pátek 14. května 2010

Investment Seeking Projects


№ INDUSTRY PAGES

“DARKHAN” INDUSTRIAL AND TECHNOLOGICAL PARK

1 Introduction to “Darkhan” Industrial and technological park 3-6

2 Production of cement /”Erel Cement” Enterprise/ 7-8

3 Production of mineral cotton /“Erdes khuvun” Co., Ltd/ 9-10

4 Production of sheepskin, leather and fur products /“Darkhan Nekhii” Joint Stock Company/ 11-13

5 Production of wooden vacuum doors and windows /“MG WOOD” Co, .Ltd/ 14-15

6 Production of light concrete blocks and lime/“Silicate” Co., Ltd/ 16-17

“ZAVKHAN” INDUSTRIAL AND TECHNOLOGICAL PARK

7 Meat and meat product production 18-20

8 Cashmere and sheep wool processing production m 21-23

9 Construction materials factory 24-26

10 Food Factory 27-29

TSAGAANNUUR FREE TRADE ZONE

11 Introduction to Tsagaannuur FTZ 30-31

12 Construction of the plant producing flour 32

13 Constructions of the plant producing thermal insulation wall block 33

FOOD AND AGRICULTURE

14 “Third Crop Rehabilitation National Campaign” 34-36

15 Establishment of national reference laboratory of food security 39-40

16 “Potato seed renovation for increasing domestic safety potato production” 41

17 Intensified dairy farm for 50 black and white cows 37-38

ENVIRONMENT

18 Make a base research on identifying water supply resource of Ulaanbaatar city, develop underground water monitoring network 42
19 Designing methods to perform biological rehabilitations on desolated areas in the procees of mining, between the years 2009-2011 43-44

20 To improve the monitoring ability of environmental pollution and toxic chemical substances that remain in the environment. To perform chemical analysis on 1500 environmental samples annually. 45

21 To conduct survey on plants’ spread and resources of Mongolia with the aim of protecting Mongolia’s rare plants, and identifying the resource. 46

22 “To improve the control of air pollution and research network’s ability – to maximize ecological education of the public ” 47-48

23 Electronic network of exchanging chemical information between the organizations that provide state service 49-50

24 “To improve the potential of state administration organizations engaged in forest matters”. The project will be implemented from 1st of September, 2008 until 1st of September, 2009. 51-52

25 Reforming a machinery and a technology of the precede treatment plant which saves the Tuul River from a pollution of industrial factories’ waste water 53

CONSTRUCTION AND URBAN DEVELOPMENT

26 40.000 housing project 54

27 Building of 1200 appartments in the XXII microdistrict in the frame of 40.000 housing project 55-57

28 Building material laboratory construction of facilities 58

29 Darkhan city water supply development and improvement 59

30 Sukhbaatar city and Altanbulag soum of the Selenge province water supply system development and improvement 60

31 Ulaanbaatar water supply development in Gachuurt 61

32 Water supply and guarantees citizens rights to healthy environment 62

33 Water supply of Erdenet city 63

TOURISM

34 Rest Area development 64

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http://www.investmongolia.com/index.php?sel=menu&mnl=5_6

Is Mongolia the next frontier?


Recent developments in Mongolia indicate that the remote country is finally about to live up to its incredible potential.
With one major mining deal in the bag, and more expected to follow, Mongolia is about to enter a phase of astronomic growth. In fact, people are starting to compare the sparsely populated, resource-rich country to places like Brunei and the United Arab Emirates (UAE).

"Over the next decade, Mongolia will have the fastest growing economy in the world in terms of GDP growth, succeeding Qatar, which in percentage terms, although not absolute terms, surpassed that of China in the past decade," said John Finigan, chief executive officer of Golomt ...

http://www.financeasia.com/News/158720,is-mongolia-the-next-frontier.aspx

Tavan Tolgoi is the largest coal mine


Mongolia is estimated to have potential reserves of 125 billion metric tons and the current coal production is over 5 million metric tons. Currently, Mongolia’s coal production is approximately 5 million metric tons, which is mostly consumed by domestic power producers. Tavan Tolgoi is the second largest mining investment in Mongolia, following the Oyu Tolgoi copper mine.

