Investment Seeking Projects

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INVESTMENT SEEKING PROJECTSBRIEF PROFILES

2008



CONTENT

№ INDUSTRY PAGES

“DARKHAN” INDUSTRIAL AND TECHNOLOGICAL PARK

Introduction to “Darkhan” Industrial and technological park 3-6Production of cement /”Erel Cement” Enterprise/ 7-8Production of mineral cotton /“Erdes khuvun” Co., Ltd/ 9-10Production of sheepskin, leather and fur products /“Darkhan Nekhii” Joint Stock Company/ 11-13

Production of wooden vacuum doors and windows /“MG WOOD” Co, .Ltd/ 14-15Production of light concrete blocks and lime/“Silicate” Co., Ltd/ 16-17

“ZAVKHAN” INDUSTRIAL AND TECHNOLOGICAL PARK

Meat and meat product production 18-20Cashmere and sheep wool processing production 21-23Construction materials factory 24-26Food Factory 27-29

TSAGAANNUUR FREE TRADE ZONE

Introduction to Tsagaannuur FTZ 30-31Construction of the plant producing flour 32Constructions of the plant producing thermal insulation wall block 33

FOOD AND AGRICULTURE“Third Crop Rehabilitation National Campaign” 34-36Establishment of national reference laboratory of food security 39-40“Potato seed renovation for increasing domestic safety potato production” 41Intensified dairy farm for 50 black and white cows 37-38

ENVIRONMENT

Make a base research on identifying water supply resource of Ulaanbaatar city, developunderground water monitoring network 42Designing methods to perform biological rehabilitations on desolated areas in the procees of mining, between the years 2009-2011 43-44To improve the monitoring ability of environmental pollution and toxic chemical substances thatremain in the environment. To perform chemical analysis on 1500 environmental samples

annually. 45To conduct survey on plants’ spread and resources of Mongolia with the aim of protectingMongolia’s rare plants, and identifying the resource. 46“To improve the control of air pollution and research network’s ability – to maximize ecologicaleducation of the public ” 47-48Electronic network of exchanging chemical information between the organizations that providestate service 49-50“To improve the potential of state administration organizations engaged in forest matters”. The project will be implemented from 1st of September, 2008 until 1st of September, 2009. 51-52Reforming a machinery and a technology of the precede treatment plant which saves the TuulRiver from a pollution of industrial factories’ waste water 53

CONSTRUCTION AND URBAN DEVELOPMENT

40.000 housing project 54Building of 1200 appartments in the XXII microdistrict in the frame of 40.000 housing project 55-57Building material laboratory construction of facilities 58Darkhan city water supply development and improvement 59Sukhbaatar city and Altanbulag soum of the Selenge province water supply systemdevelopment and improvement 60Ulaanbaatar water supply development in Gachuurt 61Water supply and guarantees citizens rights to healthy environment 62Water supply of Erdenet city 63

TOURISM

Rest Area development 64



Technical and Economical substantiation of “Darkhan” Industrial and Technological Park

The main purpose is to contribute towards the local development based on centralized productions of construction material, skin, fur and wooden products and management possibilities of the Park. The strategic purpose will be provided by long and short term planning and will pass several development stages.

Darkhan Industrial and Technology Park will consists of two sections /Tenant Park/ depending on objectiveof regional development and development process of industries and location centralization

Section 1: Export production or mixed park /94.5 thousand hectare area in the former industrial region, 45

hectare constructed area, and over 40 hectare area which will be used newly/ It includes:1. Construction material Industries

2. Hide and skin processing Industries /with its purifying system/ 3. Metal item industries

4. Wood processing Industries

Section 2: Small and Medium Industrial Tenant park/ will be built newly and it has 100 hectare area inagricultural area/1. Sewing factory2. Small Knitting factory3. Industries of high technology

The objectives and purpose of the developmentof “Darkhan” Industrial and Technological Park

For selection of the Industrial and Technology Park’s administration structure, the principle that weshould maintain is aimed to resolve main objective and purpose of providing industrial hospitality in which thePark could develop intensively by using local resource and considering internal and external factors and also of operating suitably, for legal rights.According to the research work, the ITP development and its objective and purpose are defined as follows:

Objective 1: As priority, to establish construction material, metallurgy, hide, fur item industries whichare able to substitute for import production and which have uninterruptedly chain system of export, as a complex production into park and develop themDirections of activity that will be carried out:

a. Developing productions of cement, silicate, mineral wool, construction material and other raw materialsthrough import substitution field by using advanced technology b. Owning Tumurtei deposit and Tumur Tolgoi Deposit under the foreign investment and making great

capacity for metal to melt making present metallurgical plant into united organization system, expandingraw material resource base of other kind of industries

c. Processing raw materials of hide-fur industries by the technology which is not harmful for ecology basingon the purifying system of “Darkhan Nekhii” Joint Stock Company and mainly developing export production

d. In conformity with the development of the above enterprises, providing development of supplementarysmall and medium production and infrastructure

e. Defining truly direction of Tenant Park that is located in the 2nd region and developing it like a park Objective 2: Basing on the joint utilization and collaboration of industries, providing development of

infrastructure and improving its sustainability and decreasing its expense.Directions of activity that will be carried out:

a. Improving infrastructure including electricity, heating, water supply and communication system and providing transportation logistics, safety and social service / meeting, exhibition site, hospital, apartmentet/ and establishing them under the state support and joint investment

b. Establishing bank an financial system, professional inspection system, training and research center,expertise laboratory, business incubator, and center for innovation and information

c. Developing united network for processing raw materials and for production saleObjective 3: Providing human resource development in the condition of strengthening technologydissemination and providing science and technology advancea. Training professional employees, re-train in the frame of cooperation with industry and educationalestablishment



b. Preparing specialized professional engineer cooperation on industrial and technical employees, andcollaborating with universities and colleges on re-training issuesc. Developing advanced standard of cooperating on some direction of human resource managementd. Increasing values of labor workerse. Creating new technology in park structure and strengthening its disseminationf. Creating and developing capability of technological transfer g. Improving quality, appearance, design, package of productsh. Increasing competitiveness of products of all producers and making hide-fur, metallurgical and cement

plant to have capability of competing in international marketObjective 4. Encouraging existed business and new business environment for attracting investment, andmaking healthy economical and financial conditions in order to make a friendly environment for businessa. Providing tax reduction and tax release for the industries that belongs to the park in the scope of related

law and regulation b. Providing all kinds of state service and inspection at one pointc. Organizing professional and production inspection efficiently and directing it to the international standardd. Establishing professional consulting service point which focused on encouraging the industries of the

park e. Improving quality of all kinds of social services/food supply, stores, cultural service safety/ in the

industrial zone up to the required standard Objective 5. Coordinating administration of the park with the external administration system

a. Coordinating administration of the park with local and branch administration b. Providing administration of the park with attendance of civil social servicec. Constantly studying experience from foreign countries

Calculation of the investment which is necessary for infrastructural improvement

of “Darkhan” Industrial and Technology Park

¹Objects that need

infrastructural investmentPeriod Planned activities

Amount of

required

investment

(billion

tugrugs)

I. In the scope of Industrial Region

1 Innovation for turbo of Power plant October of 2009 Installing 30 ì turbo 3,6

2 Innovation for stove of Power plant 20098.00 million MNTwas spent for stoverenovation in 2008

2,2

3 Customs guaranteed storehouse 2010 * 1,8

4 Administration building of park 2009 * 0,96

Sum 8,56

II. In the scope of tenant park

1 Putting 600 lines which conduct heating bysourcing from central line of Darkhan

2009-2010 3 1,66

2 Pure and dirty water line 2009-2010 7 3,855

3Sub station and line network which willconduct electricity

2009-2011 5 1

4Paving road of reaching to Tenant park andaround of the park

2009-2011 3 0,56

5 Establishing Incubator Center in Tenant Park 2009 * 0,48



Sum 7,555

Total Amount 16,115



Calculation of investment for “Darkhan” Industrial and Technology Park

Name of

organizations

Name of

productsCurrent Capacity Productivity

Capacity of

planned project

Amount of

Investment

“Darkhan” Steel

mill

Cast framework,

steel framework

Industrial capacity and utilization -75% (with capacity of producing

100 thousand ton cast products per year)

75 thousands.tînProducing 330thousand ton castiron

96.0 billion

“Erel Cement”

Industry

Cement(Portland cementof 400,500mark)

Industrial capacity and utilization-60% (with capacity of producing185 thousand ton cement)

110 thousand ton

Producing 500thousand tonPortland cement

4 billion

“Silicate”Lime, lightconcrete

Industrial capacity and utilization(with capacity of producing 100ì3

light concrete per day and producing 70-80 òon technical andconstruction lime

27.0 million pcsof silicate bricks22. thousand tonlime

-

669 million

“Darkhan-

Nekhii” Stock Holding

Company

sheepskin ,sheepskin product

Industrial capacity and utilization -

40% (processing 160.000 pcs of sheepskin) 64 thousand pcs

Complex project

of processing fur products, leather and skin products

17 billion

“MG Wood”

Co.,Ltd

Woodframework products

Industrial capacity and utilization -42 % 2.5 thousand ì3 200 million

“Mineral Wool”

Co., Ltd

Light concrete,constructionmaterial

No working- 35000ì3 1 billion 94

million

Sum119 billion460 million

Investment for

infrastructure of

the industries in

Industrial and

Technology

Park

8 billion 56million

Investment for infrastructure of the tenant park

7 billion555 million

Investment for Small and Medium Enterprises of Construction

material

2.32 billion,

Total 137 billion 42 million / MNT/



Brief introduction of ”Erel Cement” Enterprise

The Enterprise was established with involvement of Mongolian-Czech techniques,economy and personnel and was put into operation in 1968. According to the decision of Government of Mongolia privatization commission on January 10, 1992 the Enterprise wasorganized as Co., LTD with 90593.6 thousand equity fund 20% of which belongs to the State.This enterprise has full capacity to produce 185000 tons of Portland cement through dumpmethod.

Legal status Company Limited

Business scope Construction material enterprise

Executive director Ch.Sainbayar

Main shareholders Property of “Erel “ Co., LTD

Number of employees 379

Year of establishment 1968

Year of privatization 1992

Production capacity 185000 tons per year

Main competitors “Khutul” cement and lime enterprise, Chinese cement

Location 500õ300 ì êâ good environmental enhancement

Enterprise buildingBuilding 4.626.163.922Accumlated weariness /860.363.407.

Equipments2248.074.002Accumlated weariness /771.975.727 òºã/

Raw materials supplyMain raw material of cement is lime stone and gypsum. Mine lime stone fromown deposit located 7 km from the enterprice, gypsum from Unegt deposit inDornogobi.

The advantage and significance of the project for expending “Erel cement” Co., Ltd

There are 3 main technological methods to produce cement. All enterprises in our country usedamp technology. In order to crash raw materials into powder 356-36% water mixture is used andis burned in rotate stove making it proper mineral structure with piece of cement stone.Advantage of this method is less dusting because of dump. At present because of Darkhan andKhutul cement enterprises normal operation loss, cement mineral is derived unequally and badlyeffect to the quality of product. Beside that C3A has a lot of mineral thus it is resistant to sulfur reaction. Also it is not suitable for engineering. Developed countries are moving on dry method.The advantage of the project is we aim to produce cement that meets normal standard by physicand mechanic characteristic through new cost effective technology.

Economical indicators of the project

Investment estimation



¹Name of equipment and

building

Unit of

measurementQuantity Unit price Total price

1. Buildings ì2 3500 217.980.00 762.930.0

2. Warehouse ì2 576 205.981.00 118.645.0

3. Utility and office building ì2 1080 233.986.00 252.704.8

4. Environmental enhancement ì2 260 4.680.00 1.216.85. Equipment of total technology set 1 2.350.000.000.0 2.350.000.0

6. Supporting equipment - - 275.000.0

7. Spare parts - - 160.000.0

Total 3920496.6

Financial estimation

№ Index Size

1Investment required for buying equipment andconstructing buildings

4 billion

Indicators of efficiency

¹ Indices Per year /Thousand.MNT/

1 Sales income 16,500,000.0

2 Production cost 12,845,367.23 General Administration expense 607,158.0

4 Profit before tax 2,374,848.55 Income tax 237,484.9

6 Profit after tax 2,137,363.7



Brief introduction of “Erdes khuvun” Co., LTD

Diorite and dolomite /mineral rock/ which are main raw materials are found 15 km far the

enterprise. Geological exploration revealed that there are 300.000 tons of diorite and 200.000 tonsof dolomite resource in this area. Using present capacity the enterprise can produce 60.000 m2 of mineral cotton per year and is expected to have 60 year resource. But it is necessary to findsource where coke can be mined that comprises ¼ of the mixture for cotton production. For cotton production, sedimentary, spinning, changeable rocks, mineral production waste, piece of dregs which is second raw material of metal processing, fuel ash, burned mud are used.

