ABOUT RECOMMENDATIONS ON FINANCING PROJECTS

Ulaanbaatar /MONTSAME/ Some recommendations have been worked out on ways of fruitfully exploiting capitals from the "Chingis" bonds issued by the Mongolian government for the great construction of the years to come. As known, the cabinet for reforms issued last November the "Chingis" bonds of USD 5 billion, and traded bonds of USD 1.5 billion at the international market with a low interest. Then, a policy council was set up to fix criteria for selecting projects and programmes on the great construction, to calculate possible risks, and to monitor the execution. At its meeting Wednesday, the policy council considered as necessity to finance four biggest projects with the bonds' money, and released four recommendations to be submitted to the cabinet later. The cabinet for reforms intends to construct autoroads, connecting the city with centers of all aimags by 2016. Starting this work, some 1,400 km roads will be run to centers of Dornod, Dornogobi, Dundgobi, Omnogobi, Bayankhongor and Khovsgol aimags. Secondly, the UB city's ger (national dwelling) areas must be re-planned. For this, in the first turn, 33 "T"-junctions will be connected to additional roads so as to reduce traffic jams in the city's center, and a construction of highways along the Tuul and Selbe rivers will start. Thirdly, a new power station of 300 MWT, based on Tavan tolgoi coal deposit, is to be erected to supply the Oyu tolgoi mine with electricity. Moreover, a financing will be given to start a construction of 1,800 km railways, including a base structure of 270 km railway between the TT and the Gashuunsukhait border checkpoint. A technical design of the 1,500 km railway will be financed in this year as well. Chaired by the Prime Minister, the policy council comprises Ministers of economics and development affairs, heads of parliamentary Standing committees, advisors to the Bank of Mongolia, the Financial Regulatory Commission, the Presidential and Parliamentary Offices. B.Khuder