Tavan Tolgoi is the second largest mining investment in Mongolia, following the Oyu Tolgoi copper mine. Since 1967, Tavan Tolgoi started its mining which is situated at South Gobi desert, from Ulaanbaatar it takes 540km to reach. The total coal resource of Tavan Tolgoi is 6.4ton billion high quality coking coal of which calories in its coal deposit is 7760-8120 kilocalorie/kilogram. Initial estimates have indicated Tavan Tolgoi will produce 30 million tons of coal annually for the next 30 years, most of which is used as high quality cooking coal. Mongolian government announced Tavan Tolgoi as the Strategically Important Mine. Tavan Tolgoi deposit contains over 5 billion metric tons of coking and hard coal. It is unique in Mongolia for its size and quality.


On March 21.2008, government took 93.6 percent of Tavan Tolgoi’s license from Energy Resources. About four percent of the total area will be retained by Energy Resources.” Although 4 percent share seems like a small portion, it is estimated to hold 400 million tons of coal reserve, of which 170 million tons is confirmed. Mining license of Tavan Tolgoi was transferred from “Energy Resource” LLC to “Erdenes MGL” LLC. This resolution was made on the basis of the fact that this deposit was included in the strategic deposit because of its exploration expenditure was provided by the state.
With its strategic location near Chinese boarder and massive amount of its coal reserve, Tavan Tolgoi is ideal company to supply raising energy demand of China.

The company has been selling public shares since March 06.1995 with the initial price of 100 MNT per 1 unit of stock. The company is offering 49% or 268 592 units, of its total issues open to the public.

Ticker symbol- TTL
Stock Code- 458
Total issues- 526 652
State-owned- 51.0% (268,593)

OVERVIEW OF THE BANKING SECTOR IN MONGOLIA


A few years into Mongolia’s transition to a market economy, the banking sector was hard hit by rocketing interest rates, poor banking practices, an underdeveloped legal system, and defaulting borrowers. In 1996, the rate of non-performing loans in the banking system was about 47 percent and the structure of bank loans was such as to discourage productive businesses.

However, current condition of Mongolian financial and banking sector is relatively stable and favorable, as compared to the situation in the 90s. As of the first half of 2008, 16 banks, 1057 branches and units have served 3.4 million bank customers or deposit owners. The commercial banks’ current account and deposits have grown due to accepted current account balance or time deposits from public, enterprises and other organizations. In fact, compared to the second quarter of 2007, current account amounts increased 2.2 times, which is 467.7 to 853.2 billion MNT increase, while time deposits increased by 31.7 percent, resulting to 1,692.4 billion MNT. Fast growth in credit has also reduced the non-performing loans ratio, falling below 2.8 percent as of August 2008. This is due to an enormous effort on improving bank loan management. Total loans of banking sector reached 2,649.9 billion MNT in the first half of 2008, accounting for 58.1 percent of GDP. Looking at sector allocation of loans issued by commercial banks, new credit over the second quarter of 2008 went primarily into trade services, construction, and manufacturing. A significant share has also gone to real estate sector. The mortgage portfolio of banks has been rising rapidly over the past couple of years but is still not a significant proportion of the total lending portfolio. According to statistics from Bank of Mongolia, total assets of banking sector reached 3,760 billion MNT, amounting in 82.5 percent of GDP as of June 2008.

Major commercial banks are actively expanding reach of their operations by opening new branches. Number of bank branch and units has increased by 76 or by 7.7 percent from the last year. New branch and units are mostly being established in rural areas of the country (aimags), with the common objectives of banks to increase the competition within the financial sector as well as to contribute to lower interest rate and longer maturity of loans.

Non-bank financial institutions also play an important role in the banking sector of Mongolia. These institutions fill the gap created by absence of banking services to some segments of population, namely, the middle- and low-income individuals, micro enterprises and rural population.

Due to the fall of copper prices and world economic slowdown, close supervision is required given the fast growth of credit, high inflation and the likely slowdown of activity, although key indicators of the soundness of the Mongolian financial system appears to be stable.

