Government approves programme to support construction material production

On yesterday’s meeting of the government, the programme to support construction material production has been approved. The government has included in its agenda for 2012-2016 a plan to produce enough construction material such as cement, steel, glass and insulation material to fully supply domestic demand within the period.

The construction material production has been dragging behind the construction process for years now. 

More than 60 percent of the construction material and equipments are imported. During 2010 to 2011, more than 500 million USD was spent on construction related purchases from abroad in Mongolia. Therefore the innovation government believes it is necessary to develop value added construction material production.

The New Ulaanbaatar Programme, which is one of government’s new establishment project, covers the development of national construction material production necessary for building a complete construction of 17th khoroolol (town), infrastructure development in the Ger districts, reconstruction of outdated buildings, construction of apartments for one thousand households in each Province, railway construction, road construction, 100 thousand establishments and housings adjacent to the new airport construction at the Khushigt valley, construction of hydroelectric power station.

The government estimates that upon completion, the programme will allow Mongolia to produce more than 70 percent of its construction related products domestically by 2016.

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