Sunday, November 16, 2014

Mongolia Brief November 10, 2014



Heads of State of Mongolia and PR of China Meet in Beijing
November 10 (infomongolia.com) On November 08, 2014, President of Mongolia Tsakhia ELBEGDORJ left for Beijing to attend the Asia-Pacific Economic Cooperation (APEC) Third Senior Officials meeting themed "Shaping the Future through Asia-Pacific Partnership" and this time President Ts.Elbegdorj is attending for the first time as a guest participant.

In the scope of the APEC Third Senior Officials meeting, President Ts.Elbegdorj attended the “Dialogue on Strengthening Connectivity Partnership”, where he met with President of the People’s Republic of China Xi Jinping in Beijing on November 08, 2014.
At the meeting, Ambassador Extraordinary and Plenipotentiary of Mongolia to the PR of China Ts.Sukhbaatar, Deputy Minister of Foreign Affairs and Economic Cooperation D.Gankhuyag, National Security and Foreign Policy Advisor to the President L.Purevsuren and other representatives from Mongolian side were present.
Representing the Chinese side, Director of the Policy Research Office of the CPC Central Committee Wang Huning, Secretary of CPC Central Secretariat, Chief of the General Office of the Communist Party Li Zhanshu, State Councilor of China Yang Jiechi, Foreign Minister of China Wang Yi and other officials have attended.
At the beginning, President Xi Jinping noted, “I am glad to meet Mr. President Elbegdorj, as old friends. Last August, upon the invitation of the President of Mongolia, I paid a state visit to Mongolia. Mongolia left its wonderful memories and lasting impression with me. Once again I thank you for your invitation.
I would like to thank you Mr. President Elbegdorj for attending the APEC’s session under the theme “Dialogue on Strengthening Connectivity Partnership”, upon my invitation. This is the fifth time I met President Ts.Elbegdorj, within this year.
Recently, I also met with the Speaker of the State Great Khural (Parliament) of Mongolia Z.Enkhbold. It fully shows the high-level of China-Mongolia bilateral relations. Together with President Ts.Elbegdorj we are ready to enhance the comprehensive strategic partnership between our two countries”.
In response, President Ts.Elbegdorj said, “I am truly grateful to attend the APEC Third Senior Officials meeting upon your invitation. President Xi Jinping's visit to Mongolia is of vital historic significance and it left a great impression on the people of Mongolia. I am very glad to have this opportunity to meet with you Mr. President for the fifth time in 2014 to exchange views on bilateral relations as well as other wide range of issues. I am grateful for the people of China for successfully organizing a number of international events this year”.
During the meeting parties exchanged views on the implementation of the works discussed during the President Xi Jinping's state visit to Mongolia and Mongolia-Russia-China trilateral meeting in Dushanbe, Tajikistan.
Both sides also discussed the joint coal gasification projects, expanding mutual partnership in infrastructure sector. Heads of state expressed their readiness to cooperate on the export of meat and meat products from Mongolia to China.
On November 09, 2014, President of Mongolia Ts.Elbegdorj received the Chairman of the Standing Committee of the National People’s Congress of the People’s Republic of China Zhang Dejiang.
At the meeting, Chairman Zhang Dejiang noted: “On behalf of the NPC Standing Committee, I express my gratitude to Mr. President Elbegdorj for attending the APEC Third Senior Officials. Last month, I held bilateral talks with the Speaker of the State Great Khural of Mongolia Z.Enkhbold and signed a Memorandum of Understanding on establishing permanent partnership mechanism between the State Great Khural and the NPC Standing Committee. We hope that by enhancing partnership between the top legislative bodies of Mongolia and China we will contribute to developing mutual cooperation in all sectors”.
In response, President Elbegdorj said, “Thank you Mr. Zhang Dejiang, for welcoming us at the NPC Standing Committee. Our two countries are succeeding in developing intensively bilateral ties and collaboration in all directions. Last August, President Xi Jinping conducted a state visit to Mongolia and we agreed to enhance the comprehensive strategic partnership between our two countries. A comprehensive strategic partnership means the two countries will carry out comprehensive cooperation in all fields on the basis of mutual respect, equality and mutual benefit”.
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Presidents of Mongolia and China MeetMontsame, November 10