The requirement and basis of expanding “Erdes khuvun” Co., LTD

Natural mineral rock which is suitable for mineral cotton production is widespreadthrough the country. For instance, there is deposit with 500.000 tons of diorite and dolomiteresource in Khongor soum, Darkhan-Uul aimag that is enough to produce 60.000m3 of cotton

during 60 years. But coke which emits energy is in difficulty. However we can use Tavan Tolgoicoke in South-Gobi aimag. Production technological transfer is that selected rocky coke at proper ratio is loaded into the upright oven and is casting at 1500-1600C then it made as glass fiber.Mineral cotton is used in all sectors of the country. For example, it is used for reduction of heatloss of building and thermal grid, thermal equipment.

Because of inaccuracy of privatization this enterprise was not in operation for long timeand started it’s operation this year. If we renovate just it’s equipment completely we canoperate using engineering network.

Research of financial feasibility of “Mineral Cotton” Co., Ltd enterprise brought us tothe following conclusions.

• The need for mineral cotton is huge

• Deposit of asbestos provides future development

• It is necessary to invest and reform.

The Economical indicators of the project

The enterprise prepares cylinder and semi-cylinder items and soft, stiff, semi-stiff panelsin any size with 50-350 kg/m3 average density binding glass fibers with various syntheticmaterials that are resistant to mould and are not enable to be holed up by destructive rodents and pests.

Investment estimation of the enterprise

Buildings and equipmentMeasurement

unit

Number Price of unit Total cost

Building of enterprise м2 576 233,986 134,776Warehouse of finished goods м2 288 205,981 59,323Warehouse of raw materials andfuel м2 216 205,981 44,492

Office building м2 480 291,932 140,127

Garage, mechanic section м2 288 233,986 67,388



Technological line Set 1000 480,000 480,000

Machinery sub-equipment and parts -Equipment of mechanic shop andlaboratory

Set 1000 48,000 48,000

Sum 1,094,106

Efficiency calculation

¹ IndicesTotal expense

Thousand MNT

1 Sales income 1500

2 Production cost 163,032

3 General administration expense 182.3

4 Profit before tax 629952.6

5 Income tax 62995.2

6 Profit after tax 566957.4



Brief Introduction of “Darkhan Nekhii” Joint Stock Company

Darkhan – Nekhii Joint Stock Company provides customers with sheepskin, leather

and fur products putting them on domestic and world markets. The company suppliesdomestic market with 25 name kind sheepskin products which are designed in 120 patterns and Siberian market with 7 various kinds of sheepskin products which aredesigned in 10 patterns. Beside the “Darkhan minj” Co. Ltd, “Darkhan Sergen Mandalt”Co. Ltd, the Republic of Korea, the Republic of Turkey, and the Republic of Chinasupply their sheepskin products in our domestic market.

Total sale of imported sheepskin in the domestic market is 15000 of sheepskingarments year. The company exports it’s semi-processed skin and sheepskin, fur andleather products to the Republic of China, Italy, the Republic of Korea, Spain, Canada,Taiwan, and Hungary.

The company has processing and sewing enterprises. The processing enterprise withcapacity to process 1,5 million sheepskins a year processes the skins through chemical

and mechanic method and produces semi-processed and fully processed sheepskin. Thesewing enterprise produces fully processed and double face colored sheepskin products.This enterprise equipped with German and Japanese techniques and consists of fashionablegarments section, chamois leather sewing shop, soft item sewing shop, and cutting shop.In 1994 and 2000-2006 new technology was introduced and the techniques wererenovated in the company.

The processing enterprise was equipped with European machines and techniques andconsists of experimental shop, chemical and mechanic processing shops. The enterprisewas renovated several times in 1994 and 2000-2006 and expanded.

“Darkhan nekhii” Joint Stock Company has 13000 square km2 and the lighting andheating were connected with Electrical Station. In the scope of project to reform theenterprise’s structure with assistance of the United Nations Spanish expert from “skin

ABC” company have introduced Spanish skin processing technology since 1999.Introducing new technology is lasting for 3 years and the company has completed thefirst phase to process double face colored sheepskin through soft method. Starting from2002 the company has made change in their traditional products and has produced leather garments.

The requirement and basis of expanding “Darkhan Nekhii” Joint Stock Company

New technology will give opportunity to produce double face colored sheepskin,fur, leather, and skin products which attract foreign consumers.

According to the survey conducted in Siberia the consumers prefer Mongolian doublefaced products because of their warmth and solidity to Chinese, Korean and Turkish

ones. The products from these countries did not meet the standard. Increase in leather productsneed in Siberia of the Russian Federation in the Mongolian government policy to supportskin, wool and cashmere product export and import tax decrease from 7,5% to 10%during the official meeting conducted in Moscow on September 15, 2007 provided with pleasant opportunity for foreign trade.

The advantage and significance of the project for expanding “Darkhan Nekhii” Joint Stock

Company



Result from “Darkhan nekhii” Joint Stock Company expansion project in order toincrease the sales the company planned to expand its production. In the future thecompany will implement the main and supporting equipment investment plan. As a resultof that quality control will be improved and energy loss and defect during the productionwill be disappeared. Main and supporting technique investment will give opportunity to produce leather products and to process sheepskin.

There are some advantages as “Darkhan Nekhii” Joint Stock Company expansion.• Equipment renovation will upgrade the tools first. This will provide with possibility to

produce various kinds of or flexible products for many purposes with less energy

than before.

• New product production will provide year-around activities. Basic capital usage and the

profit will be increased. Financial situation will be improved.

• By speedy up the research we can produce high quality by and special products.

Economical indicators of project

Basic and circulating capital investment estimation: 19,57 million USD is needed for total investment. From this amount skin processing enterprise needs 5,1 million USD,

leather processing enterprise - 8,51 million USD, fur processing enterprise - 5,96 millionUSD for investment, respectively.

Investment estimation of skin processing enterprise

¹ Investment type Investment expense/dollar/

Fixed assets investment

1 Construction 0

2 Equipment 1,962,637

Fixed assets 1,962,637

3 Direct material cost 2.070.2124 Indirect material cost 1.073.5325 Current assets 3.143.745

6 Total Expense 5.106.382

For skin processing enterprise. Net money flow of Projects economical indicators will beestimated from budgeted in come report. According to the current estimation benefit fromthe investment is 21,6% and repayment term will last 4 years 8 months.

Leather processing enterprise investment estimation

¹ Investment type Investment expense/dollar/

Fixed assets investment

1 Buildings improvement 323,464

2 Equipment 2,989,276

Amount of fixed assets 3,312,740

Amount of current assets

3 Direct material expense 3.771.914

4 Indirect material expense 1,425,982

Amount of current assets 5.197.897

Total Expense 8.510.638



As for leather processing enterprise : Net money flow of Projects economical indicatorswill be estimated from budgeted income report. According to the current estimation benefitfrom the investment is 19,93% and repayment term is 5 years 1 month.

Fur items processing investment calculation

¹ Investment type Investment expanse (USD)

Investment1 Buildings 02 Equipment 170.212.77

Amount of fixed assets investment 170.212.77Amount of current assets

3 Direct material expense 510.638.314 Indirect material expense 170.212.77

Amount of current assets 680.851.06Total Expense 851.063.83

Research conclusion: We claimed that it is necessary to expand “Darkhan nekhii ” Joint Stock

Company as a complex in the future. According to preliminary research there are 3 main productions that can be capable to develop.1. skin processing enterprise /double face tannery/

2. leather processing enterprise /napped tannery/3. Fur processing enterprise /fur tannery/

As result of Tgs17 billion investments there will be created 1689 working places andaverage salary of the staff will reach Tgs329000



Brief Introduction of “MG WOOD” Co, .Ltd

Mongolian and German joint company “M-G-Wood” Co., Ltd engaged in woodwork islocated in Darkhan soum, Darkhan –Uul aimag covering territory of 22700 square km2.

The company started up in January of 2003 in the extension building of “Nekhii”Shareholding. The company has over 50 staff. The enterprise building is connected withelectricity, heating, hot and cleans water systems. Transportation and communicationinfrastructure is developed well.

“M-G-Wood” Co., LTD is equipped with powerful techniques from Germany and isintroduced advanced technology. The company has a capacity to process 10-12 thousand cubicmeter of wood and produce 2-3 thousand cubic meter of window glued semi-finished andfinished products. The company uses German tools such as heavy metal surfaced sawingmachine, sawing machine with moving edges, detailed cutting machine with laser gauge, Hybriddrying camera, Herbs plane with 6 sides, Vanish plane with 4 sides, Varnish hydro plane with 2

sides, Shariff and Hegel edged equipment, Kom Tech plate compressing machine, across sawingmachine.

The requirement and basis of expanding “MG WOOD” Co., LTD Pine and Larch that grow mainly in Khangai and Khentii ranges of the country are the basic

raw materials. Beside that D4 and d5 group glue which meets the standard and resistant to anyclimate condition is used. Although the company’s capacity is 5-6 thousand cubic meter semi-finished products the company can not use its all potential due to shortage of raw material. Thecompany has much experience to renovate the technology and increase the sorts of the products put into domestic and world market.

The advantage and significance of the project for expanding “MG WOOD” Co., LTD

In connection with construction sector’s rapid development, the increasing need for ecologically-friendly wooden vacuum door and window that can replace high quality andfashionable import products requires to establish this kind of enterprise in the Darkhan industrialand Technology Park zone. Also it is essential to produce doors and windows that match interior design and furnishing.

Economical indicators of project

a. Wooden vacuum door enterprise project.

Efficiency indicators /thousand MNT/

YearRunning with complete capacity

2009 2010 2011 2012 2013Utilization capacity

/thousand MNT/ Percentage 100% 100% 100% 100% 100%1.Sales Income 194216,4 194216,4 194216,4 194216,4 194216,42. Production cost 159427,0 159427,0 159427,0 159427,0 159427,0

3. Profit before tax 34,789,4 34,789,4 34,789,4 34,789,4 34,789,44. Income tax 3,478,9 3,478,9 3,478,9 3,478,9 3,478,95.Profit after tax 31,310,5 31,310,5 31,310,5 31,310,5 31,310,5



b. Project of vacuum window enterprise.

Efficiency indicators /thousand MNT/

If production of wooden door and window is organized together the investment and managementcost will be saved and the investment will be repaid within 17 months.

Beginning Running with complete capacity

2008 2009 Year 2011 2012 2013

Utilization

capacity/thousand MNT/ Percentage 80% 100% 100% 100% 100%

100%

1.Sales Income2. Production cost 292723,2 292723,2 292723,2 292723,2 292723,23. Profit before tax 231674,6 231493,9 231493,9 231493,9 231493,94. Income tax 61,048,6 61,229,3 61,229,3 61,229,3 61,229,3

Utilization

capacity

/thousand MNT/

Percentage

6,104,9 6,122,9 6,122,9 6,122,9 6,122,9

1.Sales Income 54,943,8 55,106,4 55,106,4 55,106,4 55,106,4



Brief Introduction of “Silicate” Co., Ltd

‘Silicate’ Co., Ltd was put into operation with assistance of the People’s Republic of Poland in 1966. Now the company produces light block and construction lime. The capacity of the company is 100 m3 of light concrete, 70-80 tons of technological construction lime a day.Total sales are Tgs 250-350milion a month. 4.5 hectare belongs to company. ‘Silicate’ Co., Ltdchanged its technological line in 2006 and started to produce light concrete blocks.

According to the project the company is capable to produce 350.000 m3 wall block and20.000 m3 lime a year. The company owns lime and sand deposits. There are 3 lime burningstoves that can be used in the future. The technology to produce old white bricks has beenchanged by Mongolian engineer into the technology to produce concrete blocks.

The requirement and basis of expanding “Silicate” Co., Ltd

Light concrete products are used as heat insulation materials. They are lightweight, cheapand porous in same size and have many technical and economical advantages. At present for heatinsulation usage 100.000 m3 light concrete is produced a year in Ulaanbaatar. This does not fulfillall needs. These enterprises that produce light concrete use lime and cement mixture binder, sandfiller and aluminum powder as foam generator.

The advantage and significance of the project for expanding “Silicate” Co., Ltd

It is time to introduce ALC technology that is popular through Asian countries, Czechand Polish CEPOL, CEBET and UNIPOL technologies. They are used for not only production of building walls but also production of roof covering and divisions between stories, slapping roof

with rafters, stairs march, transom, garage covering, also dry admixture that is used for brick laying and plastering mixture. The project aims to implement “40.000 Households ApartmentBuilding Program” initiated by the Government, to provide construction need of the city withhigh quality light concrete, and to produce earthquake-resistant, cost effective materials.

The Economical indicator of the project

Sales income and profit calculation of the enterprise. The enterprise will sell its scarce blocksat the standard price of current market. The gas block which is similar to the products above butis lower by quality is sold for Tgs55000-60000.

Gross production profit and income statement

¹ IndicatorsTotal amount

/Thousand.MNT/1 Total sales income 1925000

2 Operation cost 947107

3 Gross profit( before tax ) 977893

4 Income tax 10 % 97789.3

5 Net profit (3-4) 880103.7



6 Loan interest (1.8% per month, 21.6% per year ) 144720

7 Compensation resource for investment expense 350000

8 Operation expense financing (947107.0/ 4 ) 236776.75

9 Accumulation (5-6-7-8) 148606.95

Tgs 192 million is needed to expand the production by preliminary calculation.



