Mongolian companies to take part in Russia-Mongolia-China highway construction


Chinggis Land Development Group, the Mongolian National Chamber of Commerce and Industry (MNCCI), and Mongolian Road Association signed a memorandum of understanding on Wednesday to involve national companies in the construction of a highway connecting Altanbulag, Ulaanbaatar, and Zamiin Uud.
The agreement is also focused on increasing the number of Mongolian staff hired for the road’s construction, as well as to prepare domestic engineers and technical staff.
The memorandum will allow national companies to participate in the project and cooperate with international corporations. The parties believe that Mongolian workers will gain valuable experience from working on big projects and further improve their capacity.
Estimates suggest that during the road’s construction, 20,000 to 30,000 temporary jobs will be created. Moreover, over 50,000 jobs will be created by trade and service centers, resorts, tourism and business complexes, as well as new settlement zones along the highway.
On March 9, 2014, Chinggis Land Development and the Ministry of Economic Development established a concession agreement on building the highway with build-operate-transfer conditions.
This mega project is being implemented in Mongolia on a build-operate-transfer condition for the first time. The sides established a concession agreement to not take any money or guarantees from the government, and to finish the work without burdening the state budget.
Chinggis Land Development has to complete the construction work within three years, and transfer it to the Government of Mongolia after using the road for 30 years.
The 1,000 km highway will pass through 24 soums of six provinces, and two districts of Ulaanbaatar.

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Posted by on May 28 2015. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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