Mongol Messenger (B. Ooluun) - Mongolia signed a Compact Agreement with US through MCC to receive a USD285 million grant from the US Millennium Challenge Account (MCA) and implementations of five projects are currently underway. However an implementation of the Railway project where the largest investment was to be made or USD 188 million was stopped. The Ulaanbaatar Railway Joint Stock Company, (UBTZ), in which Mongolia’s Government and the Government of the Russian Federation each owns a 50 percent shares operates Mongolia’s railway system. Since the Russian side informed that they refused this project, so the project has been impossible to continue.
While a joint team selected through the international open tender under the Rail project Implementation agreement was doing audits in the Ulaanbaatar Railway from January 19, 2009, the Ulaanbaatar Railway informed the Millennium Challenge Account of Mongolia (MCA Mongolia) that Gennady Petrakov, Chairman of the General Committee of UBTZ (head of the Federal Railway Transport Agency, Russia) sent a letter to stop auditing from March 5 and informed that this would be discussed at the next meeting. UBTZ’s General Committee held a meeting on April 20, at which the MCA’s Rail Project was refused. The project reached a situation to stop.
A. Gansukh, Deputy Minister of Road, Transport, Construction and Urban Development, said “The Mongolian side did not officially inform to Russian side about the implementation of MCA project and that was so irresponsible on their side. There is no choice but to consider the Russian side’s position.”