A special Government meeting on April 13 empowered Erdenes MGL, a state-owned company to guarantee payments due to investors and creditors in infrastructure projects. The decision became necessary as the Government had several times failed to get investors interested in the projects as they were uncertain about being paid.

Mongolia law permits a 100-percent state-owned company to guarantee such payments and Erdenes MGL is likely to convince investors of its ability and solvency as it will have access to mining revenues.
There are seven of thse projects that will cost USD6 billion. Among them are a 990-km international highway from Altanbulag-Ulaanbaatar-Zamyn-Uud, and another 920-km road from Tavantolgoi-Zuunbayan-Choibalsan. Some 350 km of roads in Ulaanbaatar need extensive repairs and 212 km of new roads will be built in the capital city region. There will also be 1,284 km of raised roads as part of the Millennium road. The other three projects are building 100,000 apartments, building a cement factory with a capacity 1 million tons per year, and to build a metallurgical factory to produce 500,000 tons of iron and steel per year.

 

Source: en.news.mn

Apr 14, 2009