Ulaanbaatar, Mongolia – The first Mongolia Business Summit opened in Ikh Tenger, Ulaanbaatar on 19 June 2014. Over 400 participants are attending the 3-day event focusing on investment deals in Mongolia. The Mongolia Economic Forum, supported by Mongolian business community, is organizing the Summit together with the Business Council of Mongolia, and the CEO Club.
Prime Minister Noroviin Altankhuyag opened the Summit and informed the participants that all Government decisions will be required to meet one key indicator – “How does this support private business?”. As for part of “100 day economic stimulus program”, the cabinet is meeting twice a week to make decisions on reforms to support business growth and to attract foreign investment. The Prime Minister also highlighted that the Government is focusing on four key areas: Rule of Law, Stability, Predictability of the legal and regulatory environment, and business growth.
President of Mongolia Tsakhiagiin Elbegdorj has addressed the Summit on the second day. He highlighted capable citizen, profitable business and smart government as three pillars of growth. Government’s role will be to enable private business to grow. President Elbegdorj is pushing for several key reforms under his smart government initiative, including the judicial reforms to support property rights and business growth.
Representatives and the president also announced that Mongolians can’t build an economy based on the banking sector in terms of financing. What needs to be done is the revitalization of the Mongolia Stock Exchange and state-owned companies should be made public in order to expand the Mongolian economy. Two main ideas were presented throughout the event. The first idea is that the Mongolian government is ready to promote foreign investment and the second idea is that the government is officially announcing that it is taking its hands out of the private sector, allowing businesses to remain the sole initiators of the business world.
18 investment projects were presented in sectors such as mining, infrastructure, construction, finance and industrial processing. Prime Minister brought 5 members of his cabinet to the Summit. The Government also laid out its new investment policy, legal reforms, as well as the streamlined immigration rules.
The highlight of day 2, was the signing of a concession agreement between the Government and international energy consortium for the CHP5 project, a US$1.3billion, 450MW combined heat and power plant project in Ulaanbaatar. France’s GDF Suez, Japan’s Sojitz, Korea’s Posco Energy will be each investing over $100 million to finance this first ever large scale PPP transaction in Mongolia. A consortium of international financial institutions and commercial banks will be providing debt financing.
Pr.Purevdorj, chairman of the Immigration office of Mongolia highlighted that Mongolia now welcomes nationals of 42 countries from Africa, Europe and Latin America regions under visa-free terms.
The countries allowed are considered states with small populations, high per capita Gross Domestic Product and leading nations in the Human Development Index, moreover isolated from Mongolia in terms of geographical locations and will be traveling Mongolia under tourist purposes in two years only or in 2014-2015.
As of today, nationals of the United States of America, Japan, Federal Republic of Germany and Canada are allowed to enter Mongolia visa-free with any types of passport, and citizens of the United Kingdom of Great Britain and Northern Ireland holding Diplomatic passports are also not required to be issued a visa to enter Mongolia.
One of the highlights day 2 was that Mr.Ganbold Da, member of the Board of Directors, CEO Erdenes Oyu Tolgoi , addressed on current overview of Oyu Tolgoi mining company.
,,, Erdenet was the biggest company in Mongolia. Erdenet has been operating for 35 years. Its capacity is 500.000 tons of copper per year. In contrast, Oyu Tolgoi’s current capacity is 700.000 tons per year. In other words, Oyu Tolgoi is 40% bigger that Erdenet and is normally operating.
There’s no questioning whether OT will start operating or not. Let’s say that OT is an airplane. That airplane had already taken off and is flying in the middle of its destination. There’s no hesitation whether that airplane would land or turning back.
In 2014, its sale is estimated about 1 million tons of copper concentrate by expected performance. If they are able to achieve this goal, Oyu Tolgoi will earn between USD 2.0 and 2.6 billion in revenues. Hence, there is no questioning whether OT project would proceed or not,,,
With the view of bringing investors closer to the businesses, on the third day of the Summit, site tours were organized to major development projects such as Oyu Tolgoi (copper) and Tavan Tolgoi (coal), APU (dairy and beverages), Gobi (cashmere) manufacturing facilities, and MAK (cement) project.
The Mongolia Business Summit will play a significant role in improving investor sentiment and providing first-hand information about realities on the ground and business opportunities in Mongolia. The event will be organized annually in Ulaanbaatar.
Mongolia Economic Forum