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USD 1 billion soft loan may be settled during PM's visit to PRC www.gogo.mn

Prime Minister Khurelsukh Ukhnaa is planning an official visit to People’s Republic of China (PRC) between April 10 and 13. Mongolia’s key gateway of raw materials export, Gashuunsukhait- Gantsmod border checkpoint, has been operating on half-capacity since last July, drastically reducing coal sales of Mongolia. As for June 2017, the coal export reached 3.9 million tons, which went down to 2.2 million tons in July due to implicit sanction.

In October 2017, Prime Minister Khurelsukh has received Ambassador of PRC to Mongolia Xing Haiming and requested to focus on settling the implicit economic sanction. Thus, the Minister of Foreign Affairs of Mongolia Tsogtbaatar Damdin paid a visit to PRC in early-December, which helped reduce inspection to coal and increase exports amount. As a result, the coal export has reached 3.2 million tons in November and December respectively. During the visit, the Foreign Minister signified the importance of frequent high-level visits and agreed on organizing the PM’s visit to PRC.

Mongolia-China business forum on trade and economic cooperation to take place

Whether to reconcile the unsettling relations between the two countries and expand comprehensive strategic partnership will be decided during this visit. In addition, President of PRC Xi Jinping has agreed to provide USD 1 billion soft loan during his visit to Mongolia in 2014. If Mongolia finalizes the investment plans, USD 1 billion worth investment will be released. Furthermore, within the frame of PM’s visit, Mongolian National Chamber of Commerce and Industry (MNCCI) will co-organize Mongolia- PRC business forum on trade and economic cooperation with China International Economic and Trade Arbitration Commission. Representatives of private entities willing to participate in the forum can register at MNCCI until March 10.

On the side note, Minister of Road and Transport Development Bat-Erdene Jadamba paid a visit to PRC in February, and negotiated on settling the finances of Tavan tolgoi-Gashuunsukhait railroad development within the frames of increasing mining exports and supporting economic development of Mongolia. Sides also agreed on establishing new airway in the second half of 2018. As for actions on reducing loads at Zamiin-Uud- Erlian border crossing, sides touched upon the issues of implementing Zuunbayan-Khangi route railroad project and establishing Khangi-Mandal border crossing.

PM’s first visit to the PRC may settle the above-mentioned issues and the PM will sign the Agreement on Transport of Freight to Pacific Ports in the PRC through the Zamiin-Uud-Erlian port.

Davaatogtokh.B, Tugsbilig.B



Published Date:2018-03-09