STANDING COMMITTEE ON ECONOMICS MEETS

Ulaanbaatar, Mongolia, /MONTSAME/ The Parliamentary Standing committee on economics discussed Tuesday issues of privatizing/reforming such big entities as the Darkhan's metallurgical factory, cement and calcium factory of Khotol, the Baganuur state-owned company and the Ulaanbaatar railways joint stock venture. The State Great Khural has issued a resolution on approving basic guidelines for privatizing/reforming state properties in the 2010-2012. This resolution aims to update the 1949 Mongolia-Russia Intergovernmental agreement on erecting the UB Railways Joint Stock Venture in respect of Mongolian side's laws, and to augment shares of Mongolian side to 51 per cent at least. Chaired by the Vice Minister of Road, Transportation, Construction and Urban Development, a commission is working to implement this resolution. According to D.Sugar, a head of the State Property Committee, a positive approach has been created for increasing shares for the Mongolian state thanks to three-time talks with the Russian side. Nonetheless, the sides have not agreed on several matters such as the bilateral equality at any activities, tax payment and participation of the Russians in railways running. Some works have started to organize a shareholders' meeting of the “Baganuur” state-owned company of coal exploitation, to fix a number of additional shares and its prices per unit, and to evaluate coal reserves in accordance with international standards. Other matters will be tackled soon consulted with a company on selecting the investment bank, constructing a power station based on the Baganuur coal mine, working out a proposal on a project to liquefy coal, and on a proposal to process coal from the South Korean Energy Research Institute. According to Sugar, Darkhan's metallurgical factory will be privatized through open tender. During this meeting, the gathered expressed their positions over results of property privatization and necessity to privatize all state-owned propertries.

B.Khuder