BEKHBAT SODNOM
Director General
Department of Innovation and Public Private Partnership
Ministry of Economic Development
Tokyo, Japan
February 3, 2014
Economic Outlook & PPP Projects
in Mongolia
Ministry of Economic Development
Economic overview
PPP & Concessions
Content
Ministry of Economic Development
Ministry of Economic development was established to regulate among
others:
–Economic development policy and planning
–Integrated sectoral policy & regulations
–Foreign economic cooperation, ODA
–Domestic and foreign trade
–Investment policy and implementation
–Public Private Partnership & Concessions
–Innovation & High technology
–Free Trade Zones
Ministry of Economic Development
Ministry of Economic Development
DEPARTMENT OF INNOVATION AND PUBLIC PRIVATE
PARTNERSHIP
To develop and formulate national policies towards the innovation system, free zones and public private partnerships, to provide a policy guidance and regulate the implementation.
• DIVISION OF INNOVATION AND HIGH TECHNOLOGY
• DIVISION OF FREE ZONES
• DIVISION OF CONCESSIONS
Free Zones
Tsagaan Nuur FTZ Altan Bulag FTZ
Choir FEZ
Zamiin Uud FEZ
Economic Overview
• One of the fastest growing
economies
• Mining sector extension and
investment to the
infrastructure development
• Oyu Tolgoi & Tavan Tolgoi
mining field operation
• $1,5B bond issued by the
Government of Mongolia
Our economic growth was increased 6 to 10% in the past years,
excluding the economic growth in 2011, 2012 which has
increased to up to 17.5% and 12.3% respectfully
2013-2016 economic growth is expected to be around 16.2%
including the dramatic growth of industrial sector and growth of
services and agriculture sectors
The Government of Mongolia is planning to implement larger
scale development projects funded by the Government bonds:
such as establishment of industries:
construction materials;
concentrated minerals and other commodities;
and improvement of infrastructure.
Economic Growth
PPP & Concessions
Growing investment needs in infrastructure in line with the
Government priority projects
Accelerate economic growth by leveraging the financial
resources, technology and management know-how of private
sector
To liberalize the economy further through the more
participation of private sector in government investment plans
PPP legal framework in place
State Policy on PPP
Adopted by the Parliament in 2009 in order to promote private
sector participation in all areas of national economy
The Law on Concession
Adopted by the Parliament in 2010, which defines all
processes of PPP implementation. The Government has also
approved several regulations regarding the detailed bidding
process and evaluation of bid proposals.
PPP Project List
In 2010, the Government approved the list of 121 concession
projects. The revised list is approved in Sep 2013, which
consists of 50 projects.
What is in the pipeline?
Major infrastructure projects such as Power plants, Paved
roads and Highways
The PPP project pipeline is updated with more bankable and
the Government priority projects
It is important to structure any investment projects with
proper risk allocation between the Public and Private sectors
and we will implement PPP program according to
international best practices
The pipeline consists of 50s projects submitted by line
ministries and 4 projects submitted by private sector
PPP projects by sectors
Infrastructure – 7 Energy -12
Road and transportation – 17 Environment – 4
Pipeline transport – 2 Education - 2
Airport – 2 Health – 1
Culture and sport - 3
What is in the pipeline?
PPP projects by types
BOT – 8 BT – 19
BOO – 11 OTHER - 12
Ongoing projects
“Nariinsukhait – Shiveekhuren” road project
• Project description: 50KM MINING ROAD PROJECT
• Concession type: BOT
• Duration: 17 YEARS
• Total cost: MNT 88.0 BLN
• Concessionaire: “RDCC” LLC
• Location: UMNUGOBI AIMAG
Ongoing projects
“Telmen power plant” project
• Project description: 100MWT POWER PLANT PROJECT
• Concession type: BOT
• Duration: 22 YEARS
• Total cost: $183.0 MLN
• Concessionaire: “New Asia Group” LLC
• Location: ZAVKHAN AIMAG
Approved projects
“Altanbulag-Ulaanbaatar-Zamyn-Uud highway” project
• Project description: 997 KM HIGHWAY PROJECT
• Concession type: BOT
• Duration: 28 YEARS
• Total cost: $5.0 BLN
• Concessionaire:
• “CHINGGIS LAND DEVELOPMENT GROUP” LLC
• Location: DORNOGOBI, GOBISUMBER, TUV, DARKHAN,
BULGAN, SELENCE AIMAGS
“Altanbulag-Ulaanbaatar-Zamyn-Uud highway”
Approved projects
“Tuul-Songino power plant” project
• Project description: USE THE TREATED WASTE WATER
FOR 100 MW HYDRO CHARGED POWER PLANT
• Concession type: BOT
• Duration: 23 YEARS
• Total cost: RMB 1.0 BLN
• Concessionaire: “MORIT IMPEX” LLC
• Location: ULAANBAATAR,
SONGINOKHAIRKHAN DISTRICT
Projects at the negotiation stage
“Tavantolgoi-Khanbogd-Hangi” road project
• Project description: 435 KM MINING ROAD PROJECT
• Concession type: BOT
• Duration: 17 YEARS
• Total cost: MNT 440.0 BLN
• Preferred bidder: “MCCC” LLC
• Location: UMNUGOBI, DORNOGOBI AIMAG
Projects at the negotiation stage
POWER PLANT #5” (CHP5) project
• Project description: 450 MW POWER PLANT PROJECT
• Concession type: BOT
• Duration: 25 YEARS
• Total cost: $1.2 BLN
• Preferred bidder:
“GDF SUEZ, SOJITZ, POSCO,
NEWCOM” LLC
• Location: ULAANBAATAR, BAYANZURKH DISTRICT
Projects in the pipeline
Chandgana power plant
• Project description: 600 MW POWER PLANT NEAR
CHANDGANA COAL DEPOSIT, KHENTII AIMAG.
• Concession type: BUILD-OPERATE-TRANSFER
• Duration: 25 YEARS
• Total cost: $1.3 BLN
• Location: MURUN SOUM,
KHENTII AIMAG
Projects in the pipeline
Dalanzadgad airport
• Project description: REDESIGN AND BUILD EXISTING
AIRPORT AT DALANZADGAD.
• Concession type: DESIGN-BUILD-OPERATE-TRANSFER
• Duration: 20 YEARS
• Total cost:
• Location: DALANZADGAD SUM,
UMNUGOBI AIMAG
Projects in the pipeline
International horse racing stadium
• Project description: BUILD HORSE RACING VENUES MEETS
INTERNATIONAL STANDARD
• Concession type: BUILD-OWN-OPERATE
• Duration:
• Total cost: $100 MLN
• Location: SELENGE SUM,
TUV AIMAG
Top Related