Home arrow News Archives arrow Business & Economy arrow BCM Mongolia News Highlights: Introducing, investing, but still waiting for inauguration
Mongolia 's Latest News & Current Events, Directly from Ulaanbaatar
Search Mongolia
Mongolia Introduction
Weather in Mongolia
Forum and Bulletin Board
Opinion (new!)
News Feeds & Blogs
Mongolia Websites
Web Links
Photo Gallery
Latest comments
Scientists using hig...
Chinggis Khaan wanted his tomb left alone, we should follow ...
By lukenye

Silk Road Forum revi...
Again a very warm support to these projects. It will be of a...
By roydongen

India says it will s...
For Mongolia's mining industry it would be very good if Indi...
By roydongen

Now Online...
No Users Online
powered_by.png, 1 kB
BCM Mongolia News Highlights: Introducing, investing, but still waiting for inauguration PDF Print E-mail
Friday, 19 September 2008
US businesses ready to introduce latest technology; Centerra Gold prepares for growth; EBRD to invest 50% more in Mongolia; Xstrata Coal raises ownership share in Erdene; QGX announces take-up of shares by Mongolia Holdings Corp.; Western Prospector provides update on Tinpo offer; Rolling Hills sold to Jindal Steel; Monnis donates fire-fighting equipment.
Mongolia ranked 58th ‘on ease of doing business’; Budget surplus falls sharply; Steep rise in foreign trade deficit; Stock exchange to upgrade trading process; Daily MIAT flights to Japan next summer;  EBRD extends risk cover to Mongolia; GDP rose in 2007, despite fall in exports; Consumer prices rise in August; Household income, expenses up.
Parliament approves new Government structure, after President says ‘No’; Agreement sets out goals for next four years; Both parties prepare list of Ministers; Criticism, mostly friendly, for Bayar in Parliament before approval; UN body to hold ICT training for ministers, MPs; Fewer murders, more robberies.

Ms. Michelle O'Neill, Deputy Under Secretary for International Trade of the US Department of Commerce, called on President N. Enkhbayar on Wednesday. Greeting the visitor, the President recalled how “President Bush had referred to Mongolia as the third neighbor of the USA”, and expressed his happiness with the state of the bilateral relationship. He was optimistic that the USD 285 million US aid to Mongolia from the Millennium Challenge Account would “make great contributions to the development of our country”.

Ms. O'Neill said that US businesses were at present meeting their Mongolian counterparts to expand cooperation. Among them are representatives from movie restoring companies holding a dialogue on restoring and saving Mongolian movies made during the socialist period, she added. Representations from US mining companies such as Rio Tinto are also included in the business team. “We are ready to introduce all up-to-date technology to Mongolia to fairly compete in the Mongolian market,” she said.

The European Bank for Reconstruction and Development (EBRD) plans to boost investment in Mongolia by almost 50 percent this year, in industries ranging from retail to mining. The bank will increase spending here to US $70 million this year, and forecasts another increase to US $140 million in 2009. John Chomel-Doe, the bank's director for Mongolia, said during the Euromoney Mongolia Investment Forum last week in Ulaanbaatar, “This is a good demonstration of the potential Mongolia has for private-sector investments.”
EBRD is an institution owned by 61 countries, including the U.K., Germany, Australia and Mongolia, and two intergovernmental institutions, the European Community and the European Investment Bank. It started investing in Mongolia last year, with over US $40 million, and has to date invested in businesses that include a supermarket chain, a bank, a drilling company, a coal mine and a fruit-juice producer, Chomel-Doe said, declining to identify the companies.

Mongolia's “growth sectors” include retail distribution, beverages, real estate, tourism, textiles and mining. Cement, renewable energy and financial industries are also likely to generate high growth, he said, adding that “many of them are in our pipeline”. The bank is seeking to increase investment in Mongolia because the nation has an active democracy, he said. Other positive factors include a fully privatized banking sector, “one of the best tax regimes for business and individuals”, a free press and a private sector that accounts for 80 percent of the country's economy.