Regular International Pass Flights over Territory of Mongolia Increases by 8.1% Y-O-Y
November 10 (infomongolia.com) The Department of Air Navigation Service of the Civil Aviation Authority of Mongolia (CAA) received 74,403 requests from international and domestic flights of 48 air carriers to conduct flights over the territory of Mongolia between October 26, 2014 and March 28, 2015.
Accordingly, taking into account the requirements for the safety of flight, the CAA issued 70,264 permits, of which 61,853 are planned as regular international pass flights and 8,411 flights are preserved as a stand-by way.
Moreover, the regular landing and taking-off flights are estimated at 4,139, whereas for international 2,423 and for local air carriers at 1,716. Compare to 2013-2014 winter schedules, the regular international pass flights are increased by 8.1%, international landing and taking-off flights have increased by 5% and local by 5% respectively.

Firebreak Strip along Mongolia-Russia Border being Situated
November 10 (infomongolia.com) A working group headed by the State Secretary of the Ministry of Environment and Green Development Mr. Jamsran BATBOLD familiarized with current works on wildfire prevention in Selenge Aimag on November 07, 2014.
In the frameworks, the group worked at the Mongolian Border Unit No.0243 and accepted the 97 km of 10 meters wide strip to prevent fires from spreading. This work was financed with 30 million MNT (Tugrug) and the Border Unit plans to accomplish more 250 km along the border with Russian side.
The Ministry of Environment and the General Authority for Border Protection of Mongolia had established a Memorandum of Understanding of Cooperation on March 06, 2014 and under the MoU, such wildfire prevention strip stretching over 1,000 km along the border through territories of Khuvsgul, Bulgan, Selenge, Khentii and Dornod Aimags of Mongolia will be done within 2016 and as of today, firebreak strip is situated along the Mongolia-Russian border for over 400 km.
In 2012-2014, 19 cases of wildfire came from Russian territory were registered that caused damages amounted to over 365 million MNT and 54.5 billion MNT was spent to stop wildfire. Moreover, it is estimated up to 20% of total wild and forest fires enter from the border of the Russian Federation.

President Meets Chairman of NPC Standing Committee
By B. Amarsaikhan
Ulaanbaatar, November 10 (MONTSAME) The leader of Mongolia Ts.Elbegdorj received on November 9 the Chairman of the Standing Committee of the National People’s Congress of China Mr Zhang Dejiang, in a scope of the Asia-Pacific Economic Cooperation /APEC/ Third Senior Officials meeting,
Mr Zhang Dejiang said: "On behalf of the Standing Committee I express my gratitude to Mr President Elbegdorj for visiting our country. Upon the invitation of the President Xi Jinping, President Elbegdorj attended the APEC Third Senior Officials meeting themed 'Dialogue on Strengthening Connectivity Partnership' and met with the President Xi Jinping. It is very rare that the heads of state of two countries meet five times a year. It shows the high level of China-Mongolia bilateral relations and close friendship of the heads of state of our countries. 
"Last month, I held bilateral talks with the Speaker of the State Great Khural of Mongolia Z.Enkhbold and signed a Memorandum of Understanding on establishing permanent partnership mechanism between the State Great Khural and the NPC Standing Committee. We hope that by enhancing partnership between the top legislative bodies will contribute to developing of mutual cooperation in all sectors".  
In response, Mr Elbegdorj said: "Thank You Mr. Zhang Dejiang, for welcoming us at the NPC Standing Committee. Our two countries are succeeding in developing intensively bilateral ties and collaboration in all directions. Last August, the President Xi Jinping conducted a state visit to Mongolia and we agreed to enhance the comprehensive strategic partnership between our two countries. A comprehensive strategic partnership means the two countries will carry out comprehensive cooperation in all fields on the basis of mutual respect, equality and mutual benefit."

