Mongolia Brief July 2, 2013 Part I



Parliamentary spring session adjourns

Ulaanbaatar, July 2 (MONTSAME) Plenary meeting of the parliamentary session Tuesday heard final redrafts of some laws.

After this, the plenary meeting decided to free Mr Sh.Tuvdendorj from a post of a head of the Standing committee on justice and to appoint D.Ganbat.
Then the MPs adopted an issue of altering a composition of the Sub-committee on special monitoring, about which had been suggested by the Standing committee on security and foreign policy.
Final discussions were run of a draft resolution of parliament on approving the Basic Guidelines of Social-Economic Development of Mongolia in 2015, a draft amendment to the law on minerals and other bills. These all were backed by a majority. Their approval was also given to draft amendments to the laws on customs tariff and tax and on VAT. The MPs passed a bill on “glass” account, other related draft laws, and also a draft resolution of parliament on fixing a percentage of state-owned shares of the “Tsagaan suvarga” mineral deposit.
After having completed all the discussions, the 2014 parliamentary spring session took a break. The Speaker of parliament Z.Enkhbold delivered a speech, adjourning the session.

Bill on the Glass Account was adopted

July 2 (news.mn) On the last day of Spring Plenary Session of parliament, the Bill on the Glass Account was given  final approval and passed by majority vote.  Long-awaited bill that was formulated with the intent to make the State transparent and open to the public, to guarantee their civil rights by providing information, and to make the state finance healthy and stable and disciplined providing a transparent budget was rejected several times.  President  Ts.Elbegdorj  initiated and submitted the bill in April.
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Speaker makes closing remarks at parliamentary spring session

Ulaanbaatar, July 2 (MONTSAME) The Chairman of the State Great Khural (parliament) Z.Enkhbold made the remarks, adjourning the spring session of parliament.
He noted that plenary meeting met 29 times, meetings of Standing Committees and of sub-committees ran 29 times. Heads of the legislative bodies of Myanmar, Russia and Turkey paid official visit at invitations of the Speaker. Parliament discussed and adopted 106 laws and resolutions, of which 10 were laws, 61--amendments to laws, four--annulments, four--ratifying treaties and 27--resolutions of parliament, he went on.
Mr Enkhbold pointed out that the spring session passed many important laws and resolutions such as the 2015 Budget Frameworks, the laws on 2016-2017 budget assumption, on approving the Basic Guidelines for Social--Economic Development in 2015, on protecting cultural heritage, draft new wordings of the laws on oil, on index-based livestock insurance, on minerals, also parliamentary resolutions on some measures for intensifying economy, on approving a middle-term programme on green development concept, on fixing a percentage of state-owned shares of the “Tsagaan suvarga” mineral deposit.
In addition, the session adopted bills on ratifying the Protocol to Eliminate Illicit Trade in Tobacco Products, a general financial agreement for the programme of developing ger areas and supporting investment, a credit agreement for the project on higher education for engineering and technological institute, and a credit agreement for additional finance for the project on food, nutrition and social welfare, the Speaker said.
He also urged MPs to pay attention to implementing the 34th resolution on taking some measures for intensifying the national economy, adopted by parliament on May 8. "We can call an irregular session if there will be urgent issues related to parliament," the Speaker noted and said he wants all MPs to make efforts to realize the 100 days of intensifying economy.

Mongolia to cooperate with ADB in implementing urban dev't project

Ulaanbaatar, July 2 (MONTSAME) Deputy Mayor of Ulaanbaatar city on urban development and investment affairs Mr S.Ochirbat Tuesday received Mr Muhammad Sami Saeed, a director of the Asian Development Bank (ADB) for Mongolia.
The Deputy Mayor received him on occasion of a programme on developing Ulaanbaatar and investments, which was ratified by parliament on this May 23.
Congratulating Mongolia on ratifying and signing the programme, Mr Saeed said the ADB is studying an opportunity to collaborate with Ulaanbaatar in implementing the biggest projects being realized by the municipality on developing ger areas, on families health centers and on supporting small- and middle-sized productions.
In response, Mr Ochirbat thanked the ADB for implementing the very first multiphase financing programme together with Ulaanbaatar city, and spoke about a course of the programme’s preparation and other works related to the ger areas re-planning. The project’s leading committee and its unit have been approved, he added. In order to successfully realize the programme, the capital city will take all necessary measures, Mr Ochirbat underlined.
The municipality and the ADB reached an agreement to collaborate in projects on the ger areas replanning and urban development. 