Trade and Development Bank
Tel: (976) 11 312362, 331133
Fax: (976) 11 327028, 331155
e-mail: sanal@tdbm.mn
Web: http://www.tdbm.mn/

Mongol Post Bank
Tel :+976 11 310 103, 326800
Fax: +976 11 328 501
e-mail: info@postbank.mn
Web: http://www.postbank.mn/

Anod Bank
Tel :+976 11 464114
Fax: +976 11 464109
e-mail: anod@anodbank.com
Web: http://www.anod.mn/

Capitron Bank
Tel: + 976-11-328373,
Fax: +976-11-328372
e-mail: info@capitronbank.mn
Web: http://www.capitronbank.mn/

Golomt Bank
Tel: (976) 11 311 530, 311 971
Fax: (976) 11 312 307, 311 958
e-mail: mail@golomtbank.com
Web: http://www.golomtbank.com/

Zoos Bank
Tel: (976)-11-322244; (976)-11-312724
Fax: (976)-11-329537
e-mail: zoos@zoosbank.mn
Web: http://www.zoosbank.mn/

Xac Bank
Tel: +976 11 318 185
Fax: +976 11 328 701
e-mail: bank@xacbank.mn
Web: http://www.xacbank.mn/

Khan Bank
Tel: 976-11-332-333
Fax: 976-7011-7023
e-mail: info@agbank.mn
Web: http://www.khanbank.com/

INVESTMENT ENVIRONMENT


Information of Mongolia
1.1 Geography and Climate

Mongolia is a landlocked country located in North-East Asia between Russia and China. The country has a total area of 1,565,600 square km, almost three times the size of France. Mongolia shares a 4,673 km border with China on its eastern, western and southern sides and a 3,485 km border with Russia to the north. The population of Mongolia is only 2,7 million, giving it one of the lowest population densities of any country in the world, similar to the arctic areas of northern Canada. Approximately 900,000 people live in Ulaanbaatar, the capital and largest city. Other major cities include Darkhan, an industrial center near the northern border and Erdenet, a copper mining center, also in the north. Around 40% of the populations live in countryside, primarily as nomadic livestock herders, while the rest live in the major cities or small towns spread throughout the country.

The Mongolian latitude (between 42 and 52 degrees north) is roughly the same as Central Europe or the northern states of the USA. Because the country is landlocked and distanced from the world’s oceans, and has a large proportion of its landmass at a relatively high altitude, the climate exhibits large temperature fluctuations and low total rainfall (the Ulaanbaatar average is 220 mm per annum, approximately 10 inches). Most of the precipitation falls during the brief summer season, while winters are generally dry and extremely cold.

While the climate and geographic conditions of the country limit crop agriculture, they are well suited to expensive livestock production. Nomadic herding of livestock, primarily sheep, goats, horses, cattle, yaks and camels, is one of the mainstays of the Mongolian economy, and forms the basis of its cultural identity. Approximately 65% of the country is steppe grasslands; the southern third is Gobi desert, while forests and mountains cover approximately 12% of the total land, mostly in the northern areas. Mongolia is rich in mineral resources with substantial deposits of gold, fluorspar, ferrous metals such as molybdenum, and non-ferrous metals such as lead, copper, nickel, aluminum, tin and bismuth.

1.2 People and Language
Almost 90% of the populations of Mongolia are Khalkh Mongols, while the rest are Kazakhs or other ethnic groups living mainly in the western part of the country. Substantial Mongolian populations also live in the Inner Mongolia Region of China, and the Siberian areas of Russia near the Mongolian border. The primary language is Mongolian, a member of the Altai language family. Many people also speak some Russian due to the heavy influence of the former Soviet Union in Mongolia, and young people now study English along with other foreign languages such as Japanese, German and French. The most common religion in the country is Tibetan Buddhism, which has enjoyed a strong revival since the end of communism in the late-1980s. Other religions are freely practiced, and include a substantial Muslim following in the western areas of the country.
Mongolia is administratively divided into 21 aimags (provinces) and 334 soums (counties). The capital of Mongolia is Ulaanbaatar which has a population of about 900 thousand.

