MONGOL

Since 1991 the MESSENGER 500 ¥ No. 19 (1036) MONGOLIA’S FIRST ENGLISH WEEKLY PUBLISHED BY MONTSAME NEWS AGENCY Friday, May 13, 2011 World War II remembered Mongolia to Mongolians and Russians lay wreath in tribute have a new airport by 2015 B. Ooluun Mongolia has one international airport now, but intends to have one more by 2015. The new airport will be constructed in Khoshigt valley of Sergelen Soum, Tov Aimag, 53km from Ulaanbaatar. A plan of the airport has been completed by consortium of Japan’s Azusa Sekkei and Oriental Consultants companies. As the new airport is established, it is believed that difficulties occurring in existing airport service, such as flight delays due to inclement weather, wind direction, and low utilization of the airport will be eliminated, flight safety will be improved, air transportation will be regularized and economic growth and development of air transportation will be supported. Airport utilization now goes at 73 percent and it is intended to bring it up to 98 percent and reduce flight delays due to weather conditions from the current level of 2.3 percent to 0.5 percent. At the request of Mongolia’s government, Japan International Cooperation Agency (JICA) is rendering a soft loan worth 28.8 billion Yen for the construction of the new airport. The loan has a very favorable condition of a 40-year term with a grace period for the first ten years and annual interest rate of 0.2 percent. Also, the interest rate for money to be used for advisory service will be 0.01 percent. In return, a condition was put Two presidents talk on phone between Mongolia and the Russian forward to the Mongolian side to hire On May 7, 2011, President Ts. Federation is occurring this year. Tribute paid at Zaisan tank monument Japanese companies and procurement Elbegdorj and D. A. Medvedev, The Presidents exchanged views preferences. President of the Russian Federation on the means to intensify bilateral On May 9, Russians marked the 66th anniversary of the Victory of the WWII On May 4, a consultative meeting talked on the phone and exchanged economic and trade ties. Twenty years On occasion of the anniversary, D. Battulga, head of the Presidential Office, about the new airport, its construction opinions on issues of bilateral ties. ago over 90 percent of Mongolian L. Bold, Defense Minister, and V.V. Samoilenko, Ambassador of the Russian and the process was held. N. Enkhbat, President Elbegdorj conveyed export was supplying the Russian Federation to Mongolia, and others were at the ceremony in Ulaanbaatar to Head of the project to construct the new his greetings to President Medvedev market; nevertheless, according to last lay wreath and pay tribute at the tank monument at Zaisan. The tank was part international airport in Ulaanbaatar on the occasion of the Great Victory year’s statistics only three percent of of a Russian tank brigade that was established with donations of Mongolians explained that the new one will have Day and congratulated President Mongolia’s export is now going to the during the war. some-fold larger capacity than the Medvedev in relation to the three year Russian Federation. The Presidents During the celebration, honor guards saluted and the national anthems of current Chinggis Khaan Airport in anniversary of President Medvedev’s accorded that it is necessary to take the two countries were played. Buyant-Ukhaa and will be a modern assuming office and taking an oath. noteworthy measures to change the airport that meets flight requirements President Medvedev noted that stagnation of bilateral economic and and comfort for passengers, with the people of the Russian Federation trade relations and reduce the trade Ulaanbaatar Railway joint cooperative organize a meeting of the chairmen always remember the contribution and deficit of Mongolia. As a result, they to adapt to current conditions and of the joint commission between the the donation of the people of Mongolia agreed to give directions to their requirements, and establish an Governments of Mongolia and the Continued on page 5 for the Great Victory. He highlighted Governments on these matters. In agreement of railway tariffs for Russian Federation in the near future that the 90th historic anniversary of the addition, they discussed changing the transit through the Russian Federation to intensify talks and agree on the territory. The two parties agreed to issues. establishment of diplomatic relations 1949 contract on establishment of the Inside PM rural visit ...... p3 Mixed electoral system gets support Swap transaction signed...... p4 Revised health law...... p5 B. Ooluun system occurred during the discussion Lundeejantsan (MPP) and another understanding to discuss the Bill based of the Bill at the meeting of the State by MPs including L. Bold (DP). As a on a mixed electoral system. The No dismissal for minister...... p5 There is just one year left until Structure Standing Committee in late result, groups of two political parties mixed electoral system means a certain the regular parliamentary election April, and MPs could not resolve in parliament mutually agreed and number of MPs will be nominated Mongolia online...... p7 occurs. Parliament has the intention the Bill. At the meeting of the State reached an agreement of “It is too for mandated constituencies and to amend the electoral law as soon as Structure Standing Committee held early to choose a direct proportional elected to the parliament by people’s possible, before the election, however on May 4, major members supported system in Mongolia; therefore, it is votes; but the remaining seats will be the issue of the electoral system has conducting the parliamentary election appropriate to choose a mixed system proportionally distributed to parties. Bloomberg commodity price 2011/05/12 not been finally decided and it is still with a mixed system. containing elements of a proportional There are 26 constituencies throughout Price in dispute. A year ago, two political parties system”. But later, the groups went the nation and one member from each The Bill on parliamentary with seats in parliament reached an back to their negotiation and still held constituency will be elected by direct GOLD USD/t oz. 1491.500 elections started being discussed agreement to no longer use the existing discussions that resulted in a stalemate votes of electors. For the remaining 50 COPPER USD/lb. 388.700 almost just after the parliamentary electoral majority system, but transfer because some MPs are still interested to seats, members of the political parties election in 2008. However, groups of to a proportional system, and choose holding the election without spending will take seats in accordance with the SILVER USD/t oz 39.170 political parties in parliament spent a form so votes can have a proper a large amount of money in their small percentage of winnings of the party. much time determining the electoral influence on parliament. However, constitutency according to an absolute The DP and CW-Green Party are BRENT USD/bbl. 112.940 system and reaching an agreement. MPs from the two political parties majority system of election with 76 supporting this 26:50 electoral system. CRUDE Although heads of the groups of submitted separate Bills on the election constituencies. MPP supports the mixed system; political parties said that they agreed to parliament. A working group was The State Structure Standing SUGAR USd/lb. 20.940 to conduct the election with a mixed set up to study and combine the Bills, Committee discussed a revised Bill Continued on page 3 WHEAT USd/bu 753.500 system, a dispute on the electoral one initiated by MPs including D. on elections and reached a unified 2 THE MONGOL MESSENGER news Friday, May 13, 2011

N E W S-IN-B R I E F–From The MONTSAME AGENCY Opening held for Development Bank On May 12, an opening for the Development l On May 7, during a telephone conversation l On May 5, Parliament speaker D.Demberel received Bank of Mongolia was held at which State between Ts. Elbegdorj, the President of Mongolia and authorities of the National statistical office (NSO). At officials including Prime Minister S. Batbold D. Medvedev, the Russian President, the two leaders the meeting, S.Mendsaikhan head of the NSO, spoke attended. discussed current bilateral cooperation issues in light about how Mongolia was elected into membership At the opening, the Prime Minister of the official visit by the Mongolian President to of the Statistical commission of the UN on April 27, underlined that the Development Bank will Russia scheduled for late May. Mr Medvedev and Mr during the UN Economic and Social council forum. have a very important role in Mongolia’s Elbegdorj exchanged congratulations to Russian and D.Demberel noted that the election of our country economy. He mentioned that just one month ago, Mongolian people on Victory Day, informed by Press is a herald of its high reputation in the international Mongolia established a management agreement Office of Russian President Medvedev. arena, and congratulated NSO authorities. Mongolia with the London Stock Exchange; but today, the l On May 4, the Municipal Privatization Commission will assume the obligations of a member on January 1, Development Bank is opening at a time when called a meeting and discussed an issue to put some 2012. it is most needed. “We are taking step by step buildings and properties up for auction. The commission l On May 5-9, representatives headed by Lee Sang measures to improve the lives of people and considered that there are still unsold buildings and Hi, rector of the National science museum of South have talked about it enough. But now, we need properties although they have been auctioned a few Korea visited Mongolia at the invitation of Mongolia’s to realize this work and must produce effective times and it was and irresponsible job by relevant Presidential office. results. One of the solutions is to establish the staff. G. Monkhbayar, Ulaanbaatar Mayor and head On May 9, D.Battulga, head of the Presidential office Development Bank. Through this bank, major of the MPC, assigned to organize auctions with public received them and gave Mr. Sang Hi a pass that proves projects and programs such as the ‘Program for participation and attention of mass media. that the latter has been selected as a member of the great construction and mid-term goals’, ‘State The city administration takes frequent measures to Sciences policy’s sector council under the Presidential Policy on railway transportation’ and ’Sainshand encourage property ownership and take legal action on office. industrial park’ will be funded. Mongolia is at proprietors and users who treat properties irresponsibly The Koreans also met authorities of Mongolia’s Nature the start of rapid economic development. At this and do not fulfill duties as stated in the agreement. Within history museum to sign a cooperation memorandum. time, we are establishing a specific financial frames of the actions, the commission discussed the The sides will now cooperate in running an international institution for development which will foster results of the management agreement of ‘Ulaanbaatar conference, forums, surveys, exhibitions, and tour- economic growth in the future,“ said the PM. He Times’ municipal-owned entity. At the end of the trainings for children. advised that a professional skilled team that is discussion, it was decided to annul privatization of the Lee Sang Hi was granted the title of Honorary Doctorate internationally competitive needs to manage this At the openinig ceremony Ulaanbaatar Times management team because it did not by Ulaanbaatar University as well. bank and wished the bank’s