Mongolia Brief July 9, 2014 Part I
Mongolia
and Kyrgyz Republic Hold Official Talks Chaired by Two Prime Ministers
July 9
(infomongolia.com) Prime Minister of the Kyrgyz Republic, Djoomart Kailovich
Otorbaev is paying an official visit to Mongolia these days and on the first
day of his visit, Premier Dj.Otorbaev held an official meeting with the Prime
Minister of Mongolia N.Altankhuyag
in the Government House on July 08, 2014.
Following the
bilateral talks, the two Government leaders made briefings during the press
conference and Premier N.Altankhuyag noted in his statement that the visit of Kyrgyz
Prime Minister to Mongolia opens a new page in the mutual partnership history
and during the talks Mongolia and Kyrgyzstan agreed to support each other cooperating
in the development of parliamentary democracy. Also, parties negotiated to
collaborate on the studies of Mongolia’s experience in the civil registration
and electoral systems, besides how to bring close civil servants’ service to
public. Moreover, sides reached consensus to forward bilateral economic
partnership, for instances, opportunities between entities to export Mongolian
wool and cashmere products and to import sugar and various fruit products from
the Kyrgyz Republic.
In his
statement, Prime Minister Dj.Otorbaev said, “Mongolia’s experience gained in
developing democracy is helpful in the development of parliamentary democracy
of the Kyrgyz Republic and great potential of opportunities to partner are open
in economic sector between the two countries, particularly in the spheres of mining,
animal husbandry and tourism”.
On the same
day, Kyrgyz delegation led by Prime Minister Dj.Otorbaev was received by
Speaker of the State Great Khural (Parliament) Z.Enkhbold, where parties
discussed on further inter-parliamentary partnership issues and Premier
Dj.Otorbaev conveyed greetings of Speaker of the Jogorku Kengesh (Parliament)
Asylbek Sharipovich Jeenbekov to his counterpart of Mongolian Parliament.
President
meets Ambassador of Canada
Ulaanbaatar,
July 9 (MONTSAME) The leader of Mongolia Ts.Elbegdorj Tuesday received Tuesday
Mr Gregory Goldhawk, the Ambassador Extraordinary and Plenipotentiary of Canada
to Mongolia.
The Ambassador,
who has completed his diplomatic mission here and is to return home soon,
"made great contribution to deepening of the bilateral relations",
stressed the President and thanked him for these deeds and also for efforts to
involve Mongolia in a list of countries to receive the official developmental
assistance.
Some high-level
visits were paid between the two countries last year, for example, the
Governor-General David Johnston visited Mongolia, and the Speaker Z.Enkhbold
visited Canada, he went on. Mongolia is focusing on ensuring its economic
development and on attracting foreign investments, the President emphasized and
said the two countries have all chances to collaborate in investing Mongolia’s
rural development, infrastructure and education. Mongolian parliament recently
adopted the new laws on minerals and on oil, he noted.
In response, Mr
Goldhawk said Mongolia is one of the countries who prioritize the democracy and
human rights, and that he had observed intensive development of our economic
growth.
Underlining an
importance of the bilateral economic ties, especially a partnership of private
sectors of our counties, the President wished the Ambassador all the
best.
President
Ts.Elbegdorj Meets Prime Minister of Kyrgyz Republic
July 9
(infomongolia.com) The President of Mongolia Ts.Elbegdorj received the Prime
Minister of the Kyrgyz Republic, Djoomart Otorbaev at the State Affairs Ger
Palace on July 08, 2014.
At the beginning
of reception, Premier Dj.Otorbaev conveyed sincere greetings of President of
the Kyrgyz Republic Almazbek Atambayev to the state head Ts.Elbegdorj and noted
that the President Ts.Elbegdorj’s state visit to Bishkek conducted in 2012 is
highly valued. Also, Mr. Djoomart Otorbaev conferred an invitation from the
President of Kyrgyzstan to President Ts.Elbegdorj to visit the country to
attend the World Nomad Games 2014, where participants from Turkey and Central
Asian countries will compete in wrestling, horse races and traditional nomadic
games that will take place in September 2014.
