Legal framework to comply with business
The legal forum “Fostering Inclusive Economic Growth Through Legal Reform” started its second day with the round-table discussion under the theme “Public Private Partnership”.
Public Private Partnership
In this session Ch.Khashchuluun (Chairman, NDIC), N. Zoljargal (Deputy Director of Bank of Mongolia), I. Batkhuu (expert at the State Property Committee), Robert Schoellhammer (Country Director of ADB), and Alex Wong (Hogan Lovells) discussed public private partnership’s framework, and budget policy. The projects under concession list to be implemented through the public and private partnership principles in Mongolia require investment of USD 7-8 billion.
Ch. Khashchuluun introduced about founding the Guarantee Fund that would support the investors of the public sector. It means issuing guarantee for the repayment of the investor’s capital. The Credit Guarantee Fund for the Small and Medium Sized Enterprises was recently established. The Guarantee Fund would support the investors of the private sector within the framework of public and private partnership projects. The session participants agreed that the Budget law approved by end of the year as well as the mechanisms for private investment use should be enhanced.
Law on Petroleum to be Revised
The session “Oil and gas regulations” was held. Mongolia will have soon several oil processing factories. The session attendees noted although the government pays attention on oil and gas exploration, the implementation process is still insufficient. Minister of Natural Resources and Energy D. Zorigt said: The Law on Petroleum is one of the few laws that are followed well. It indicated the law’s good elaboration . Yet, some of the attendees disagreed with this statement.
D. Munkhtuya, lawyer of Dashdorj consulting said the Law on petroleum is to be revised due to the social conditions, and it doesn’t contain any pressure for the businesses. She points out the importance of the law which reflects the public interest.
It is true that petroleum sector of Mongolia misses the legal framework. The meeting debated the legal revisions, conflicts, experience of foreign countries with attendance of the international delegates.
Competition Policy
The session “Competition Policy and Regulation” discussed about creation of the fair competition within business sector, and consumer protection. The session was led by L. Dashdor, Advisor to the President of Mongolia, B. Lkhagva, Chairman of Fair Competition and Consumer Protection Agency, Direcor of Chemonics International Fernando Bertoli, and B. Temuulen, Head of Civil Law Faculty at the NUM.
L. Dashdorj criticized the insufficient fair competition and transparency, price setting through conspiracy. The reason for it is the Law on Competition and the Law on Customer Protection are too general, in conflict with each other, and the responsibility system is vague. On the other hand, the capacity, legal status of the Fair Competition and Consumer Protection Agency are inadequate, noted B. Lkhagva. The monopoly institute is titled when it takes over 40% of the market. In Mongolia, there are 30 such institutions. The participants reminded the conspiracy occurs in case of absence of responsibility mechanisms in the Law. The fuel price showed in practice already how the businesses can make profit while the citizens with low income experienced challenges. The citizens should raise voice against breach of consumers’ rights, agreed the forum attendees.
Detailed reportage on the legal forum is to be issued in the magazine Mongolian Economy’s second issue of June 2012.
Kh. Khulan, B. Uuganbayar, Kh. Anand
Public Private Partnership
In this session Ch.Khashchuluun (Chairman, NDIC), N. Zoljargal (Deputy Director of Bank of Mongolia), I. Batkhuu (expert at the State Property Committee), Robert Schoellhammer (Country Director of ADB), and Alex Wong (Hogan Lovells) discussed public private partnership’s framework, and budget policy. The projects under concession list to be implemented through the public and private partnership principles in Mongolia require investment of USD 7-8 billion.
Ch. Khashchuluun introduced about founding the Guarantee Fund that would support the investors of the public sector. It means issuing guarantee for the repayment of the investor’s capital. The Credit Guarantee Fund for the Small and Medium Sized Enterprises was recently established. The Guarantee Fund would support the investors of the private sector within the framework of public and private partnership projects. The session participants agreed that the Budget law approved by end of the year as well as the mechanisms for private investment use should be enhanced.
Law on Petroleum to be Revised
The session “Oil and gas regulations” was held. Mongolia will have soon several oil processing factories. The session attendees noted although the government pays attention on oil and gas exploration, the implementation process is still insufficient. Minister of Natural Resources and Energy D. Zorigt said: The Law on Petroleum is one of the few laws that are followed well. It indicated the law’s good elaboration . Yet, some of the attendees disagreed with this statement.
Board Director of Petrovis J. Oyungerel: The petroleum law was untouched for over 20 years. Now it will be revised. We disagree with most of the amendments. Because the law suppress the few small companies that operate in a risky sector, with too much taxes. Although Mongolia does have oil reserves, these are spread all over the land, which are risky for us. If we explore the oil by our capital and find it, then we have to give its 65-75 percent to the state. It is a hurdle for the few oil companies”.
D. Munkhtuya, lawyer of Dashdorj consulting said the Law on petroleum is to be revised due to the social conditions, and it doesn’t contain any pressure for the businesses. She points out the importance of the law which reflects the public interest.
It is true that petroleum sector of Mongolia misses the legal framework. The meeting debated the legal revisions, conflicts, experience of foreign countries with attendance of the international delegates.
Competition Policy
The session “Competition Policy and Regulation” discussed about creation of the fair competition within business sector, and consumer protection. The session was led by L. Dashdor, Advisor to the President of Mongolia, B. Lkhagva, Chairman of Fair Competition and Consumer Protection Agency, Direcor of Chemonics International Fernando Bertoli, and B. Temuulen, Head of Civil Law Faculty at the NUM.
L. Dashdorj criticized the insufficient fair competition and transparency, price setting through conspiracy. The reason for it is the Law on Competition and the Law on Customer Protection are too general, in conflict with each other, and the responsibility system is vague. On the other hand, the capacity, legal status of the Fair Competition and Consumer Protection Agency are inadequate, noted B. Lkhagva. The monopoly institute is titled when it takes over 40% of the market. In Mongolia, there are 30 such institutions. The participants reminded the conspiracy occurs in case of absence of responsibility mechanisms in the Law. The fuel price showed in practice already how the businesses can make profit while the citizens with low income experienced challenges. The citizens should raise voice against breach of consumers’ rights, agreed the forum attendees.
Detailed reportage on the legal forum is to be issued in the magazine Mongolian Economy’s second issue of June 2012.
Kh. Khulan, B. Uuganbayar, Kh. Anand
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