President at APEC Meeting on "Dialogue on Strengthening Connectivity Partnership"
By B. Amarsaikhan
Ulaanbaatar, November 10 (MONTSAME) The President Ts. Elbegdorj is attending the APEC Third Senior Officials Meeting in Beijing these days. He addressed the APEC Ministerial Meeting on November 8 by his speech themed “Dialogue on Strengthening Connectivity Partnership”.
He started by congratulating the government of the People’s Republic of China on a successful organization of the APEC High Officials Meeting. He also thanked the President of the PRC Xi Jinping for inviting him to this Forum. 
"Mongolia fully supports the APEC’s vision and principles and we have been expressing our interest to cooperate and join the APEC since 1993. Mongolia strives to meet all APEC criteria, and using the APEC members’ practices as benchmark, Mongolia has developed a Plan for Trade and Investment Liberalization. The APEC economies account for about 80 percent of Mongolia’s foreign trade turnover and 70 percent of total foreign direct investment inflows to Mongolia”, he said. 
Being an Asian country with an intensively growing economy, Mongolia has an enduring aspiration to become a member of APEC, the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific, and this goal is one of our foreign policy strategic priorities, he went on. 
Mr Elbergdorj also noted that Mongolia’s being part of the Asia-Pacific region is not just a geographical, but also a political factor, and said that Mongolia belongs to the international forums and organizations, in particular, to the United Nations and the Asia-Pacific regional groups. “Therefore, our regional agenda is also centered on becoming a dialogue partner of ASEAN and joining the East Asia Summit process”
Although, Mongolia is a landlocked country, it has a vested interest in all the "Three Pillars" of APEC work, which will help us develop much closer economic ties with our immediate neighbors and other APEC economies, he said.
He noted about Mongolia’s possibility to become the shortest transit line country connecting Asia and Europe, by mentioning Mongolia’s joining the Asian Highway Network signing the Intergovernmental Agreement on the Asian Highway Network with members of the United Nations Economic and Social Commission for Asia and Pacific "and we are responsible for building roads on AH3, AH32 and AH4 within our territory".
Mongolia launched the construction project of a new international airport, which will be commissioned and operational by December 2016. This airport shall make Mongolia an air transit hub between the Europe and Asia, he went on. 
Mongolia is planning to construct approximately 5,600 km of railway infrastructure in 3 phases and the second phase - the construction of 1,800 km railway has started in 2013, he said. 
Recalling the official visits of the Heads of State of Russia and China paid to Mongolia, he emphasized the discussion of issues on establishing and developing transit transportation corridors. “This will help Mongolia enhance cooperation with the Asia-Pacific countries in economic, trade, investment, road-transportation, agriculture and tourism sectors.”
“Once again, I express Mongolia’s readiness to cooperate and to be involved in the Steppe Road project, which connects Russia and China, with highway, high voltage electrical line, gas and oil pipeline” he said. 
At the end of his speech, he said that as Mongolia’s economic potentials unfold, the APEC member economies and Mongolia will enjoy greater cooperation venues and platforms in mining, energy and infrastructure.

Mongolia’s Rep and UN Human Rights Commissioner about Cooperation
By B. Amarsaikhan
Ulaanbaatar, November 10 (MONTSAME) Permanent Representative of Mongolia to the UN Headquarters in Geneva and to other international organizations Ambassador V.Purevdorj met on November 6 the UN High Commissioner for Human Rights Zeid Ra'ad Al Hussein at the latter’s office in Geneva.
V.Purevdorj congratulated Mr Al Hussein for being appointed the High Commissioner for human rights and reassured Mongolia’s priority foreign policy that aims at strengthening democracy, promoting UN actions towards protecting and ensuring human rights and freedom, and actively being involved in those actions.
He also informed him that Mongolia set goals to seek a membership in the UN Human Rights Council in 2016-2018 and to improve its contributions in cherishing and protecting of human rights on regional and international levels.
Mongolia’s medium- and long-term report has been delivered to the Office of the UN High Commissioner for Human rights on implementing the recommendations that follow discussions on Status Report on Human Rights in Mongolia by the UN Human Rights Council, he added.
In response, Mr Zeid Ra'ad Al Hussein conveyed his gratitude for President Ts.Elbegdorj for attending as an honored guest and addressing in September the high-level discussion on Abolishment of Capital Punishment, which ran in frames of the 69th Session of the UN GA. He emphasized Mongolia’s enduring contribution to cherishing and ensuring of human rights and strengthening democracy on regional and international spheres, and appreciated Mongolia’s voluntary donation for promoting the activities of the Office of the UN High Commissioner for Human Rights.
Mr Al Hussein also expressed an aspiration to expand the cooperation with Mongolia in promoting and ensuring human rights.