Prime Minister
Djoomart Otorbaev expressed Kyrgyzstan’s interest to learn Mongolia’s model,
experiences and principles of democratic transition, market economy, human
rights and democratic fair elections. He emphasized that Mongolia and Kyrgyz peoples
have many similarities in customs, lifestyle, culture and history and that is
why Mongolia’s model of democracy meet Kyrgyzstan’s need. Prime Minister said
that there are wide opportunities for two countries to develop cooperation in
mining, animal husbandry and tourism sectors. He underlined possibilities for
Mongolian entrepreneurs to come to Kyrgyzstan cooperating in agriculture and
farming, because of the country’s pleasant climate.
President
Ts.Elbegdorj underlined the importance of fair registration of voters and using
electronic voting machines during the elections. President said that it is
important to exchange representatives, particularly Parliament members between
the two countries to sharing mutual experiences.
President
briefed about “From a Big Government to a Smart Government” program that has
been implementing and in the scope of this initiative, Budget Transparency Law
was ratified recently by the Parliament of Mongolia. Moreover, President noted
that the Honorary Consulate of Mongolia will be soon opened in Bishkek,
Kyrgyzstan.
Related:
State
Head receives Kyrgyzstan Premier – Montsame,
July 9
FM
meets French Assembly member
Ulaanbaatar,
July 9 (MONTSAME) Foreign Minister L.Bold met Tuesday with a French delegation
led by a member of the National Assembly Mr Jerome Chartier.
Mr Chartier is
also a chairman of the France-Mongolia Friendship Group at the National
Assembly.
Mr Bold said a
frequency of high level political dialogues and talks has increased and the
inter-parliamentary cooperation of the two countries has been expanding.
He confirmed
again that the President of the National Assembly of France has been invited to
Mongolia, "his visit might be paid next year within the semi-centennial of
the establishment of Mongolia-France diplomatic relations", and shared
views with the guest on the current state of bilateral relations.
He also
promised to support Mr Chartier's initiative to set up a "Friends of
Mongolia" association.
Speaker
meets member of National Assembly of France
Ulaanbaatar,
July 9 (MONTSAME) The Chairman of the State Great Khural (parliament)
Z.Enkhbold is happy with active political dialogue between Mongolia and France,
particularly with boosting of the inter-parliamentary ties and cooperation.
He spoke about
this and other matters at a meeting with Mr Jerome Chartier, a member of the
National Assembly of France (lower house of parliament) on Tuesday. The Speaker
conveyed greetings to Mr Claude Bartolone, the President of the NA of
France, and thanked Mr Chartier--a head of the France-Mongolia friendship group
at the NA--for 13-year great efforts to widen the relations and cooperation in
all sectors and to propagandize Mongolia to French politicians and businessmen.
He said that
"Tractebel", an associated company of the "GDF Suez" French
multinational electric utility company, is working out a feasibility study of
the "Eg River" hydro power station’s project after having been
selected as the consulting company, and added that this station will replace imported
electricity.
In response, Mr
Chartier expressed a satisfaction with meeting with the Speaker again. “Members
of the France-Mongolia friendship group are visiting Mongolia for the first
time. It is very important for us," he said and introduced to the Speaker
functions and goals of the friendship group.
He also said
France plans to mount an exhibition about Mongolia in 2016 in Paris to show
developmental tendencies of Mongolian ancient and contemporary arts. The 50th
anniversary of the Mongolia-France diplomatic relations will be celebrated next
year, Mr Chartier noted and said he would like the President of Mongolia to
visit France during this jubilee, "France is ready to do all to run this
visit".
After this, the
leader of Mongolia awarded Mr Chartier the "Polar Star" state Order
for his significant contribution to the bilateral social-economic relations.
Present at the
meeting were also N.Battsereg, a head of the “Justice” coalition’s faction at
parliament and chairman of the Mongolia-France inter-parliamentary group;
S.Byambatsogt, a head of the Mongolian People’s Party’s (MPP) faction;
Ts.Oyungerel MP, the Minister of Culture, Sport and Tourism; D.Ganbat, a head
of the Standing committee on justice; B.Boldbaatar, the secretary of the
Parliamentary Office.