PROJECT

TITLE,

CAPACITY

Meat and meat product production of “Zavkhan” ITP.

A meat processing factory will process 633.6 tons of beef, 323.8 tons of horse

meat, 1050 tons of mutton, in a total more than 2000 tons of meat a year in

average; and produce 250 tons of sausages, 510 tons of meat using meat and 42.6

tons of canned products using by-products. In addition to that there is a plan to

process and export about 100 tons of fish.

PROJECT

GOAL,

OBJECTIVES

The necessity of establishing and operating the “Zavkhan” ITP

The general level of economic development in western part of our countryremains low. This region’s contribution to the gross industrial output of our countryis 0.1% and the GDP per capita in this region is 2.0 times lower than the countryaverage, 2.7 times lower the Ulaanbaatar GDP per capita and 2.0 times lower than

the Khangai region average. It is also lower by 10-12% when compared to other regions.

The sectoral structure of the Western region’s economy is also lagging behind. Agricultural sector, services sector and the industrial and constructionsectors comprise 61.0%, 38.4% and 0.6% of the regions GDP against the 18.8%,40.4% and 40.8% respectively in the country’s GDP.

The pastoral livestock herding which is heavily dependent on environmentalfactors constitutes a major part if not most important part of the Western region’seconomy.

Due to low GDP per capita of the Western region and due to the importanceof pastoral livestock herding in the region’s economy, the poverty andunemployment levels in the region are high with poverty rate of 38% in the

Western region compared to 32.2% for the country as a whole.The level of economic development of Zavkhan aimag remains low. The

GDP per capita in this province was 640.4 thousand Tug, which is 0.9% less thatregional average (643.5 thousand Tug) and is 1.9 times lower than the countryaverage GDP per capita which is 1230.3 thousand Tug. The high levels of unemployment and poverty in this aimag are also related to this.

The Western region and Zavkhan aimag play an important role in livestock herding agriculture of our country. However, the main products of livestock agriculture such as meat, wool & cashmere and unprocessed animal skins are predominantly being exported to Russia and China as raw materials. If theagricultural produce can be processed into final products using high technologiesand exported abroad, this would increase the price of raw agricultural produce, thus

creating the possibility of maintaining the herders’ income at sustainable highlevels. The herders’ income can be increased by developing processing industries producing export-oriented final products meeting world standards from agricultural products.

Therefore, increasing the GDP per capita of Zavkhan aimag, improving theeconomic structure of the Western region, particularly, of Zavkhan aimag anddeveloping processing industries, thus improving the situation with poverty andunemployment, is of utmost importance. Establishing the “Zavkhan” ITP will be animportant step towards implementing this goal.



On the other hand, the establishment and operation of Meat and meat product

production of “Zavkhan” ITP will play an important role and help diversifyingthe economy of our country, will increase the production of export-oriented goodsand furthermore, will increase the competitiveness of such products on the worldmarkets.

PROJECT

VENUE

“Zavkhan” ITP will be established in Ulziit bag territory to the south of

Uliastai city centre. Total area is 76.2 hectares

The meat factory to be included in the “Zavkhan” ITP is indicated in the mapas “Meat and meat product production”

TOTAL

INVESTMENT

• The total investment amount necessary for the meat processing

factory is estimated to be 2,250,000 000 Tug, out which the

renovation of refrigerating and freezing equipment will cost 150,000

000 Tug, repairs of plant equipment will cost 80,000 000 Tug,

canned product equipment will cost 250,000 000 Tug, fish

processing equipment will cost 90,000 000 Tug, sausage making

equipment will cost 100,000 000 Tug, 500 ton refrigerated storage

facility in Artssuuri will cost 1,000,000 000 Tug, 200 ton

refrigerated storage facility in Ulaanbaatar will cost 400,000 000

Tug, other machinery equipment will cost 40,000 000 Tug,

installation costs will be 80,000 000 Tug, and transportation costs

will be 60,000 000 Tug. The meat factory will borrow 2,504,508



000Tug for 17 years at 12% per annum interest rate. The meat

processing plant will borrow 2,336,000,000 Tug and invest

3,800,000,000 from own internal recourses. In 2008, products

amounting to 5,135,777,400 Tug will be sold with a profit of

1,304,905,285 Tug and in 2009, sales volume will be 8,000,180,800

Tug, with a profit of 3,476,307,547 Tug. The total profit for 2008-

2013 is estimated to be 20,336,399,897 Tug.

COOPERATION

MODE

All the equipment of the meat processing factory is in order. However thereis a need to replace some cooling equipment in the cellar. Within the project scopethere is a need to procure and install a set of equipment for production of sausages, processing fish and canning meat. A new cellar with the capacity to store 500 tons of meat and meat production with cooling system at the Arts suur border crossing point will be built.

ECONOMIC

BENEFITS,

INVESTMENT

RECOVERY

PERIOD

№ Items

Total Amount

(Tug)

Total Amount

(USD)

1 Sales Income 84 703 739 400 72 520 3252 Own investment 3 000 000 000 2 568 4933 Borrowed Funds 8 549 394 888 7 319 6874 Total Costs 76 476 665 345 65 476 5975 Loan repayments 8 549 394 889 7 319 6876 Loan Interest Payments 2 537 745 382 2 172 7277 Loan Outstanding 0

8

Total amount of loan payments

and interest payments 11 087 140 271 9 492 4159 Profit before tax 15 602 659 344 13 358 44110 Taxation 16 885 212 025 14 456 51711 Income 2 891 256 918 2 475 391

EXPECTED

RESULTS

CONTACT

INFORMATION

Contact person (management/organizational structure (or chart), including possiblenames of senior personnel), address, including mailing and post office box details,telephone and facsimile numbers, and email address



PROJECT

TITLE,

CAPACITY

Cashmere and sheep wool processing production “Zavkhan” ITP.

• There is a plan to process in average 100-200 tons of cashmere and 800-1000

tons of sheep wool a year, dehair 200 tons of cashmere and 1000 tons of sheep

wool, degrease 150-200 kg of Cashmere and wool an hour and produce 300-350 tons of dehaired cashmere and 120-130 tons of yarns a year along with

140,000-150,000 linear meters of nitted fabrics and cloth at the Cashmere and

wool processing factory

PROJECT

GOAL,

OBJECTIVES

The necessity of establishing and operating the “Zavkhan” ITP

The general level of economic development in western part of our countryremains low. This region’s contribution to the gross industrial output of our countryis 0.1% and the GDP per capita in this region is 2.0 times lower than the countryaverage, 2.7 times lower the Ulaanbaatar GDP per capita and 2.0 times lower than theKhangai region average. It is also lower by 10-12% when compared to other regions.

The sectoral structure of the Western region’s economy is also lagging behind.Agricultural sector, services sector and the industrial and construction sectorscomprise 61.0%, 38.4% and 0.6% of the regions GDP against the 18.8%, 40.4% and40.8% respectively in the country’s GDP.


Due to low GDP per capita of the Western region and due to the importance of pastoral livestock herding in the region’s economy, the poverty and unemploymentlevels in the region are high with poverty rate of 38% in the Western regioncompared to 32.2% for the country as a whole.

The level of economic development of Zavkhan aimag remains low. The GDP

per capita in this province was 640.4 thousand Tug, which is 0.9% less that regionalaverage (643.5 thousand Tug) and is 1.9 times lower than the country average GDP per capita which is 1230.3 thousand Tug. The high levels of unemployment and poverty in this aimag are also related to this.

The Western region and Zavkhan aimag play an important role in livestock herding agriculture of our country. However, the main products of livestock agriculture such as meat, wool & cashmere and unprocessed animal skins are predominantly being exported to Russia and China as raw materials. If theagricultural produce can be processed into final products using high technologies andexported abroad, this would increase the price of raw agricultural produce, thuscreating the possibility of maintaining the herders’ income at sustainable high levels.The herders’ income can be increased by developing processing industries producing

export-oriented final products meeting world standards from agricultural products.Therefore, increasing the GDP per capita of Zavkhan aimag, improving theeconomic structure of the Western region, particularly, of Zavkhan aimag anddeveloping processing industries, thus improving the situation with poverty andunemployment, is of utmost importance. Establishing the “Zavkhan” ITP will be animportant step towards implementing this goal.On the other hand, the establishment and operation of Cashmere and sheep wool

processing production “Zavkhan” ITP will play an important role and helpdiversifying the economy of our country, will increase the production of export-



oriented goods and furthermore, will increase the competitiveness of such productson the world markets.

PROJECT

VENUE

“Zavkhan” ITP will be established in Ulziit bag territory to the south of

Uliastai city centre. Total area is 76.2 hectares

The meat factory to be included in the “Zavkhan” ITP is indicated in the mapas “Cashmere and sheep wool processing production ”

TOTAL

INVESTMENT

This factory will produce 7 types of products and for the period between 2008 and2012, the estimated sales income of the factory calculated basing on 2007 averageUSD – MNT exchange rate is expected to be 71,179,613 USD. The operating coststhroughout the period are estimated to be 76,476,665,343 Tug or 65,476,597 USDusing 2007 average exchange rate and initial investment necessary is estimated to be6,749,680,000 Tug. Land and factory building will cost 1,939,700 000 Tug, factorymachinery and equipment – 4,391,100 000 Tug, transportation and installation of machinery and equipment – 353,430 000 Tug, and technology will cost 65,450 000Tug. The profit loss calculations have been made for the period of 2008-2012, and

the estimated profit for the period is 8,006,879,251 Tug. The cashmere and Sartuulsheep wool processing factory to be established as a part of “Zavkhan” ITP will befinanced from own funds and bank borrowings. In the first instance, a loan in theamount of 8,549,394,888 Tug at 12% per annum is necessary and calculations showthat this loan can be repaid in 5 years time. The total amount of investment in thecashmere and wool factory will be 11,549,397,888 Tug, out which 3,000,000,000Tug will invested from own funds, and 8,549,394,888 Tug of bank loans will berequired. The sales volume in 2008 will be 1,530,747,888 with a net profit of 373,343,672 Tug. The sales amount will be 1,614,747,888 in 2009, further increasing



to 1,694,747,888 Tug in 2010, bringing the total sales volume throughout the periodto 8,470,373,940 Tug.

COOPERATION

MODE

It is necessary to select and install new equipment meeting the requirements of modern technology. The cashmere processing technology needs to be the mostadvanced and most efficient technology suited best to the specifics of cashmere fromMongolian goats. A special attention should be paid to selecting appropriate

technological processes suiting the most to all steps of cashmere processing such as bleaching, washing, dying and finishing of raw cashmere, thus allowing the production of higher quality products.

ECONOMIC

BENEFITS,

INVESTMENT

RECOVERY

PERIOD

№ Items

Total Amount

(Tug)

Total Amount

(USD)

1 Sales Income 48 532 781 400 41 552 0392 Own investment 3 800 000 000 3 253 4253 Borrowed Funds 2 336 000 000 2 000 0004 Total Costs 28 441 003 044 24 350 1745 Loan repayments 1 425 181 967 1 220 1906 Loan Interest Payments 1 033 256 926 884 6387 Loan Outstanding 1 454 873 258 1 245 611

8Total amount of loan paymentsand interest payments 2 458 438 892 2 104 828

9 Profit before tax 41 950 794 077 35 916 77610 Taxation 20 408 032 034 17 472 63011 Income 5 819 746 322 4 982 660

EXPECTED

RESULTS

The section should describe the overall results that the project is expected to produce- on successful completion - among its intended beneficiary group (how many peopleare expected to benefit from the project - directly and indirectly). The discussion

should also discuss whether there may be unintended effects of the project. Thediscussion should indicate in quantitative terms, to the extent possible, what the project will produce through its planned activities and budget.

CONTACT

INFORMATION

P.O Box-211137 Ulaanbaatar Mongolia, Sukhbaatar District 5th horooBudkhand namjilsuren: Mobile; 976-99-009181 , Tel; 976-11-635289, Fax; 976-11-635289E-mail; [email protected]



PROJECTTITLE,

CAPACITY

Construction materials factory of “Zavkhan” ITP.

•The plan is to produce 4000 pieces/м3/ of airy concrete, 20,000

light/porous concrete blocks, 15,000 ash blocks and sand blocks, 100,000

bricks, 2500 pieces/ м3/ of walk path blocks, 230 pieces/м3/ of concrete

pillars, 12 200 pieces/м3/ of ХНХ 59 and 1750 pieces/м3/ of 0.5 gravel at the

construction materials production factory in 2008-2009.

PROJECT

GOAL,

OBJECTIVES

1.1. The necessity of establishing and operating the “Zavkhan” ITP

The general level of economic development in western part of our countryremains low. This region’s contribution to the gross industrial output of our country is 0.1% and the GDP per capita in this region is 2.0 times lower than thecountry average, 2.7 times lower the Ulaanbaatar GDP per capita and 2.0 timeslower than the Khangai region average. It is also lower by 10-12% when comparedto other regions.