authorities success. fulfill the duties given under the agreement and relevant l On May 3-4, according to the Ministry of Foreign Government allowed the Development Bank clauses of the Law on State and local properties and the affairs activity plan for 2011, a training-seminar of Mongolia to trade bonds worth Tgs800 billion organization that issues long-term, low interest contract of purchasing and selling that was established ran for State employees of Khovd Aimag. Over 150 domestically in connection with implementing credit to leading sectors of the country under in 2008. In conjunction with the annulment, relevant officials from the province’s administration and State the abovementioned major projects and programs. the development policy of Mongolia and will officials were given duties to study and work-out a organizations, and soums’ representatives participated The Development Bank of Mongolia will be an establish a new economic system for the nation. proposal on how to deal with the building, equipment in the training. and debt of ‘Ulaanbaatar Times’ old printing house and Authorities and officials of the departments of the other issues. It was considered necessary to resolve the Ministry spoke about Mongolia’s foreign policy, issues by means of an open auction that is beneficial for relations, and ways to improve foreign relations’ the State and public. united coordination, developing cooperation, contracts, Foreign Minister meets with Japan’s Ambassador l A mutual understanding memorandum was signed collaboration with neighboring countries within the between Claude Bodart, Resident Representative Asia Pacific region. On May 10, Foreign Minister in charge of Social health development program of G.Nyamdavaa, Governor of Khovd Aimag and G. Zandanshatar met with Mr. the Asian development bank (ADB) in Mongolia, L.Batbayar, head of the province’s administration Kidokoro Takuo, Ambassador B.Khurenbaatar head of the Aids and cooperation received the delegation of the Ministry to exchange of Japan to Mongolia in respect policies department of the Finance Ministry, and opinions and to thank them for holding the training in of a request by Japan’s side. J.Tsolmon, Deputy Minister of Health their locality in the center of the western zone. They shared views on bilateral The “Program of Health sectors development-4” project l A forum themed “Doing business in Mongolia” cooperation and other issues. is to be implemented within the memorandum. To start, was held in Brisbane city, Australia, co-organized by To begin the meeting, the ADB delegates met representatives of Ministries of the Embassy of Mongolia to Australia and Trade and Foreign Minister mentioned Health, of Finance, project implementing units, related Investment of Queensland of Australia (TIQ). that a bilateral agreement on organizations, agencies and companies to introduce the The forum brought together some 100 people such as developing strategic partnership project’s aims and discuss some of the problems. Ts.Jambaldorj, Ambassador of Mongolia to Australia; and issuance of joint statement The project, funded in frames of ADB’s nonrefundable Steve Bredhauer, Queensland government’s Special during the visit of Mongolia’s aid, will be realized in variouls stages from 2011 to 2016 Trade Representative to China and Mongolia; Rob President to Japan last year to assure medical safety, trigger hospital renovation, Whiddon, Managing Director of the TIQ; David Lawson, had vital significance in the and to refine the education system Trade Commissioner to Mongolia at the Australian development of bilateral l Authority of Ulaanbaatar city together with the Trade Commission; Peter Long, Executive General relations. He emphasized that United Nations Children fund (UNICEF) handed-over Manager in Asia of Sedgman; Jane Thomason, CEO the two countries have a great computer sets, equipment and apparatus to the city of JTA International; and delegates of companies and opportunity to deepen strategic disticts’ Children’s associations. This aid will be given entities. Mongolia was represented by O.Amartuvshin, partnership cooperation in all sectors. FM G. Zandanshatar meeting with by the UNICEF to 21 aimags as well. Director General of the UFC Group; B.Bolorchuluun, In turn, the ambassador said that Japan’s Ambassador Takuo Kidokoro Ts.Tsogzolmaa, head of the city’s “Together for Deputy Director; and Yo.Gantulga, leader of the Union government is holding a position to contribute children” council says that “Children-targeted policies of Mongolians in Queensland. to the acceleration of Mongolia’s development, are the core of the State’s strategies. it is important Steve Bredhauer expressed willingness to cooperate render assistance as before and cooperate with and expressed their satisfaction with active to implement these works together with children with Mongolia’s, “rich in mineral resources nation”, Mongolia. Mr. Kidokoro added that Japan’s preparations for establishing the agreement. themselves.” The children’s associations have promised and emphasized that bilateral collaboration has been government will continue its implementation of Concluding the meeting, the both sides noted to implement various works with help of the aid. activating in recent years in the minerals sector. many economic projects and programs in frames that an article published in, Japan’s ‘Mainichi’ l A Business Development Center has opened in Ambassador Ts.Jambaldorj gave a report about business of its official assistance for development. newspaper on establishing storage for spent Dalanzadgad Soum of Omnogobi Aimag. The aim of and investment opportunities in Mongolia. Others spoke The sides said that the economic partnership nuclear fuel in Mongolia is groundless news, and the center is to support and train local businessmen who about Mongolia-Australia cooperation in the mineral agreement has a vital role to widen trade and mutually confirmed that there have not been any want to become suppliers of the Oyu Tolgoi LLC. They and mining fields and introducing their activities in economic cooperation between two countries talks on this matter between two countries. will receive all kinds of services such as learning how to Mongolia. B.Baatartsogt, head of the General Agency take part in a small loan program that has been realized for Specialized Inspection’s department of geology by Oyu Tolgoi LLC and Xas bank with one million U.S. and mining inspection presented his works and dollars. environmental rehabilitation measures. IAEA Director-General meets with Mongolian The center consists of a computer training room, The Australian side said they want to cooperate with conference hall, sewing workshop, and kitchen. Oyu Mongolia in mining, infrastructure, education, and Permanent Representative Tolgoi spent USD 700 thousand for implementing this health spheres, adding that business delegates of project, and eight companies of the soum erected the Queensland intend to visit Mongolia in September Yukiya Amano, Director-General of the center’s building. this year. To this, Mongolia’s Embassy said they want International Atomic Energy Agency (IAEA) For the time being, 103 businessmen from Khanbogd to provide them with the information needed and help met with Ambassador J. Enkhsaikhan, Permanent and Dalanzadgad soums have been supplying products them form ties with Mongolian businessmen. Representative of Mongolia to the Agency. and services to Oyu Tolgoi LLC with USD 1.5 million After the forum, the Ambassador held a meeting with During the meeting, they discussed issues that in contracts. Mongolians who work or study in Australia. are to be considered at the Board of Governors meeting of the IAEA at the beginning of June, including the Fukushima nuclear accident, its consequences and the way to strengthen nuclear security in general. They also exchanged views Three appointed to Constitutional Court on the possible content of the final document to be adopted at the Ministerial Conference on Three members who were again nominated members is left. nuclear security on 20-24 June in Vienna. for the Constitutional Court were supported To the question whether it is necessary to Taking the opportunity, the Permanent and appointed by parliament. The State amend the Constitution or not, candidate J. Representative expressed gratitude to the Supreme Court nominated J. Amarsanaa and Amarsanaa said that it should be amended in Agency for organizing the consultants’ meeting J.Enkhsaikan (L) and Yukiya Amano the President proposed N. Jantsan and D. accord with social development although it is to diagnose, prevent and combat foot-and-mouth Naranchimeg as members of the Constitutional the main law. D. Naranchimeg said that it can disease (FMD) in Mongolia. He pointed out that work on technology to irradiate vaccines that Court. The President, Parliament and Surpreme be amended along with the demands of social it was agreed at the meeting to implement a joint would not only help combat and prevent FMD in Court nominated 3 members each (for a total life. N. Jantsan said that any country should be project to establish a vaccine reserve bank and Mongolia but in the region as well. of 9 members) to the Constitutional Court and open to amending their constitution and it should parliament appointed them for 6-year terms. The be considered in all aspects. N. Jantsan was term for four out of the current eight members appointed for the Constitutional Court for the is now complete and the appointment of two fourth time since 1992. Forum held for Mongolians in the UK Editor-in-Chief: Borkhondoin Indra On May 7, the Embassy of Mongolia to the gathered to State policy concerning Mongolians English Editor: David brown WEATHER UK and the Union of Mongolians in Britain abroad and implementation of the ‘Beehive’ Journalists: Batbayariin Ooluun Sunrise: 05.43 co-organized the 7th annual forum called ‘For program. Translator: Mishigdorj Unurzul Sunset: 20.15 development of Mongolia’ in London. B. Enkhmandakh, Mongolia’s Ambassador dalkhjav Undrakh n Ulaanbaatar and Central Aimags: Night temps between 0oC and B. Altangerel, Mongolia’s Ambassador to the to the Kingdom of Sweden also delivered a key Layout/design : sarantuya munkhtulga -5oC. Day time temps between 4o and 9oC. UK said the forum is in its seventh year and has report themed ‘Feature of social development in Precipitation on May 8. The Mongol Messenger, P.O.Box 1514, Ulaanbaatar, MONGOLIA. n Eastern Aimags: a purpose to create a proper system for utilizing Mongolia’. Then, reports were given by youths, Telephone: 266740, Tel/Fax: (976-11) 325512, Night temps between 10C and 60C. Day time temps between 17oC the intellectual capital of Mongolians abroad for scholars and researchers who work in the UK, and 22oC. Precipitation on May 8. Home Page: www.mongolmessenger.mn n Western Aimags: Mongolia’s development, and that the number of Germany, Netherlands, Ireland, Poland, Portugal, E-mail: [email protected] Night temps between -1oC and -6oC. Day time temps between 3oC participants is growing year by year. Sweden and Russia. and 8oC.. Precipitation on May 9-10. A sub-meeting was held themed ‘Proposals Leaders of the Unions of Mongolians in The Mongol Messenger is operated by the government news agency n Gobi Aimags: MONTSAME and is printed by the MONTSAME Night temps between 4oC and -1oC. Day time temps between 6oC about development’ and ‘Finance and economy- European countries shared views on objectives and 11oC. Precipitation on May 11. Information Technology’ ran in scope of a key and activities of the forum, and issued a proposal topic ‘Development based on knowledge’. One to establish a united association of Mongolians of the attendees, Ch.Enkh-Erdene, Secretary in Europe. They decided to submit this proposal ISSN 1684-1883 of the Cooperation Council with Mongolians to relevant Ministries and agencies. abroad under the Prime Minister, introduced the Friday, May 13, 2011 news THE MONGOL MESSENGER 3 Govt meets with locals in eastern aimags C A B I N E T M E E T I N G