Mongolia and
France established the diplomatic relations on April 27 of 1965. France opened
its Embassy in Mongolia in 1966, whereas Mongolia opened the Embassy in 1969.
Ulaanbaatar
to host East Asian Volleyball championship
Ulaanbaatar,
July 9 (MONTSAME) Our capital city will host the Asian Eastern Zonal Men’s
Volleyball Championship late May in 2015.
The above
decision was made during the annual meeting of the Asian Volleyball Federation
Eastern Zone Volleyball Association in Hong Kong, China on July 6. Representing
Mongolia, the Secretary-General of Mongolia's Volleyball Association
Ts.Bat-Enkh attended the meeting after the Asian Eastern Zonal Women's
Volleyball championship of 2014. At these events, Japan became first, followed
by China.
Related:
Mongolia to host Asian Eastern
Zonal Men’s Volleyball Championship 2015 – UB Post, July 9
Consulate
General of Mongolia to be opened in Bishkek
July 9
(news.mn) Today the Prime Minister of Kyrgyzstan Dzhoomart Otorbayev
participated in an official meeting with his counterpart, Mongolian Prime
Minister N.Altankhuyag, in Ulaanbaatar.
During the
meeting it was agreed that a Consulate General of Mongolia will be opened in
Bishkek.
The Prime
Minister of Kyrgyzstan stressed that "the Kyrgyz side enthusiastically
accepted the proposal and supported the decision of the Mongolian side about
opening of the Consulate General of Mongolia in Bishkek."
Prime Minister
Dzhoomart Otorbayev announced that in 2015 Kyrgyzstan scheduled parliamentary
elections in the country, and stressed the importance of sharing experience
with Mongolia in the reform of the electoral system.
During the
discussions, special attention was paid to the issues of trade and economic
cooperation between the two countries. In particular, the development of a
newly created Business Council between the countries was discussed. Agreements
were made in the field of agriculture, animal husbandry, trade and investment,
business, industry, mining, transport, construction, tourism, health care,
culture and science.
Prime Minister
Dzhoomart Otorbayev also noticed that in both Kyrgyzstan and Mongolia the mining
industry has an important role in the economy, and expressed his interest in
learning from the Mongolian experience.
A
Dark Life in Tsagaan Khad
July 9
(Mongolian Economy) In Tsagaan Khad of Khanbogd, Umnugobi are small buildings
with their walls built from two-rows of thin metal. Mongolians call this kind
of structure a sandwich-building. There are many awkward-looking, thin
corridors between these small buildings.
Most are shops
or grocery stores. One’s door reads “Chinese Yuan exchange, meat sale and
information bureau” – written in both Mongolian and Chinese. On the counters of
these grocery stores are packs of Chinese fruits and other goods.
Cars drive
through dirt roads littered with trash between buildings, and Chinese people
hang around the streets. It was common to see Chinese saleswomen working behind
counters. This is the norm for Tsagaan Khad.
There are more
than 200 families who reside nearby the mines owned by Energy Resource and
Erdenes Tavan Tolgoi. The gers people live in are covered with thick layers of
dust. Many signs stand outside of these gers advertising that they sell work
gear.
The area has
grown rapidly as more people move to Tsagaan Khad. Khanbogd’s governor has
renamed the area Khairkhan district. Unfortunately, the district has become
very disorganized, with gers haphazardly set down by families moving in.
When asked
about the disorganized look of the town, residents said that nobody from Khan
Bogd came to help them plan. They were only informed about the waste collection
and loading services provided each week, although none of those services had
arrived yet. A landfill was established, but it there is still plenty of trash
found throughout town.
Tsagan Khad is
about 25 kilometres from China’s Gants Mod customs border. The close proximity
allows Chinese merchants to buy bones from locals. An unpleasant smell emanates
from several homes where old bones are found.
The Lost People
The soil at
Tsagaan Khad has been damaged by the heavy coal trucks driving over dirt roads
and the livestock pasture has been destroyed.
