1

www.ndic.gov.mn

2

3

4

5

6

7

8

2011 2012* 2013* 2014* 2015

GROWTH OF REAL GDP

/PERCENT, YOY/17 15.2 19 16.3 11.2

GDP per capita USD 3048 3809 4934 6127 7448

Export (billion USD) 4.7 6.372 10.4 15.3 16.6

GDP (billion USD) 8.5 10.9 14.4 18.46 22.5

Unemployment (%) 7.1 6.7 6.1 5.7 5.2

AGRICULTURE 7.8 3.4 1 3.1 3.2

INDUSTRY 11.3 17.2 44 23 14.7

SERVICE 8.9 14.5 12.9 13.2 13.7

•Estimations as of May 2012

Doubling of GDP per capita in 2 years

Tripling of exports in 2 years

For next decade: annual average growth rate to be approximately 14% pa

Advancing further in competitiveness rankings

10

11

Prepared by NDIC together with line ministries for first time in 20 years

Approved by Government of Mongolia in May 2012

Submitted to Parliament and all political forces

In line with Long term development vision of Mongolia

12

Constitution 5th Article

Law on Government of Mongolia, Article 4.20

Parliament resolution 2008 No 12 on Long term development vision of Mongolia

Draft law on strategic planning approved by Government of Mongolia and submitted to Parliament in May 2012. First hearings

13

To further redirect increasing revenue from mining into priority sectors to support diversification (Development Bank, restructuring Human Development Fund into a proper pension fund, Stabilization fund, further developing financial sector capitalization to ensure at least 40 billion USD by 2016; further tuning taxation to support SME, heavy industry and agriculture processing)

Reduce poverty, unemployment and income inequality (from society-wide transfer system to target groups, further regional development acceleration of Western and Eastern regions)

Reduce vulnerability of economy (fuel dependency; food imports; natural disaster prevention)

Improvement of overall competitiveness (infrastructure)

Create foundations of knowledge based economy (IT and biotechnology)

14

Macroeconomic stabilization

Diversification

Educated and healthy population, workforce

Green economy

15

Monetary policy against Dutch disease.

Floating exchange rate

Central bank to neutralize currency fluctuations

Public revenue to be directed into new industries

Protect economy from commodity price shocks

Improve competitiveness of exports

Longer term supply agreements on imports

16

Business climate to improve competitiveness

One stop services

Financial support for national large and SME enterprises

Private-Public partnership – National council is established

Support of local suppliers for large mining operations

Cluster development

Increasing financial support for priority sectors17

Better public services for business

ISO and international standards

E-signature (law is approved)

Further improvement in skill training

Directing national funds to investments

18

Education as a priority

Financial support for students

Widespread IT introduction into education

Healthcare development: new hospitals, widening network of primary hospitals, more equipment

19

Human development and safety of living conditions

Good Governance and regional development

Responsible Mining and heavy industry development

Development of processing industry, competitiveness and

intensive agriculture

Infrastructure

Ecotourism

Responsible mining

More effective production

Increase in renewable energy production

Environment-friendly agriculture (livestock, crop)

21

Government-regulated healthcare

Improvement of medical insurance

19 specialized hospitals, 83 regional hospitals and health centers to be built anew

100 000 new apartments

Households with 3 and more children to receive government subsidies

80% of Vegetable, 70% of egg, 25% of fish consumption to be produced domestically

22

23

24

Reserves of food to be increased

Oil reserves to be set up

In UB 40 new schools, 66 kindergartens

In regions 85 new schools, 69 kindergartens, 68 dormitories

25

26

27

28

Culture industries to develop

9 new libraries, 76 cultural centers, 57 sport complexes, 5 culture palaces

10 technology transfer projects

5 national research centers (energy, agriculture, minerals, health)

28 new VT colleges

29

Effective government

New ministry structure

Population, labor, trade, industry, investment issues

Regional development strengthening

Better civil service

Better public services: continuation of business environment reform

Tougher anti-corruption drive

Less dependency on politics in development

More objective process for public investment 30

Heavy and chemical industry:

industry for basic metal and non-ferrous metals,

Industry for coal, chemical and oil, construction materials

Competitive light industry:

Industry for meat, sea buckthorn, wheat

Industry for wool, cashmere, and leather products,

Tourism, agriculture (machinery, irrigation systems)

IT sector and biotechnology

Infrastructure to support those industries31

32

Mining as a primary pillar of economic

growth: 30% of GDP, 80% of exports

Key task: Tavantolgoi project, agreement

and IPO

Largest world companies coming to

cooperate: Rio Tinto, Goldman Sachs,

Deutsche Bank, Peabody, Xstrata, Vale,

Temasek, CIC, etc

Further priority on private sector FDI

Concessions to support infrastructure

Development Bank to concentrate more on

new industries

40 billion USD investment is required

33

34

2003 оны УИХ-ын 54 дугаар тогтоолоор “Үйлдвэр технологийн парк (ҮТП) байгуулж хөгжүүлэх үндсэн чиглэл”-ийг

батлаж, 9 байршилд парк байгуулахаар шийдвэрлэсэн. 2009 онд “ҮТП-ын эрх зүйн байдлын тухай хууль, 2011 онд

“ҮТП-ын үйл ажиллагаа эрхлэхэд дэмжлэг үзүүлэх, хяналт тавих журам” зэрэг олон эрх зүйн баримтууд гарсан боловч

