Ulaanbaatar /MONTSAME/ Mongolia needs more selective infrastructure investments that target key value chains in order to drive growth, lower costs, and boost the competitiveness of the country’s economy, according to a new World Bank report released today.

The report, Infrastructure for Connectivity and Economic Diversification, analyzes Mongolia’s infrastructure needs and investment priorities in the context of the country’s geospatial characteristics, fiscal challenges, and the government’s economic diversification agenda. It focuses on five key value chains that are likely to generate the greatest demand for infrastructure services: the livestock industry, value added mining, tourism, renewable energy, and digital services.The focus on these selected value chains does not imply, however, that other sectors should be neglected; it means that these areas are likely to generate the scale of demand for infrastructure services to shape national investment decisions.

“Infrastructure is the backbone of Mongolia’s economy, yet a ‘build and they will come’ approach would limit economic returns on investments. Instead, infrastructure investments should be prioritized to unlock new drivers of growth,” said Andrei Mikhnev, World Bank Country Manager for Mongolia. “In addition to the mining sector, which has so far been the predominant driver of economic growth, priority should be given to unleashing growth potential in the livestock, tourism, digital services, and the renewable energy sectors.”

Mongolia’s population is small relative to the country’s size, limiting the range of economic activities in which it has a comparative advantage. The report finds that targeted investments in meat and iron beneficiation infrastructure have the highest potential to accelerate growth and reduce the country’s logistics cost, which stands at a high of 30 percent of GDP.

To improve the meat value chain, the report suggests establishing a network of strategic hubs in Ulaanbaatar and eight provinces with the highest concentration of meat and milk production. Priority should be given to upgrading key parts of the 4,300 kilometers of roads connecting these strategic hubs. Concentrating services in these hubs would reduce waste, ensure unbroken cold storage chains, and add value through ancillary services.

The report argues that improving urban mobility in the capital city will be crucial to promoting tourism and other services. Improvements in urban mobility should focus on construction, maintenance, and operations of Ulaanbaatar’s 1,190-kilometer road network.

As the country enjoys a strong backbone of digital infrastructure, the report suggests that priority in this area should be given to strengthening gaps in internet capacity and access, improving last-mile connectivity, and expanding 4G connectivity in rural areas.

In the mining sector, selective infrastructure investments can unlock the latent potential of several mineral value chains. For instance, supplying power to the mines, which currently only get 44 percent of their power supply from the grid, with the remainder coming from auto-generation or imports. This offers a major opportunity for a large revenue base of creditworthy, long-term power customers.

Similarly, privately financed mining projects could contribute to building shared railway infrastructure that is open to multiple uses and users, according to the report. Given limitations in public budget for infrastructure, Mongolia must leverage more private financing for developing needed infrastructure by improving the regulatory framework and investment climate. Efforts should be prioritized on turning the concessions list of projects into a market-facing credible list of well-prepared projects, which would help the government redirect its focus to priority projects and pique investor interest.

Finally, efforts must be made to develop Mongolia’s institutional infrastructure for the selection, planning, and implementation of infrastructure projects. The report recommends establishing a central unit to better manage highly fragmented investments and lack of coordination among agencies.

For more information, please visit: www.worldbank.org/mongolia

Source: World Bank

Ulaanbaatar /MONTSAME/ Following the Cabinet’s irregular meeting held today at noon, Prime Minister U.Khurelsukh presented the decisions made at the meeting.

The Cabinet decided that the government will pay utility bills (electricity, heat, water, and waste bills) of households and some enterprises for seven months with MNT 650 billion funding from Erdenet Mining Corporation. Specifically, from December 1, 2020, to July 1, 2021, the government of Mongolia will be responsible for the electricity, heat, water, and waste bills of enterprises except budget-funded entities, state-owned enterprises, mining extraction and processing facilities, banks, non-bank financial institutions, entities engaged in cryptocurrency activities, petroleum importers and sellers, telecommunications service providers, alcohol and cigarette manufacturers, and ferrous and nonferrous metal and concrete producers.

Moreover, it was decided to exempt every household in Mongolia from electricity, water, and waste bills and the ones living in apartments of up to 100 square meters from heat bills from December 1, 2020, to July 1, 2021 and increase the discount rate of refined coal from 50 percent to 75 percent with MNT 69 billion funding from Erdenes Tavantolgoi JSC. A household living in a home of 120 square meters, for example will have to pay the heat bills for the 20 square meters by themselves.