Due to low GDP per capita of the Western region and due to the importanceof pastoral livestock herding in the region’s economy, the poverty andunemployment levels in the region are high with poverty rate of 38% in theWestern region compared to 32.2% for the country as a whole.

The level of economic development of Zavkhan aimag remains low. TheGDP per capita in this province was 640.4 thousand Tug, which is 0.9% less thatregional average (643.5 thousand Tug) and is 1.9 times lower than the countryaverage GDP per capita which is 1230.3 thousand Tug. The high levels of unemployment and poverty in this aimag are also related to this.

The Western region and Zavkhan aimag play an important role in livestock herding agriculture of our country. However, the main products of livestock agriculture such as meat, wool & cashmere and unprocessed animal skins are predominantly being exported to Russia and China as raw materials. If theagricultural produce can be processed into final products using high technologiesand exported abroad, this would increase the price of raw agricultural produce,thus creating the possibility of maintaining the herders’ income at sustainable highlevels. The herders’ income can be increased by developing processing industries producing export-oriented final products meeting world standards fromagricultural products.

Therefore, increasing the GDP per capita of Zavkhan aimag, improving theeconomic structure of the Western region, particularly, of Zavkhan aimag anddeveloping processing industries, thus improving the situation with poverty andunemployment, is of utmost importance. Establishing the Construction materials



factory of “Zavkhan” ITP will be an important step towards implementing thisgoal.

On the other hand, the establishment and operation of Construction

materials factory of “Zavkhan” ITP will play an important role and helpdiversifying the economy of our country, will increase the production of export-oriented goods and furthermore, will increase the competitiveness of such products

on the world markets.

PROJECT

VENUE

“Zavkhan” ITP will be established in Ulziit bag territory to the south of Uliastai city centre. Total area is 76.2 hectares

The meat factory to be included in the “Zavkhan” ITP is indicated in themap as “Construction materials production ”

TOTAL

INVESTMENT

The required amount of investment into this factory is 1,647,318.800 Tug, outwhich 906,047.000 Tug is working capital and 741,271.800 Tug are capitalexpenditures. Capital expenditures include the 360,000 000 Tug for purchase andrenovation of property, and 212,811.800 Tug for building the sea-buckthorn andother fruit growing plantation. Of the total investment amount of 1,647,318.800

Tug, 1,625,313.800 will be raised through a bank loan and 22,000.000 Tug will beinvested from own funds. The bank loan will bear an interest of 12% per annumand is expected to be completely repaid in 6 years time. This factory will increaseits production along with the year over year growth in raw materials, thus allowingincreasing profits. For instance, in 2012 and 2013, the factory will work with net profits of 1,084,332,445 Tug and 1,527,916,836 Tug respectively. The foodfactory will produce products to the total amount of 1,624,655,556 Tug,1,825,072,482 Tug, 2,951,009,404 Tug, and 3,483,274,289 Tug in 2009, 2010,2011 and 2012 respectively. The aggregate sales volume for 2008-2013 will be



14,751,273,442 Tug.

COOPERATION

MODE

The construction materials factory will have the following equipments: 1 8-tonGrab crane G, 1 SM108 crusher, 1 10-ton crane, 1 overhead crane, 1 point-weldingequipment, 1 C229 mechanical scissors, 2 steel expanders, 1 5-ton mirror, 2 20-toncarts, 1 holed-plate producing equipment, 1 SM 36D concrete mixer, and 36forms. In order to ensure further uninterrupted operation of the factory, it is

necessary to renovate the existing equipment and technology by introducing newadvanced technologies to the factory’s quarry, by installing new concrete supporter equipment and etc. Also, a printing machine, a salver/tray, 5-ton boom crane, KATSOLOR 200, 10 10-ton KAMAZ trucks and a small steam furnace with a capacityto produce 1 ton of 4 atm. steam per hour will be purchased.

ECONOMIC

BENEFITS,

INVESTMENT

RECOVERY

PERIOD

№ Items Total Amount

(Tug)

Total Amount

(USD)

1 Sales Income 6 217 600 000 5 323 2882 Own investment 150 000 000 128 4253 Borrowed Funds 1 426 509 480 1 221 327

4 Total Costs 5 255 723 640 4 499 7635 Loan repayments 870 306 330 745 1256 Loan Interest Payments 31 466 782 26 9417 Loan Outstanding 8 056 708 716 6 897 8678 Total amount of loan payments

and interest payments901 773 111 772 066

9 Profit before tax 1 960 835 807 1 678 79810 Taxation 2 345 476 171 2 008 11311 Income 342 909 670 293 587

CONTACTINFORMATION

P.O Box-211137 Ulaanbaatar Mongolia, Sukhbaatar District 5th horoo

Budkhand namjilsuren: Mobile; 976-99-009181 , Tel; 976-11-635289, Fax; 976-11-635289E-mail; [email protected]



PROJECT

TITLE,

CAPACITY

Food Factory of “Zavkhan” ITP.

It is planned to process 25 tons of blueberries, 5 tons of cranberries, 5 tons of currants

and 30 tons of seabuckthorns in 2008. 92 tons of red garlic potion, and 3911 tons of canned red garlic are planned to be produced by increasing sowing and seeding of red

garlic each year. With the growth of production the plan is to process 108 tons of

blueberries, 12 tons of cranberries, 10 tons of currants and 15 tons of cultivated

currants and 100 tons of seabuckthorns. It is expected to process 100 tons of

cultivated seabuckthorns.

PROJECT

GOAL,

OBJECTIVES

1.2. The necessity of establishing and operating the “Zavkhan” ITP

The general level of economic development in western part of our country

remains low. This region’s contribution to the gross industrial output of our countryis 0.1% and the GDP per capita in this region is 2.0 times lower than the countryaverage, 2.7 times lower the Ulaanbaatar GDP per capita and 2.0 times lower thanthe Khangai region average. It is also lower by 10-12% when compared to other regions.



Due to low GDP per capita of the Western region and due to the importanceof pastoral livestock herding in the region’s economy, the poverty andunemployment levels in the region are high with poverty rate of 38% in theWestern region compared to 32.2% for the country as a whole.

The level of economic development of Zavkhan aimag remains low. TheGDP per capita in this province was 640.4 thousand Tug, which is 0.9% less thatregional average (643.5 thousand Tug) and is 1.9 times lower than the countryaverage GDP per capita which is 1230.3 thousand Tug. The high levels of unemployment and poverty in this aimag are also related to this.

The Western region and Zavkhan aimag play an important role in livestock herding agriculture of our country. However, the main products of livestock agriculture such as meat, wool & cashmere and unprocessed animal skins are

predominantly being exported to Russia and China as raw materials. If theagricultural produce can be processed into final products using high technologiesand exported abroad, this would increase the price of raw agricultural produce, thuscreating the possibility of maintaining the herders’ income at sustainable highlevels. The herders’ income can be increased by developing processing industries producing export-oriented final products meeting world standards from agricultural products.Therefore, increasing the GDP per capita of Zavkhan aimag, improving theeconomic structure of the Western region, particularly, of Zavkhan aimag and



developing processing industries, thus improving the situation with poverty andunemployment, is of utmost importance. Establishing the Food Factory of

“Zavkhan” ITP will be an important step towards implementing this goal.On the other hand, the establishment and operation of Food Factory of

“Zavkhan” ITP will play an important role and help diversifying the economy of our country, will increase the production of export-oriented goods and furthermore,

will increase the competitiveness of such products on the world markets.

PROJECT

VENUE

“Zavkhan” ITP will be established in Ulziit bag territory to the south of Uliastai city centre. Total area is 76.2 hectares

The meat factory to be included in the “Zavkhan” ITP is indicated in the mapas “Food production”

TOTAL

INVESTMENT

The required amount of investment into this factory is 1,647,318.800 Tug,out which 906,047.000 Tug is working capital and 741,271.800 Tug are capitalexpenditures. Capital expenditures include the 360,000 000 Tug for purchase andrenovation of property, and 212,811.800 Tug for building the sea-buckthorn andother fruit growing plantation. Of the total investment amount of 1,647,318.800

Tug, 1,625,313.800 will be raised through a bank loan and 22,000.000 Tug will beinvested from own funds. The bank loan will bear an interest of 12% per annumand is expected to be completely repaid in 6 years time. This factory will increaseits production along with the year over year growth in raw materials, thus allowingincreasing profits. For instance, in 2012 and 2013, the factory will work with net profits of 1,084,332,445 Tug and 1,527,916,836 Tug respectively. The food factorywill produce products to the total amount of 1,624,655,556 Tug, 1,825,072,482Tug, 2,951,009,404 Tug, and 3,483,274,289 Tug in 2009, 2010, 2011 and 2012respectively. The aggregate sales volume for 2008-2013 will be 14,751,273,442



Tug.

COOPERATION

MODE

The food factory will newly require 2 refrigerating cellars with a capacity of 20 tonnes, 2 2.5-ton refrigerator trucks for transporting fruits and raw materials, 1fruit press, 1 seed/skin/juice separating machine, 1 automated juice bottling line, 1vacuum fruit juice condensing equipment, 1 jam producing, bottling and coolingline, 10 5-ton steel tanks for the storage of juice, 20 1-ton containers for the storage

of fruits, and 10 5-ton steam-and-water bath steel containers for storing fruit juice.Also, it is necessary to build and start a small furnace capable of producing 0.5tonnes of steam per hour. For the garlic product facility, a new HGS-3 peelingmachine, KM-1 garlic splitting machine and KK-3 garlic sorting machines arerequired.

ECONOMIC

BENEFITS,

INVESTMENT

RECOVERY

PERIOD

№ Items Total Amount (Tug)

Total Amount

(USD)

1 Sales Income 14 751 273 442 84 703 739 4002 Own investment 22 000 000 3 000 000 0003 Borrowed Funds 1 625 318 800 8 549 394 8884 Total Costs 11 913 386 333 76 476 665 3455 Loan repayments 1 742 561 744 8 549 394 8896 Loan Interest Payments 531 481 332 2 537 745 3827 Loan Outstanding 0

8Total amount of loan paymentsand interest payments 2 274 043 076 11 087 140 271

9 Profit before tax 3 476 128 579 15 602 659 34410 Taxation 4 092 673 898 16 885 212 02511 Income 392 532 011 2 891 256 918

CONTACTINFORMATION

P.O Box-211137 Ulaanbaatar Mongolia, Sukhbaatar District 5th horoo

Budkhand namjilsuren: Mobile; 976-99-009181 , Tel; 976-11-635289, Fax; 976-11-635289E-mail; [email protected]



BRIEF INTRODUCTION ON THE TSAGAANNUUR

FREE TRADE ZONE /FTZ/

The reason for development of Tagaannuur free trade zone is to attract foreign anddomestic investors to the area in order to cooperate with international trade, support thedevelopment and prosperity of travel and tourism with the aim to decrease unemployment and poverty in the zone.

The zone is located in the North Western part of Mongolia and at 1700 km fromUlaanbaatar, 65km from Bayan-Ulgii city centre 28 km from Russian borders entry point, thezone is also found to be on the Euro-Asian international highway AN-32 and covers landscape of 708.4ha.

Environment and geographical landscape Service area of “Tsagaannuur” free tradezone contains the west zone of Mongolia and as for nature it locates in Altai Tavan Bogd,Kharkhiraa, Khankhukhii, Cinlkhem, the hottest temperature reaches + in the hollow of big lakes,

the coldest point is –60 in Tosontsengel soum of Zavkhan province. Zonal average is about + 20 –25. The combination of natural zone and range like High mountains of Otgontenger, the hollowof big lake, Shargiin Gobi, is located at 800-3500 m high from the sea level, between the northlatitude 44-50 and the east longtitude 88-96, lenghtened fron the north to the south. Territory of the west zone 41705.4 thousand hectare and it places 26.52% of the total territory of Mongolia.Thence the pasture land is 35391.4 thousand hectare and plantation land is 110.9 thousandhectare.

The total water reserve of the west zone is 7908 million cube meter and it places 22.9 %of state whole.

Transport & Electricity from Russian border to Ulgii province there is a modest road andis being improved to the international standards, the improvement activities have been started in

2005. Hereinafter to cooperate with concerning organisations regarding to construction of AN-4road network which links Tsagaannuur at Russian border to Yaranta at Chinese border.

Tsagaannuur village now has a diesel power station and in 2008 the village is planned to be connected to national grid with 35 kilo- bait- high voltage electricity.

Communication Tsagaannuur's post office has an automatic telephone station.Administration of Tsagaannuur FTZ is cooperating with Bayan- Ulgii province’s post officeregarding to draw fibre cable and to connect with mobile network.

Customs customs new complex which is made up from 27 objects, 2.7 hectare square of Ulaanbaishint that links with Tashant port of Russian Federation, costed by 3.0 billion tugrug,equipped with modern techniques of customs inspection, that has got a capacity to check and

convey 80 trucks and buses, 20 cars, 400 passengers a day, floated on August 29, 2005. And it became the beginning of the activities of plantation land is “Tsagaannuur” free trade zone.