1.3 History
Modern Mongolia history began in 1206 when Chinggis Khan united the Mongol tribes and embarked on a series of military conquests across Asia and into the Middle-East and Europe. Chinggis’s sons and heirs extended the kingdom in the late-13th century when the Mongols controlled one of the largest empires in history, stretching from present-day northern Vietnam to the Middle-East and Central Europe. By the mid-14th century, however, internal struggles caused the empire to collapse, and by the 17th century the Manchu Qing Empire in China had subjugated all of Mongolia.

After the Chinese revolution of 1911, the northern Mongol princes declared an autonomous Mongolia with Jebtsun Damba Khutukhtu, the Living Buddha of Urga, as a ruler. After a brief reoccupation by the Chinese, the new state was occupied first by White-Russian troops, then by the Russian Red Army. In July 1921, Mongolia was proclaimed an independent state, which remained a monarchy until the death of the Living Buddha in 1924. In 1924, with the support of the Soviets, the Mongolian People’s Republic was formed with a centrally planned economy and political system along socialist lines. Beginning in 1989, and corresponding with the withdrawal of Soviet troops from the country and the period of glasnost in the Soviet Union, protests for greater democracy began in Ulaanbaatar. As in many East-European countries, these protests led to the fall of the Communist government and the adoption of a democratic political system. The first multi-party elections were held in 1990. During the early 1990s, the ex-Communist Mongolian People's Revolutionary Party (MPRP) gradually yielded its monopoly on power to the Democratic Union Coalition (DUC), which defeated the MPRP in a national election in 1996. Since then, parliamentary elections returned the MPRP overwhelmingly to power in 2000 and produced a coalition government in 2004.

1.4 The Political System
In January 1992, the Mongolian legislature adopted a new Constitution, which came into force on 12 February 1992. The Constitution establishes Mongolia as a democratic republic. As a unitary state, Mongolia is divided into administrative units called aimags. As with other democratic market economies, the Mongolian political structure consists of legislative, executive and judicial branches of government with a president as the head of state.

The Legislature
The legislature arm of the Mongolian State is the State Great Hural or Parliament, which is composed of a single chamber consisting of 76 members. Citizens qualified to vote, elect the members of parliament for a period of four years. Qualifications for office require that candidates must be citizens of Mongolia and at least 25 years of age.

The Mongolian parliament has the power to enact legislation and has exclusive authority in a number of areas, including domestic and foreign policy. It sets the dates for the election of the President and Parliament, confirms the President in office, removes the President from office and appoints, replaces or removes the Prime Minister. Importantly, parliament also has the power to ratify or reject international agreements. The parliament also has authority over ‘strategic minerals’ including oil, gas and uranium. National laws must be disseminated through publication and enter into force 10 days after the date of publication.

The Presidency
One or more political parties represented in the Parliament nominate presidential candidates. Election is by simple majority and once elected, the President serves a term of four years and may be re-elected only once. Candidates must be over 45 years of age and Mongolian citizens who have resided in the country for at least five years prior to election. The President acts as head of state and as head of the national Security Council (which consists of the President, the Prime Minister and the Speaker of Parliament). The President has the power to veto Parliament’s decisions; however his veto may be overturned by a two-thirds majority vote of the Parliament. The President may also issue decrees that come into effect upon signature by the Prime Minister. The President nominates the candidate for Prime Minister in consultation with the major political party. A two-thirds majority of Parliament may remove the President for violation of the Constitution or an abuse of power in breach of the presidential oath. In June 2005, his Excellency Mr. Nambariin Enkhbayar was elected President of Mongolia. Next election will be held in 2009.

The Government
The Government is the highest executive body of the state. Their term is four years beginning with the appointment of the Prime Minister. The Prime Minister is the leader of the government and is accountable to parliament for its implementation of legislation. The government is also responsible for directing the country’s economic, social and cultural development. To do so, it can establish agencies (classified as either implementing agencies or regulatory ones) by adopting the rules and regulations these agencies propose. After the 2004 general elections, the government has established and Prime Minister works with Deputy Prime minister and 13 ministries.