unpaid royalties, deficiency of natural At its regular meeting on May 11, introduced to the National Security rehabilitation, and other issues. the Cabinet discussed the following Council. Gao Wenbo, the company’s matters: Chinese president, reported that the Dalanzadgad regional diagnostic ‘PetroChina Daqing Tamsag’ LLC Duty on diesel fuel cut by Tgs center to be established invested USD 1.1 billion so far, 200,000 It was resolved to establish a intensified exploration, identified a In accordance with a cabinet regional diagnostic and treatment reserve of oil, and introduced it to decision, the excise tax on A-80 auto center in Dalanzadgad, that will serve Mongolia. He added that the company fuel imported through Sukhbaatar, Omnogobi, Dundgobi and Dornogobi plans to exploit 4.6 million barrels of Zamyn-Uud, Ereentsav and Altanbulag aimag citizens, relying on human crude oil. border checkpoints has been reduced resources and the logistics of Omnogobi After hearing him, the Prime from Tgs 140,000 per tonne to Aimag’s central hospital. Tgs110,000. Health and Finance ministers were Minister and ministers, MPs and heads In addition, the excise tax on AI- ordered to work-out a plan and project of agencies who accompanied the 92 auto fuel has decreased from Tgs and include the required money in the PM requested to answer their many 230,000 to Tgs 170,000; and diesel State Budget for restoring and building inquiries on insufficient performance fuel from Tgs210,000 to Tgs10,000. the diagnostic center’s building of paved road construction, natural The decision came into force on May and providing it with the required rehabilitation and connection to energy 9, 2011. facilities. as stipulated in the agreement. The excise tax on auto and diesel 15,000 ha area to be owned by The company’s authorities fuel imported through other remote citizens in 2011 responded that construction works are border checkpoints has not changed. Based on the proposals of the now sluggish because the professional By the way, the Russian Rosneft citizens’ representatives meeting of council of mineral resources has company has increased prices of A-80 the aimag and city, the cabinet made PM visits the secondary school he attended in Dornod not approved the reserve of some fuel by USD 28, of AI-92 by USD 59, a resolution on the total size, location parts, and the company will continue and diesel fuel by USD 96. and purpose of land to be owned Prime Minister S. Batbold standards are introduced nationwide. construction works after approval of by citizens in 2011. The Minister continued his rural trip to eastern Educated people are the key to the oil reserve. Oil reserves to be brought to normal for Road, Transport, Construction aimags from Monkhkhaan soum of development, so it is important to give Mentioning that the State is level and Urban Development was given Sukhbaatar Aimag on May 5, where children a high quality education”. Minerals and Energy Minister D. the duty to oversee the resolution’s paying special attention to augmenting implementation. he held a meeting with citizens and Afterwards, the Prime Minister extraction works and processing oil Zorigt introduced cabinet members spoke about governmental policies got acquainted with an amusement to the demand, supply, and current Since the law on land ownership by for providing domestic fuel needs, situation of oil products. Mongolian citizens came to effect or by and goals and then heard the opinions park which is expected to open this the Prime Minister underlined of citizens. On the day he arrived in summer and said the cabinet will try According to a report given by oil December 31, 2010, 245,345 citizens that it is time to refine upon the importers, by May 5, Mongolia had a 19 own 27,349 ha land for family needs. the aimag center, he laid a wreath to to give some money for it when the legal environment and create an day oil reserve of oil products —A-80 the statue of D.Sukhbaatar, visited Aimag authorities ask him to help environment with competitiveness. auto fuel for 22 days, AI-92 fuel—26 National ‘Classic art’ program the #1 secondary school and a water complete its construction. He assigned including a statement on days, and diesel fuel—11 days. The cabinet discussed a national purifying plant. In the school, he That day, S.Batbold held a meeting the rate of royalty in the production The cabinet obliged the Ministers program, ‘Classic art-II’ and decided said that the best pupils will receive with Choibalsan citizens and attended sharing agreement. of Mineral Resources and Energy and to reflect the required money in the scholarships from the Sukhbaatar a consultation with the eastern region’s The Prime Minister firmly of Finance to hold a meeting with sector’s budget for implementing the Fund. ‘National Program on Mongolian warned the company, other related officials of the Russian Federation on program. The same day, Mr. Batbold took livestock-rural development’ which organizations, and the aimag the supply of oil products and to bring The program aims at developing, part in a ceremony to give the aimag’s brought together more than 200 administration about neutralizing it to a normal level. The report will promoting and spreading classic arts health center the latest technology and participants. the liquid waste in accordance be submitted to the National Security and culture, creating a favorable legal completion of maintenance work of On May 8, the Prime Minister with standards and doing high- Council. environment, management and finance, the health center that was implemented arrived in Khalkhgol Soum of Dornod strengthening of the human resource quality environmental rehabilitation capacity and satisfying a social with financing of the government and Aimag and met with citizens. Citizens work. “The cabinet will control the Production sharing agreement’s the Asian Development Bank (ADB). requested to resolve their pressing principles to be followed guarantee. realization of these works,” he added. Minerals and Energy Minister On May 6, Mr. Batbold arrived issues such as connecting with cellular Mr. Batbold also emphasized that in Sukhbaatar Soum of Sukhbaatar phone service and building a paved D. Zorigt also talked about oil In brief establishing an oil processing factory exploration and mining license activity. • In connection with a Bill on Aimag where he laid a wreath at the road. The Prime Minister stressed that is one of the biggest goals of the Government considers that it will be e-signatures submitted on December statue of military commander D. the government and citizens have the government, and the company has to more appropriate to follow principles 19, 2010 by government to Sukhbaatar and paid his respects. same positions for development. He maintain the contract on constructing of a production sharing agreement in parliament, as well as other Bills There, the Prime Minister visited a also added that the government will small and middle-sized factories in the activities of exploration and mining. worked-out in conjunction with the secondary school founded in 1922 and give certain support for the aimag to eastern and central regions although Therefore, the minister was assigned e-signature bill were taken back. promised to give attention to having develop tourism by taking advantage the oil resource has not been fixed yet, to urgently organize works to refine This decision was made because the school connected with the Internet of its beautiful landscapes such as the rendering investment assistance and currently effective laws and regulations there have been many suggestions to and building an annex to the school. Buir River and Khalkh Gol River and supplying oil to factories. in the oil sector. amend the Bill while discussing Bills The same day, PM S.Batbold historical monuments. The next issue that Prime Minister At the meeting, Ch. Khurelbaatar, at the Justice Standing Committee of arrived in Choibalsan city of Dornod On May 10, during his visit to discussed was about the discrepancy head of the Cabinet Secretariat of parliament. Aimag where he visited a secondary eastern aimags, the Prime Minister of wages between Mongolians and Government, discussed transferring • The Cabinet made a decision to school ‘Khan-Uul’ where he studied saw activity of ‘PetroChina Daqing foreigners. “If they do same work, rights and duties of the production establish a fire fighting department from his 1st to 4th grade, and met Tamsag’ LLC in Matad Soum, Dornod the wage must be the same without sharing agreements. in Bulgan Soum of Khovd Aimag. with his primary school teacher N. Aimag. At the meetings with Dornod Minister D. Zorigt was given a Bulgan Soum is a remote area with discrimination between domestic and duty to transfer rights and duties after 2,100 citizens. By car, it takes 12- Dolgormaa. He said, “The government Aimag’s citizens, issues in connection foreign workers,” said the PM. He is taking the first steps to introduce with this company were touched upon receiving a permit from the government 14 hours from the aimag center and warned that it is important to train by studying the reason and consequence could take 2-3 days if mountain Cambridge standards. Highly skilled many times. Media criticized this 100 Mongolian workers in oil prospecting and reporting back to government. passes are blocked by snow. The and internationally accepted trained percent Chinese-invested company and extraction and provide them with As of April 30, 2011, there were soum is highly likely to be affected staffers will be prepared when the many times, especially about its jobs. 14 domestic and foreign companies by forest and steppe fires. operating on 19 oil prospecting • Fulfillment of 5,648 clauses of 3,728 fields under the production sharing resolutions including parliamentary agreement. resolutions, presidential decrees, The cabinet supported a draft recommendations of the National Mixed electoral system gets support agreement of production-sharing to be Security Council, government established between the Oil Authority resolutions, ordinances of the Prime and the ‘Space Geology Exploration’ Minister and minutes of government Continued from page 1 Company in principle. With proposals meetings go at 74.9 percent. from the cabinet, the contract is to be however, it did not make a decision to choose how many of the 76 members will be elected by majority system and how many by the proportional system. Additionally, it is uncertain whether ADB to finance big development projects MPs will be elected through their parties or directly by citizens where On May 6, a Mongolian delegation about the process of the ADB’s using the proportional system. led by S. Bayartsogt, Minister of research working group. If Mongolia Members of the standing Finance, attended the 44th Annual has an opportunity to get financing committee discussed almost 30 Meeting of the Board of Governors of from ADB’s ordinary source, it will be suggestions and proposals sent by the the Asian Development Bank (ADB) possible that the biggest infrastructure working group because they already held in Hanoi, Vietnam. projects can be realized. A strategic agreed on the electoral system. The During the meeting, Finance document is being drawn up on revised Bill stated “to elect ‘X’ Minister S. Bayartsogt