Memorandum signed to erect solar energy station

Ulaanbaatar, July 2 (MONTSAME) The Ministry of Energy will cooperate with South Korean companies in renewable energy sector in frames of the "Gobitech and Asian super network" project.
The document was signed Wednesday by D.Delgertsogt, the State Secretary of the Ministry of Energy; Lee Wan Keun, president of South Korea’s “Shing Sung solar energy” LLC; Lee Wang Hee, president of the “Weel” LLC; and by B.Osorgarav, director of the “Mon-Korea” LLC.
Accordingly, the sides will construct a solar energy station of 8 Megawatt near the “Bayanteeg” coal mine in Ovorkhangai aimag’s Nariin teel soum.
Before the memorandum, a forum themed “Development of renewable energy in Northeast Asia: Gobitech-Asian Super Network” was co-organized last week by the Energy Charter Forum and the Ministry of Energy. Policy makers from Russia, China, South Korea and Japan, also international organizations, business delegates and others exchanged views on the Gobitech-Asian Super Network initiative and discussed opportunities to invest this initiative.

Deeltei Mongol festival will take place

July 2 (news.mn) An annual festival of traditional Mongolian costumes, Deeltei Mongol - Mongol in Deel will happen at Chinggis Khaan`s Square on the last day of the summer Naadam, on July 13th.
The Annual festival of traditional Mongolian costumes that aims to encourage young people to take pride in national culture, and celebrate the richness of historic and contemporary fashion of traditional costumes has been observed for the eighth year since 2006.
During the festival several cultural events, exhibitions of national dress, souvenir will be organized.
“Mongolians in deel –2014” festival program 
13.00-14.00 Opening ceremony
Parade of participants dressed in national costumes
14.00-14.15
National folk music concert
14.15-14.30
Costume national runway 
14.30-14.50
Contest of best dressed youngest participant
14.50-15.05
Cultural performance
15.05-15.35
Contest of best dressed couple
15.35-16.00
Entertainment time
16.00-16.15
Contest of best dressed foreigner
16.15-16.30
Cultural performance
16.30-16.45
Awards ceremony
16.45-17.15
Social dance
17.15-17.30
Cultural performance
17.30-17.45
Award ceremony
Best Dancing Couple
17.45-18.00
Closing ceremony

Same Number, Different Carriers

July 2 (Mongolian Economy) Mobile companies are currently in a state of transition due to a new law parliament passed yesterday regarding telecommunication regulations. This law mandates that any mobile user can switch communication services without having to change their phone numbers, making it easier on individuals who wish to transfer over to a different carrier. 
According to last year’s statistics, this regulation is prevalent in 78 different countries. Many Western nations were the first to enact this law. For example, the United States created a section under the Federal Communications Commission to allow “local number portability,” meaning users can switch wireless carriers while keeping the same phone number. These changes provide an easier way to contact others without the worry of constantly switching numbers. 

