From Yesterdays Mongolian News Paper: During his state visit to...

From Yesterdays Mongolian News Paper:

During his state visit to Mongolia last year, Prime Minister of India Narendra Modi promised to provide one billion USD in loans. Mongolian Mining Journal interviewed Minister of Foreign Affairs L.Purevsuren about details on the loan agreement and plans for spending.

Since 1990, Mongolia has taken out 27.5 million USD in concessional loans from India, which makes up one percent of the nation’s total concessional loans. Prime Minister Modi underlined that the loan will be issued for the nation’s infrastructure sector. The Indian side proposed a concessional loan with a 1.5 percent annual interest rate and an eight-year repayment period. At the beginning of April, government representatives from the Cabinet Secretariat, Finance Ministry, Foreign Affairs Ministry, and Roads and Transportation Ministry visited Delhi to negotiate with the Indian side on softening the loan conditions. As a result, the concessional loan will issued for a 25-year period with a 1.75 percent annual interest rate, and Mongolia will be exempt from repaying the principal payment of the loan for the first seven years after receiving funds. We are now working toward establishing the general loan agreement. We are planning to spend the money on infrastructure, especially in the railroad sector.

and:

The Business Council of Mongolia (BCM) held the 1st Annual Business Council of Mongolia Summit last Thursday at Blue Sky Hotel, to discuss and exchange views about how the business community can resolve issues plaguing Mongolia’s business sector under the banner “Supporting sustainable business growth and development in Mongolia”.
“It is important for the Mongolian government to hear voices from businesses, because the business sector is related to all other sectors. It is important to provide support and assistance to a company’s social issues. Mongolia needs to develop its economy not only based on the mining sector, but support agriculture and cement and lime production. The country needs to finalize the issue of the Tavan Tolgoi to Gashuunsukhait railway. Because [transport] takes so much time, coal competitiveness is weakening,” noted President of Trade and Development Bank of Mongolia Randolph Koppa.

and:

During the discussion, economist Ch.Khashchuluun said that Mongolia is finally enabling independent operations in the mining sector and looking to diversify the economy. He added that government intervention should be minimized to be open for foreign investment. “What the government should do now is to create possibilities for more investment by preparing more in-detailed geographical maps, promoting exploration in both private and government organizations, and generally doing nothing else,” said G.Khaschuluun. He continued and discussed existing projects, new infrastructure in the Gobi region, the construction of power plants, and the new independent fuel suppliers to Mongolia.  G.Battsengel said that he predicts it will be three to four years before the completion of railways which will enable more cost effective transit of mining exports.

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