CABINET BACKS PROJECT OF NEW RAILWAYS

Ulaanbaatar, Mongolia /MONTSAME/ The cabinet meeting held on Wednesday, August 24 discussed a draft project on new railway, and backed a technical and economic justification for the first and second phases of the railway construction which was reflected in the state policy on railways. An order was given to Kh.Battulga, the Minister of Road, Transportation, Construction and Urban Development to implement measures of the project in a number of stages. Furthermore, the Development Bank of Mongolia was allowed to tackle a financing of USD 55 million that is needed in the first turn for realizing the project within this year. In frames of the project, railways will be constructed between Tavantolgoi and Sainshand (468 km), Sainshand and Khoot (450 km), Khoot and Choibalsan (155 km), Khoot and Nomrog (380 km), Tavantolgoi and Gashuunsukhait (267 km), and Nariinsukhait and Shiveekhuren (46 km). It is calculated that the basic structure for one kilometer railway is cost USD 2.5-2.8 million. The technical and economic justification has been drawn by the McKinsey & Company, Inc consulting firm.

B.Khuder