Outcome of Parliament’s Spring Session

July 2 (Mongolian Economy) Parliament ended the last day of their spring session yesterday. During these meetings, parliament members were able to discuss 79 laws, regulations and resolutions. Of these 79, nine of them were independent laws, which were all passed. In addition, they were able to change 43 current laws by adding major improvements. 
During this spring term, the laws that were passed will hold a big impact in the Mongolian community. For example, the nine big laws that were passed include a law related to the announcement of the overall budget of 2015, a law related to the budget of 2016 and 2017 as a future projection, priorities to develop the society of Mongolia, priorities to develop the economy of Mongolia, cultural heritage protection law, oil law, transparency law, minerals law and an animal index insurance law. 
More regulations were passed as well including measures to boost economic growth, to enhance the green development policy and to implement the midterm programme approval. In relation to the Tsagaan Suvarga mine that contains copper and molybdenum deposits, parliament also discussed how much of these deposits the state can own. 
Resolutions regarding monetary policy also came under play as parliament members targeted an inflation rate of 8% this year and 7% in the next two years in hopes to insure a stable macroeconomic environment. However, as of May this year, inflations levels remained at 13.7%, providing the government with little hope that it would hit 8%.
Besides inflation, foreign currency income rests at lower levels than expected. The budget income is facing a shortage and bad loans issued to sectors are now starting to deteriorate. The current account is also not in a good situation. It has experienced a fall of 56%, which is equal to USD 728.2 million. To add on to the fall of the current account balance, the country is facing a deficit of USD 580.5 million. 
Z. Enkhbold, parliament speaker, said “Given the current situation and given the current fall in foreign direct investment, the government is trying to keep boosting the growth of Mongolia by pushing the mining sector. The current account balance lost its stability, Mongolian currency is facing depreciation, and high inflation rates will require the nation to tighten its macroeconomic policy. If we continue down this path, we might get trapped in this situation and will have to limit supply.” 
If the current policy is continued, the Development Bank of Mongolia will have financing equal to 5% of GDP outside the budget, says International organizations If they carry on funding projects and programmes outside of the budget, the budget deficit will increase to levels consistent with 10% of GDP. 
Financing from the Chinggis and Samurai Bond, in addition to other budget operations, needs to be reflected in a general budget and then total deficit needs to be cut down until it meets the level consistent with the Fiscal Stability Law, which rests at 2%. In order to do this, budget amendments should be processed and submitted to parliament next month and parliament members will need to announce an off-season session in August. 

Inner Mongolians are interested in non-mining sectors

July 2 (Mongolian Economy) Last November, the Foreign Direct Investment Law was passed. Since the enforcement of this law, many investment forums and meetings took place within Mongolia with the participation of many foreign investors. Since the beginning of this year, 20 business forums have been organized by the National Chamber of Commerce and Industry that included over 600 foreign investors from a variety of nations. 
The Inner-Mongolian Investment Forum began today and will last until the 4th of July. 200 foreign investors from Inner Mongolia and China will partake in the events, hailing from many sectors including energy, road and transportation, construction, mining, agriculture, food, telecommunications, trade, bank and financing and environment. Another 200 business people will also participate from Mongolia representing 160 different entities. 
This forum aims to expand economic cooperation between China and Mongolia in addition to smoothing out the environment. The summit will bring together businesspeople from both nations to boost cooperation. The investors from Inner-Mongolia and China primarily come from the agriculture sector and the food industry as well as the food-processing level. These investors get along well with the Mongolian policy through diversification. 
Sun Wei Dun, the Director of the National Chamber of Commerce of Inner Mongolia of China, said, “This forum is important because it is happening at a time of good relations.” Chinese investors also underlined the importance of a stable legal environment. 
In reply, S. Javkhlanbaatar of Invest Mongolia Agency said, “Not only in the legal environment, but in all other sectors, it is important to remain stable. Mongolia right now is in the centre of investors’ attention. They’ve been visiting hundreds by hundreds, but we are paying attention to make cooperation effective and beneficial in order to avoid losing investor confidence and trust.”
According to Go Gan, the Trade Department Deputy Director of Inner Mongolia, it is not important to seek opportunities in big sectors, such as mining that brings the economy down. It is agreed that it is important to not only cooperate with big companies, but with small- and medium-sized enterprises as well. The result will end up with attracting bigger and better investment. 
This forum is organized by Invest Mongolia Agency, Mongolian National Chamber of Commerce and Industry, and Sub Council of Inner Mongolia Autonomous Region and the China Council for the Promotion of International Trade

2014 National Naadam Festival Program

July 2 (infomongolia.com) The 2014 National Naadam Festival, which is officially to celebrate nationwide as public holidays on July 11-15 starting from this year, is dedicated to the 2,223rd Anniversary of the Mongolia's First Statehood, the 808th Anniversary of the Great Mongol Empire and the 93rd Anniversary of the People's Revolution.
The Organizing Committee of the 2014 Naadam Festival has released the detailed program of sports and cultural events to take place prior, during and after the Festival.
The 2014 Naadam Festival starts as customary with Uriankhai style archery tournament and scheduled to take place at the Archery field, next to Central Stadium in UB, and will be held on July 07, 2014.

