1. Public Private Partnerships in Mongolia
Ts. Batbayar
Head of the Concession Division
Department of Innovation and
Public-Private Partnerships

2. CONTENTS Public Private Partnership and the legal framework
Public private partnerships today
List of Concession projects

3. Public Private Partnership and the legal framework

4. Why we need PPPs ?
Growing investment needs in infrastructure in line with Government priority projects
Accelerate economic growth by leveraging the financial resources, technology and management know-how of private sector
To liberalize the economy further through the more participation of private sector in government investment plans

5. Public private partnerships
Types of PPPs
Service contracts
Management Contract
O&M Concession
agreement
BOT
Agreement
Privatization
Public private partnerships
Less
Private sector participation
More

6. PPP legal framework Parliamentary Ad hoc committee on PPPs - Nov 2008
State Policy on PPP - Oct 15, 2009
to promote private sector participation in all sectors of economy
The Law on Concession - Jan 28, 2010
Defines the processes of PPP implementation.
In 2010, the Government has approved several regulations regarding the detailed bidding process and evaluation of bid proposals
The Ministry of Economic

7. II. Public private partnerships today

8. In 2012, the Ministry of Economic Development was established.
PPP policy formulation and implementation transferred from State property committee to Ministry of Economic Development.

9. Cabinet approvals in 2013
Amended concession agreement for “Telmen power plant” project.
“Altanbulag-Ulaanbaatar-Zamyn-Uud highway” project
“Tuul-Songino hydro charged power plant” project
Amended list of concession projects.

10. “Nariinsukhait – Shiveehuren” road project
Ongoing Projects
“Nariinsukhait – Shiveehuren” road project
Project description: 50KM MINING ROAD PROJECT
Concession type: BOT
Concession term: 17 YEARS
Total cost: MNT 88.0 BLN
Concessionaire: “RDCC” LLC
Location: UMNUGOBI PROVINCE

11. “Telmen power plant” project
Signed Projects
“Telmen power plant” project
Project description: 100KWT POWER PLANT PROJECT
Concession type: BOT
Concession term: 22 YEARS
Total cost: $183.0 MLN
Concessionaire: “New Asia Group” LLC
Location: ZAVKHAN PROVINCE

12. “Altanbulag-Ulaanbaatar-Zamyn-Uud highway” project
Signed Projects
“Altanbulag-Ulaanbaatar-Zamyn-Uud highway” project
Project description: 997 KM HIGHWAY PROJECT
Concession type: BOT
Concession term: 28 YEARS
Total cost: $5.0 BLN
Concessionaire: “CHINGGIS LAND DEVELOPMENT GROUP” LLC
Location: DORNOGOBI, GOBISUMBER, TUV, DARKHAN, BULGAN, SELENCE PROVINCES

13. “Establishment of the mining and metal processing complex” project
Signed projects
“Establishment of the mining and metal processing complex” project
Project description: Renovation and increase in capacity of the state owned JSC Darkhan Metal Processing Plant by utilizing the iron ore from state owned mines located in the Darkhan-Selenge belt
Concession type: Renovate-Build-Operate-Transfer,
Build-Transfer
Concession term: 30 YEARS
Total cost: USD MLN
Concessionaire: “QSC” LLC
Location: Darkhan city

14. “Tuul-Songino power plant” project
Signed Projects
“Tuul-Songino power plant” project
Project description: USE THE TREATED WASTE WATER FOR 100 MW HYDRO CHARGED POWER PLANT.
Concession type: BOT
Concession term: 23 YEARS
Total cost: CNY 1.0 BLN
Concessionaire: “MORIT IMPEX” LLC
Location: ULAANBAATAR, SONGINOKHAIRKHAN DISTRICT

15. Projects at negotiation stage
“Tavantolgoi-Khanbogd-Hangi” road project
Project description: 435 KM MINING ROAD PROJECT
Concession type: BOT
Concession term: 17 YEARS
Total cost: MNT BLN
Preferred bidder: “MCCC” LLC
Location: UMNUGOBI, DORNOGOBI PROVINCE

16. Projects at negotiation stage
“POWER PLANT #5” (CHP5) project
Project description: 450 MWt POWER PLANT PROJECT
Concession type: BOT
Concession term: 25 YEARS
Total cost: $1.2 BLN
Preferred bidder: “GDF SUEZ, SOJITZ, POSCO, NEWCOM” LLC
Location: ULAANBAATAR, BAYANZURKH DISTRICT

17. III. List of Concession projects

18. In 2010, the Government approved the list of 121 concession projects.
In 2013, the Cabinet approved new list of 51 Concession projects

19. What is in the pipeline?
Major infrastructure projects such as Power plants, Railroads and Highways, social sector projects
The PPP project pipeline list is updated with more bankable and Government priority projects

20. What is in the pipeline?
It is important to structure the projects with proper risk allocation between the Public and Private sectors and to implement the PPP program in accordance with international best practices
The new list consists of 47 projects submitted by line ministries and 4 projects submitted by private sector

21. By sectors Infrastructure – 7 Road and transportation – 17
Pipeline transport – 2
Airport – 2
Energy -12
Environment – 4
Education - 2
Health – 1
Culture and sport - 4

22. By types of PPP
BOT – 7
BOO – 12
BT – 19
OTHER - 13

23. Dalanzadgad airport
Project description: REDESIGN AND BUILD EXISTING AIRPORT AT DALANZADGAD
Concession type: DESIGN-BUILD-OPERATE-TRANSFER
Concession term: 20 YEARS
Location: DALANZADGAD SUM, UMNUGOBI AIMAG

24. Chandgana power plant
Project description: 600 MWt POWER PLANT NEAR CHANDGANA COAL DEPOSIT, KHENTII AIMAG
Concession type: BUILD-OWN-OPERATE
Concession term: 25 YEARS
Project total cost: $1.3 BLN
Location: MURUN SOUM, KHENTII AIMAG

25. International standard horse racing stadium
Project description: BUILD HORSE RACING STADIUM WHICH MEETS INTERNATIONAL STANDARDS
Concession type: BUILD-OWN-OPERATE
Concession term: 25 YEARS
Project total cost: $100 MLN
Location: SELENGE SUM, TUV AIMAG

26. THANK YOU