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Daily NEWSWIRE
November 3, 2016
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Government

Privatization of state-owned companies could generate 50 billion MNT

Summary: The Parliament’s Fiscal Standing Committee convened and a working group tasked with auditing the financial situation of state owned companies presented the  results of their findings. They reported that there are around 90 state owned companies and three of them are non-operational. In the last four years, number of employees of the state-involved factories and companies grew by 15% or 5,000. It was estimated that 50 billion MNT could be raised from the privatization of some state owned companies, and 30 billion MNT could be raised from the privatization of Orkhon Province’s Thermal Power Station alone. The working group recommended closing down six state owned companies and hold the fiscal responsibilities of state owned companies to higher standards. MP X. Badyelkhan stated, “Last year, state owned companies had 3.5 trillion MNT in debt, but this year, the debt increased to 10.8 trillion MNT and the tax debt grew to 38.5 billion MNT. This is a clear example of a lack of fiscal responsibility.” Fiscal Standing Committee members highlighted the importance of holding the board of directors of major state owned companies responsible for their companies. MP Z. Narantuya stated, “A state owned company had a profit of 187 billion MNT in 2012, but in 2013, it suffered 11.3 trillion MNT in losses. There needs to be an investigation of state owned companies. No one would buy stock from 57 companies, people will buy stock in companies if they have profitable operations. They are not ready to be privatized on the stock exchange.”     

Keywords: Parliament, privatization, state assets   The Official Gazette /page A2/


SME Development Fund loan issuance to resume

Summary: Yesterday, Cabinet convened and decided to continue the SME Development Fund. An amendment to the Law on Government Special Funds was made, and in 2016 39.2 billion MNT in loans was issued to finance 102 projects. The government believes that the loans are vital for supporting companies that aim to replace imports. The ministers will prepare temporary regulations for the SME Development Fund until a bill is prepared and approved. The SME Development Fund issued 703 billion MNT in loans from 2009-2015, and the repayment stands at 95.9%. 

Keywords: loans, Cabinet, SMEs   Today /page A2/


Mining

Coal gasification project report to be ready in 2017

Summary: The government’s 2016-2020 action plan includes the Producing Synthetic Natural Gas from Coal Project, and a working group tasked with completing a feasibility study, environmental and social impact reports, and monitoring the operations of the project's consulting company has been formed. China’s Wuhuan Engineering and Mongolia's Grand Power are cooperating on a preliminary feasibility study. The final report from the consulting services will be ready next April, and the general environmental and social impact reports will be ready in May. The reports are being financed by a World Bank concessional loan.

Keywords: natural gas, coal   Today /page B1/


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ONLINE STORIES

Erdenet Mining Corporation’s private sector board members are appointed  

Summary: The State Property Policy and Coordination Division announced that Da. Ganbold, O. Orkhon, and M. Munkhbaatar have been appointed as members of the Board of Directors of Erdenet Mining Corporation, representing Mongolian Copper Corporation’s 49% stake in the company. Vice Chief of the Cabinet Secretariat U. Byambasuren has been appointed Chairman of the Board. The CEO will be chosen by the BoD dependent on a vote of more than 66.6%.

Keywords: Erdenet Mining Corporation, mining   www.ikon.mn


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