паркууд байгуулаагүй байна

Heavy industry cluster

• Coke

• Iron pellets

• HBI/DRI

• Copper cathodes

• Synthetic gas

• Liquefied gas

• Industrial diesel and other

oil products

38

Energy, water, transportations in PIP by sectors

Хөдөө аж ахуй0%

Уул уурхай, олборло

лт34%

Боловсруулах үйлдвэрлэл

9%

Цахилгаан, дулаан хангамж

10%

Усан хангамж6%

Барилга2%

Тээвэр ба агуулахын аж

ахуй27%

Байр, орон сууц болон хоол

хүнсээр үйлчлэх үйл ажиллагаа

1%

Мэдээлэл, холбоо3%Мэргэжлийн ш/у

болон техникийн үйл

ажиллагаа2%

Захиргааны дэмжлэг үзүүлэх үйл ажиллагаа

1%

Төрийн удирдлага ба захиргааны

дэмжлэг1%

Боловсрол2%

Хүний эрүүл мэндийн үйл ажиллагаа

1%

Урлаг, үзвэр, тоглоом наадам

0%

Бусад1%

2779.53714.9

4599.56019.86590.6

8255.110158

12020.8

15711.5

19290.3

23301.1

28986.5

716.3 881.4 1252.81785.11943.224563808.8

5501.66009.36208.47002.97154.4

0

5000

10000

15000

20000

25000

30000

35000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ДНБ, оны үнээр, тэрбум төгрөг

Нийт хөрөнгө оруулалт, тэрбум төгрөг

New international airport (Japan) by 2015

2 Gigawatt of additional annual electricity production is being planned for next 10 years

2000 km of new railways being planned for next years

Highways to connect every province in the country – Millennium Road project

Large water supply/transportation projects for Gobi area

5 customs checkpoints to be expanded to accommodate large trade traffic – 4 fold increase in export shipments is planned

100 000 new apartments project

NEWLY INSTALLED CAPACITY:

5 stations1900МWT

317 kilometers of 110 V transmission lines

1227 kilometers of 220 V transmission lines

Түлш, эрчим хүчний салбар – 3658,5 тэрбум төгрөг

41

42

Power plant No 5, bidding is finished, under PPP, 1 billlion US

dollar project

UH Power plant : in operation

Mogoin gol power plant: under construction, PPP

The project cost isapprox. 900.0 million US$ and implementationperiod is 2.5 years. Theplant will be built nearTavan Tolgoi coaldeposit. The powerplant's installed capacityis 600.0 MWT.The plant has moderntechnology power plantconnected with thecentral electricity grid.The plant will

consume less water

and equipped with air

cooler and dry ash

disposal systems etc.

PPP (public private-

partnership) scheme is

considered for the

plant construction.

MOU signed with

Siemens in March

2012

“Tavan Tolgoi Power Station” project

Currently 0.5 million visitors annually

Policy goal: 1 million by 2015

Increased number of domestic airlines to 4

New flights to Hong Kong (2011), England, Turkey and other destinations planned

New national Tourism development program 2015 is being discussed by Government

Increase number of tourism spots

Increase in number of transit tourists through development of infrastructure

Proposed investment of 2.4 billion dollars into industry

Kharakhorum-13 century project

44

Number of domestic carriers:MIAT, Air Mongolia, Eznis, Mongolian Airlines

New tourist attractions:Kharakhorum – XIII project

Infrastucture: Roads, hotels, access

Ramada (opened) in 2011 in Maxmall, Preferred Hotel (opened in BlueSky Tower, 2012), Hilton, Hyatt (2 hotels), Radisson, Shangri-La

Growth of tourism

461) ЗТБХБЯ-аас дэвшүүлсэн Монгол Улсын Төмөр замын бодлогыг Засгийн газар болон Үндэсний аюулгүй байдлын зөвөлөл нэр 2010 он 4-р сард дэмжиж

УИХ-д оруулах зөвлөмж өгсөн болно. УИХ нь Төрөөс баримтлах Төмөр замын бодлогыг батлана.

Ulgii

Khovd

Ulaangom

Óëèàñòàé

Gobi Altai

Bayankhongor Arvaikheer

Tsetserleg

Bulgan

Murun

Erdenet

Darkhan

Sukhbaatar

Zuunmod

Ulaanbaatar

Choir

Sainshand

Mandalgobi

Dalanzadgad

Undurkhaan

Baruun Urò

Choibalsan

Ulaanbaishint

Handgait

Arts suuri Baga Ilenkh

Khankh

AltanbulagEreentsav

Ulikhan

Khavirga

Bichigt

Zamiin-Uud

Gashuun Sukhait

Burgastai

Yarantai

Dayan

Kharkhorin

Under construction asphalt road: 1461.65 êì

Shiveekhuren

Road construction under preparation: 665.9 êì

Newly planned asphalt road construction: 4500 êì

Current asphalt road: 2190.17 êì

48

Mongolia could support

1,100GW of installed

wind power capacity.

Potential to generate

2.6 terawatts of

renewable energy per

year

This quantity

constitutes about one-

quarter of global

electricity demand.

Renewable Energy

100 000 households are supplied solar panel

generators

16 small villages are fully utilizing renewable

energy

Increasing usage of geothermal energy

(school heating)

New 50 mWt wind park will be completed this

year in Salkhit,

110 million US dollar project, Newcom.

Supplier: GE

By 2013 10% of total energy output will be by

renewable energy

By 2020 the plan is to have 20% of all energy

production by renewable sources

Proposal: Asian “super-grid,” to transport wind and solar energy from Mongolia to Japan and Korea

high-voltage transmission lines that could send solar and wind power, generated in Mongolia, to power-hungry cities in Japan, Korea and China.

JREF (Japan) started a pilot project to transfer 1GW of electricity over about 250km, from Busan in South Korea to Kitakyushu in Japan

MoU with Mongolia’s National Renewable Energy Centre to collaborate on a study of the country’s renewable resources.

Japan Softbank to cooperate with Newcom (Mongolia) on feasibility study for joint large investment in Mongolia in renewable energy

50

BUILDING A BETTER TOMORROW

Thank you for attention