Ulaanbaatar/MONTSAME/. In the first 11 months of 2020, securities worth of MNT 39.6 billion were traded at the national stock market, which is decreased by MNT 117.1 billion (74.7%) compared to the same period of the previous year.

In November 2020, 17.2 million pieces of securities worth MNT 1.9 billion were traded at the national stock market, which is decreased by MNT 18.1 billion (90.7%), while the traded amount increased by 5.3 million (45.2%) pieces of securities compared to the same period of the previous year. The total worth of traded securities decreased by MNT 1.0 billion (35.9%), and traded securities decreased by 8.9 million pieces (34.2%) from the previous month.

In November 2020, the average of indices of the top 20 financial markets was 17541.3 units, increased by 83.2 units from the previous month, but decreased by 1064.0 units from the same period of 2019.

In November 2020, the total value of joint-stock companies operating at stock markets reached MNT 2.6 trillion, increased by MNT 32.8 billion (1.3%) from the previous month and increased by MNT 66.4 billion (2.6%) from the same period of the previous year.

Source: National Statistics Office

Ulaanbaatar/MONTSAME/. The national currency in circulation reached MNT 947.7 billion at the end of November 2020, decreased by MNT 12.1 billion (1.3%) from the previous month, but increased by MNT 87.5 billion (10.2%) from the same period of the previous year.

At the end of November 2020, the time deposit in domestic currency was MNT 12.4 trillion, increased by MNT 330.5 billion (2.7%) from the previous month, and increased by MNT 1.7 trillion (15.7%) from the same period of the previous year.

In the total time deposit in domestic currency, 89.5% (MNT 11.1 trillion) were deposits of individuals and 10.5% (MNT 1.3 trillion) were deposits of enterprises.

The time deposits in foreign currency was MNT 4.8 trillion, decreased by MNT 82.4 billion (1.7%) from the previous month, but increased by MNT 1.5 trillion (46.0%) from the same period of the previous year.

Source: National Statistics Office

Distinguished Delegates, Ladies and Gentlemen,

I wish to extend my sincere appreciation to the UN Secretary General Antonio Guterres, Prime Minister Boris Johnson and President Emmanuel Macron for initiating and organizing this summit in these difficult times of global pandemic.

As the pandemic is sweeping all over the world, there is a need to call more attention to climate change and take decisive and strong action to mitigate its negative impacts.

Developing solutions to combat and overcome climate change is the most pressing issue for Mongolia owing to its harsh continental weather and nomadic pastoralism.

Therefore, the Government of Mongolia approved its Nationally Determined Contribution (NDC), which incorporates targets to reduce greenhouse gas emissions identifying risks of all the sectors of the economy and all the walks of life and submitted the NDC to the Secretariat of the UN Framework Convention on Climate Change. In this document, the mitigation target was re-calculated from 14% to 22.7% in total national greenhouse emissions. Moreover, it is my great pleasure to announce that it is possible to further increase our commitment to 27.2%.

Mongolia developed a specific action plan to achieve its “determined contribution” target and is planning to carry out concrete measures. The implementation of some measures has been started given the time constraints. Namely, all the feasibility studies on the construction of a 1,000 km irrigation pipeline to the Gobi region, which is under threat of rapid desertification due to climate change, have been completed and it is ready to start the construction.

We, Mongols, are ready to mobilize all our resources because efforts and diligence from the whole of humanity is crucial to save Mother Earth, slow the pace of global warming and combat adverse effects of climate change.

Thank you for your attention.

Mongolia welcomes all investors, businesses, buyers and partners to join in the Webinar named “Investing in Mongolia’s Productive Agribusiness Sector” and pre-scheduled B2B meetings on 15-16 December 2020.

 The Webinar is –– Your opportunity to understand more about key investment agribusiness opportunities – including meat, dairy, leather and cashmere – as well as the processes and incentives for investing in Mongolia. 15 December 2020 / 14:00-15:30 ULAT

 The Webinar will follow the B2B Meeting (15-16 December 2020) – will give you the opportunity to explore more about the Mongolian prospective investment seeking projects such as

 Cashmere & textile,

 Leather,

 Industrial and Agricultural Parks,

 Food & Beverages (honey, meat, milk, oil plant, water),

 Animal Husbandry

 Fishery

 Health (beauty)

 Others (construction & brokerage)

Please pre-schedule your meeting time with Mongolian investment seeking project owners through https://www.expomongolia.org/12/b2b

“Export Mongolia 2020” International virtual forum & exhibition https://www.youtube.com/watch?v=Miw8VoRDfvI&feature=youtu.be

Guideline to register to the webinar and B2B meetings https://www.youtube.com/watch?v=ww5iG1Z5Gwo&feature=youtu.be

Register here www.exportmongolia.org.

