Mongolia To Build Highway From Russian To China Borders: Report
The Mongolian government is planning to build a $3.5 billion cross-country highway stretching from its border with Russia to Zamyn-Uud on the Chinese frontier, reported Bloomberg on Monday, citing Mongolia’s state-run news agency Montsame.
The 627-mile-long highway is expected to be completed by late-2015 and will see foreign investors provide up to 70 percent of the initial funding while a Mongolian investment group called Chinggisland Development will bear the remainder, said Montsame.
The road will also help facilitate trade between China, Russia and Europe, the agency reported. Further Mongolia’s trade volume is likely to receive a boost, while there will be increased development for towns along the route, said Montsame.
Construction of the road will start in May and will see North American and Italian companies involved in the project, the agency reported, without identifying specific firms.
Meanwhile the Mongolian government is also seeking a non-state partner to build a 160-mile (260-kilometer) railway from the Tavan Tolgoi coal field to the Chinese border, a separate Bloomberg article reported last week.
The government has accepted bids from 20 companies, including 14 from overseas, and the partner will take a 49 percent stake in the project.
Tavan Tolgoi, one of the largest coal deposits in Mongolia, has an estimated 6.4 billion metric tons of reserves, 70 percent of it is coking coal for steelmaking. Mining companies at the site presently deliver supplies to China via trucks.
Prime Minister Norovyn Altankhuyag said that more than one bidder may be chosen, raising the possibility of a joint venture. The state-controlled Development Bank of Mongolia LLC will also contribute $200 million to the project, Altankhuyag said.
Mongolia’s booming mining sector is attracting the attention of its neighbours and is likely to see increased foreign investment in the near future. According to J. Berkshire Miller, an international affairs professional in Asia-Pacific writing for The Diplomat, Mongolia’s geostrategic location and resources may even play a role in mediating numerous conflicts in the region – including the North Korean situation or the Japan-China quarrel.
Last week Japanese Prime Minister Shinzo Abe visited Ulaanbaatar to discuss a new “strategic partnership.” His counterpart Altankhuyag has also recently stressed his nation’s relationship with North Korea, claiming that “Mongolia can contribute if they (North Korea) initiate any meetings.”
The 627-mile-long highway is expected to be completed by late-2015 and will see foreign investors provide up to 70 percent of the initial funding while a Mongolian investment group called Chinggisland Development will bear the remainder, said Montsame.
The road will also help facilitate trade between China, Russia and Europe, the agency reported. Further Mongolia’s trade volume is likely to receive a boost, while there will be increased development for towns along the route, said Montsame.
Construction of the road will start in May and will see North American and Italian companies involved in the project, the agency reported, without identifying specific firms.
Meanwhile the Mongolian government is also seeking a non-state partner to build a 160-mile (260-kilometer) railway from the Tavan Tolgoi coal field to the Chinese border, a separate Bloomberg article reported last week.
The government has accepted bids from 20 companies, including 14 from overseas, and the partner will take a 49 percent stake in the project.
Tavan Tolgoi, one of the largest coal deposits in Mongolia, has an estimated 6.4 billion metric tons of reserves, 70 percent of it is coking coal for steelmaking. Mining companies at the site presently deliver supplies to China via trucks.
Prime Minister Norovyn Altankhuyag said that more than one bidder may be chosen, raising the possibility of a joint venture. The state-controlled Development Bank of Mongolia LLC will also contribute $200 million to the project, Altankhuyag said.
Mongolia’s booming mining sector is attracting the attention of its neighbours and is likely to see increased foreign investment in the near future. According to J. Berkshire Miller, an international affairs professional in Asia-Pacific writing for The Diplomat, Mongolia’s geostrategic location and resources may even play a role in mediating numerous conflicts in the region – including the North Korean situation or the Japan-China quarrel.
Last week Japanese Prime Minister Shinzo Abe visited Ulaanbaatar to discuss a new “strategic partnership.” His counterpart Altankhuyag has also recently stressed his nation’s relationship with North Korea, claiming that “Mongolia can contribute if they (North Korea) initiate any meetings.”
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