The dirt roads
used by cars and trucks contribute to the degradation of the environment.
According to a
study last year by the National Human Rights Commission in Mongolia, 35,250
hectares land on both sides of the 230 kilometre road that links the Tavan
Tolgoi mine and Tsagaan Khad have been damaged or destroyed. Another study
carried out by the Special Inspection Centre, the National Agency for
Meteorology and Environmental Monitoring, and the Central Laboratory of
Environmental Monitoring found that the air quality in Tsagaan Khad was 45
times worse than recommendations and that particulate matter was 35 times
higher than suggested.
These studies
were confirmed by locals who said that their clothes would become filthy within
a day and that respiratory disease was spreading among locals due to the high
concentration of dust in the air.
Residents said
that once a year they go to the provincial capital seeking medical care. Not
everyone can afford the trip however, and many said they wished a doctor was
available in town.
According to a
study by the Ministry of Environment and Green Development in 2012, coal trucks
driving through town has had a toll of MNT 5.4 billion in damages on land
throughout the province, MNT 20 billion in damages to the soil, MNT 11.1
billion to the flora, MNT 18.7 billion to the fauna, and MNT 2.5 billion to the
air – for a grand total of MNT 58.1 billion.
Sh. Delgerbat
has been running a small business selling spare parts and building materials in
Tsagaan Khad since 1992, when the Gashuun Sukhait customs depot was first
established.
“The soil here
was good before the beginning of the coal transportation, but now large trucks
are coming and going day and night,” he said. “Our business is suffering from
the exchange rate because our goods are imported from Gashuun Sukhait customs
or the Chinese city of Erlian,”
His goods are
more expensive than what’s available in Ulaanbaatar. He said the town’s
population can grow to 1,000 people when the mines are operating, but the
permanent population is only about 200.
Resource Scarcity
Tsagaan Khad is
not connected to the national electricity grid, which is the biggest issue for
both temporary and permanent residents of Tsagaan Khad. Some families use a
power generator while others use solar panels and small wind turbines imported
from China. There are a lot of families who forgo electricity all together.
Some people have even opened small businesses to allow people to charge their
phones for MNT 1,500 for a full charge.
Some families
in Tsagaan Khad sell electricity to their neighbours for MNT 5,000 a day, but
not everyone can afford electricity at MNT 150,000 a month.
Over 10,000
people come to Tsagaan Khad each year, but development is still stalled there.
There is a huge difference between Mongolia’s Gashuun Sukhait customs port and
Tsagaan Khad compared with China’s Gants Mod – where there is almost no air
pollution.
Water is also a
crucial issue in Tsagaan Khad. The price of water is MNT 30 to MNT 45 per litre
compared with MNT 1 a litre in Ulaanbaatar. Most springs nearby lack water and
only a few hand-dug wells located 15 to 20 kilometres away are used. Water
trucks carry up to five tonnes of water travel between the wells and Tsagaan
Khad.
Water is very
scarce in Umnugobi, and many believe the mining activity is exacerbating the
issue. The groundwater in Tsagaan Khad is brackish – too dirty for drinking
straight away. But locals say that they have no other choice but to drink it.
Water consumption in the Gobi ranges between 50 and 60 litres a day for one
family.
There is a
family in Tsagaan Khad who is able to transports six to seven tonnes of water
each day. They sell water at MNT 30 a litre compared with others that sell
water for up to MNT 45 a litre.
“We transport water from our well, located not far from here. When water demand increases, it requires us to make two to three deliveries a day,” said the truck’s owner D. Nergui.
“We transport water from our well, located not far from here. When water demand increases, it requires us to make two to three deliveries a day,” said the truck’s owner D. Nergui.
Although Nergui
charges less than his competitors, he can still earn up to MNT 100,000 a day,
and even more on weekends.
Tsagaan Khad is
an example of how life can really be thrown off the rails by mining activities.
With time maybe some of the struggles in living there can be wiped away, but
equally as important will be preventing other communities from facing a similar
fate.
