100 percent government-run company to be established

Ulaanbaatar /MONTSAME/ During its regular meeting on March 20, Monday, the Cabinet resolved to form a 100 percent government-owned company to handle the construction of an oil refinery plant in the country. Fully supplying its oil demand with import, Mongolia spends about USD 1 billion on the annual import of 1-1.2 million tons of fuel. Therefore, it was decided that an ‘Oil refinery establishment’ project will be realized in the frameworks of a loan agreement between Mongolian Government and Export-Import Bank of India. In this scope, a Prime Ministerial ordinance has thus been issued to form a working group which has responsibilities to establish the government-run company on the basis of technical and economic assessment for the ‘Oil refinery establishment’ project, and frame the structure, organization and regulations of the company.