The Emergency Commission of Ulaanbaatar City has decided to lift the bans on the sale and consumption bans of alcoholic beverages. The relaxation comes into force from Monday (14 December); on the same day, the public emergency situation will be partially relaxed. Therefore, the residents of Ulaanbaatar can enjoy beers and wines; however, strong alcoholic beverages such as vodka and whisky remain banned.

With the lifting of the ban, supermarkets, minimarts, cafes, restaurants, hypermarkets and food markets will re-open from 07:00 a.m. until 9:00 p.m.

During the period of the alcohol ban, four people died of alcohol poisoning after drinking technical spirit.

Sumo grand champion Kakuryu, winner of six top division titles, has given up his Mongolian nationality and acquired Japanese citizenship, an official government publication showed Thursday.

By meeting the requirement to remain in the Japan Sumo Association as an senior-citizenafter retirement, the 35-year-old will now be able to run his own stable of wrestlers after his active career has ended. Although Japanese nationality is not required to compete in sumo, citizenship is necessary if a wrestler wishes to progress to become a sumo elder upon retirement and establish or inherit a sumo stable.

Kakuryu is the fourth foreign-born yokozunato obtain Japanese citizenship after retired U.S.-born wrestlers Akebono and Musashimaru, and Mongolian-born Hakuho, a still-active competitor, who became a Japanese citizen last year.

Kakuryu fought out of the Izutsu stable when he started his sumo career in 2001. He was promoted to the highest rank of yokozuna in the spring of 2014.

Upon the death of the Izutsu oyakata and closure of the Izutsu stable in September 2019, he moved to the Michinoku stable. Last month, he was given a “warning” by the Yokozuna Deliberation Council after sitting out the last three tournaments due to injury.

Mongolia’s Central Bank issued a silver coin on Wednesday to commemorate the 800th anniversary of the establishment of Karakorum, the country’s ancient capital.

The commemorative coin, which is 50 millimeters in diameter, contains 2 ounces (56.7 grams) of 999 sterling silver, the Bank of Mongolia said in a statement.

The 5,000-tugrik (1.75 U.S. dollars) coin is available at the Treasury Fund of the Central Bank at a cost of 600,000 tugriks (210 U.S. dollars) per piece.

The ruins of Karakorum lie in the northwestern corner of Uvurkhangai Province of Mongolia, near today’s town of Kharkhorin and adjacent to the Erdene Zuu Monastery, a surviving Buddhist monastery. Famously described in his travels by Marco Polo, the new capital was established by Kublai Khaan, the grandson of Chinngis Khaan.

They are part of the upper part of Orkhon Valley, a world heritage site of the United Nations Educational, Scientific and Cultural Organisation.

Mongolia on Sunday decided to write off payments of water, heat, electricity and waste for households and organizations across the country amid the COVID-19 pandemic.

With exceptions of governmental organizations, state and local owned entities, mining companies, wholesalers, retailers, and alcohol or tobacco producers, the decision comes into effect from Dec. 1 to July 1, 2021, said Prime Minister Ukhnaa Khurelsukh at a press conference after an irregular government meeting.

Erdenet Mining Corporation, one of the biggest state-owned enterprises, is expected to pay for about 650 billion Mongolian Tugriks (228 million U.S. dollars) needed to implement this decision, said Khurelsukh.

More than 890,000 households and 123,800 organizations can benefit from the write-off, according to official data.

In addition, Mongolia decided to cut the price of processed fuel by 75 percent during the period to support the livelihoods in ger areas of the capital city Ulan Bator. Earlier, it had reduced the price by 50 percent.

About 220,000 households live in Ulan Bator's ger districts, with no running water, central heating or sewerage systems.

As of Sunday, Mongolia has reported 907 COVID-19 cases, including 473 locally transmitted cases.

The Asian country's nationwide lockdown, imposed on Nov. 12 after its first locally transmitted case, expired on Dec. 1. It has extended the restrictive measures in Ulan Bator and the provinces of Selenge and Arkhangai until Dec. 14. Enditem