met with Mr. cooperation between Mongolia’s member of the Parliament from X Hiroshi Kodera, Vice President of government and the ADB until 2015. mandated constituency”, “to elect ’Y’ the Japan International Cooperation Thus, the credit rating of Mongolia Agency (JICA) and shared views and the matter of financial sources member of the parliament from one Hand-counting ballots leaves room for error and misuse constituency with multiple mandates on guidelines of the Mongolia- are important to finally establish the in accordance with the name list of JICA cooperation and on progress strategic document. political parties”. Also, according to constituency with X mandate; and serious breaches and illegal acts of the projects that are now being Mr. Sakai reported that the ADB’s the Bill, the election will be organized an issue on nominating members for occurring during the election by means implemented. Board of Governors is working to to elect ‘X’ member of parliament from a constituency with X mandate will of amending the law. The current Japan plans to update its augment the Mongolia’s credit rating X constituency with an X mandate, be discussed at the party’s congress punishment imposed on persons who assistance program and the Japanese within this year. The Mongolia’s and elect ‘Y’ members of parliament or a meeting of central representing violate the election law is too light. side reported to cooperate with delegation and Mr. Gerhaeusser in accordance with the name list body and be resolved by secret ballot Initiators considered that illegal acts Mongolia in the three directions shared views on implementation and of parties and a coalition from one in accordance with the Article 13.7 should be carry strict legal enforcement of priority. The Finance Minister the course of the projects realized in constituency with multiple mandates; of the law on Political Parties. The because the constitution bans acts or expressed willingness to discuss Mongolia with ADB’s financing. establish X constituency of X mandate General Electoral Committee will also attempts to seize State power illegally. issues with JICA’s representatives The Finance Minister also met of the parliament by considering register candidates from the name list For this reason, the Bill stated that on detailed directions and spheres with Hiroshi Watanabe, President the population of aimags, cities and and electoral units of constituency will it will be illegal to attempt taking or within the frames of basic cooperation of the Japan Bank for International districts earlier than 6 months, to register candidates for X mandated transferring State power by means directions. Cooperation (JBIC). S.Bayartsogt set the number of the constituency, constituency. except by ways stated in the law. The Mongolia’s delegation held heard a briefing about present territory and center, and make a Combining the two Bills, the The Parliament Speaker received meetings with Kazu Sakai, Director activities and structure of the JBIC, constituency involving the territory working group has prepared about the Bill and underlined that cash General of ADB’s Strategy and Policy and introduced to Mr. Watanabe to of neighboring aimags and district 200 proposals that have principle promises and distribution of material Department; and K. Gerhaeusser, the reforms and policy of Mongolia. of Ulaanbaatar if the population of differences for polling. It is apparent goods that can influence the electoral Director General of ADB’s East They also exchanged views on the the aimag and district of Ulaanbaatar that the first discussion of the Bill may process occured during last elections Asia Department for discussing opportunity to finance the biggest is less than what the State average take longer. and eliminating such illegal acts will augmentation of Mongolia’s credit projects and programs with great requires for establishing a constituency. MPs Z. Enkhbold and S. Erdene be one of vital factors to conduct the rating and the opportunity to finance importance for the development of Also, the party and coalition will submitted a Bill to amend the criminal election fairly. He expressed his view Mongolia with ordinary sources of the Mongolia. The ADB side expressed nominate just one member for one law in connection with the election. that legal actions should be taken in ADB. willingness to collaborate with The Bill was worked-out to eliminate case such illegal acts occur. The Finance Minister also heard Mongolia in these matters. 4 THE MONGOL MESSENGER business & finance Friday, May 13, 2011 Mongolia, China sign currency swap agreement

On May 5-6, Zhou Xiao Chuan, Mongolian Governor of the People’s Bank of China, paid a working visit to Mongolia. Mining Service During his visit, Mongolia and China signed a currency swap transaction as a Company signs a result of 2-year’s discussion. The swap deal can become a significant step in bilateral cooperation and development 2 year Contract in of banking and financing relation. The People’s Republic of China Kazakhstan is the main external trade country of Mongolia and CNY is the second most AIDD, the Mongolian Mining Services Group, is very pleased to valuable currency in Mongolia’s FX market. The swap transaction would announce that it has signed a large long term drilling services contract with bring high importance to the Central an International conglomerate in Kazakhstan. The AIDD Group subsidiary Bank of Mongolia to ensure MNT D.Demberel meeting Zhou Xiao Chuan (AIDD LLP) underwent a contract renewal tender process in line with the stability by immediately providing stringent open tender laws that were put in place in Kazakhstan in 2010. the market with CNY in unsustainable the national currencies and creating protecting it from crisis as well as in cases. a proper mechanism in times of encouraging support to investment AIDD was selected as the International Drilling service provider for a two After the signatory ceremony, widening Mongolia-China relations and trade to develop an objective year multiple drilling rig exploration and mine site drilling contract. The and cooperation. economy. He added that the meeting Parliament Speaker D. Demberel contract could be one of the largest standalone contracts awarded in the received a delegation led by Mr. Zhou He said that a roundtable meeting held between authorities of the central Xiao Chuan. To begin the meeting, for exchanging experiences between banks and signing the contract of swap international exploration drilling market in 2011. Parliament Speaker D. Demberel said, the central banks would have be transaction has become an important Mr. Polson the CEO of the Mongolian group commented, “this is not “China’s successfully overcoming the important, and said the China’s help step to ensuring financial stability and only a major achievement for the AIDD Group but a large milestone for with financial and banking experts supporting an objective economy. financial crisis that covered the world the Mongolian Mining Service sector. AIDD LLP the groups Kazakhstan in recent years positively influenced would be appreciated. The Speaker expressed agreement Mongolia’s economy” and emphasized In turn, Zhou Xiao Chuan noted with the issue of the importance of subsidiary competed against two of the largest global drilling services the importance of refining a regulation the main role of the central bank in banking organizations to restoring a companies being the Canadian domiciled Major Drilling and ASX listed/US of settlement and swap transaction of making the currency settlement proper, real economy. domiciled Boart Longyear to win this project. AIDD was selected in front of its global competitors based on its track record and ability to operate at the standards expected and set by large international companies.” AIDD believes that being selected in front of the two largest global Czech forum held to stimulate trade exploration drilling companies was solely based upon its ability to build On May 11, the Embassy of the and show its international clients that there are regional service providers Czech Republic to Mongolia and Mongolia’s National Chamber of that have the ability and local commitment to deliver a quality product Commerce and Industry (MNCCI) to some of the largest projects the industry has to offer. AIDD focuses co-organized a business forum at the on providing a product that is equal or of a superior quality to that of its Chinggis Khan Hotel with the purpose international competitors. AIDD strategy revolves around focusing on local to encourage exporting products and services. human capital development and competency based technical training. The forum was opened with remarks AIDD LLC was founded as a Mongolian Company in 2004 and over of honourable guests and a short cultural the past 7 years AIDD has completed extensive drilling projects across performance by Mongolian artists. Mongolia, PRC and Kazakhstan and has established itself as a credible Inaugurating the forum, Vaclav Jilek, Czech Ambassador to Mongolia offered market player in the rapidly growing North East and Central Asian drilling his thoughts. To begin, Ambassador Czech’s feel trade with Mongolia is lacking industry. The European Bank for Reconstruction and Development invested Vaclav Jilek expressed thanks to the in AIDD Group in 2007 and currently holds a 39.4% stake in the company. guests for participating in the forum. interrupt its presence in Mongolia. The excellent changes. We have a lack He said, “Both countries marked the country is making efforts to determine of activation, interest, initiatives and The remainder is held by the co-founders of the business. 60th anniversary of establishment of new possibilities of trade and economic information exchange of business and The AIDD Group’s goal is to become Mongolia’s leading international diplomatic relations between the two cooperation with Mongolia and renders trade companies of the two countries. mineral drilling service provider in the North East and Central Asian region official development assistance in It is necessary to inspire the interest of countries last year and embassies of the by offering high quality services at best value to mineral exploration, both countries organized a number of Mongolia. However, negative trends business and trade sectors to intensify activities, recalling the prosperous history appear in bilateral economic and trade relations. I hope today’s event can mining, and geotechnical companies operating in the region. AIDD Group of bilateral relations and cooperation.” relations in recent years. Although the contribute to achieve this goal.” During continues to build its market presence and reputation by continually “During the years, foreign policies Czech government has increased its the business forum, presentations were striving to develop local human resource capacity through in-house training assistance for development cooperation held to introduce Czech companies of the Czech Republic and Mongolia programs to equip staff with the skills and expertise to constantly meet the have had many changes and the Czech in Mongolia year by year, trade and that operate in water development, Republic became a member of the EU economic cooperation between the two hydrogeology, geology, environment, needs of their clients, the local and international mining companies. and NATO. However, it remained as countries has declined. Even meetings of transportation, construction, equipment, one of the few countries of the Central the joint inter-governmental commission air transportation, defence, and security and Eastern Europe which did not and business meetings did not bring spheres.