Population As for the end of 2004 there are 312 families, 1626 people and 395 of them are unemployment.

There are 284 pupils in 8 years secondary school. New center of Tsagaannuur village of Nogoonnuur soum of Bayan-Ulgii province was built in 1985-1990. There are more than 20 big buildings such as 8 years secondary school of 300 children, a school’s dormitory with 70 beds, ahospital with 30 beds, a kindergarden of 50 children, a hot shower house, a post office, a cultural



center with 300 seats, a central heating stove, a hotel with 20 beds, a good storage, a petroleum base that has a capacity of 6000 cube meter and a boundary military base.

The boundaries of the free zone initially involves western boundaries of Mongolia,Altai republic of Russia, Xingjian republic of China then it will include some of Euro-Asiancountries such as Germany, Turkey , Kazakhstan, Russian Federation, South Korea, Singapore

and Mongolia (as a whole).Western zone of Mongolia forms the 26.5% of landscape and 16.2% of population live in

the above zone.Xingjian of China which has a bordered link with western zone has a population of about

20 million, Altai republic of Russia with Novosibirsk state have population of about 5 million.

Address:

Government Building # 11, J.Sambuu street ,Chingeltei district, Ulaanbaatar, MongoliaÅ-mail: [email protected]

Web: www.tsagaannuur.mnTel:(976-11) 324026, 264026Fax:(976-11) 324026.

mailto:[email protected]




PROJECT TITLE,

CAPACITY

CONTSTRUCTION OF THE PLANT PRODUCING FLOUR ,

“TSAGAANNUUR” FREE TRADE ZONE OF NOGOONNUUR SOUM OF BAYAN-ULGII PROVINCE. Planned capacity per year 20000 tn, per day 72.7 tn

PROJECT GOAL,

OBJECTIVES

Improve flour supply not less than 30% to Western region.Market satiety with good quality and low price flour of domestic producers in further.

PROJECT VENUEThe project will be completed in "Tsagaannuur" free trade zone of Nogoonnuur soum of Bayan-Ulgii province. The infrastructure includingtransport ways, energy and communication will be constructed.

TOTAL INVESTMENT 420.0 million tugric

COOPERATION MODE

Joint-venture (equity), management expertise, market access, buy-back arrangement, technology transfer, Joint R&D, equipment purchase,technical expertise, marketing expertise, sub contracting or others

ECONOMIC BENEFITS,

INVESTMENT RECOVERY

PERIOD

2 years

EXPECTED RESULTS

• To improve living standards of the regional population, create 24 new

jobs

• To promote free trade zone's development

• Improve flour supply to Western regions

CONTACT INFORMATION

Government Building No.11, suite 1006,Tel (976-11) 324026Fax (976-11) 324026



PROJECT TITLE,

CAPACITY

CONTSTRUCTION OF THE PLANT PRODUCING THERMAL

INSULATION WALL BLOCK,

“TSAGAANNUUR” FREE TRADE ZONE OF NOGOONNUUR SOUM OF BAYAN-ULGII PROVINCE. Planned capacity per year 3120 m3 , per day 10.4m3

PROJECT GOAL,

OBJECTIVES

To supply with the thermal insulation wall blocks to buildings which will be built in Tsagaannuur sum and Bayan-Ulgii province in accordance withconfirmed Government program "40000 house”Securing employment, development of zone's activity

PROJECT VENUE

The project will be completed in "Tsagaannuur" free trade zone of Nogoonnuur soum of Bayan-Ulgii province. The infrastructure includingtransport ways, energy and communication will be constructed.

TOTAL INVESTMENT 69,0 million tugric

COOPERATION MODE

Joint-venture (equity), management expertise , market access, buy-back arrangement, technology transfer, Joint R&D, equipment purchase,technical expertise, marketing expertise, sub contracting or others

ECONOMIC BENEFITS,

INVESTMENT RECOVERY

PERIOD

2 years

EXPECTED RESULTS

• To supply with the thermal insulation wall blocks to buildings which

will be built in Tsagaannuur soum

• To supply with the heat insulating material to buildings which will be

built in Bayan-Ulgii province

• To improve living standards of the regional population, create new

jobs

• To promote free trade zone's development

CONTACT INFORMATION

Government Building No.11, suite 1006,Tel (976-11) 324026Fax (976-11) 324026

“Third Crop Rehabilitation National Campaign”



Duration: 2008-2010

One. Current situation of Crop Sector

1. The first and second crop rehabilitation campaigns were successfully introduced in 1959 and in1976 respectively in Mongolia. As a result, entire size of arable land reached to 1.2 millionhectares and it opened new era for country’s crop development by reaching self-sufficiency inwheat potatoes and vegetables. But due to many factors such as weather changes accelerated byglobal warming, poor financial capacity of crop entities, lack of qualified staff, and reduction of number of expert, currently, only 30.0 percent of entire arable land is used for cultivation by producing 24.9% of domestically needed wheat, 47.0% of vegetables, and 86.0% of potatoes. Inaddition, majority of agricultural machineries and equipment are now being used becameold/obsolete because of lack of maintenance and renovation over the last 18 years of transition.Crop entities don’t always use fertilizers due to their limited financial capacity, accordingly therehave been negative impacts related to weed infestation and low soil fertility. Those impacts leadto not only drought risk and decline in both productivity and quality of crop produce. There has

been energy shortage due to oil price increase at global market, and most developed countriestend to their cultivated crops for bio-diesel production. Some wheat exporting countries face lossof crop because of global warming; accordingly consumption of plant-origin products issubstantially increasing.

Two. Justification and demand to elaborate the program

2. Despite the increased demand on wheat and flour and sharp increase its price in the globalmarket, consumers and people from developed countries prefer to use safe ecologically clean products. Considering the phenomenon, our country needs to mobilize its internal and externalresources of practical experiences and lessons from the past for restoring crop sub-sector.

It is necessary to implement SMART activities to achieve crop sub-sector goals set forth in the‘State Agriculture Sector Policy’, approved by Decree No. 29 by the Parliament in 2003, and‘Priority Directions of Economic and Social Development in 2008’. The Government announced2008 a year of ‘Food Supply and Security’. In this scope, ‘Crop Rehabilitation Third NationalMobilization’ program for crop development is developed in order to ensure full self-sustainability of Mongolia for wheat, potatoes and other main vegetable items.

Three. Principle for Program Implementation

3. Following are the guiding principles:To preserve ecological balance;To use modern technology and equipment;

To employ most efficient and cost-effective approaches;To ensure full-fledged involvement of citizens and private enterprises.

Four. Program Goal and Objectives

4. The overall goal of the Program is to create favorable economic conditions and enablinglegal framework in crop sub-sector to increase production, and through this maintain



sustainable supply of safe food products to the population, eliminate import-dependence,and intensify crop development.

5. The Program shall achieve following objectives:To provide favorable economic conditions and enabling legal framework for crop production;To strengthen human resources through capacity building of farmers, specialized staff

(vocational training), re-training, provide timely information;To intensify crop production through introduction of modern technology and equipment;To improve quality and supply of main crop cultivars seed;To increase cultivation land area through rehabilitation of abandoned crop fields;

Five : Activities to be implemented under the campaign

- The law on making amendment into crop related legal laws will be drafted inconsideration of complex issues, related to supporting for the strategic production of wheat.

- Crop production management and producers’ capability to run the crop production will

be streamlined and improved; long and short term training will be conducted for crop producers.

- Production, training and research institutes, aimed to train crop farmers and to introducenew techniques and technology will be supported

- Introduce state of the art technologies for protecting soil from wind erosion andenhancing fertility.

- Renovate 70 – 80% of the Agricultural production techniques and establish economicentity to provide technical service to family based crop producers.

- Survey on determining volume of the abandoned crop land, possible to be used again andsoil fertility will be conducted by the professional institutes and basing on this survey,additionally, 230 thousand ha of abandoned land, suitable for the crop production will beused for production purpose.

- The state will support activities of the economic entity, engaged in multiplying seed of crop cereals, fodders and vegetables that are drought resistant, highly yielded in irrigatedand non-irrigated conditions.

- Volume of irrigated crop production area will reach 54.2 thousand ha by increasing it by2 times.

- Introduce drop irrigation schemes and increase volume of the greenhouse production- Support development of storage facilities.

Six : Management and implementation arrangements of the campaign

The Prime Minister will chair the National Council for the campaign implementation and the

Minister of Food and Agriculture will be the vice chairman of the Council. Members of theGovernment cabinet Minister of Finance and Nature and Environment, Aimag Governors,Directors of Government Agencies and Representatives of NGOs will be included into themembership of the Council.

Ministry of Food and Agriculture will fulfill the duty of coordinating the campaign at the nationallevel and of providing professional management methodologies.



Seven : Expected results

49% of the flour needs will be met in 200867% - in 2009100% -in 2010

58.3% of the vegetable needs will be met in 200880.4% - in 2009100% - in 2010

Eight : The required funds

/by billion tugrugs/

Source of funding

Year 2008 2009 2010 Total

1. State budget 24.03 38.11 51.39 113.522. Economic

entity

62.50 121.57 144.87 328.95

3. Loan andAssistance

6.10 17.77 17.17 41.05

Total 92.63 177.45 213.44 483.51



Economic calculation for building intensified farm with 50 dairy cows

No Items Unit QuantityUnit price

(USD)

Total

(USD)

1 Outside yard of a farm m2 100 50.0 5000.02 Cow shed set 1 23 000.0 23 000.03 Water well Piece 1 6 000.0 6 000.0

4Warehouse with a capacity of 200tons of concentrated fodder

Piece 1 7 000.0 7 000.0

5 To purchase or import pure dairy cow head 50 2 000.0 100 000.06 Small scale fodder unit set 1 10 000.0 10 000.07 Fenced and irrigated forage field ha 50 440.0 22 000.0

8 Electricity supply 10 000.09 Milking apparatus set 10 600.0 6000.010 Milk freezer piece 1 2000.0 2000.0

11Milk transporting track with acapacity of 2.5 ton

piece 1 6000.0 6000.0

12Small scale tractor with a capacity of 29 horse power

piece 2 5400.0 10 800.0

13 Hanging equipment for tractor set 1 3000.0 3000.014 House for farmer piece 1 15 000.0 15 000.0

15Veterinary services and animal breeding unit

Set 1 3 000.0 3 000.0

Total 228 000.0

Remark: An intensified farm with a capacity of 50 cows is required about 200.000 eurosProduction output

No Name of products Total output of which for sale

Project title: INTENSIFIED DAIRY FARM

FOR 50 BLACK AND WHITE COWS

Project duration: The project will be implemented during the period of 2009-2012

Implementingorganization:

Ministry of Food and Agriculture and Selected private owned dairy farmsand companies

The mainobjective:

In compliance with the regional concepts of Mongolia, to produce livestock products that can meet international standard and market demand and toimprove food security of the population by developing crop and livestock integrated intensified farming system in Mongolia.

Project output: Nucleus herd of dairy cattle will be established. Breeding young bulls andheifers will be reared and provided to interested farms and people includingan increase in their income and welfares, which are selected by productivityand fertility will be used for further breeding



Number of animal

Output per unit

Unit price(USD)

Total price(USD)

1 Milk 45 6000 L 27 0000 L 0.4 108.000

2Breeding youngcows for sale

15 1000 15 000

3 Breeding young bulls for sale

10 1000 10 000

4Fattening cattle withthe age of 18-24months

8 400 3.2 ton 0.5 1600

Total 1346 00.0



PROJECT TITLE: ESTABLISHMENT OF NATIONAL REFERENCE

LABORATORY OF FOOD SECURITY

IMPLEMENTING AGENCY: MINISTRY OF FOOD AND AGRICULTURE

BUDGET: 3.151.685.000 US$

DURATION: from 01 January, 2010 to 01 January, 2015

Justification:

1. Food security control is directed only to ready-made products and there is lack of arequired laboratory for food security control, risk assessment, and taking appropriatesafety measures with exporting countries.

2. With aim to improve food supply, production and import of food products made byuntraditional ways and technique such as using chemical fertilizers and plant protectionchemicals in agricultural production and medicine and antibiotics in livestock, affectinggenes and changing innate property of raw materials using biotechnology, adding upchemicals to improve appearance and to extend store period.

3. As shown in food statistics in 2007, Mongolia imports over 50% of main food productsof which only 40% is imported on the basis of sensual analysis by inspection officer at border control ports.

4. Currently, 49 accredited laboratories conduct chemical, microbiological and sensualstandard analysis of food products and raw materials of which 5 provide service to themass but the others work at particular aimags or organizations. Due to capacity weaknessof food laboratories and personnel’s poor knowledge and skills, name and type of analysis are very few and their result is uncertain.

Therefore, to protect the people’s health, it is vital to establish national reference independentfood laboratory which is equipped with high-sensitive devices and internationally

Total cost for the establishment of the lab is around Tg3.7 billion. The estimation is based on theaverage costs for construction and transportation and relevant taxes; and some easily brokenitems and reagents are calculated for one year consumption.