Social Welfare Officials Visit Germany
By B. Amarsaikhan
Ulaanbaatar, November 10 (MONTSAME) A delegation of the Ministry of Population Development and Social Welfare led by the State Secretary B.Otgonjargal paid a working visit to Germany on November 3-8.
They met with the Ambassador Extraordinary and Plenipotentiary of Mongolia to Germany Ts.Bolor to discuss the visit's agenda. The same day, a seminar was organized for them by Ms O.Putsch, an officer of the Federal Statistical Office responsible for Human development, and Mr T.Krebs, the head of the Berlin Statistical Office. Another leg of the visit was a meeting with divisions of foreign relations of the Department for Accident Insurance and of accident insurances, at which the sides discussed realization of the agreed bilateral cooperation as reflected in the Memorandum inked in 2013 by the General Authority for Social Insurance of Mongolia and the Department for Accident Insurance of Germany.
B.Otgonjargal and a member of Bundestag and State Secretary for the Federal Minister of Labour and Social Affairs A.Kramme met November 7 and signed a Activity Programme of Cooperation between the two Ministries. They intend to collaborate in studies for innovation of pension insurances, establishing pension funds, preparing educated personnel to serve the disabled.
The delegates also got acquainted with a social care and monitoring center for people with mental illnesses and a housing district for people with special care located in Wedding district, and of a recreation center for the disabled in Mitte district of Berlin.

First Lady Visits Beijing Museum
By B. Amarsaikhan
Ulaanbaatar, November 10 (MONTSAME) Mongolia’s First Lady, the spouse of the President, Ms Kh.Bolormaa visited on November 9 the Capital Museum of Beijing at invitation of the First Lady of China Peng Liyuan.
They were also accompanied by the spouses of the President of Bangladesh and of the Secretary-General of the Shanghai Cooperation Organization. The ladies were introduced to exhibits presenting ancient cultural heritage and folklore artworks.

Khan Bank Introduces ISO 27001:2013 Standard
By B. Amarsaikhan
Ulaanbaatar, November 10 (MONTSAME) Khan Bank has successfully established Information Security Management system /ISMS/ and received ISO/IEC 27001:2013 standard certification for the first time in Mongolia, for the purpose of ensuring information security of its clients and partners, and integrity of its operation.
Khan Bank utilizes Information and Communication Technology widely for delivering comprehensive banking services to its clients via its 100% online network. Therefore, the bank started ISMS project in 2013 covering its all operations and information assets in the Head Office and Data Center of Khan Bank.  
By establishing ISMS in accordance with the requirements of ISO/IEC 27001:2013 standard,  the bank has many benefits including protection of its information and information assets from all types of external and internal threats, prevention and mitigation of risks related with information security for ensuring its continues operation. 
Internationally accredited IRQS audited the Head Office and Data Center of Khan Bank for evaluating the bank’s implementation of the requirements specified in the standard, and concluded that Khan Bank has fully satisfied the given requirements. IRQS accredited Khan Bank with the certification recognizing that the bank is the first organization to introduce new version of ISO/IEC27001:2013 standard in Mongolia.

MBA President Calls Press Conference
By B. Amarsaikhan
Ulaanbaatar, November 10 (MONTSAME) Minister of Population Development and Social Welfare and the president of Mongolian Basketball Association (MBA) S.Erdene MP called a press conference Monday to inform that the national team has ranked at fifth place at the Asian Universities Basketball Championship held on November 3-8 in Taipei, Taiwan.
He said that skills and potentials of the Mongolian team and athletes have reached an outstanding level and replied to reporters’ questions.