1st Quarter Economic Report indicates steady growth World Bank: “Mongolia has promising growth prospects”

Mongolia’s prospects in the a 11 percent yoy increase in the and large coal and copper imports and supported by the blanket deposit include large cash handouts, exerting medium term look excellent from a previous month. However, food prices by China, which absorbs 90 percent guarantee. Out of the total banking upward pressure on prices for the growth perspective as well as a fiscal are rising in Russia and China, from of Mongolia’s exports. As a result of sector liabilities of MNT 6.3 trillion second half of 2011, with the risk of management perspective. Staying the where Mongolia imports the bulk of the increased goods trade deficit, the around MNT 4.5 trillion comprises substantial second-round effects in the course in the medium term means its main food commodities. current account deficit is expected to deposits and current accounts for form of a wage-price spiral. Second, implementing the landmark Fiscal The latest fiscal data show widen further in the first quarter of which the government has issued a while real interest rates are currently Stability Law (FSL) passed last year, continued improvement in the budget 2011. The average monthly exchange blanket guarantee. Further reforms positive due to the fall in inflation, and adopting a supportive integrated outturns. On a 12-month rolling rate against the US$ appreciated by a are needed to create an efficient, upward pressure on prices warrants budget law this spring session of basis, the fiscal surplus increased to percent in April, before depreciating adequately capitalized and well- a close watch on these rates, which parliament. This ensures a path of 2.4 percent of GDP in March 2011, by 6 percent in early May. The regulated banking sector. could return to negative territory as counter-cyclical budgets, thereby up from a 5 percent deficit in March accumulation of reserves by the The latest survey conducted in was the case before the crisis. Finally, avoiding some of the macroeconomic last year. This reflects the recovery in Central Bank leveled off as there was informal labor markets in March as mentioned above, with the trade ‘Dutch Disease issues typically seen in broad based economic activity, imports no need to intervene in the market. 2011 revealed no changes in the total deficit continuing to widen with the resource rich countries. Unfortunately, and favorable commodity prices. In the banking sector, the steady number of casual workers compared mining boom, the current account is the crux of the FSL—abiding by a Revenues have improved markedly, rise in NPL ratios in 2009 has been to December. However, due to the also in deficit—as was the case prior structural fiscal deficit of 2 percent increasingly annually by 56 percent reversed. However, there continue increased activity in the construction to the crisis. Consequently, there is of GDP calculated using long-term in real terms in March. However, the to exist solvency concerns for small sector, the number of informal workers a risk of returning to the boom-bust mineral price projections--does not 2011 Budget of Mongolia envisages and medium banks. Loans in arrears in construction material markets scenario that prevailed before 2008 come into force until 2013, after the a steep increase in government declined to MNT 81 billion in March rose while the number of informal (illustrated in Box 4). Additionally, 2012 election year. Until that time spending to an unprecedented MNT from MNT 90 billion in December. workers declined in the other markets. high domestic inflation will cause the significant risks exist, emanating from 779 billion (over 52 percent of However, the ratio of NPLs and loans Workers’ real informal market wages currency to appreciate in real terms, both domestic as well as external GDP). The financing of the resulting in arrears to total outstanding loans on average increased by about 18 ultimately hurting the export sectors, sources. deficit (around US$400 m) will be still stand at high at 13 percent, and percent from December to March and possibly creating a macroeconimic The economy grew 6.1 percent difficult as it depends mostly on yet the actual stock of NPLs increased in 2011. The previous decline in real scenario called the Dutch Disease year-on-year (yoy) in 2010, following uncertain revenues to be received March by 3.2 percent from February. wages is attributable to reduced job (discussed in Box 2). a contraction of 1.3 percent in 2009. from the Tavan Tolgoi (TT) agreement Excluding the two failed banks, whose opportunities during the winter months Mongolia has promising growth The last quarter of 2010 ended with (discussed in Box 1). If the agreement NPLs largely remain unresolved, and rising inflation. This situation has prospects. It has the opportunity a broad-based recovery, supported fails to fund the deficit, and given that NPLs increased to MNT 204 billion, improved with better weather and now to exercise prudent fiscal and by transportation, construction the government is cognizant of the up 8 percent in March from MNT 189 moderated inflation. However, of the macroeconomic policies so it can and wholesale and retail trade. difficult environment for sovereign billion in February. In the meantime, most vulnerable in society, about 40 steer clear of the mistakes made by Unfortunately for the employment of bonds, the funding would have to the stock of loans outstanding is on percent of those surveyed continue other resource rich economies and the poorest segments of society, the come from the domestic market in the rise since December 2009, up to indicate that their earnings do not achieve its potential. The Integrated agriculture sector (down 17 percent its entirety. This could crowd out the 35 percent yoy in March 2011 or 29 meet their basic needs, while the rest Budget Law, which reforms the yoy in 2010) experienced double private sector which is especially in percent in real terms. With credit rely on these markets for food and budget process and supports the digit contractions in all four quarters need of credit during this period of growing this fast, as was the case shelter only. implementation of the FSL, will be in 2010. However, the upward trend economic expansion. prior to the 2008 crisis, regulatory and A comparison of the debated in Parliament’s spring session in consumer prices was broken by Imports increased to record oversight issues among Mongolian macroeconomy of Mongolia now with and would be an important step in declining meat prices—the result of levels of 86 percent yoy in March as banks (along with capital adequacy) trends that prevailed in the country permanently locking in prudent fiscal sales under a government-subsidized the trade deficit continued to widen remain crucial. MNT deposits in 2008, prior to the crisis, suggest policies and mechanisms. meat reserve scheme. March data reaching US$ 646 million. Exports continued to rise, and hit a new peak similarities. These similarities are in no (The full report can be downloaded show a moderation in the headline UB were up 71 percent yoy supported by of above 2.3 trillion in March, fuelled small measure due to the expansionary at http://www.worldbank.org.mn) inflation to 7.4 percent yoy, following the upward momentum in metal prices by currency appreciation expectations 2011 budget plans. First, the plans Friday, May 13, 2011 development THE MONGOL MESSENGER 5 Mongolia to have a new airport by 2015 Minerals Minister D. Zorigt will not be dismissed B. Ooluun However, this issue just planning was also touched upon became a model on paper during the consultative meeting. It is Parliament is and was not implemented considered necessary to have a city discussing an issue on in reality”. because business activities such as dismissing Minerals and MP D. Gankhuyag, services and freight transportation Energy Minister D. Zorigt blames Minister D. will develop due to international second time this year. Zorigt about agreements flights. The city to be established Parliament first discussed regarding two major within 10km of the airport is being the issue last January strategic deposits. planned to have just 100,000 citizens. when MPs including S. “Parliament approved A general plan and feasibility study Erdene, Ts. Sedvanching its 57th resolution in on the airport city has been completed and Ts. Batbayar regard to the Oyu Tolgoi and is now ready to be introduced submitted a proposal to investment agreement. to the Ministry of Road, Transport, parliament citing seven The resolution assigned Construction and Urban Development reasons for dismissing the government to and the Government. Minister D. Zorigt. and it negotiate with the investor “One feature of the airport city did not support his dismissal. on increasing Mongolia’s equity to no was that it must be located 15- However on May 5, MPs S. less than 50 percent after recouping its 20km from the airport, but now this Erdene, D. Gankhuyag and G. first investment by means of creating a principle is no longer needed. By Bayarsaikhan submitted a proposal favorable legal environment. However, world standards, it comes to new stage to dismiss the minister to parliament it established the Stability Agreement of planning to build the airport city again. Again, MPs cited seven reasons for a 30-year term. It was an action parallel to the airport. The 21st century for dismissing the minister. For that did not fulfill the parliamentary is a century of air transportation and instance, Minister D. Zorigt made resolution and the agreement has been Architectural model of new airport and airport city with it comes the problem to not only the Oyu Tolgoi investment agreement profitable for investors. To explain it transport passengers, but freight as profitable for investors, did not correct with just one example, the investment well. According to air transportation a contradiction that the license for the can be recouped within 4.7 years if development in recent years, 3.2 billion Tavan Tolgoi deposit, whose reserve the price per tonne of copper is USD Continued from page 1 addition to Japan’s soft loan worth people in developed countries used to was identified in the State Budget and 4,000, and within 1.7 years if it costs USD320 million (28.8 billion Yens), travel by air transportation few years was issued to Energy Resource LLC USD 9,000. Second is the issue of the Mongolian government will ago; however, it has now increased to illegally by changing the deposit’s Tavan Tolgoi. We will only have the possibility to be enlarged in the issue USD 94.2 million (8.4 billion 8.2 billion. Freight increased by some- exploration license to a mining license; empty land with holes in it if the issue future. Yens). The cost of the new airport fold and air transportation became State control on strategic deposits of 15 strategic deposits is resolved Annually, Chinggis Khaan construction compares to similar a main international transportation as stated in parliamentary resolution in an unprofitable manner for the Airport receives 668,000 passengers, capable airports that were recently means of modern times. Therefore, #27 is weak; issuance of licenses is Mongolian people.” 