Synopsis
"NR/ID – Erdenet to Ovoot Rail Line – Orhon - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.
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Summary
Northern Railways LLC (NR),a Aspire Mining’s subsidiary and Infrastructure Development LLC (ID) are planning to undertake the development of a railway line project in Mongolia.
The project involves the construction of a 549km new rail line. The new rail line will carry 30 million tonnes per annum (MTPA) of bulk commodities, agricultural, general and passenger freight including transit freight between Russia and China.
In June 2012, NR signed a memorandum of understanding (MoU) with ID for project implementation. Under the agreement the companies will build, own and operate the project.
China Railway Construction Corp subsidiaries China Railway 20 Bureau and China Railway First Survey & Design Institute (FSDI) has been appointed as bankable feasibility study consultant.
In April 2013, pre-feasibility study revision was completed by Snowy Mountain Engineering Corp.
In October 2014, mongolian government approved the project.
In November 2014, a framework agreement signed with China Railway 20 Bureau Group Corporation (CR20G) to complete engineering works and it will provide lump sum turnkey EPC Contract upon the satisfaction of certain conditions. CR20G will also assist in sourcing project financing.
Aspire Mining is now working with CR20G to secure funds to complete rail bankable feasibility study, environmental permitting and completion of a number of commercial agreements including the EPC and debt refinance.
On June 29, 2016, Erdenet to Ovoot Railway was included in New Northern Rail Economic Corridor.
On August 18, 2016, the first stage of feasibility study has been commenced and completed in January 2017.
On September 6, 2016, China Development Bank has provided an Expression of Interest to fund upto 75% of the EPC contract cost.
In June 2017, ND signed a memorandum of understanding (MoU) with China Gezhouba Group International Company Ltd (CGGC) to conduct the second and third phase of the feasibility study activities.
On June 20, 2017, ground breaking ceremony was held.
A Consortium of China Gezhouba Group International Engineering Co (CGGC), China Railway 20 Bureau Corp. Group (CR20BG) and China Railway First Survey and Design Institute Group Co Ltd (FSDI) has been appointed as Engineering, procurement and construction(EPC) contractors for the project.
In February 2018, NR signed a EPC Framework Agreement with CR20BG and CGGC.
The draft feasibility study activities are completed. However, CGGC and Northern Railways have agreed to work to finalise the feasibility study by May 2018.
Currently, CGGC is in discussions with a range of debt and equity providers interested in funding the project, including China Development Bank and the Silk Road Fund.
Scope
The project involves the construction of a 549km new rail line between Erdenet to Ovoot in Mongolia.
The US$1,300 million project includes following:
1. Construction of signal control buildings
2. Laying of rail tracks
3. Installation of signaling units
Reasons To Buy
• Gain insight into the project.
• Monitor the latest project developments.
• Identify key project contacts.
AKM Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
(20min delay)