Mongolia attends APEC summit
November 10 (news.mn) Mongolian President Ts.Elbegdorj is attending the 2014 Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Week, in Beijing, from November 8-11th, the first time a Mongolian president has attended the meeting.
China's president Xi Jinping chaired and addressed a dialogue on strengthening connectivity partnership in the framework of the APEC summit. China is hosting this year and invited six of its neighboring countries leaders to participate in the dialogue, including the President.
The other countries invited were Bangladesh, Laos, Myanmar, Tajikistan, Pakistan (Prime Minister in attendance), and Cambodia (Prime Minister in attendance). Secretaries of the Economic and Social Commission for Asia and the Pacific (UNESCAP) and representatives from the Shanghai Cooperation Organisation (SCO) were also present.
The Asia-Pacific Economic Cooperation is a forum for 21 Pacific Rim member economies. It was established in 1989 by the Foreign Affairs and Trade Ministers of 12 countries, and expanded to 21 member economies to become one of the most influential forums in the region.
APEC economies currently hold 40 percent of the world's population, account for 57 percent of global GDP, and 47 percent of global trade volume.
President of Mongolia Ts.Elbegdorj spoke during the dialogue on strengthening connectivity partnership on Saturday, stating, "Mongolia supports APEC's goals and principles.
"Mongolia first approached cooperation with APEC in 1993 and voluntarily issued an Individual Action Plan for Trade and Investment Liberalization in 2000, guided by the APEC economies’ practices.”
Eighty percent of Mongolia's foreign trade volume and 70 percent of foreign direct investment belongs to APEC economies.
However, in 1997, APEC made a decision not to admit more members for one decade and the decision was extended until 2010. Mongolia has been seeking APEC membership since 2010.
Analysts say that to strengthen economic growth and to build one of the steadiest economies in Asia, Mongolia needs to join the APEC family to maintain growth and economic integration, along with its two neighbors and other countries in the region.
Economically and mutually linked Russia and China have pledged support for Mongolia to join APEC. Participation in the summit and dialogue in Beijing is seen as a beneficial move for Mongolia to join APEC.

Prime Minister of Mongolia Expected to Be Announced on December 08, 2014
November 10 (infomongolia.com) On November 07-08, 2014, the irregular 43rd Meeting of the National Consultative Committee of Democratic Party (DP) was held in the Government House behind the closed doors and following the two-day meeting as was expected to promote new Prime Minister of Mongolia, the DP Secretary General Mrs. Ts.Oyundari gave a press conference on November 09, 2014.
The Secretary General noted the DP Consultative Committee revised the current situation of resigned Cabinet used to chair by Premier N.Altankhuyag, who was dismissed by Parliament decision on November 05, 2014 and following the two-day meeting, the DP members consequently agreed to call the Party Assembly Meeting scheduled on December 08, 2014.
DP Secretary General Ts.Oyundari stressed that the National Consultative Committee of DP is authorized to raise a candidate for the Prime Minister of Mongolia and at the meeting it was decided to give this full privilege to incumbent Head of Democratic Party, MP N.Altankhuyag and other Parliamentarians.
After consideration, the DP Group at the Parliament will submit the names of new Cabinet members to the National Consultative Committee before December 08, 2014. Under this privilege, the DP Group members are entrusted to negotiate with other political forces having seats at the Parliament (State Great Khural).
Moreover, it was agreed to annul the Partnership Agreement established between the Head of DP N.Altankhuyag and the Head of MPRP N.Enkhbayar, which was signed last October 18th and brought a lot of conflicts among DP members.
According to DP regulations, the Prime Minister will be announced within 30 days and therefore, it was decided to meet again and announce new Prime Minister of Mongolia on December 08, 2014.