4000 tonnes of luggage and 11,600 built. For instance, USD336 million the airport city should be developed unorganized; the sector’s ministry On May 11, MPP and DP groups in flights. However, it is estimated that was spent on enlarging Astana Airport along with the new airport. and agency work is insufficient for parliament each discussed the proposal the new airport will annually receive of Kazakhstan, USD200 million on Government made a resolution implementing laws; and other reasons to dismiss minister D. Zorigt and both 1,654,000 passengers, 12,000 tonnes building a passenger and service that the new airport and city to be that were the same as stated in the groups did not support dismissal. of luggage and 22,000 flights by 2019. building at Puket Airport of Thailand, established in Khoshigt valley of previous dismissal proposal. Prior to a meeting of the MPP group in Japanese specialists made a prognosis and USD415 million on constructing Sergelen Soum, Tov Aimag will cover MP S. Erdene who forwarded the parliament, MPP Steering Committee of passenger demands. N. Enkhbat the Kuito Airport in South America. a 12,000 hectare area in total. Now, proposal to dismiss the minister for called a meeting and issued a resolution said that the work will be conducted Mr. Enkhbat said that compared to there is no buildings and that is an area the second time explained, “The first not to dismiss D. Zorigt and introduced in accordance with the prognosis them, the cost of the Khoshigt valley where farming was managed many proposal to dismiss minister D. Zorigt the resolution at the meeting of the because there was not much difference airport project is acceptable and years ago and now stopped because it contained seven grounds. However MPP group in parliament. D. Dondog, in 2006-2010. has good planning. Specific areas has a low harvest yield. Thus, a low- not one of these has been resolved Deputy head of the MPP group said The flight strip of new airport for buildings for system to provide efficient area is being used. Urban so far. Parliament has the full right to that the proposal to dismiss minister will be 3,600 meters and it will be aircrafts with fuel, cargo and food- planning needs to be made stage by control implementation of laws and D. Zorigt has political characteristics. capable to receive 4E aircrafts such preparing workshops, and transit stage. Financing of it may be resolved take legal action. Parliament did not Therefore, the MPP and its as the Boeing 747’s that are currently passengers have also been planned to by concession law. An issue to develop use its rights until today. We consider parliamentary group treated this issue impossible to land at the Chinggis be built with private investment. the airport city will not be the sole work that parliament has to take legal action from a political perspective. The MPP Khaan Airport which now receives Mongolia’s government is solely of government organizations. It will and put forward the issue for the group in parliament also considered only 4D aircrafts including the A310. responsible for works to stretch be possible to find money from non- second time”. MP G. Bayarsaikhan it necessary to issue a conclusion to The main building of the 33,300 110kw electricity tension lines from government investment organizations said, “Laws and resolutions adopted give people a correct understanding square meter- airport will be the center Ulaanbaatar into Khoshigt valley, of big domestic companies. According by the parliament must be enforced because there are many critics and for passengers and service. It will be establish an electrical sub-station, to the plan, it must be started in 2012. in reality. Not implementing the law differences of understanding about 3-story fully glass building and have a connect the new airport with hi-speed When the airport comes into operation, is a crime against the State. Since construction work about Oyu Tolgoi structure to ensure passengers to walk fiber optics, and link the valley with buildings such as apartments for 2008, 43 mining workers lost lives and Tavan Tolgoi among the public. straight to get their destination with the Ulaanbaatar by a super highway. workers, services and others have in the Nalaikh coal mine. However When the DP group in parliament purpose of making them comfortable. Relevant plans for these works have to be completed. Except buildings, there has not been any legal action by conducted a poll on whether or Also, sources for heating, water been drawn up and actions have started there are many issues including anyone. Today, we submitted the issue not minister D. Zorigt should be purifying and a pure water supply will to be implemented. Construction of roads, transportation, energy and to the Parliament Speaker to ascertain dismissed, the majority of members be resolved independently and nature- a 53-km four-way auto road to link communication,” said architect Ya. whether a position is expensive or a did not support dismissal. The friendly state-of-the-art technology the airport with Ulaanbaatar will be Sharkhuu. It is intended to complete human life. Secondly, the president issue will finally be resolved at the will be selected. executed by BOT type (build, operate the first phase of the airport city by issued a resolution to stop issuance plenary meeting of parliament after It is estimated that construction of and transfer) of the concession. A 2015, the second phase by 2012-2020, of licenses for mineral resources for a being discussed by relevant standing the new airport that will contain many second phase of the tender will be and the third phase by 2025-2030. It is certain period. But the relevant body committees of parliament. Minister construction projects for flight and announced in June and the winner will preliminarily estimated that USD 3.2 ignored this resolution and issued a D. Zorigt likely not to be dismissed aircraft space, control tower, passenger be selected in July. trillion will be spent on construction license. There is a necessity to establish because MPP and DP groups that and service as well as techniques that An airport city will be established of the city. The first phase requires a fifth thermal power station in order cover most seats in the parliament did require USD414 million in total. In along with the new airport. Urban USD1.2 to 1.6 trillion. to resolve air pollution in Ulaanbaatar. not support the dismissal. Revised Law on Health adopted More attention given to public health and disease prevention

B. Ooluun due to insufficient social guarantee the law, all central hospitals will have for medical workers, and uncertain unified standards that they must give On May 5, Parliament adopted issues on permits to conduct medical professional services of no less than 7 a revised Bill on Health. “Previous activity by those who were educated sorts such as surgery and childbirth . health laws mainly regulated legal in health. It led to the necessity to Moreover, the law mandates relations dedicated to treatment of revise the law with the purpose to that regional diagnostic centers, the ailing people. However, this revised develop State regulations on health national center and central hospitals Bill focuses on preventing the and improve finances of State-run will have a board of directors. By population before illness and making health organizations. doing so, heads of the hospitals will them healthy. For this purpose, health According to the revised law, not resolve issues independently and assistance and service has been defined soum-level and family hospitals have the board of directors will resolve in two parts; social health and hospital been named as health centers and will issues regarding investment, plans, assistance. Social health assistance visit families of the responsible region financing and tender. or preventive hospital service was to conduct preventive examinations The previous law legislated that legislated as a priority. It becomes a and take tests. Family hospitals are physicians of soums, baghs and step to satisfy the financial policy of private health organizations that villages will be given an allowance health care to ensure conditions for execute State medical assistance equal to six month’s salary once Hospitals will have more autonomy to manage illness people to be free from illness,” said and service by contract. Although every five years and physicians of Health Minister S. Lambaa. the family hospital’s current status aimag central hospitals and regional issues, improve working conditions, about a system of responsibility to The health law determined remains unchanged, it will be provided diagnostic centers were unable to create a condition so hospitals can be held on physicians and health State policy on health and its with a building free of charge and its receive it. According to the revised purchase equipment and facilities organizations, Health Minister S. basic principles while regulating physicians will receive their salary law, it was changed. All physicians required, as well as restore, provide, Lambaa answered, “It is a very fresh relations in connection with roles of from the State Budget and soum and nurses working in aimag centers and encourage development of health law that touches upon multilateral organizations, officials and citizens. It health centers will be funded from and regional centers will receive an organizations. issues. For instance, the law legislates also ensures rights so citizens can be the State Budget. On the other side, allowance equal to their six-month There is much criticism and many that only accredited specific obstetric protected, receive medical assistance, it was legislated that government will salary once every five years while complaints about quality of services hospitals will have the right to perform service, and benefit from activities accurately set the number of citizens physicians and nurses working in by citizens. New clauses have been abortions. Previously, hospitals for of health organizations. Since its per family hospital. The revised law soum, bagh and village will receive included in the law to employ non-staff women did it freely. It has higher fines adoption in 1998, amendments were reinstates a structure to improve an allowance equal to their six-month council on health quality supervision and strict punishment. We believe it to made in 2002, 2006 and 2009. Since qualifications of soum and family salary once every three years. under the central health administrative be very significant if the law is strictly its adoption, there have been some hospital physicians once every five Amendments were made to organization with a purpose to improve followed and relevant accurate rules breakdowns, including uncertain years from the State Budget. the revised law on issues to create service quality, and operate services are issued.” status. The scale of service in first- Hospital assistance and services a legal environment to give paid responsible for making domestic Government also has submitted stage health organizations had to treat those who are already sick service; issuing bonuses by health control on service quality and safety at a Bill on civil health insurance to insufficient standards and quality, will be given by central hospitals of organizations to its workers from health organizations. To the question parliament. The parliament will soon shortage of physicians in rural areas aimags and districts. According to profits they gained, resolve social about what the revised law states discuss it. 6 THE MONGOL MESSENGER advertisement Friday, May 13, 2011

