Chief of the Cabinet Secretariat, D. Amarbayasgalan, and Kim Seung-ho, Minister of Personnel Management of the Republic of Korea, met on March 21, 2024, to discuss the strengthening of relations and cooperation between the two countries, particularly focusing on human resource management in the public service.

During the meeting, both parties acknowledged the ongoing collaboration between the Ministry of Personnel Management of the Republic of Korea and its Mongolian counterpart in bolstering human resources, personnel training, and civil service specialization.

Chief of the Cabinet Secretariat, D. Amarbayasgalan, underscored Mongolia’s commitment to evaluating civil service activities and enhancing ethical standards and disciplinary accountability as outlined in the government’s 2020-2024 action program. In this context, he expressed Mongolia’s interest in further sharing experiences with the Republic of Korea and fostering cooperation.

During the regular Cabinet meeting held on March 20, 2024, the Government passed a resolution to increase pensions provided by the Social Insurance Fund and military pensions by MNT 100,000.

With this adjustment, the minimum threshold for both old-age pensions and military pensions will be raised to MNT 650,000. Additionally, the minimum amount for proportional pensions will increase to MNT 540,000. This resolution will come into effect on April 1.

The Government has consistently raised all types of pensions provided by the Social Insurance Fund in 2018, 2019, 2020, 2022, and 2023, in line with changes in the cost of living. As a result of these measures, the average pension has doubled to MNT 685.6 thousand compared to 2016.

According to data released by the General Department of Social Insurance in November 2023, approximately 59 percent (288,400 individuals) out of a total of 493,000 pensioners receive the minimum pension amount.

Amendments Made to Regulations for Granting Child Allowances

During the Cabinet session, amendments were made to the regulations for granting child allowances.

For each child under the age of 14 living in an orphanage, the orphanage will open a bank account and deposit the child’s money. For children aged 14 and older, a current account will be opened, with 80 percent of the child’s money deposited in the bank and the remaining 20 percent managed by the child. Additionally, this account will be equipped with an electronic card.

This arrangement allows children in orphanages to utilize 20 percent of their money for personal needs such as school supplies and extracurricular activities. The practice of depositing the remaining 80 percent in the form of deposits or savings accounts will continue.

As of January 2024, a total of 924 children and young people aged up to 18 are being cared for in 29 welfare centers and orphanages operated by 20 organizations across Mongolia. Based on changes to the 2021 Child Allowance Regulations, allowances are now deposited into the child’s account following an assessment by child rights inspectors.

Sovereign Wealth Fund Law to be Presented to Parliament

At the Cabinet meeting, D. Amarbayasgalan, Chief of the Cabinet Secretariat, presented a draft law on the Sovereign Wealth Fund. Following the presentation, the Cabinet decided to submit the draft law to Parliament for consideration.

The proposed legislation aims to establish a Sovereign Wealth Fund to ensure the fair and sustainable distribution of income generated from Mongolia’s natural resources to all citizens, both present and future. The draft law outlines the fund’s revenue sources, designated purposes, asset management structure, and regulatory controls.

Draft Law on Mitigating Challenges and Risks in Livestock Husbandry to be Developed

During the Cabinet meeting, D. Amarbayasgalan, Chief of the Cabinet Secretariat, and Kh. Bolorchuluun, Minister of Food, Agriculture, and Light Industry, were tasked with developing a draft Law on Mitigating the Negative Impacts of Climate Change on Nomadic Livestock Husbandry and a draft Plan of Measures to Ensure the Sustainable Development of Livestock Production for submission to the Cabinet.

The adoption of this law and the comprehensive plan is expected to:

·       Establish a stable supply chain for livestock and livestock-derived products, leading to increased income for herders and an improved standard of living.

·       Reduce rural-urban migration, revitalizing rural areas.

·       Ensure stable livestock production, improve livestock quality and breeding, and meet hygiene standards.

·       Establish environmentally friendly, climate-resilient livestock enterprises capable of managing risks effectively.