Calculation for funding

No Description Cost

(thous.tog)

1. Cost for the lab construction plan ( 5 – 10% of constrcution cost) 51.000

2. Supervising and confirming the construction plan and budget 20.0003. Construction 710.000

4. Salary fund for before utilization 36.000

5. Equipment, tools and furnishing 1.400.405

6. Equipment transportation 17.610

7. Tax (15.5% of total equipment cost) 179.167.6



8. Equipment Installation and Adjustment (3-5% of equipment cost) 55.864

9. Reagents (for 1-2 years preservation) 44.483

10. Training for specialists 138.700

11. Drafting up legal documents and their approval 100.000

12. Purchasing report of the international accreditation 250.000

13. Purchasing methodology and program 200.000

14. Other 500.000

Total 3.703.230.1

Importance and Outcomes:

1. As result of having the internationally accepted laboratory, securty indicators for the food raw

materials and products will be fully determined and control on food production, importing and

exporting will be improved

2. Potential risks will be prevented and, thus possitive influence on the social health

3. The condition to solve dispute between reference laboratories and thier clients will be provided

4. Techinical barrier on trading will be reduced and food producers’ income from exporting willincrease

5. Based on the result of the lab examinations, research works will be conducted that creates on

opportunity to establish databases on safety standards.

6. Will have an opportunity to reveal the genetically modified foods, biological elements,

pathogenic microorganism and virus in a short period and contaminated food raw materials and

products with ray can be examnied.

MINISTRY OF FOOD AND AGRICULTURE



PROJECT TITLE: “Potato seed renovation for increasing domestic safetypotato production”

PROJECT

INITIATOR:Ministry of Food and Agriculture

PROJECT

INTRODUCTION:

Seed multiplying system was collapsed during the privatization. All registered potatovarieties was more than 20 years old. Last 15 years until 2005, most of the farmers

almost did not renovate farm saved potato seed due to insufficient supply of healthy,high quality seed. The average yield of potato decreased by 40% (8-9 t/ha) comparingto average of 1980-90 (12 t/ha) due to low quality seed and old varieties. The national potato production covered by 60-70% of domestic consumption and rest of demandcovered by imported potato mainly from China. Since 2005 SDC financedRevitalization of Mongolian potato Sector’ Program for restructuring of potato seedsystem and reorganized Nation wide potato seed system including informal seedmultipliers. After testing of new potato varieties, we registered 2 varieties such asImpala and Vitara. But sources of high quality seeds of the new varieties not enoughto renovate farmers seed. Therefore MOFA requested to Government of Germany tosupport for importing 1000 tons of elite seeds of Impala and Vitara varieties for thefarmers seed renovation through existing seed system.

PROJECTDURATION:

2009-2011

PROJECT

OBJECTIVES:

- Test and identify of new potato varieties- Renovation of the farm saved potato seed- Improve the farmers storage facilities

PROJECT PHASE: phase I: Test and identify of new varieties originated from foreign countriesphase II: Renovate farm saved low quality potato seed by the registered new potatovarieties such as Vitara and Impala.

- 500 tons of elite seed from the each variety used for seed renovation throughexisting potato seed system in the 2009

PROJECT BUDGET: 2 000 000 EURO

Budget breakdown

New varieties for testing 100 000 Euro1500 tons of elite seed 1 050 000 EuroUpgrading storage facilities 200 000 EuroTraining and study tour 100 000 EuroGlasshouse equipped with aerophonic 200 000 Eurofacilities for mini-tuber productionConsultant and Monitoring 100 000 EuroIrrigation equipments 250 000 Euro

TOTAL BUDGET: 2 000 000 EURO



Project name,

capacity

Make a base research on identifying water supply resource of Ulaanbaatar city,

develop underground water monitoring network

Project objective,

mission

Objective: To identify final extent of underground water resource contained in thethick side of the accumulation of Tuul river, which is the source of water supply for Ulaanbaatar city, and to build underground water monitoring network

Missions:1. To do exploitation survey on identifying remaining amount of resource fromsources of pure water, that are being used for Ulaanbaatar city’s water supply

2. To perform rummage work on identifying new resources for places with a possibility to identify resources

3. To generate underground water monitoring system that will control the outage and pollution of water resources that are being exploited.

Area of project

implementation:

Tuv province territory, along the river Tuul

Form of

cooperation with

Foreign investor

To collectively perform base research on identifying a resource, and to purchasemonitoring network facilities

Total amount of

investment

USD1,500,000

Time frame on

paying back the

economic benefit

and investment

The population of Ulaanbaatar city, and its territorial industries will have a securesource of water supply. Based on the results of resource research, the settlement of

payment will be done after the exploitation building is constructed, which is in around5-10 years

Expected resultsfrom the project

By defining the current situation and prospect of supplying process from undergroundwater resource contained in the thick side of the accumulation of Tuul river, it will be

possible to plan the measurements on implementing the decisions about finding a wayto resolve the issue of Ulaanbaatar city’s pure water supply without wasting time.Underground water monitoring network will provide reliable and correct informationabout the resource and quality of underground water to decision makers and relatedorganizations.

Contact address Ministry of Environment. Officer in the Environmental and Natural resourcesauthority G.Tserendondov, Tel 267545, Fax 326616Authority of Water. Director Ts.Badrakh, Tel/Fax 300074

Project name, Designing methods to perform biological rehabilitations on



capacity desolated areas in the procees of mining, between the years 2009-

2011

Project objective,

mission

To properly exercise the biological rehabilitation on desolated landscapethat is situated in the distinct zones of Mongolia’s timbered, prairie,desert-like steppe, and to transmit results into production by creating

natural pasturage from agro ecosystem. By doing so, we are aimed atdesigning methods to rehabilitate thousands of hectares desolated pasturage, hence to make a research that will contribute greatly to thecountry’s economy. Within the extent of these objectives, the missionsare:1. To analyse the current situation of rehabilitation of miningtechniques, and also to perform land and water laboratory tests prior to

biological rehabilitation.2.The act of planting perennial plants on 2 hectares field for each of theBayan-Ovoo sum (administrative unit next below the province) of Bayankhongor province, Tsenkher sum of Arkhangai province, Zaamar sum of Tuv province areas is to be divided into 3 types of experiments

on the 1 hectare irrigative field: enriched by homesteads, enriched by biodecompositions, and non-enriched, and the other 1 hectare non-irrigatve field is divided into 3 types of experiments that are: enriched

by homesteads, enriched by biodecompositions, and non-enriched,totalling to 18 experiments to be performed.3. To create field pattern of bioloigical rehabilitation for each of thethree environmental zones and regions.4. To organize and promote conferences and training programs that areexhibited by the outcome of the work 5. To warrant directions and standards of rehabilitations to be made onthe three environmental zones and regions that are desolated while in the

process of mining, and to report the results.

Area of projectimplementation

-2 hectare field of Bayan-Ovoo sum of Bayankhongor province-2 hectare field of Tsenkher sum of Arkhangai province-2 hectare field of Zaamar sum of Tuv province

Form of

cooperation with

Foreign investor

We will train future biological rehabilitation professionals byincluding 6 masters’ students in the projects crew who will be workingon 6 fields, and enabling them to acquire experimental methods of theresearch. Because this, in turn, has an advantage of creating staff thatwill further implement into production the directions and standardsdesigned by themselves, there is an opportunity to do joint researchwork with foreign professionals.

Within the framework of balancing the ecological scheme againstthe global warming, air pollution, storms and other natural disasters, it isnecessary to cooperate and receive technical and technological supportfrom highly developed foreign countries with the purpose of healingdisengaged topsoil formed from the large fields desolated by mining.

Total amount of

investment

240783.228 thousand tugrik

Time frame on

paying back the

economic benefit

and investment

The land that is rehabilitated as a result of biological rehabilitation project will increase the natural pasturage occupancy rate by certainamount, thus, the environmental balance is kept and ecological-economical appraisal is maximized when plants equably grow on theland. Prior to starting biological rehabilitation, there will be strict control

on the technical rehabilitations like burying major holes created whilemining, flattenning lumps, and transforming the land into natural



condition to a certain extent by re-flattening. This, in turn, will havecrucial social benefits such as the safety of the living condition of thelocals, to peacefully fed the livestock on their homeland. As theinvestement of this project is spent on scientific benefits, it is not

possible to be paid back.

Expected resultsfrom the project If our recommended project is implemented, the results are as follows:1. The research of experimental land’s situation prior to biologicalrehabilitation is identified laboratory tests, and we will rate the currentcondition.2. Choose the production standard from the 18 versions of rehabilitationexperiments that includes reclamation of timbered, prairie, desert-likesteppe zones.3. There will be model land for display and demonstration for each

field that has been biologically rehabilitated.4. The technological directions for doing biological rehabilitation on thementioned zones is to be renewed.5. A standard of rehabilitating and submitting fields that were used for

mining purposes will be set for each of the zones.6. The rating will be done on the costs of biological rehabilitation work.7. We will contribute to the improvement of people’s ecologicaleducation, which are about the safe living condition of the people andtheir livestock resulted from the research, and about what are thechances of rehabilitating desolated areas.

Contact address University of Agriculture, Science Committee, Tel: 341770; Scientistand secretary in the University of Natural ScienceP. Ariunsuren, 99291991

Project name, To improve the monitoring ability of environmental pollution, and toxic



capacity chemical substances that remain in the environment. To perform chemical

analysis on 1500 environmental samples annually.

Project objective,

mission

Increase the monitoring ability of environmental /air, water, topsoil/ quality, and toform conditions that will define particularly the contents of toxic chemicalsubstances’ remainders in the environment.

1. To facilitate with analytic equipments that will identify non-organic elementsand toxic organic combinations such as scented carbohydrates, petroleum products, pesticide remainders and slow decomposing organic substances that arein the air, water and topsoil samples.2. To train laboratory staff about prefabricating samples, cleaning methods,repair and service for the purpose of measuring air, water and topsoil samples byhighly sensitive analytic tools

Area of project

implementation

Laboratories of natural and environmental research that are located in Ulaanbaatar city and centres of the province

Form of

cooperation with

Foreign investor

To supply analytic tools and equipments, to transmit advanced research technologies,and to conduct joint survey and research

Total amount of investment

USD1,500,000

Time frame on

paying back the

economic benefit

and investment

Irreclaimable aid

Expected results

from the project

By implementing the project, performance of laboratories will be improveddrastically, monitoring system of chemical remainder toxic substances will work

properly, and there will be reliable information about pesticide and other toxicsubstance remainders that are used for agricultural purposes, about slowdecomposing organic substance and about the pollution of petroleum products.Simultaneously, natural and environmental quality will be improved by bringing inexcellent management, right policy, and technologies that reduce pollution.

Contact address Ministry of Environment, Senior Officer in the Environmental and Natural resourcesauthority T.Bulgan, Tel: 267545, Fax: 326616, [email protected]

Project name, capacity To conduct survey on plants’ spread and resources of Mongolia



with the aim of protecting Mongolia’s rare plants, and

identifying the resource.

Project objective, mission 2008-2009

To identify natural plants’ resources, to examine incurred harms andinjuries, to protect them, to adopt them appropriately, to rehabilitate,

and to create scientific evidence.(Offers about the methods of identifying plant resources will beoriginated resulting from organizing meetings and seminars with

research entities about protecting plants and identifying resourcesof Mongolia)

2009-2012

1. To carefully determine Mongolia’s plants’ rare and beneficialitems, their classification, spread, and resource

2. The research results and information about scarce, non-destroyable items to be inducted and accomplished into books and

booklets

3. To establish information fund of Mongolia’s rare plants

( [email protected] e-mail address of combined informationwill be formed)

Area of project implementation All areas of Mongolia

Form of cooperation with foreign

investor

Financial, technical and technological support

Total amount of investment USD1.000’000 (one million USD)

Time frame on paying back the

economic benefit and investment

Term of implemetation: 2008-2012

Expected results from the project 1. There will be formed pleasant opportunity to protect extremelyrare and rare beneficial plants, their appropriate usage, to berehabilitated, and the ecological balance will be kept.2. The link between the research and training, production thatfocuses on protecting Mongolia’s plant cloak, and their appropriateusage, will be imporved, and the results of research work will be

practiced.Contact address Ministry of Environment, Officer in the Environmental and Natural

resources authority, Tel: 267545, 266528, [email protected]

Project name, “To improve the control of air pollution and research network’s ability – to







capacity maximize ecological education of the public ”

- Air pollution is increasing every year and it has become one of the problematicenvironmental issues in countryside, and other major cities. Information fund aboutair pollutions will expand, and it becomes the main base for environmental policymanagement by improving the air quality control and research ability in countrysideand some cities, and by increasing the air pollution indications. The air pollution isincreasing every year because of inappropriate human actions. By increasing thecitizens’ and organizations’ level of ecological education, they will participateactively and responsibly in the environmental tendency, environmental protectionevents, and realize their duties.