QGX Ltd. has announced that 50,950,885 of its common shares have been validly deposited pursuant to the offer by Mongolia Holdings Corp., an indirect subsidiary of Kerry Holdings Limited, to acquire all of the outstanding QGX Shares. Under the terms of the Offer, shareholders of QGX are entitled to receive Cdn$5.00 cash for each QGX Share tendered pursuant to the Offer. The Offeror has advised that as all conditions of the Offer have been satisfied, it has taken up and accepted for payment all QGX Shares so deposited, which represent approximately 95.94% of the outstanding QGX Shares. The Offeror has deposited sufficient funds to pay for all of the common shares with the Depository and payment will be made by the Depository to tendering shareholders within 3 business days.
With Parliament approving on Wednesday morning the proposed restructuring of the government, political activity returned to nomination and selection of Ministers. Prime Minister Bayar, in a hurry to get down to business with a government that he hopes to lead for four years, asked Parliament to discuss the plan after the  President had asked him on Tuesday to reconsider several suggestions. Of the 52 members present, 49 supported the proposed restructuring. The President now has two weeks to veto the decision, if he wishes to persist with his objection. He may also take note of the overwhelming support the Prime Minister’s proposal received in Parliament and add his own consent.
According to the President’s advisor, Ya.Dolgorjav, the President did not see enough justification to have two deputy prime ministers, and recommended having just one. This would, however, upset the plan to have one deputy prime minister from each party, to indicate parity among the coalition partners.  The President also recommended the establishment of a new agency under the Prime Minister with the specific and exclusive responsibility for coordinating the implementation of the Millennium Development Goals.

Bayar’s proposal envisages 15 cabinet positions. Apart from the Prime Minister, there will be 11 ministers in charge of independent ministries, one fewer than the present 12. There will be two Deputy Prime Ministers, one from each party. One other minister will have no portfolio but will be responsible for coordinating all government business.
The Ministry of Foreign Affairs will be renamed Ministry of Foreign Relations and will also handle foreign trade. The present Ministry of Trade and Industry will be bifurcated into a Ministry of Minerals and Energy, and another to be known as the Ministry of Food, Agriculture and Light Industry. Tourism will now be included in the Ministry of Environment.  
One of the two deputy prime ministers will be in charge of the Agency for Regulation of Unfair Competition, the Agency for National Standards and Measures, the Agency for Protection of Intellectual Property and also of the free economic zones. The other will hold charge of the National Center for Children, the Professional Inspection Agency, and the National Emergency Management Agency. The MPRP will get 9 positions and the DP 6.

Doing Business 2009, sponsored by The International Finance Corporation and the World Bank, puts Mongolia 58th, three places down from last year, amongst the world’s 181 economies on the overall ease of doing business. This is the sixth year that the Annual Report has been issued. Doing Business ranks economies based on 10 indicators of business regulations that track the time and cost to meet government requirements in starting and operating a business, trading across borders, paying taxes and closing a business.  Singapore leads the global rankings on the overall regulatory ease of doing business for the third consecutive year.

“Mongolia is included among the top 11 countries in East Asia which have made reforms in paying taxes and trading across border.  Documents needed for export were reduced from 10 to 8 and total time reduced by 9 days,” the report says. David W. Lawrence, Program Manager of the International Finance Corporation, said that Mongolia should be proud of its very positive indicators and, even though some indicators had slipped compared to the previous year, this meant the other progress in the country was performing rapidly.

  Be first to comment this article
RSS comments

Only registered users can write comments.
Please login or register.

Powered by AkoComment Tweaked Special Edition v.1.3.0

< Prev   Next >
AddThis Social Bookmark Button
Web Apps Online
Operating System Internet
  • Google Docs Winks to Microsoft with Footnote
    As Blogoscoped and Znet report Google has added footnote functionality in the Google Docs. It seems to be a wink to Microsoft Hotshot Ballmer, who was just recently talking down on Google docs as not real competition to Microsoft Office Suite. As Znet’s Garett hints, is that what makes Google apps/docs so powerful is exactly what it shows [...]
  • Google Chrome Bugs
    This is just a few of the items i have come accross. Will update this as time goes by. omnibox extended results being very slow whenever i type something in the omnibox it takes more than 10 seconds to return my search hisotry and/or bookmarks page search doesnt look in text boxes (text area) probably the most anoying bug [...]
Members: 1023
News: 2047
WebLinks: 17
Visitors: 9222390
Google Translation
Translate This Website
© 2008 Mongolia Web News
Joomla! is Free Software released under the GNU/GPL License.
In Development: Mongolia Job Site - Mongolia Start Page
Open Steppe - Open Source Web Development Mongolia
My Topsites List