·       Improve pasture utilization, enhance fodder cultivation practices, and upgrade livestock fencing.

·       Maximize the utilization and benefits of government incentives aimed at promoting livestock production.

·       Foster public-private partnerships, incorporating input and initiatives from herders while aligning with market principles.

Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai received Ambassador of the European Union to Mongolia Axelle Nicaise on March 14, 2024.

During the meeting, Ambassador Axelle Nicaise presented a certificate confirming the European Union’s EUR 500 thousand humanitarian assistance in response to Mongolia’s current severe winter and spring conditions to the Prime Minister of Mongolia.

Prime Minister L. Oyun-Erdene expressed gratitude on behalf of the Government of Mongolia and the people for the EU’s support in challenging times. The humanitarian assistance will be delivered to 1,850 herder households affected by the dzud.

The meeting also discussed the potential for expanding trade and economic cooperation between the two sides. The Prime Minister and the Ambassador emphasized the importance of effectively commemorating the 35th anniversary of diplomatic relations between Mongolia and the European Union this year.

The Prime Minister commended and thanked the European Union and the European Investment Bank for their recent contributions to development, including a first tranche of a soft loan of EUR 45 million from the European Investment Bank and grant aid of EUR 9.4 million from the European Union for the “Aimags and Soums Green Regional Development Investment Program” and a Memorandum of Understanding on Forestry between the Ministry of Environment and Tourism in Mongolia and the EIB.

Discussions also revolved around ongoing and future projects and programs as part of Mongolia’s long-term development policies such as “Vision 2050,” the “New Recovery Policy,” the EU’s “Global Gateway,” and the “Green Deal.”

The “GoMongolia” event unfolded during the 54th World Economic Forum held in Davos, Switzerland, on January 18, 2024, marking Mongolia’s official announcement to boost tourism in 2024 under the initiative “GoMongolia.”

Addressing the audience at the event, the Prime Minister remarked, “In 2023, Mongolia achieved significant economic milestones, fostering a conducive investment environment. As part of a comprehensive tourism promotion strategy, the successful implementation of air transport liberalization enabled flights to 155 destinations across 42 countries. This initiative also led to the expansion of domestic flight routes and a subsequent reduction in airfare. Through targeted foreign advertising, Mongolia’s narrative reached an audience of 155 million people worldwide. Consequently, the country welcomed 650,000 tourists in 2023, generating a noteworthy $1.2 billion in revenue from the tourism sector. Moreover, Mongolia’s positive perception surged by approximately 40 percent, elevating its international reputation and securing its position as a top travel destination for the first time.”

The event brought together distinguished guests, including Joo-Ok Lee, Head of Regional Agenda for Asia-Pacific at the World Economic Forum; Piyamit Bing Chomprasob, Deputy Head of Regional Agenda for Asia Pacific at the World Economic Forum; Matthew Chamberlain, CEO of the London Metal Exchange; Francois Valerian, Chief Board of Directors of Transparency International; Tony Fernandes, Founder of Air Asia; and Jakob Stausholm, CEO of Rio Tinto.

The local assignment of Mongolian Prime Minister L. Oyun-Erden continues in Arkhangai province. On this occasion, he got acquainted with the construction process of the newly built 300-bed general hospital in the province.

A comprehensive building that meets the requirements of modern medical standards, consisting of eight blocks, including an ambulatory, an inpatient unit, an oxygen and diesel station building, is being built at a cost of 25.2 billion MNT. Currently, the construction is 85 percent complete.

The main building of the Provincial General Hospital, which is currently operating, was commissioned in 1979. With a capacity of 160 beds, it currently provides referral level health care services with more than 200 beds. In the future, the provincial authorities developed a project to turn the old general hospital building into a “nursing training, research, health care and service complex” under the ASUU. He said that 19.2 billion MNT is needed for this. He also said that there is a shortage of nurses and special specialists in the province.