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Contact ASU for more details on 11 348888 for more details or go to www.asu.edu.mn. 3-room apartment (in the 5th floor) and 3-4 room apartments Registration closes June 1st so hurry and secure your place! (in the 6th floor) in Gandirs Town, in east to the State Department Store for sale. Ph: 70117070, 99181556 Friday, May 13, 2011 telecommunication THE MONGOL MESSENGER 7 The lawyer’s advice All Mongolia comes online Hanns Seidel World Bank supports internet services in rural Mongolia Foundation In cooperation with Hanns Financing of private sector infrastructure. Mongolia is the world’s Through its work with the access to the Internet. It also opens -Seidel-Foundation Project information and communications least densely populated country: 2.8 government and the Communications a range of opportunities for the Mongolia and its “Legal technology (ICT) services for rural million people live across 1.5 million Regulatory Commission, the Bank government, private sector firms, civil Education” Academy Mongolian operators has resulted in square kilometers—almost half the projects created and supported mobile society organizations and development 100% of Mongolia’s soums (districts) size of India. base stations to serve the population of partners to enhance service delivery by -My sister has been ill for a coming online and 34 prime soum At the project’s inception, 90 soum centers and the surrounding using new technologies. long time and I want to adopt her centers with broadband Internet Mongolia’s ICT sector was structured so herder areas without mobile telephone The total IDA funding in support child. What documents must I services for schools, commercial that most of the long-distance network service and a network of 152 satellite of the Universal Access program was submit to do so? customers and Internet cafés. was government owned and controlled public telephones to serve herders in US$6.2 million including US$670,000 -As provided for in Article 56 The status is a result of World Bank with a limited capacity to expand rural remote areas beyond the reach of the for consultancy in all stages of of the Family Law, the consent of Information and Communications services. Private mobile operators were mobile networks and Internet services development and implementation, parents to give adoption of their Infrastructure Development Project not mandated to provide services to for schools, commercial customers US$260,000 for pilot projects child and the application to adopt the that started in 2005 to subsidize private rural areas that appeared commercially and Internet cafés in 34 prime soum and US$5.3 million for the main child must be made in writing and sector operators. unviable. These operators were centers. investments. A Japanese PHRD grant certified by a notary public. If the The projects was strategic investing heavily in urban areas and The project’s yielded the following of US$2 million also supported the child has reached the age of seven because less than 30% of the their reach was gradually growing but benefits: project. years, his/her consent should also soum center villages had reliable the networks’ expansion of coverage • Mongolia’s 335 soums Local private telecommunication be obtained. A prospective adopter telecommunications, even though one- to the rural areas was inadequate. The have been provided with access and data service providers have shall submit his/her application for third of Mongolia’s population lives in lack of ICT services affected the rural to mobile voice service, in many partnered in this project including adopting a child to the Governor of such small centers. population in multiple ways, limiting cases also enabling a medium-speed G-Mobile and Unitel, Mobicom and the Soum or District where the child World Bank financed subsidies social communication and access to Internet service. Although only 90 Skytel (mobile telephone service is residing. The Governor of Soum or provided to private sector operators both information and education media, soums benefited directly from IDA providers), Incomnet LLC (a satellite District shall review the application motivated the expansion of their and delaying response time in the case financed subsidies, a large number of communication service provider) and for adopting a child and make a coverage area so that all 335 soums of emergencies. additional soums benefited indirectly Sky C&C and Mobinet (high speed decision whether or not to give the were provided with mobile voice The Bank supported the as the Universal Access program internet services providers). The Bank child for adoption within 20 days service and a satellite-based network government’s fresh approach and its demonstrated that demand for services provided subsidies for the operation of after receipt of such application. of public telephones that serves Universal Access policy, developed in rural areas is significantly higher information and telecommunication -I want restore the fatherhood herders in remote areas beyond the with World Bank support, which than originally expected. services in remote rural areas while the of my child. Where must I mobile network. included establishing a fund to provide • The herder public access partners invested basic infrastructure approach? Additionally, 34 prime soum subsidies for the expansion of ICT network, combined with the mobile and the necessary equipment. This -The court shall consider the centers (selected based on population, services into rural areas. services, reduced the average travel partnership mechanism ensures a application to restore the rights of availability of commercial power After mobilizing financing distance required to make a call for delivery of telecommunication services parents who have lost their parental and fiber optic connectivity) have for a successful pilot project from herders to 15 km from 39 km. to herders and rural communities for rights and may restore the parental broadband Internet access for public the Global Partnership on Output- • 34 prime soum centers have 5- 10 years, after which the services rights for the sake of the child’s and private users, schools are connected Based Aid (GPOBA), the Bank broadband Internet access for public will be self-sustained. rights and interests. If the child was at discounted rates, and there is wider helped Mongolia’s Communications and private users at the same tariffs as The Government and ICT operators adopted during the period where access to Internet cafés. Regulatory Commission to manage in the capital, Ulaanbaatar; schools are have expressed their appreciation to the parental rights were surrendered, Herder Batbayar said, ‘I can get and finance several ‘least-cost’ subsidy connected at discounted rates, and in Bank for its support to the program and parental rights shall not be restored. connected everywhere and speak competitions. Subsidy recipients were all 34 communities benefit from access have asked it to consider continuing If it has been determined that the to my relatives and to people while private operators responsible for to public Internet cafés. its support for this initiative. Next decision to restore parental rights staying right at home.’ installing and operating the rural voice With the infrastructure and service steps would be to assist initiatives to could harm the interests of the child, Challenges to be overcome and Internet services. This approach now in place across the country, improve the quality and reach of the the court may decide not to restore centered on Mongolia’s vast and harnessed private sector power by many more rural residents are able to mobile network infrastructure, and to parental rights considering the challenging geography and high costs providing incentives to deliver services communicate more easily, and benefit extend the broadband services to more opinion of a child who is over seven to provide a rural communications in rural areas. from educational and commercial soum centers. years of age. -When does child maintenance come to an end? -As provided for in Article 53 of the Family Law, the duty to maintain German program contributes to art and Journalism in Mongolia shall be terminated in the following cases:–the maintenance contract Goethe institute signs MOU with arts council of Mongolia term has expired;–the maintenance receiver has married or become able The Goethe Institute (GI) and partnership of the two organizations to earn a living;–the maintained Arts Council of Mongolia (ACM) is going to focus on film and arts child has been adopted by other are signing a Memorandum of journalism within the GI “Climate and persons or has reached the age of Understanding (MOU) to promote Cultural Change” program. Within 18 years;–the maintenance payer or cultural dialogue, understanding, and the Mongolian part of this program, maintenance receiver has died. exchanges between Mongolia and GI and ACM will conduct a series -Our organization has Germany for the period 2011-2013. of training programs for emerging concluded an employment During the period of the MOU, the filmmakers on the subject of modern contract with workers from a Liaison Office Mongolia GI and ACM filmmaking led by experts of German foreign country for a period of one will initiate and implement a series of Film Academies. After the training, year. How shall these workers pay capacity-building and subject matter participants who have written scripts their taxes? exchanges in the field of film, theater, or have produced short films (5-10- -The individuals working for arts journalism, arts administration min) under the theme of” Culture your organization shall be taxpayers and policy. Change”, will be eligible to compete according to the provisions of On April 20, In the presence for participation in international film Articles 2 and 3, Section 1 of of H.E. Pius Fischer, Ambassador festivals and other special prizes the Personal Income Tax Law of Extraordinary and Plenipotentiary provided by GI and ACM. Mongolia. A taxpayer should go to of the Federal Republic of Germany Another facet of the program the tax office located in the district to Mongolia and Jantsannorov.N, focuses on Journalists who will get where he/she resides, register with Chairman of the Arts Council of the opportunity to attend special Pius Fischer (C) with members of the Art Council and Goethe Institute that office, receive a taxpayer’s Mongolia, Ms. Heike Michel, writing seminars and hone their registration number and get a Executive Director of Goethe- skills on reflecting arts in the media. trends in Germany, encourages goethe.de/mongolei in October 2009 taxpayer’s income tax form. The Institute of Mongolia, and Ms. These series of seminars