FIRST DEPUTY PREMIER AND NEW RAILWAYS

Ulaanbaatar, Mongolia /MONTSAME/ The First Deputy Premier N.Altankhuyag received on Wednesday 17th August authorities of the Ulaanbaatar Railway Mongolia-Russia joint venture and an advisory group led by the McKinsey & Company, Inc, a global management consulting firm. He has got acquainted with a draft economic and technical justification of the new railways to be constructed in Mongolia. The advisors underlined that the policy of Mongolia on railway drawn up dedicated to the new railways is able to contribute to development of infrastructure and mining sectors, and it would be a tool for distributing minerals extracted in Mongolia to the international market augmenting size of export. Railways in route Dalanzdgad--Tavantolgoi--Sainshand--Baruun-Urt--Choibalsan are planned to be constructed in the first turn through a state policy on railway transportation approved by a parliamentary resolution which was issued on 24th June of 2010. Thus, the advisors have pointed out it is effective to implement the project of railways together with second phase of the policy. "It may reduce expenses for constructing the basic structure and easy to attract investments," they said, adding that it is calculated money of about USD 5.5 billion is required for the railway project. The First Deputy Premier asked them about support that should be rendered from the cabinet of Mongolia. In response, the advisors said the project needs a governmental investment of about USD 50 million. N.Altankhuyag promised to positively tackle the financial matter, and to convey it to the cabinet. Present at the meeting were Ch.Khurelbaatar, head of the Cabinet Secretariat of Government; Kh.Battulga, the Minister of Road, Transportation, Construction and Urban Development; and other officials.

B.Khuder