Governor of the province B. Tserennadmid presented the planning, engineering infrastructure, road improvement solutions and problems of the new settlement zone Bulgankhangai. Arkhangai province has established a new residential area on a total area of 60 hectares, and is working to build and improve Bulgankhangai-1 and 2 neighborhoods. Currently, 1,500 housing units have been allocated in eight locations. It is estimated that more than 113,000 people from 2,830 families will live in the settlement area, and the supply of housing will increase by 45 percent. At present, more than 80% of the province is in residential areas.

The 300-bed general hospital building is one of the first developments in the new residential area, and the Bulgankhangai-2 neighborhood will be put into operation in November this year. In the first 20 hectares of the neighborhood, there are 120 family apartments, 150 kindergartens, swimming pools, 320 children’s schools, sports halls, boarding houses, Emergency Department, Teacher Development Center, Prosecutor’s Office, Musical Drama Theater, “MCS” LLC. 63.2 billion was invested in commercial warehouse buildings, engineering networks, and infrastructure.

He said a total of 18.5 billion MNT is needed for the infrastructure and beautification of Bulgankhangai district, such as roads, bicycle and footpaths, lighting, green facilities, clean water facilities, electricity and heat supply. One of the problems in the province is heat supply. The thermal power plant is privatized, 11 boilers are solely managed by one company. There is not enough capacity to provide heat to newly commissioned enterprises and households with private residences. Therefore, I asked the Prime Minister to pay special attention to the issue of heat supply.

During his visit to Darkhan-Uul province, Prime Minister L. Oyun-Erdene inspected the operations of the Darkhan Metallurgical Plant. Established in 1990 using iron ore deposits from the Darkhan-Seleng region, the plant saw the economic activation of the Tumurtolgoi iron ore deposit in 2010, leading to the establishment of an open-pit mine.

In 2014, QSC LLC entered into a concession agreement with the Ministry of Economy and Development for a mining and metallurgical complex project. However, on April 13, 2022, the government, through Resolution 148, canceled the agreement due to the company’s failure to meet its obligations.

The Darkhan Metallurgical Plant annually produces 100,000 tons of steel products and 2.5 million tons of iron ore concentrate, supplying both domestic and international markets.

However, during the implementation of the concession agreement for the mining and metallurgical complex construction, the production process faced disruptions. This was due to the concessionaires’ failure to maintain the plant’s technology and machinery, as well as discontinuing the procurement of spare parts and inventory.

Following a government decision, the plant was returned to state ownership and underwent management reforms. G. Dugarjav, the executive director of the Darkhan Metallurgical Plant, reported a loss of 9.6 billion MNT in April 2022 but achieved a net profit of 17.3 billion MNT in 2023. In the same year, the plant contributed 15.2 billion MNT to the state budget and 13 billion MNT to the Darkhan-Uul Province budget.

Prime Minister L. Oyun-Erdene has directed the Minister of Finance to address the damages incurred by the plant due to QSC. He underscored the significance of the Darkhan Metallurgical Plant becoming the cornerstone of steel production in the nation. Additionally, he has instructed relevant officials to enhance the plant’s capacity to meet domestic market demands.

There is a plan to construct a steel processing complex centered around the Darkhan Metallurgical Plant in three phases, with the goal of having it operational by 2027. Based on an analysis of the demand and supply of steel products, Mongolia’s annual demand in 2023 stands at approximately 500-600 thousand tons, with projections indicating that this figure will surpass one million tons by 2027.

Nationally, development centers for people with disabilities are under construction in 21 provinces and 9 districts, with financial support from the Asian Development Bank. The centers in Khovd and Dundgovi provinces are already operational. Furthermore, on September 14th, the Development Center for People with Disabilities in Darkhan-Uul Province was officially inaugurated, with Prime Minister L. Oyun-Erdene present at the opening ceremony, where he delivered a speech.

The Prime Minister emphasized, “Vision 2050, Mongolia’s long-term development policy, is committed to creating a comprehensive, multifaceted development system that fully supports individuals with disabilities and guarantees their equal participation in society. As part of this overarching vision, we are establishing a Center for the Development of People with Disabilities in every province and district. Our focus is not just on providing physical infrastructure; it’s about delivering essential care services and, more importantly, safeguarding the voices and rights of individuals with disabilities within our society. We must work towards changing societal attitudes towards disabilities.”

