Premier: Big locks of Oyu tolgoi and Tavan tolgoi are opened

Ulaanbaatar /MONTSAME/ The Prime Minister of Mongolia Ch.Saikhanbileg addressed the people on April 5 to highlight his cabinet’s three-month works. "As we had named our government’s goal as ‘economics, economisc and, again, economics’, our work has mainly been dedicated to this sphere. Within these 100 days, we have managed to complete some 40 types of huge works. For example, the state expenditure has been decreased; the program has been adopted on overcoming economic difficulties; the economic partnership agreement has been signed with Japan; a second project of the Millennium Challenge Account has been agreed on to be implemented; actions have started to increase a gold mining; financial sources have been added for oil and petroleum m products; Ministries and agencies’ expenditure has been cit; a minerals exploration has been revived; financial sources have been resolved to start a construction of a new hospital, 93 secondary schools and the Erdenet-Ovoot railroad; pensions and salaries have been added; high political bodies have been removed from board of state-run companies; the days of Mongolia have been organized at the biggest in the world Berlin’s tourism fair, and so on. What to do next? First of all, to settle down internal works and to officially announce the results of work on Oyu tolgoi underground mine. As known, we ran hard and long negotiations on launching the exploitation of this mine and reached a principal agreement on controversial problems. This historical decision will attract to Mongolia 4.2 billion USD from 14 biggest in the world banks. It is the widest opportunity not only for the Oyu toloi but also for many other entities to actively get involved in the great construction and to yield increased profits. The negotiations on Tavan tolgoi project have moved into the final stage. It is a pleasure to notice that the sides have reached an agreement on several principal matters, and this will allow us to officially announce about launching the works. A construction of the railroad will be completed, for which a sum of 200 million UDS will be placed in the state budget. Frankly saying, only after moving these two projects will come other investments and financing in real. A way will be found to get rid of difficulties, and a life of Mongolians will improve, so let’s make decisions in a wise and brave manner and work creatively. The amendment to the Constitution is to be the historical decision. Let’s decide together whether or not to irrevocably move to the classical parliamentarian power, to let localities elect their governors, to have two chambers in parliament, to allow officials serve in parliament and government simultaneously, to separate town from city. These and other vital matters are to be considered by the spring session of parliament. Our government will actively collaborate with parliament and factions and coalitions in making the political forces healthier and purer and more honorable. It will also cooperate with them in reforming the political parties, adopting a new law on political party, making the parties’ finances transparent and in approving the new law on elections. The government will submit to parliament a law that resolves a new system tax in localities. Up to 30% of the mineral resource payment will be kept in a locality without removing the local budget subsidy, if the locality carries out mining industry. It means that soums/aimags with the mining production will be able to develop themselves quicker and to become wealthier than other regions. Let residents of Selenge aimag’s Mandal soum decide whether to exploit the “Gatsuurt” mineral deposit. If they decide ‘yes’, a one third of the mineral resource payment and a half of the special license payment—some 60 billion Togrog--will be granted to this locality. The soum’s people will also decide how to spend the money from the payments. Let them spend for developing their soum or establishing new schools and kindergartens. I want to underline one thing: A landscape of the Noyon Mountain will be left as it is with its historical heritage and legacy. Next package of issues I am highlighting are the projects of Tavan tolgoi and Oyu tolgoi. We have unlocked our developmental way by moving these projects. Now, it is time for the government to exploit all its opportunities to carry on other biggest projects that will expand the national economy, thus the government is going to abolish a blockage of implementing the project on the 5th thermal power station. As the incumbent Prime Minister, I have met members of the governmental working group and officials of the investors’ partnership and told them to complete all talks and paper work agreements. They promised to launch the construction this July. Such other dead-ended projects will be tackled quickly soon. Apart from this power station project, the government has made some decisions on raising money for building up power stations of Baganuur, Booroljuut, Shivee-Ovoo and Tavan tolgoi; hydro power stations on the Eg and Khovd Rivers and Erdeneburen. Thanks to them, 6-7 new power stations will be erected, and Mongolia will turn from an energy importer to an energy exporter. Next matter is to enter follow up works to construct transmission lines. Investment matters have been solved to implement big projects on producing gas and liquid fuel from