforms and sustainable job creation becomes crucial.

Mongolia's heavy reliance on the public sector, where 22% of the employed population works, is unsustainable.

To address this, the government aims to outsource work to the private sector, reducing the burden on the government while creating job growth opportunities. However, concerns raised by private sector representatives regarding social insurance payment burdens and skill shortages must be considered.

Private sector representatives highlight the tax burden on employers and the scarcity of job-ready skilled workers. They fear that wage increases for public sector employees may disrupt the private sector's competitiveness.

The finance minister proposes performance-based salaries to increase productivity and incentivize employers following recent pockets of strikes by teachers and healthcare workers. Addressing these concerns is crucial for a balanced labor market.

Small businesses in the commerce sector offer promising job prospects, particularly in Ulaanbaatar. While the public sector's influence has diminished, it remains essential in areas with limited alternative job options. However, Mongolia's long, cold winters restrict outdoor operations, leading to a reliance on temporary contract labor. Policies should ensure year-round job opportunities across sectors.

Mongolia has made progress in promoting gender equality, with 53.4% of women participating in the labor force, but there is room for improvement.

Addressing gender inequality in the workplace and at home could boost annual per capita growth by 0.5 percentage points, according to the Asian Development Bank.

Concerns also exist regarding education quality and equity, especially for individuals with lower education levels. Disparities in educational outcomes for males, rural herders, and economically disadvantaged backgrounds need attention.

Outsourcing to the private sector holds potential for job creation, but caution is necessary. Quality jobs, worker protections, and the impact on displaced public sector employees must be considered. Rushing into outsourcing without safeguards may lead to a race to the bottom in terms of wages and working conditions, exacerbating inequalities.

Mongolia's labor landscape presents challenges and opportunities. Addressing low labor force participation, aging demographics, and low labor productivity is crucial for sustainable job creation. Policymakers must carefully navigate reforms to ensure worker protections and equitable outcomes. By balancing policy reforms and sustainable job creation, Mongolia can foster a thriving labor market that benefits all stakeholders while avoiding exacerbation of inequalities.

Amar Adiya is Editor-in-Chief of Mongolia Weekly newsletter.

Minister of Foreign Affairs of the Kyrgyz Republic, J. Kulubayev is currently paying an official visit to Mongolia, commencing on May 29 at the invitation by Minister of Foreign Affairs of Mongolia (MFA) B. Battsetseg.

Minister Kulubayev arrived at the Chingis Khaan International Airport, where he received a warm welcome from the Acting State Secretary and Director General of the Department of Public Administration and Management of MFA, S. Zoljargal and Ambassador Extraordinary and Plenipotentiary of Mongolia to the Kyrgyz Republic S. Ganhuyag, and other dignitaries.

The visit by Minister Kulubayev holds great significance as it marks a decade since the last visit by the Minister of Foreign Affairs of Kyrgyzstan to Mongolia. During the visit, J. Kulubayev will pay a courtesy call to the President of Mongolia Khurelsukh Ukhnaa, and the Foreign Ministers will hold official talks.

During the talks and meetings, the parties will exchange views on strengthening bilateral relations and cooperation, invigorating the dialogue between Mongolia and Kyrgyzstan, fortifying mutual trust and the legal foundation of relations, expanding the scope of traditional cooperation between the Ministries of Foreign Affairs, and regional issues of mutual interest.

In accordance with the Resolution No. 22 of April 24, 2023 of the Board of Directors of the Development Bank of Mongolia, capital equal to USD 75.0 million has been raised from foreign investors by issuing private bonds in OTC market. On May 12 of this year, an agreement was signed with "Mopane Securities" LLC, registered in London, and the aforementioned capital has been raised.

It was informed that investment without risks associated with foreign currency rate or issuing securities in MNT provides an opportunity to diversify the resources of the Development Bank and protect against the risk of foreign exchange rate fluctuations.

Out of USD 500 million “DBM 2023” bond USD 99.7 million was redeemed.

In 2018, the Development Bank of Mongolia issued USD 500.0 million worth "Euro" bonds or "DBM 2023" bonds with 7.25 percent interest rate to the international market independently without government guarantees. The bond is listed on the Singapore Stock Exchange and is publicly traded in international markets.