The government is also empowered to protect the environment and to use and renew natural resources. It has the authority to regulate and approve the exploration for, and exploitation of, ‘strategic minerals’. The next parliamentary elections will be held in 2008. Government resolutions passed in meetings of the Cabinet are published monthly in the Bulletin of Government Resolutions, in the daily newspaper Century News and government website www.open-government.mn.

The Judiciary
The Mongolian Constitution also establishes a judicial function vested solely in the courts. The judicial system consists of the Supreme Court as the highest court with a number of appellate and district courts. The Supreme Courts has a number of powers including the right to try certain criminal cases and legal disputes, and to examine the decisions of lower courts through the appeals process. The Supreme Court also examines cases of human rights transferred to it by the Constitutional Court and the Prosecutor-General and provides official interpretations of law, with the exception of the Constitution. The Constitution also allows for the formation of specialized courts such as criminal, civil and administrative courts that are not under the supervision of the Supreme Court. A general Council of Courts has also been established to ensure the independence of the judiciary. It has the exclusive power to select judges.

1.5 Business Information

Time
Add 8 hours to Greenwich Mean Time

Working hours
09.00-18.00, with a one-hour lunch break

Public holidays
December 31- January 1 - New Year
3 days in January/February - Mongolian New Year (Tsagaan Sar)
8 March- International Women’s day
June 1 - Mother and Child Day
July 11-13 - National Holiday (Naadam)
November 26 - Sovereignty Day

Business attire
Similar to that of Western businessmen

Electric current
220 volts/50 HZ

Weight and measures
Metric System

Communication
Country code - 976, area code for Ulaanbaatar - 1

Main ports
Chinggis khaan ( International airport in Ulaanbaatar)
Sukhbaatar (railway station on Mongolian-Russian border)
Zamyn Uud (railway station on Mongolian-Chinese border)

Air links
Moscow, Irkutsk, Ulaan-Ude (Russia)
Berlin (Germany)
Beijing, Huhhot (China)
Almaty (Kazakhstan)
Seoul (Republic of Korea)
Osaka, Tokyo, Narita (Japan)

Rail links Irkutsk, Moscow (Russia) /Trans-Siberian Rail/
Huhhot, Beijing (China) /Trans-Siberian Rail/

Sea access Tianjin/China (1.344 km)
Nakhodka/Russia (4.037 km)


1.6 Consular Information

Entry and exit visas for foreign nationals are issued by the Visa Section of the Ministry of External Relations of Mongolia, the Mongolian diplomatic or the consular mission, and/or Honorary Consuls of Mongolia unless it has been regulated by specific bilateral conventions.
Short-term visitors who plan to stay in Mongolia less than 30 days do not need a letter of invitation when applying for Mongolian visa. Those who plan to stay for more than 30 days require an invitation from state administrative organization, political party, public organization, economic entity, Mongolian citizen, or foreign citizen who has resided in Mongolia for more than three months. Mongolian residents and foreign citizens residing in Mongolia for an extended period must have their invitations to be approved by the Citizens registration and information bureau.
Those who apply for a Mongolian visa need to complete one application form and submit one passport size photos. Faster services will entail fee surcharges of up to 100% of the normal fee. Transit visas for stays of 48 hours or less require an onward ticket, a visa for the next destination and a fee of US$15. Only the Ministry of External Relations will issue multiple entry/exit visas. The Mongolian visa can also be issued by the Immigration Officers at the international airport at a fee of US$50.
Fees charged for Mongolian visa
Current fees for the Mongolian visas

Type of Visa
Fee in US$

Entry/exit visa
25 /for urgent-50$/

1 transit visa
15

2 transit visa
30

Multiple entry/exit visa valid for 6 months
65 /for urgent-130$/

Multiple entry/exit visa valid for 12 months
130 /for urgent-260$/

7-day extension
15 plus 2 for each additional 1 day of extension

Fines for visa violation
up to 75