Project objective,

mission

1. Basic policy, trend and objectives to reduce air pollutionAir pollution in the city is increasing intensively and has reached a dangerous level,

with the main reasons being: interrelated with centralization of the city’s population,the usage of non-exploited raw anthracites for the low pressure steaming stokehold of ger (Mongolian felt tent) households’ growth and heating, and for thermal electricstations, as well as over-obsolete cars, and the low quality fuel used for those cars.Likewise, for the reasons like geographic location, natural and meteorological

antipodal condition, air stagnancy in cold seasons, the rise of temperature inverse andinexpedient town planning, the air pollution is increasing.When people light up the fires during the winter seasons in our capital city, the

amount of sulphur dioxide, nitrogen dioxide, sulphuretted hydrogen and lead is belowthe permitted level by 1.5-20 times, and in major cities like Darkhan, Erdenet andChoibalsan the increase of air pollution is notable.

In connection with the above condition, we set the following missions in order toimprove air pollution’s control and research quality – to raise the ecological educationof citizens and entities.2. Functions and missions to be exercized to reduce air pollution- To increase the participation, duties and responsibilities of citizens, enterprises,organizations, non-state organizations and the public.

- To increase the ecological education of citizens, enterprises, organizations and non-state organizations.- To enhance the staff capabilities and techinical appliances for air quality control-research work.- To organize the work of setting mobile laboratories of air quality research in themajor cities.

Area of project

implementation

Administrating organization:- Ministry of EnvironmentImplementing organization:- Air quality serivce- Central laboratory of environmental research and metrology- Educational organization

Form of

cooperation with

foreign investor

Technology transfer, joint research work, supply of equipments, observe andexchange experience

Total amount of

investment

USD 1 million

Time frame on

paying back the

economic benefit

and investment

Project implementation between the years 2009-2012

Expected results

from the project

1. The united information fund ability, which is about the air quality control – research network quality and air pollution, will be improved

2. The ecological education level of citizens and enterprises will be improved.3. Reduction of air pollution



Contact address Ministry of Environment, Ofiicer in the Environmental and Natural resourcesauthority S.Tumenjargal

III Government Building Tel: 976-51-267545Baga Toiruu-44 E-mail: [email protected] -11 Fax: 976-51-266528Mongolia

Chemical Mongolia – national committe website in charge of managing toxic anddangerous chemical substance policy issues, joint information fund and electronic

network of chemical substances.



Project name,

capacity1. www.chemical-mongolia.org

National committe website in charge of managing toxic and dangerous chemical

substance policy issues

2. www.chemical-mongolia.org/chemicals

Classification of chemical substances, informational electronic network 3. Electronic network of exchanging chemical information between the

organizations that provide state service.

By the internet network, it is possible to obtain the desired information fromanywhere and anytime in today’s informational period. There will be a national portalwebsite in Monoglia, that contains information about the chemical safetyimplemented by the state, laws and regulations about chemical substances, works,their current situation, news and information, information about the dangers of manytypes of chemical substances that are widely consumed on international level, their classification, information about laws and legal condition. The electronic network willfocus on refining the correlation of chemical substance management between stateowned organizations.

Project objective,mission

As the industrial and mining sectors expanding, there is a swift increase in the amountand assortment of chemical substances that is adopted in Mongolia. Within thecomplex policy of environment and nature, stable development implemented bygovernment, it is highly beneficial to create appropriate adoption of chemicalsubstance, to accomplish laws and legal regulations as such that the chemicals can beadopted without harming the environment and people’s health, as well as to improveknowledge about chemical substance of the public. Currently, Mongolians are ablefind news and information, act and enactments about the safety of chemicalsubstances only on the Ministry of Environment website. By implementing this

project, the following basic objectives will be accomplished:1. To improve the state service that is provided to citizens and enterprises2. To enhance the output of chemical substance classification system, and

implementation of laws and legal condition3. To provide timely and correct knowledge, information to citizens

In order to reach the above objectives, the missions to be accomplished are:1. To conduct a research on programme supply and information security2. To build information and security system3. To transfer information fund into electronic form and to launch it on the

internet4. Promotion (website, information fund)5. To set up united electronic network of chemical substance for organizations

providing state serviceArea of project

implementation

Ulaanbaatar city, Mongolia

The information fund, network and website of national committee policy which is incharge of regulation matters on toxic and dangerous chemical substances will belocated on the high speed internet server of an enterprise registered in Mongolia. Asthe electronic information fund uses dynamic website form, it is possible to update theinformation in due course. This will become the first information fund of chemicalsubstance in Mongolia, the website can be browsed free of charge by anyone, fromanywhere, and the information fund will be used for a certain fee by enterprises andorganizations that adopt chemical substances for production and service. This portalserver will be in both english and mongolian language.

Form of

cooperation with

foreign investor

Financial and technological help and support

http://www.chemical-mongolia.org/

http://www.chemical-mongolia.org/chemicals

http://www.chemical-mongolia.org/

http://www.chemical-mongolia.org/chemicals



Total amount of

investment

USD 1 million

Time frame on

paying back the

economic benefitand investment

Project implementation between the years 2009-2015

Expected results

from the project

1. The state service provided to citizens and enterprises will be quick and fast2. Chemical substance classification system, the law and legal condition’s

implementation will be become more beneficial3. Provide timely and correct knowledge, information to public4. Creation of new workplace5. Certain amount of positive influence on consolidating the interrelation

between state organizationsContact address National committee in charge of toxic and dangerous chemical substance regulation

policies of the Prime Minister of Mongolia.Personnel of National Committee Work B.AltangadasTel: 99010490, 266528Fax: 976-51-266528E-mail: [email protected]

Project name,

capacity

“To improve the potential of state administration organizations engaged in forest

matters”. The project will be implemented from 1st of September, 2008 until 1st

of September, 2009.Project objective, The responsibilty of protecting the environment, appropriate usage of its wealth,






mission rehabilitation process, state policy of supplying environmental balance, setting andimplementation of rules and regulations is legally entrusted to Ministry of Environment, and controlling the procees of environment protection, appropriateusage of its wealth, implementation of rehabilitation process, and the fulfilment of rules and regulations is legally entrusted to province and sum (administrative unitnext below the province) administrations. This entrustment is consistent with

principles of prolonging the centralization, however, it is not fulfilled as there is no professional forest organization structures in provinces to implement them.

We are aimed at creating implementing agency in charge of fulfilling the forestwealth adoption, protection, rehabilitation matters on branch level, and supplyingforest enterprises with united policy, profession, methodology administrations, as wellas creating professional forest organizational structure and composition engaged in

providing professional service to enterprises and public on forest wealth adoption and protection matters in provinces, implementing programs and management plans,organizing policies and actions that are performed by province state administrationorganizations.

Therefore, there is a rightly need for fast performance of the actions to beimplemented within the forest rules, and improvement of the new structurecapabilities of newly developing “Forest Authority”’. Hence, the missions are asfollows:

1. To analyze and summarize the Forest Authority’s structure and actions2. To supply Forest Authority with technical and technological equipments3. To train the Foreign Authority administration staff, and let them learm

foreign experience4. The administration and officers of “Forest class” that will be developed in

provinces to be included in training and experience learning programs5. To supply Forest classes with machines, technology and equipments

6. To hold meetings about the cooperations between Forest Authority, ForestClasses and state administration organizations of provinces

Area of project

implementation

Ministry of Environment’s Policy Regulation division will jointly implement the project with professional forest organization (forest classes) of provinces, capital city,and provincial administration organizations.

Form of

cooperation with

foreign investor

Transfer of new technologies, purchase of facilities and equipments, to cooperate onresearch work.

Total amount of

investment

USD150,400

Time frame on

paying back theeconomic benefit

and investment

Expected results

from the project

By implementing the project, the Forest Authority’s administration becomes simple,fast, moreover, crucial significance will be created for effective implementation of forest state policies, and clear results will occur on protecting the forest, itsappropriate usage, rehabilitation by the increased capability of provincial professionalforest organizations, and finally, the provincial administration itself will reach certaingrowth on forest protection, appropriate usage and rehabilitation.

Contact address Ministry of Environment, Forest Policy Regulation division, Head of divisionH.Ykhanbai,Tel: 99282205, e-mail: [email protected],

Ministry of Environment, Forest Planning Bureau, Head of Bureau Ts.Batchuluun,Tel: 99282400, e-mail: [email protected]










Name of the project Reforming a machinery and a technology of the precede treatment plant which saves the Tuul River from a pollution of industrial factories’ waste water

Sector: Industry



Location: Ulaanbaatar cityImplementing organization: Ministry of Industry and TradeDuration: 2008-2009

Background and necessity:

Because of there has not been made any reformation or reconstruction to thetechniques and technologies of the precede treatment plant of a tannery waste water, locatedin Ulaanbaatar, since 1972, not only a lot of damage or breakdown has occurred regularly, butalso some facilities already stopped to operate. Regarding this abnormal situation, the TuulRiver and its environment have polluted so much that it reached to the point where thestandard for the drinking water of the population of the Ulaanbaatar city is in danger.

Also in the recent years, the Authority of Monitoring Organization has demanded tosolve the above mentioned problems as soon as possible and even warned to stop thetreatment plant’s operation if nothing would change. Therefore, it is clear to see that there is anecessity to reform its technology and machineries.

Purpose and intention:

• To keep the Tuul River and its environment from a pollution such as wastewater and other trash

• To reform a machinery and a technology of the precede treatment plant of thetannery

• To implement this project for 2 years

Activity:

The project proposal offering to the Government credit and grant aids within theframework of Mongolian and Chinese economic cooperation.

Benefits:

The most important and expected result of the project is that by having a capability of cleaning 10 thousand square meter waste water everyday, not only it would show some

positive effect to the technology of the treatment plant, but there would be some benefits interms of economic and ecological way, such as keeping the Tuul River from pollution and

providing a normal activity of a tannery.

Cost of the project:

Total estimated cost is 6,5 million USD.

Projectname

“40,000 HOUSING”



Preamble o The purpose of the “40,000 Housing” Program is to implement the objectivesof the Government Action Plan on upgrading the living conditions of citizens by providing them with sustainable employment and adequatehousing.

o Program implementation will result in improved employment opportunities,living standards, housing supply, and improved housing affordability by the

population, which will lead to a positive social mentality and will spur communities’ motivation to work.

Project basis:

~ About 54 per cent of the country’s population is aged under 25. As of 2003,there were 263,300 youth aged 15-19 in the country. Those young peoplewill reach labor age by 2005-2010. This will contribute to a sharp increasein the country’s housing demand. Developing a proactive policy for addressing this demand is not only closely related to the long-term vision of the Government but an improved housing supply will also have positiveimpacts on the sustainability of families and the society as a whole.

~ In general, such factors as the legal environment for housing, adequate taxregulations, the mortgage lending system, state budget expenditure, and the

state audit system have a significant impact on the housing policies of every country. The purpose of the “40,000 Housing” Program is to developan overall housing policy considering international practices and specificcurrent social challenges, thereby improving the living conditions of the

population and contributing to the country’s development in the long term.~ Thus, current circumstances require alleviating poverty and ensuring a

sustainable livelihood for the population by undertaking a set of suchmeasures to increase the number of households with access to adequatehousing, reducing the price per unit of floor area, and increasingemployment generation. The proposed “40,000 Housing” Program willidentify overall policies for addressing the above issues and will makeconstruction one of the priority sectors of the Mongolian economy.

Projectgoals:

The project aims to improve the living conditions of the population andcontributing to the country’s development in the long term.

Requestedamount:

600,0 million USD

Project name: BUILDING OF 1200 APPARTMENTS IN THE XXII

MICRODISTRICT IN THE FRAME OF “40 HOUSING”



Implementing

organisation:

Construction Technology College

Project purpose: • To apply teaching staff of professional schools in Ulaanbaatar within the program of the Mongolian Government to build40000 apartments

•

The future owners of the apartments will be able to finance theapartments by a loan from the government within the programof Mongolian Government to build 40000 apartments

• To build the first micro district of apartment buildings with anindependent infrastructure not depending on the centralizedheating system in Ulaanbaatar

• To help sharing in solving the airpollution in Ulaanbaatar Posibility of

implementing the

project:

• The project to build 40000 apartments was approved withinGovernment program of Mongolia.\

• In according to finance the apartments, the governmentrealized a bonus and cooperation was established to finance theapartments.

• A general plan to build infrastructure and use a land wasapproved according to build the apartments.

• The Construction Technological College established anagreement to build 400 apartments for 5 years on the base of taken right of implementing organization for the “40000apartments program” and gotten accredit or guarantee of theGovernment.

• Within the “40000 apartments program”, the college isincluded in the list of those organizations which will befinanced and in financing budget from the government after

building 400 apartments .

• General plan of building 400-1200 apartments, architecturedrawing and design of the buildings which will be built on the50000 m2 square of our ownership place were confirmed by allconcerning organizations.

Place of

implementing

project:

The first horoo (the smallest administration unit), 22 km from thecentral point of UB

Project term: 60 monthsProject volume: 400-1200 apartments are planed to build.

