Agreement to be concluded on Erdenet-Ovoot railroad project

Ulaanbaatar /MONTSAME/ A project on Erdenet-Ovoot railroad construction, reflected in the state property concessions list, was amended at the cabinet meeting on Monday. The amendment offers direct conclusion of agreement with a possible investor and project executor, without conducting a selection bid. The conclusion of the agreement was assigned to the Minister of Industry D.Erdenebat and to the chairman of the Authority for Investments S.Javkhlanbaatar. The project was included in parliament resolution on "Measures for Overcoming Economic Difficulties", offering the commercialization of Ovoot coal deposit. Preliminary cost of the project is estimated to be at 1.3 billion US dollars. The 547-kilometer railroad connecting the coal deposit to Erdenet city is expected to be commissioned in three years to come. The anticipated cost recovery is about 20 years. The railroad will have a capability of transporting 22.2 million tons per annum.