USD 20 million allocated for development of soums in Mongolian countryside

There are over 300 soums in Mongolia. (A soum is roughly equivalent to a county in the United States.) Some have fewer than a thousand people. Some have ten times that. The Government has decided to spend MNT 24 billion for the economic development of soums. Each soum will receive between MNT 50 million and MNT 265 million, depending on its population. The governor of each soum is responsible for distributing the money as loans to businesses. Our correspondent spoke with N. Galtsog, the chief of investment for the Authority of Small and Medium Enterprises. 

- How do you make sure the governor of each soum allocates the money wisely?

- A governor alone is not responsible for allocating the money. There might be a working group headed by the governor to choose projects and programs to invest in. If there is anything wrong with the process, then the loans should be returned. The Government transferred the assets into the Development Fund for soums at the end of June. In July the process of issuing the investment money to the soums was 70 percent completed. The governors of the soums invested MNT 16.3 billion for 1,571 projects in the countryside. The process is completed above 95 percent in Dornod, Orkhon, Zavkhan, and Govisumber aimags, while less than 50 percent is done in Arkhangai, Tuv, Dundgovi, and Darkhan-Uul aimags. 

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