Development of Bond Forum reports on Chinggis Bond financed projects

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  • Jun 10,2016
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Development of Bond Forum was held at Shangri La yesterday to discuss development projects being financed through Chinggis Bond funds. The former Government for Changes says it raised 1.5 billion USD through the release of the Chinggis Bond on the international market to fund some of the nation’s biggest infrastructure projects, and to support exports and the production of import replacement products. During the forum, government officials presented information about Chinggis Bond financed projects, including local road projects, Ulaanbaatar road projects, the Street Project, a road connecting Tavan Tolgoi to Gashuunsukhait, a railroad to the Darkhan Metallurgical Plant, the Amgalan Thermal Power Plant Project, Buyant Ukhaa I and II, projects supporting small and medium-sized enterprises, the Eg River Hydroelectric Power Plant, and the Tavan Tolgoi power station. Funds were also invested in wool, cashmere, leather production, milk and dairy products, and greenhouse projects. Speaker of Parliament Z.Enkhbold told the forum attendees, “Prior, we sold our land in order to fulfill our promises, and distributing cash to people, but now we have started making developments. Over the last four years, we have shown that Mongolians can develop. Mongolians chose the right path: not receiving allowances but making developments.” The Speaker highlighted that the Chinggis Bond helped in developing the nation’s energy, construction, engineering infrastructure, and roads. He said that thanks to the bond financing, many Mongolians have housing, companies have factories, and the country has infrastructure, properties, and savings that will generate benefits and profits in the future. Z.Enkhbold said that by revising the state’s savings promotion system and making investments, in less than four years, over 82,000 households have bought apartments, a total of 3,405 km of roads was constructed, and the nation’s energy production increased by 25 percent. The forum underlined that one third of the financing from the Chinggis Bond was issued to the private sector. Government officials highlighted that Mongolia has built three times more roads since 2012 than it has in the last 20 years. In the last three years, Dundgovi, Bayankhongor, Dornogovi, Sukhbaatar, Khuvsgul, and Umnugovi provinces were connected with paved roads to Ulaanbaatar. The Ministry of Roads and Transportation underlined that Mongolia plans to construct 606 km of roads and two reinforced concrete bridges. Executive Director of Development Bank N.Munkhbat presented a general report on Chinggis Bond expenditure. He noted that the establishment of Development Bank helped Mongolians to resolve financing for urgent projects in accordance with national development policy. From 2013 to 2015, a total of 4.9 trillion MNT was spent on major roads projects, the private sector, and other development efforts. During these two years, a total of 946.7 billion MNT was spent on 2,250 km of roads, 318.3 billion MNT on 69 engineering infrastructure projects, 120.5 billion MNT on the Street Project, and 1.39 trillion MNT on road infrastructure projects that are now at 87 percent completion. Nearly two trillion MNT has been spent on major development projects that are at 87 percent completion, and 1.56 trillion MNT in financing was issued for private sector projects that are at 71 percent completion, Munkhbat reported. Over 600 government representatives, project contractors, and representatives from entities that took out loans from Chinggis Bond funds took part in the forum.