Mongolia is home to more than 115,000 individuals with disabilities, with approximately 67 percent of them residing in rural areas. This includes around 5,200 people in Darkhan-Uul province. The Center for the Development of People with Disabilities is set to offer a range of crucial services, including rehabilitation, early diagnosis, and developmental support for both disabled children and adults. The center will also organize counseling and training programs for family members and guardians. Additionally, it will provide psychological and psychotherapeutic services, along with guidance on the procurement and utilization of prosthetics, orthopedics, and other tools, including their adjustment and repair.

The Cabinet convened its regular meeting on September 13, 2023, during which several matters were deliberated upon and subsequently addressed.

The Prime Minister has ordered the commencement of EPC-4, a package of the oil refinery project, with the aim of fully operationalizing the plant by 2027.

The Mongolian Government is committed to accelerating the progress of the oil refinery project. During the Cabinet meeting, the Prime Minister issued directives to compensate for the 13 months of lost work due to the COVID-19 pandemic. Specifically, the Prime Minister ordered the commencement of construction for the EPC-04 package of the Oil Refinery and emphasized the need to intensify efforts to ensure the plant becomes operational by 2027.

Mongolia aims to meet 100% of its domestic wheat and potato requirements, as well as produce over 80% of its vegetables locally.

During the Cabinet meeting, Minister of Food, Agriculture, and Light Industry Kh. Bolorchuluun presented the initial harvest results. It is estimated that Mongolia will yield 480 thousand tons of wheat, 165 thousand tons of potatoes, 165.8 thousand tons of vegetables, 64.8 thousand tons of oilseeds, 225.6 thousand tons of fodder plants, and 5 thousand tons of fruits. These results mean that Mongolia can now satisfy 100 percent of its wheat and potato demands, along with 81.3 percent of its vegetable requirements, all sourced from domestic crops.

Anticipated increases in production include a 19 percent rise in wheat, amounting to an additional 79 thousand tons, an 18.3 percent boost in vegetable production, equivalent to 25.7 thousand tons, a substantial 42.4 percent growth in animal feed production, contributing 67.2 thousand tons, and a 25 percent uptick in fruits and vegetables, totaling 1 thousand tons.

The agreement on air transport between the Government of Mongolia and the Government of the United States of America has been approved.

In light of the government’s declaration of Visit Mongolia Year for 2023-2025, the Ministry of Road and Transport Development has set ambitious objectives to enhance air travel. Their plan involves rapidly expanding flight routes and frequencies within a short timeframe, with intentions to secure air traffic agreements with approximately 10 new countries in 2023-2024.

In line with this strategy, efforts to establish an air communication agreement with the United States of America have been intensified. The draft agreement was deliberated upon during the Cabinet meeting on December 7, 2022. Subsequently, on August 4, 2023, during the official visit of the Prime Minister of Mongolia to the United States, the agreement was officially signed.

The “Agreement between the Government of Mongolia and the Government of the United States of America on Air Transport” now paves the way for direct flights between the two nations. This development will enable Mongolian citizens to travel comfortably to the United States at competitive rates. Furthermore, it is expected to boost the competitiveness of national air carriers and lead to the expansion and development of the air communication and flight network.

Mongolia is set to enhance its digital transition through collaboration with relevant institutions in Estonia.

During the cabinet meeting, Minister of Digital Development and Communications, N. Uchral, delivered a comprehensive overview of Mongolia’s participation in the eighth “Open Government Partnership” international conference, which took place in Tallinn, the capital of the Republic of Estonia.

In light of this, the Ministry of Digital Development and Communications has been entrusted with the responsibility of accelerating Mongolia’s digital transition through collaboration with relevant Estonian institutions. Furthermore, the minister has been given directives to initiate necessary measures aimed at creating a conducive environment for foreign investors, entrepreneurs, and high-tech experts to conduct business in Mongolia.