In order to implement proper debt management in the Development Bank, it was decided to partially cancel the purchase of "DBM 2023" bonds according to Resolution of the Board of Directors No. 52 of 2022 and Resolution No. 3 of this year. In line with the above decisions, the Development Bank has been implementing partial bond cancellation since October 2022. During this period, the bank canceled bonds with a total issued price of USD 99.7 million. As a result, the balance of the "DBM 2023" bond has decreased from USD 500 million to USD 400.2 million.

The Development Bank has saved USD 13.8 million in its current portfolio by redeeming "DB 2023" bonds with an issued price of USD 100.0 prior to its maturity date at a weighted average price of USD 92.4. Specifically, until October 23 of this year or the "DBM 2023" bond repayment deadline, USD 7.54 million has been saved from the principal amount and USD 6.34 million from interest costs respectively.

Thirteen children have been hurt after being blown off an inflatable slide by strong winds in western Mongolia, Xinhua quoted the National Police Agency on Monday.

The incident happened in Ulgii soum, an administrative subdivision of Bayan-Ulgii province on Saturday, the agency said in a statement.

Two of the injured children are still unconscious and being treated in the intensive care unit of a local hospital, it said.

As for the upcoming International Children’s Day, the police agency warned parents to let their children play after carefully checking the safety of such slides in streets and squares.

The Tsagaannuur Free Zone became permanent by decree of the Mongolian government dated from 2022. The official opening of the free zone will take place on June 5.

An international trade fair will be held from June 5 to June 7.

Entrepreneurs and enterprises from Russia, China and Mongolia will take part in the exhibition and exchange experience, promoting their products. The parties are also expected to sign a cooperation agreement in future.

The working group, established by the decree of the governor of Bayan-Olgiy province of 2023, is working on preparations to open the Tsagaanuur free zone and the international trade fair.

A section of the Asian Highway AN-4 or the western vertical axis was put into operation in the Tsagaannuur free zone, which is located 65 km north of Bayan-Olgiy province.

The construction of a 7.1 km railway connecting the Mongolian port Shiveekhuren with the Chinese port Sekhe started on May 27. Shiveekhuren border port, located in Gurvantes soum of Umnugobi aimag is a strategically important port through which 48 percent of Mongolian export coal is transported to China.

According to the Governmental Resolution No.186 of May 17, a permit for the construction of the basic structure of the Shiveekhuren-Sekhe port cross-border narrow-gauge railway was granted to "Nariinsukhait Railway" LLC, and the construction is scheduled to be completed by October of next year.

Prime Minister of Mongolia L. Oyun-Erdene attended the opening ceremony of the construction and delivered a speech.

The Prime Minister underlined that connecting Shiveekhuren-Sekhe ports by railway is of exceptional strategic significance since it is a part of the western vertical axis railway of Mongolia in route of Shiveekhuren-Nariinsukhait-Artssuuri, which will be the cross-border railway of the "Economic Corridor" of Mongolia, the Russian Federation, and the People's Republic of China.

PM Oyun-Erdene said, "The economy continues to recover day by day due to the restoration of the port, the disintegration of the corrupt system, and the revelation of the hidden economy. The economy, which was -4.6 percent in 2020, grew by 1.6 percent in 2021, 4.8 percent in 2022, and 7.9 percent in the first quarter of 2023. The state budget revenue was exceeded by MNT 1.1 trillion, foreign exchange reserves reached USD 3.8 billion, and the gross domestic product per capita reached USD 5,000 for the first time. Today, in the scope of the Port Revival, as part of the "New Revival Policy," we are starting the construction work to connect Shiveekhuren Port of Mongolia with Sekhe Port of China by railway through public-private partnerships, which will make an important contribution to the economy of the country.”

With the completion of the Shiveekhuren-Sekhe port cross-border railway, the port's export capacity, including coal export will double reaching 20 million tonnes. In this way, based on free market competition, it will become possible to export the coal, mined in the region saving time and costs, and procure to the main export markets, as well as to increase the value of the mineral deposits in the Gobi region and open up new opportunities for economic turnover.

On the day, Prime Minister L. Oyun-Erdene got acquainted with the work of transporting coal with driverless smart transport or AGV at Shiveekhuren port. The transport has been in operation since December 2022 and can transport 6.5 million tons of coal per year.