coal. Moreover, it is about to put into use some cement factories this summer. By supporting gold miners, it is expected to turn in 20 tons of gold to the country, this size is relatively bigger than that of previous years’. A construction of paved-roads in Dornod and western five aimags will continue this year. Investors and performers of the 1,602-km roads have already been selected. Works will start this year not only for these roads, but also for railways. A construction of 267-km railway between Tavan tolgoi and Gashuunsukhait, and of 570-km railway between Erdenet and Ovoot will run this year. The cabinet has resolved to recommence the development of the 4,000-apartment “New Yaarmag” housing district. Other new developments of seven housing districts will continue. The government will intensify the establishment of new settlements through putting the lands into economic circulation. A “New soum” program, launched in 24 soums, is to widen and to receive more financial support. This year will see a start of construction of gasification plant, to irreversibly intensify the fight against air pollution in Ulaanbaatar. Gas plants are the best choice. The cabinet has resolved to settle the financing for building the gas-lines, based on the funding from the easy-term loan being provided by the government of China. In addition, Mongolia will lose its bad name for having no recycling factory, once the implementation of the second phase of the recycling plant launches this year. Packages of more than 10 draft laws have been submitted to parliament regarding the tax indemnity and deduction in percentage and offering changes in the regulation concerning taxation, for instance, to enhance the legal environment of tax, to upgrade the legal standards to the international level, to transfer the tax cases to civil courts rather than criminal courts. The Government will resolve the matters on reorganizing our Stock Exchange according to the London Stock Exchange, on renovating a structure of the MIAT company in cooperation with related domestic and foreign entities, on re-structuring the Civil airline, and on introducing the organization model of Singapore’s Temasek Holdings into the state-owned companies. Another important issue in consideration of the government will be the introduction to Mongolia of internationally acknowledged “Start-Up” program that aims to promote businesses, in particular the export-targeted industries and enterprises. The industries and entities exporting their products and drawing dollars into the domestic economy will be exclusively supported by the Ministry of Industry with a special program. It is considered suitable to initially set a goal to accumulate one billion US dollars from foreign trade through promoting the wool and cashmere industries, as well as other new industrial initiatives. As the Prime Minister, I intend to visit the financial and investment centers of the world, accompanied by the representatives of our private sector and companies, to build cooperation. We will work to invite the capitals, markets and high-tech to our country. Only way to improve our situation is to explore and invite as much as we can. A month earlier, Mongolia participated in the largest tourism exhibition in Berlin as an official partner, and successfully advertized itself. Germany, one of the countries that have the greatest number of tourists, has submitted three million requests to visit Mongolia. If the government can provide a financing equal to 200 billion Togrog, the world’ biggest hotel networks including Holiday Inn and Radisson are ready to commission their branches in Ulaanbaatar within this year. We are appealing for a change of perspective towards the tourists, to view them as people who are spending their money within our borders, so that our economy benefits in a great amount. The cabinet is focusing on the immediate adoption of the submitted to parliament draft laws regarding casinos, establishing betting horse course-racing, and on forwarding the building of closed stadium, establishing exhibit and conference halls and new film industry. By this, a great improvement is to be done in diversifying the economy by the entertainment, a new form of the art and culture sphere. Producers of the ‘Marko Polo’ series have come here recently to agree with the Mongolian side to work together on the second sequel and even making the third and fourth ones and series about Chinggis Khaan in case a building for the cinema studio is erected. It will also become routine to receive world stars every year. Let me summarize my words. The government has done much, has draw vital decisions, has opened two big lock that hindered us in running great construction and in receiving investments. What must we do now? - To amend the Constitution in order to adopt laws on elections and on political parties - To breath a life to projects that are to follow Oyu tolgoi and Tavan tolgoi - To create localities taxation and to develop aimags - To liberalize prices in stages - To open new spheres able to diversify the economy - To implement a program on opening, widening and speeding up the new sources of currency - To renew pension fund and apartment mortgage policies - To find targeted symptoms that would allow social benefits to reach their real addressee and to have the Mongolians get more united in order to find a strength and consensus on developing our Mongolia.