Mongolia's dairy sector offers opportunity
November 6 (oxfordbusinessgroup.com) Strong demand at home and abroad could prompt higher investment in Mongolia’s dairy industry as the country strives to return to self-sufficiency in milk, as well as capitalise on export potential in the region.
Mongolia’s agricultural industry remains key to the economy, with farming production accounting for 16.5% of GDP. Although it is gradually being supplanted by the mining sector, agriculture is the greatest single employer in the economy, representing 27.7% of the total labour pool, according to a recent report by the World Bank. The dairy and associated livestock segment is the greatest contributor to the sector, comprising around 50% of its workers and more than half its annual output in terms of value.
Traditionally the dairy segment has been a strong performer, with nomadic herding and traditional dairy-product making at the heart of Mongolian society. Self sufficient in milk production during the socialist era, the country suffered a downturn in the 1990s, due to a fall in state support and extensive livestock losses. Extreme climatic conditions at the turn of the century saw up to 30% of farm animals perish, including nearly all the dairy cows.
This loss in production capacity, combined with a lack of investment in processing technology in existing plants, saw the gap in supplies made up with imported materials.
Boosting investment and production
Under the 2007-16 National Dairy Plan the government set the target of boosting production capacity to meet 90% of domestic milk demand. While it is unlikely this goal can be achieved, with imports still necessary to bridge the supply gap, producers are looking for technological solutions, such as keeping products fresher for longer, and improving processing and quality, as well as local initiatives to promote small-scale, organic producers.
Investments could pay off in the medium term, as low domestic consumption rates offer an opportunity to develop the market, according to Ts. Erdenebileg, chief executive of mixed foods and beverages firm APU. “Mongolia needs to develop its capacity in industrial dairy farming, as the segment offers strong potential for growth. Annual dairy consumption in the country is 70 kg per person compared to more than 150 kg in more developed markets,” he told OBG.
Further investment in the sector is needed to bolster existing infrastructure and improve output by raising food stock quality for cattle and developing higher quality breeding and quality control programmes, Erdenebileg said.
Organic milk production also poses an opportunity to create jobs in rural area, according to A. Tungalag, CEO of Darkhan Khuns JSC, a food producer, which provides grass and feed in exchange for fresh milk. “If more companies begin doing this, Mongolia can be self-sufficient in milk,” he told OBG.
Export opportunities
Mongolia is a nomadic country and products such as milk and meat are 100% organic, which creates a big opportunity given the shift of consumer preferences towards natural products. Indeed, the organic dairy market is expected to be worth $15.9bn by 2019, according to Transparency Market Research, rising from $11.16bn in 2012.
In Mongolia, the dairy segment has the potential to grow its exports market, particularly in neighbouring countries like Russia, said B. Gantulga, the CEO of dairy producer Suu.
“The eastern region of Russia suffers from a deficit in fresh milk,” he told OBG. “If Mongolia were able to effectively develop its domestic production capacity, it could begin exporting considerable quantities of milk to the country.”
Russia’s current ban on agriculture and food imports from the EU, a response to recently imposed sanctions over Moscow’s alleged involvement in military action in Ukraine, could also open doors for Mongolian produce.
Mongolia would be able to fill only a fraction of the $6.5bn gap created by the Russian ban on certain EU foodstuffs. But with dairy products among those covered by the bans, there could be a potential market opening up across the border. This opening was widened during the visit to Mongolia by Russian President, Vladimir Putin, in early September. Putin said there were significant opportunities for Mongolian primary producers to export meat and other animal husbandry products to his country, and that cooperation in agriculture among other fields could be stepped up.

Stock Exchange news for November 10
By B. Amarsaikhan
Ulaanbaatar, November 10 (MONTSAME) At the Stock Exchange trades on Monday, a total of 42,999 shares of 18 JSCs were traded costing MNT 12 million 504 thousand and 555.00.
"Genco Tour Bureau” /27,180 units/, “State Department Store” /6,326 units/, “Hermes Center” /2,845 units/, “Khokh Gan” /2,170 units/ and "Remicon” /1,915 units/ were the most actively traded in terms of trading volume, in terms of trading value were "State Department Store” (MNT three million 780 thousand and 640), "Genco Tour Bureau” (MNT two million 310 thousand and 480), “Telecom Mongolia” (MNT two million 167 thousand and 600), “Darkhan Nekhii” (MNT 997 thousand and 500) and "Gutal” (MNT 950 thousand).
The total market capitalization was set at MNT one trillion 540 billion 409 million 27 thousand and 40. The Index of Top-20 JSCs was 15,346.52, increasing 34.49 units or 0.23% against the previous day.

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