will feature cultural collaboration across the globe The Arts Council of Mongolia is a taxpayers who regularly report and Ariunaa Tserenpil, Director of the Arts renowned writers in their field that will by organizing programs of events, non-government organization (NGO) pay their taxes have the right to Council of Mongolia, signed a MOU share their experience and expertise. and contributes to various festivals founded in 2002 with the mandate enjoy tax credits in accordance with on Cultural Cooperation between the The Goethe-Institute, as the and exhibitions in the fields of film, to ensure that the art and culture of the provision of Article 13, Section Goethe-Institute, the Liaison Office cultural institute of the Federal dance, theatre, journalism and other Mongolia is sustainably developed, 9 of the Personal Income Tax Law. Mongolia and the Arts Council of Republic of Germany, brings the specialized topics. The Liaison office promoted and preserved — www. -Is there any legal provision Mongolia. multifaceted image of Germany to has been operating in Mongolia since artscouncil.mn that one should work without pay For the period of 2011-2013, the the world stage. The GI monitors 2008 and officially opened www. for the first three months when recruited for a job? I was also told that the salary for the first three months may only be paid in case the work plan is fulfilled. Is this right? What’s on May 13-20 -The Labor Law has no provision about working without OBT=Opera/Ballet Theatre; PT=Puppet Theatre; (ZFAM) Wed 18 9am-5pm International Museum Day (MAG) pay for the first three months of TDMAG=Tsagaan Darium Museum/Art Gallery; 10am-7pm Ts.Nasantsengel exhib (UMA) (MAG) 10am-7pm D.Purevdorj/D.Enkhtaivan exhib work. However, the Labor Law UMA=Union of Mongolian Artists; XAG=Xanadu 5pm Geser Nomun Khan (ballet, OBT) 9am-6pm Hidden Japan photo exhib (ZFAM) (UMA) does contain a provision that a new Art Gallery; ZFAM=Zanabazar Fine Art Museum 10am-7pm Ts.Nasantsengel exhib (UMA) 11am-10pm Ts.Odgerel exhib (XAG) employee or an apprentice may Mon 16 9am-6pm Hidden Japan photo exhib 11am-10pm Ts.Odgerel exhib (XAG) work for a specific probationary or Fri 13 9am-6pm Hidden Japan photo exhib (ZFAM) 3pm The Ugly Duckling (PT) Live Music training period set by the employer (ZFAM) 9am-5pm Action 11 Fine Arts Institute exhib Detroit Bar (9pm): Wed One Way; Fri UFO in their internal labour regulations. 10am-7pm Ts.Nasantsengel exhib (UMA) (MAG) Thurs 19 9am-6pm Hidden Japan photo exhib Grand Khan (9pm): Mon One Way; Tues Lemons; A probationary or training period 11am-10pm Ts.Odgerel exhib (XAG) 10am-7pm Ts.Nasantsengel exhib (UMA) (ZFAM) Wed Khulan; Thurs Ganga; Fri/Sat Beer shall not exceed six months. 11am-10pm Ts.Odgerel exhib (XAG) 9am-5pm Action 11 Fine Arts Institute exhib Ikh Mongol (9.30pm): Tues L-Guards; Wed Fire; Sat 14 9am-6pm Hidden Japan photo exhib (MAG) Thurs Altan Urag; Fri Fire; Sat X-Vit; Sun Altan (ZFAM) Tues 17 9am-5pm Action 11 Fine Arts Institute 10am-7pm Ts.Nasantsengel exhib (UMA) Urag Address : Sukhbaatar District, 10am-7pm Ts.Nasantsengel exhib (UMA) exhib (MAG) 11am-10pm Ts.Odgerel exhib (XAG) Strings (10.45): nightly Ka-24 Khoroo 6, Sukhbaatar Street Noon-7pm Ts.Odgerel exhib (XAG) 9am-6pm Hidden Japan photo exhib (ZFAM) 11-2, 5pm Tears of the Lama (opera, OBT) 10am-7pm Ts.Nasantsengel exhib (UMA) Fri 20 9am-6pm Hidden Japan photo exhib Tengis Theatre Office of the Legal Education 11am-10pm Ts.Odgerel exhib (XAG) (ZFAM) Someone Else’s Child (Mongolia) Academy (inside the court of the Sun 15 9am-6pm Hidden Japan photo exhib 9am-5pm Action 11 Fine Arts Institute exhib Children’s Art Center, in the right side) Tel : 321294 www. mongolei.de 8 THE MONGOL MESSENGER art & culture Friday, May 13, 2011 ARTS COUNCIL OF MONGOLIA presents Carmen Suites elegantly performed

arranged by N.Jantsannorov. It is a long and impressive journey for the young Spanish gypsy. The Carmen Suite, at 57 minutes long, was the focus of a lovely musical evening. However, before the Morin Khur ensemble played Carmen, they introduced some of the different instruments of the ensemble with performances by the Morin Khur (horse-head violin), the yatga (zither), the Yochin (dulcimer or box zither), the Ever Buree (horn) as well as the flute and the piano. The music performed came from Mongolian films and from the traditional Mongolian musical repertoire. It is a rare opportunity to see and here this beautiful array of instruments and the glorious sounds they make. The yatga quartet plays brilliantly and with such speed and delicacy it truly amazes. The different tones of the three different sized horse head violins is stunning; it sounds like the range from violin to double bass, and yet different. The military tunes played on the Ever Buree were rousing, but fascinating. The Ever Buree is a reed Mongolian composer N.Jantsannorov (L) instrument, with a sound reminiscent of an oboe and yet it plays the role of the military horn in traditional Mongolian music. Carmen, the unfaithful gypsy, has For the performance of Carmen, the seen many incarnations. She was first Morin Khur ensemble was joined by the The Morin Khuur ensemble of the State Philharmonic described by Prosper Merimei in a short percussion ensemble from the Music and novella (possibly influenced by a narrative Dance College. These young musicians the suite and it was an interesting and elegantly performed. The heartache of poem by Alexander Pushkin) and was then were energetic and enthusiastic. The array impressive dance of its own. The percussion Jose, the whimsy of Carmen, the pride of brought to the stage and music in an opera of xylophones, marimbas, tympanis, bells, instruments perfectly complemented the Escamillo was all delightfully portrayed by Georges Bizet followed by the ballet cow-bells, steel drums, cymbals, snare strings and wind instruments of the Morin by the ensemble. As an example of western by Rodion Schedrin. Now she is being drums and other instruments took up half Khur ensemble. classical music brought to traditional presented by the Morin Khur ensemble the stage. The members of the ensembles The Carmen Suite arrangement by Mongolian instruments, it was an amazing of the Mongolian State Philharmonic, as moved between instruments throughout N. Jantsannorov was beautifully and success. Mongolian art on display ‘The Child of Someone Else’ drama film A unique drama film directed by films are love stories, comedies or thrillers Amarsanaa.B, the film stars the famous in Mongolia. But people want to see other Mongolian singer Dashdondog.B, and topics from the film industry. This movie famous actors Ariunbulag.T, Sukhbold.B, shows real life and human heart and Magsarjav and Sukhee. Set in the 1970-90s, sense. the film is a true story about Ankhbayar, a real Mongolian man. Every day in Tengis, Urguu, and These days, almost 85-90 percent of Soyombo cinemas ‘Hidden Japan’ exhibition The famous Japanese artist Kijuro sun, and Japan’s beautiful nature. Yahaki has many talents–architect, land Zanabazar Fine Arts Museum is and product design, furniture design, co-organizing an exhibition with the photography, visual art, sculpture, critical Japanese embassy and Japan Foundation art, and love art. in Mongolia, the third such international Since 1995, his artworks have become travel exhibition for Mongolian viewers. Gallery at the Union of Mongolian Artists famous in many countries being exhibited This traditional exhibition was successfully in museums and libraries of the USA, presented in Ulaanbaatar named “Japan Ulaanbaatar is littered with small it showed a chance of harmony and England and Japan. doll” in 2007 and “Japan ceramic” in exhibition spaces for modern artists. The art adaptation without the need for conflict. In this exhibition, there are 85 2009. gallery for the Union of Mongolian Artists Life in nature, and the seasons were photographs with black and white images In this exhibition hall, it also organizes is one example. Just south of Sukhbaatar common themes of the artwork displayed. that are presented. Kijuro Yahaki shows his a donation box for Japanese tsunami Square, in a black and white two story B. Monkhtsetseg’s Neg zhil (one year) was artwork of Japanese people’s heart, dreams, victims. The opening was held on May 2, building, it is frequently overlooked. one of a series of pieces representing the happiness, sadness mixed architecture, and the exhibition is open until May 31 in But it should not be. In April the gallery seasons. This piece combined four felted city construction, organization, the shining the Zanabazar Fine Arts Museum. exhibited “Interior Accessories”, pieces by panels in different colours. Throughout the D. Otgonbayar and students. exhibition, cushions in different colours, On entering the exhibition, one’s eyes images of women and panelled paintings were drawn to the bright colours of Ts. were all used to represent the seasons. The Battulga’s three panels – Khuree khatan bright colours in these pieces were highly (Queen of the encampment), Ertnii khatan emotive of the changes in the year. (Ancient Queen) and Mord (To the horse). The sculptures and installations in The three large canvasses took up one wall the exhibition were no less striking. B. of the exhibition in brilliant reds, purples Ariunbolor’s Salkhi (Wind) – a woman and blues. The vertical lines of the paintings with her head thrown back as the wind slowly morphed into women in traditional blows through her hair is a delightful small dress and a horse in the third piece. The piece. The installation Golyn chuluud contemporary style of the bold colours and (River stones) by B. Bayanduurun was a the strict vertical lines contrasted with the beautiful brook with pebbles made of felt. images of women in deel and traditional The river and pebbles, around a metre in hats, a possible comment on the difficult length, were beautifully made and very relationship of traditional life and modern realistic. life, or traditional culture and modern art. The pieces on display were auctioned Continuing through the exhibition on Thursday April 28. It was a lovely B. Shatarsaikhan’s Neg, khoyor, goraw opportunity to buy a beautiful piece of (one, two, three) combined western art Mongolian art. with traditional Mongolian crafts. A felted Until May 5, the gallery exhibited background in reds, greens, blues and ‘Bichig soyol 2011’; the ‘80th anniversary purples had a still life of lilies, Klimt’s kiss of Dornogobi Aimag; will exhibit on June and butterflies painted over it. The painting 6-12, a solo exhibition by Ts.Nasantsengel was a lovely piece of art in itself, while on June 13-19, and a joint exhibition by as a comment on the interaction between D.Purevdorj and D.Enkhtaivan on June Compelling photographic art of Kijuro Yahaki traditional culture and western influence; 20-26.

Arts Council of Mongolia, Delta Foundation Center, IV floor, Tourists Street-38, Chingeltei District Tel/Fax: 976-11-319015 E-mail: [email protected] Web: www.artscouncil.mn

The Mongol Messenger is operated by the government news agency MONTSAME and is printed by the MONTSAME. Home Page: www.mongolmessenger.mn;E-mail: [email protected] (ISSN 1684-1883)