Monday, June 23, 2014

The first Mongolia Business Summit kicks off with the signing of US$1.3 billion power deal

Ulaanbaatar, Mongolia, June 20, 2014 (Mongolia Economic Forum) --  The first Mongolia Business Summit opened in Ikh Tenger, Ulaanbaatar on 19 June 2014. Over 400 participants are attending the 3-day event focusing on investment deals in Mongolia. The Mongolia Economic Forum, supported by Mongolian business community, is organizing the Summit together with the Business Council of Mongolia, and the CEO Club.

Prime Minister Noroviin Altankhuyag opened the Summit and informed the participants that all Government decisions will be required to meet one key indicator – “How does this support private business?”. As part of the “100 day economic transformation program”, the cabinet is meeting twice a week to make decisions on reforms to support business growth and to attract foreign investment. The Prime Minister also highlighted that the Government is focusing on four key areas: Rule of Law, Stability, Predictability of the legal and regulatory environment, and business growth.

President of Mongolia Tsakhiagiin Elbegdorj has addressed the Summit on the second day. He highlighted capable citizen, profitable business and smart government as three pillars of growth. Government’s role will be to enable private business to grow. President Elbegdorj is pushing for several key reforms under his smart government initiative, including the judicial reforms to support property rights and business growth.

“The business community is eager to engage and transform the investment climate. This Summit brings together the private business, which produces 80% of the economy together with the Government that is expected to bring on key economic reforms. This is a new and effective platform for foreign and Mongolian businesses to showcase their deals” says Bayanjargal Byambasaikhan, Managing Partner of NovaTerra, and chair of the Summit.

18 investment projects were presented in sectors such as mining, infrastructure, construction, finance and industrial processing. Prime Minister brought 5 members of his cabinet to the Summit. The Government also laid out its new investment policy, legal reforms, as well as the streamlined immigration rules.

The highlight of day 2, was the signing of a concession agreement between the Government and international energy consortium for the CHP5 project, a US$1.3billion, 450MW combined heat and power plant project in Ulaanbaatar. France’s GDF Suez, Japan’s Sojitz, Korea’s Posco Energy will be each investing over $100 million to finance this first ever large scale PPP transaction in Mongolia. A consortium of international financial institutions and commercial banks will be providing debt financing.

With the view of bringing investors closer to the businesses, on the third day of the Summit, site tours will be organized to major development projects such as Oyu Tolgoi (copper) and Tavan Tolgoi (coal), APU (dairy and beverages), Gobi (cashmere) manufacturing facilities, and MAK (cement) project. 

The Mongolia Business Summit will play a significant role in improving investor sentiment and providing first-hand information about realities on the ground and business opportunities in Mongolia. The event will be organized annually in Ulaanbaatar.

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