2014 Horse Trainers Festival Program

July 2 (infomongolia.com) The 2014 National Naadam Festival, which is officially to celebrate nationwide as public holidays on July 11-15 starting from this year, is dedicated to the 22, 23rd Anniversary of the Mongolia's First Statehood, the 808th Anniversary of the Great Mongol Empire and the 93rd Anniversary of the People's Revolution.
The Organizing Committee of the 2014 Naadam Festival has released the detailed program of sports and cultural events to take place prior, during and after the Festival.
As part of the 2014 National Naadam Celebration, the “Uyachdiin Naadam” or Horse Trainers Festival usually takes place at the Khui Doloon Khudag valley in Tuv Aimag annually on July 13, 2014, which is about 35 km from center of Ulaanbaatar and in the scope of the Festival, a special program with full of events are being organized at the Khui Doloon Khudag.
Mongolian trotting match horse racing competition
The trotting match horse racing is one of the most interesting events organized during the Festival. There are three main types of horse trotting namely in Mongolian language Uran, Usan and Telmen, and Mongolians started to organize the trotting match since 1996, but from 2004 National Naadam Festival, the trotting match has been organized in the form of short track horse racing and the race particularity is that a trotting horse should not miss an interval between the steps but to speed up.
One lap of the short track distance is 400 m and 5 laps to run in the trotting match horse racing. Afterwards, horses with most clean trotting came in the first are winning.

Art and Cultural Program of 2014 National Naadam Festival

July 2 (infomongolia.com) The 2014 National Naadam Festival, which is officially to celebrate nationwide as public holidays on July 11-15 starting from this year, is dedicated to the 22, 23rd Anniversary of the Mongolia's First Statehood, the 808th Anniversary of the Great Mongol Empire and the 93rd Anniversary of the People's Revolution.
The Organizing Committee of the 2014 Naadam Festival has released the detailed program of art and cultural events to take place during the 2014 National Naadam Festival.

Parliament of Mongolia Takes Break until Autumn 2014

July 2 (infomongolia.com) According to the Law on Parliament, the 2014 Spring Plenary Session of the State Great Khural (Parliament) is closed on July 01, 2014 and on the last day of the meeting; the first issue ratified was dismissing the Chairman of Legal Standing Committee, MP Sh.Tuvdendorj from his post.
Former Chairman of Legal Standing Committee, MP Sh.Tuvdendorj, who was recently promoted for Minister of Industry and Agriculture, is succeeded by MP D.Ganbat.
Afterwards, members of Parliament revised draft bills on amendments to the Law on Customs Tariff and Tax, amendments to the Law on VAT, bill on “Glass Account” and bill on “Tsagaan Suvraga Deposit’s State Share” and following the discussion all bills were approved.
In his closing remarks, Speaker of the Parliament Z.Enkhbold stated, “The State Great Khural is taking break until Autumn Plenary Session and the Fourth Spring Session lasted for 62 working days, whereas plenary sessions took place 29 times and Standing Committee meetings 108 times with duplicated numbers.
During the last Spring Session a total of 79 laws, resolutions and Parliament decisions were ratified, of which 9 laws, 43 amendments, 2 annuls, 4 treaties and 21 Parliament resolutions.
Among the ratified bills were 2015 State Budget framework, Budget forecast for 2016-2017, Socio-economic development in 2015, Protection of Cultural Heritages, Law on Crude Oil, Law on Glass Account, Amendments on Mineral Resources, Resolution No. 34 on Some Measures to Strengthen Economy, Mid-term Program Approval for Green Development Concept as well as a bill to determine state share on Tsagaan Suvraga Deposit”.
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