City
Government Bond Issuance is One Step Forward
July 9 (Mongolian
Economy) The City Government of Ulaanbaatar has never issued a bond before,
despite implementing three bond issue procedures in 2002 and 2003. Yesterday,
the Economic Development Department of the City Government renewed a bond issue
procedure during the City Council Meeting. According to this law, no more than
15 percent of the city’s budget can be issued into a bond. They created a
preliminary projection of MNT 300 billion.
With the
hopeful implementation of this bond, the City Government anticipates to boost
the economic growth of Ulaanbaatar. The money from this bond would be given to
projects that have the ability to pay back within a short timeframe as well as
provide high benefits for the government. Such projects include the Emeelt
Complex, Nalaikh and Bagnuur industrial parks, city planning infrastructure,
and old apartment renovations.
Given the
current economic situation of Mongolia, the City Government predicts that they
will be able to issue the bond early next year. They are presently conducting
analysis on the spending of the Chinggis Bond to learn about its successes and
failures to better create an effective bond issue procedure.
The procedures
are set in place by the Ministry of Finance, the Ministry of Economic
Development, Mongol Bank and the Financial Regulatory Commission. These
organizations partnered with the World Bank project team to help establish
procedures that will meet international standards since the Chinggis Bond and
the Samurai Bond face many criticisms.
The World Bank
says that within the money supply program, loans have increased intensively
this year and reached the debt limit of Mongolia. This is turn creates a
pressing problem for Ulaanbaatar because by reaching the debt limit, the City
Government will not be able to issue any bonds in the future.
According to
international standards, the continuation of loan conditions and the duty of
local loans and payments can be independent from the government. This is
because at the end of the day, the local government can take loans and pay them
back with their own income sources.
In order for
the City Government to meet its financial needs, it is important to build up
financing in its capital markets in addition to establish its own credit rating
settlement. The World Bank says that Mongolia will need to improve its legal
environment setting, create a transparent and responsible system of debt
management, define its loan capacity and grade the needs of absolute
loans.
Related:
Capital City would release
Ulaanbaatar bond next year – infomongolia.com,
July 9
Mongolia’s
Combating Money Laundering and Terrorist Financing
July 9
(Mongolian Economy) Last month, the Financial Action Task Force (FATF) held its
meeting in Paris between June 25 and June 27. This was the third and final
Plenary meeting under the presidency of Vladimir Nechaev of the Russian
Federation. This group sets the status of countries based on each nation’s
legal, regulatory and operational measures for combating terrorist financing
and money laundering.
Mongolia has
been seen as a country that has the capability of smoothing out its deficit
mistakes as well as being able to effectively combat money laundering issues
and terrorist financing issues. The FATF moved Mongolia to a different category
as the country’s jurisdictions are no longer subject to the FATF’s on-going
global AML/CFT compliance process. Other countries that moved out of the
jurisdiction range include Kyrgyzstan, Kenya, Tanzania, and Nepal.
Since 2011,
Mongolia has been under the jurisdiction of the FATF. With its move out of
their compliance process, Mongolia is seen as a nation that is improving their
reputation in the world stage. These results contribute to the success of
Mongolia as other nations can now view Mongolia as a place that is more
reliable as well as a country that can be dependable in terms of
cooperation.
Now that
Mongolia is taking steps to fight terrorist financing strategies and money
laundering strategies, it has now found a place within the Asia/Pacific Group
on Money Laundering (APG).
Here
Comes Metropolitan Show
Ulaanbaatar,
July 9 (MONTSAME) On the second day of the Naadam festival on July 12, the
"Silence White" show will be staged in the National Recreation Park.
It will be
organized within the "Friendly Ulaanbaatar" program to become the
biggest open air show in Ulaanbaatar with 15 thousand people under a motto of
"Peace, Freedom and Unity".
For perfection
of sound and light effects, the German engineers have been invited to Mongolia.
The program includes musical performances and fashion shows to entertain the
audience, mainly the city youth and foreign tourists.
The
"Silence White" will be organized under collaboration of the City
Culture and Art Authority, National Recreation Park and "Mongol Mix
Project" LLC.
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