Calculation of project financing profit

Number of

apartments

Square m2

for a

family

Total of

square

m2

Expenditure

of one m2

square

All

expenditure

$

expenditure

of one m2

square to

sell $

All income of

selling

$

Total

profit

$

3 1200 64 76 800 300 23 040 000 350 26 880 000 3 840 0002 800 64 51 200 300 15 360 000 350 17 920 000 2 560 0001 400 64 25 600 300 7 680 000 350 8 960 000 1 280 000

Short substance down of all works and services which will be financed



Explanation: Above direct financial profit will be created with implementing the project anda infrastructure in the micro district will be a property of the project initiator or implementer and a possibility will be completed to find regular income.

Assignment:

Expenditure source under implementing the project will be assignment bond of building40 000 apartments or others loans, foreign investment.

Guarantee:

The guaranty which as equal to definite per cent of assignment will be made with following

forms in case of that expenditure source under implementing the project will be foreigninvestment or bank loan. There are:

• Enclosed a copy of governor’s permission of Songino-Hairhan district on the 1 st of January. 2005 on 50000 m2 of place (land) to be used to build apartments for 15years.

• Accredit or guarantee of the Government• Agreement on an assignment after building apartments

• Decision of Construction Technological College’s founder and concerning other documents

№ Collecting materials Explanation

1

Official address of enterprise:Post office, telephone number, fax ande-mail

Songino-Hairhan district, 21st micro district, 5th horoo(the smallest administration unit), ConstructionTechnological College, Ulaanbaatar-37, Mongolia, Postoffice -37/108Telephone: 976-11-634473Fax: 976-11-634071Е-mail: [email protected];//www.ctc.edu.mn

2Copy of state registered certificate 2004/02

Enclosed

3Copy of a certificate of special

permission183Enclosed

4 Aboutsuggested

Copy of the decision ona place for the

Enclosed a copy of governor’s permission of Songino-Hairhan district on the 1st of January. 2005 on 50000 m2

Planed works and services Measuringunit

Number Expenditure for 1 m2

squareTotal of expenditure

Term

1 Work out a drawing and project м2 25 600 6,0 1536002 Temporary building and external

guardCOM 22 1728,0 38016

3 Assembling work м2 25 600 150,0 38400004 External engineering network У/М 1600 176,7 2827205 Internal engineering network COM 22 12672,0 2787846 Internal and external decoration

work м2 78408 12,0 940896

7 Works of external road andsquare, garden

м2 24400 25,0 610000

8 Work and service to present tothe Government

м2 25600 60,0 1536000

9 Selling work and service COM 22





apartments toassurance

(ratification)

apartments of place (land) to be used to build apartments for 15years.

5Confirmed drawing and

budget with apartmentexpert

A drawing of Construction Technological College wasconfirmed by a faculty of drawing – architectureEnclosed material.

6 A permission to begin a building apartments A request was made to appropriate level organization

7Suggesting price for 1m2 square of theapartment /$/

Price for 1 m2 square: 300-350 $

8Definition of concerning judge on adisputation

No

9 Definition of jurisdiction tax service Enclosed

10 Insurance certificate Enclosed

11 Account and balance of 2005 Enclosed

12 Introduction of organization Enclosed

13 OthersEnclosed: introducing photo, computer graphics , AKTof the apartments

14 Official letter Enclosed

15 Property source From a budget of the “40 000 apartments” program



Projecttitle:

PROJECT OF BUILDING MATERIAL LABORATORY

CONSTRUCTION OF FACILITIES

Applicant: Government of Mongolia, Ministry of Construction and Urban Development,

Sector GrantProjecttype:

Water supply and Sanitation Sector

Type of finance

loan

Requestedamount:

0.9 million USD

Target site: Construction sector Project

basis:

The piped water supply for Ulaanbaatar city using groundwater which has

240,000 m3/day capacity for water supply as end of 2006. But this 240,000m3/day is estimated to meet the water demand of 2011 year due to increasinga population continuously. The development and improvement of the water supply for Ulaanbaatar city would contribute to the socioeconomicdevelopment of these strategically important capital city of Mongolia, andturn to the more balanced development of the national land sicio-economy.

Projectgoals:

To improve the water supply services for citizen in Ulaanbaatar ccityincluding the Ger areas through: development of new water source for safedrinking water with disinfection.To contribute to the improvement of financial conditions of the Water supplyof Ulaanbaatar city through the reduction of operation and maintenance costs

with the new facilities.Contactaddress:

Ministry of Construction and Urban Development,Barilgachdiin talbai 3Ulaambaatar 211238, MongoliaTelephone: 976-11-263188Fax: 976-11-322904Web-site: mcud.pmis.mne-mail: [email protected]



Projecttitle:

DARKHAN CITY WATER SUPPLY DEVELOPMENT AND

IMPROVEMENT PROJECT


Sector GrantProject

type:Construction of facilities with provision of necessary equipment

Type of

finance

grant

Requestedamount

:

7.8 million USD

Target site: Darkhan province, Darkhan city, Mongolia

Project basis: Darkhan city is located at the northern local area, close to the border withRussia. And strategically important for the socioeconomic development of Mongolia. Darkhan city is the industrial center of the Darkhan province withfood processing, construction materials, mines industry and other lightindustries. The water demand is expected to increase as more industrialindustries are schedule to be located in the city, eventually resulting inincrease of the population.The piped water supply for Darkhan city using groundwater suffers fromtrouble with its chlorination equipment as well as treatment facilities ingeneral. Old water pumps cannot be renewed due to limited financial area.The water supply systems for Darkhan city cover some 60% of the urban

population in Darkhan.

Projectgoals:

To improve the water supply services for people in the city including the ger areas through: renewal of old and overage facilities, installation of water meters, and improvement of water quality for safe drinking water withchlorination and reduction of rust and other problems.To contribute to the improvement of financial conditions of the water supplyand Sewerage Public Corporation of DArkhan city through the reduction of operation and maintenance costs with the installation of more water meters;To support the upgrading of technical skills for water quality managementand other works by training with renewed water quality test and other equipmet, and the institutional and organizational development for better operation and menegement of the respective water supply and seweragesystems.

Contactaddress:

Ministry of Construction and Urban Development,Barilgachdiin talbai3Ulaambaatar 211238, MongoliaTelephone: 976-11-263188Fax: 976-11-322904



Projecttitle:

SUKHBAATAR CITY AND ALTANBULAG SUM OF THE SELENGE

PROVINCE WATER SUPPLY SYSTEM DEVELOPMENT AND

IMPROVEMENT


Sector GrantProject

type:Water supply and sanitation sector

Type of

finance

grant

Requestedamoun

t:

17.6 mln USD

Target site: Selenge province, Sukhbaatar city, Altanbulag sum, Mongolia

Project basis: The water supply systems for Sukhbaatar city needs new chlorinationequipment especially as the quality of the grant water is degraded withincreasing ammonia contents. The water supply system for Altanbulag sum isnow operated under its capacity as one of three wells is out of order and the

pipe for an elevated water tank has been broken down depriving some 800households from water supply. The water supply systems for three citiescover some 50% in Sukhbaatar, (including the Ger area), and 45% inAltanbulag.The two places are located to the north of the capital city, close to the border with Russia, and strategically important for the socioeconomic developmentof Mongolia. Sukhbaatar city of the Selenge province is located on the border with Russia, and expected to develop as a fee economic trade zone.

The development and improvement of the water supply system for the two palces are critiacally important for the balanced socioeconomic developmentof Mongolia.

Projectgoals:

To improve the water supply services for people in the two places includingthe Ger areas through: renewal of old and overage facilities, installation of water meters, and improvement of water quality for safe drinking water withchlorination and reduction of rust and other problems.

Contactaddress

:

Ministry of Construction and Urban Development,Barilgachdiin talbai3

Ulaambaatar 211238, MongoliaTelephone: 976-11-263188Fax: 976-11-322904Web-site: mcud.pmis.mne-mail: [email protected]



Projecttitle:

ULAANBAATAR WATER SUPPLY DEVELOPMENT IN GACHUURT

Applicant: Government of Mongolia, Ministry of Construction and Urban Development,Sector GrantProjecttype:

Water supply and Sanitation Sector

Type of

finance

grant

Requestedamount:

21.7 mln USD

Target site: Capital city of Mongolia, Ulaanbaatar Project basis:

The piped water supply for Ulaanbaatar city using groundwater which has240,000 m3/day capacity for water supply as end of 2006. But this 240,000

m3/day is estimated to meet the water demand of 2011 year due to increasinga population continuously. The development and improvement of the water supply for Ulaanbaatar city would contribute to the socioeconomicdevelopment of these strategically important capital city of Mongolia, andturn to the more balanced development of the national land sicio-economy.

Projectgoals:

To improve the water supply services for citizen in Ulaanbaatar ccityincluding the Ger areas through: development of new water source for safedrinking water with disinfection.To contribute to the improvement of financial conditions of the Water supplyof Ulaanbaatar city through the reduction of operation and maintenance costswith the new facilities.

Contactaddress: Ministry of Construction and Urban Development,Barilgachdiin talbai 3Ulaambaatar 211238, MongoliaTelephone: 976-11-263188Fax: 976-11-322904Web-site: mcud.pmis.mne-mail: [email protected]



Name: “PROJECT WATER SUPPLY AND GARANTEES CITIZENS’ RIGHTS

TO HEALTHY ENVIRONMENT”

Applicant: Ministry of Construction and Urban Development, the Government of MongoliaType of

finance:Private and other Investment

Sector: Water supply and sanitationProject

type:all type of project

Target site: Mongolian cities and suburbs of citiesProject

basis:Reception of qualitative water in enough one of fundamental rights of thehuman given to him both a nature and the state. Water has been identified asthe divisive factor for urban and rural disparity in the 2003 National humandevelopment Report. The government of Mongolia stresses the importance of

issues on water and sanitation, and human settlement by demonstrating itsefforts to mainstream the global targets into national development policies andstrategies Economic Growth Support and Poverty Reduction Strategy, andAction Plans.

Projectgoals:

The project aims is adopting the MDG targets as the Government’s mid-termstrategic goal of increasing the coverage of improved water sources to 80%,and improved sanitation services to 62% of the population by 2015 against the1990 baseline average.The purpose can be achieved in 3 basic directions1. Expansion of area of water supply system and sanitation2. Improving sustainability and affordability of water management systems

3. Involving both private and other investments, establishing community-basedservice and increasing of workplaces

Requestedamount:

874.038.956 USD



Projecttitle:

PROJECT FOR WATER SUPPLY OF ERDENET CITY

Applicant: Government of Mongolia, Ministry of Construction and Urban Development,Sector GrantProject

type:Construction of facilities with provision of necessary equipment

Type of finance

grant

Requestedamount:

17.6 mln USD

Target site: Orkhon province, Erdenet city, MongoliaProject

basis:In the case of erdenet, as is described later on, the municipal water supplyservices distributes water to citizens based on receipt of between 17,000-

25,000 m3/day of water from the industrial water system on the ErdenetMining Company. However, the level of water supply is unable becausewater supply to the city has been reduced and the company has raised thewater rate.Service interruptions sometimes occur during water demand times, therebyhaving a major impact on the everyday lives of citizens. Moreover, due to thedeteriorated state of facilities, frequent rehabilitation works are necessary andthe resulting costs place additional pressure on the waterworks budget. Water authorities in all cities household accounts, the tariff increase are not beingwidely accepted. In the case of Erdenet, the rate population increase.

Projectgoals:

The project aims to newly develop the city water facilities of Erdenet.Bacause the city water utility of Erdenet was originally operated incombination with the industrial water supply of the state enterprise ErdenetMining, the financial burden of the city water utility was light.

Contactaddress:

Ministry of Construction and Urban Development,Barilgachdiin talbai3Ulaanbaatar 211238, MongoliaTelephone: 976-11-263188Fax: 976-11-322904



Project title: REST AREA DEVELOPMENT

Project background: Main tourism destinations locate far from each other and it isreachable by automobiles. This project aims to setting up model restareas throughout auto roads from Ulaanbaatar to Rashaant of Bulgan

province.

Project outline: Modern restaurants, rest rooms and comfortable rooms for any onesneed to take rest while they are traveling. Establishment of

petroleum station, water supply, electricity supply and other infrastructure elements.

Market orientationand market analyses,

market survey

There is not yet any infrastructure developed between towns and provinces for these who are traveling. Tourists and tour companiesare compiling necessity of rest area.

Cooperation mode: PrivateTotal investment: 150 000USD

Requestedinvestment fromforeign partners:

150 000USD

Project venue,construction venue:

Next to the auto road of Ulaanbaatar and Rashaant of Bulgan provinve

Occupation area andconstruction area:

1 km.sq

Estimated economic benefit:

Annually 100 000USD revenue

Estimatedinvestment profit

rate:

50% per year

Investment recovery period:

3 years

Introduction the mongolian partner Enterprise name: Tourism Department

Ownership: State organisationEnterprise outline: Travel and tourism

CONTACTAddress: United nations street-5/2

Telephone: 318493 /311102Fax: 310612

E-mail: [email protected]: www.mongoliatourism.gov.mn

Investment Seeking Projects

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