On March 17, Prime Minister L. Oyun-Erdene submitted a draft law to Speaker of Parliament, D. Amarbayasgalan, seeking ratification of an intergovernmental agreement between Mongolia and China aimed at enhancing the capacity of the Gashuunsukhait-Gantsmod port and facilitating coal sales. The agreement is part of a broader strategy to boost Mongolia’s economic development through improved infrastructure.

Signed on February 14, 2025, the agreement focuses on the construction of the Gashuunsukhait-Gantsmod cross-border railway, which has been designated as the top priority among 14 mega-projects initiated by the Mongolian government. The railway connection will serve as an important link, allowing for increased transportation of coal from the Tavantolgoi mine, one of the largest coal deposits in the country.

Upon receiving parliamentary approval, the government plans to announce a tender for the railway’s construction by the end of the month.

“I am confident that Parliament will approve the agreement early in the spring session, enabling construction to start without delay,” the Prime Minister stated.

This railway will represent the second major railway connection established between Mongolia and China, following the Zamiin-Uud-Erlian line, which was built under a 1955 agreement. The Gashuunsukhait-Gantsmod railway is expected to significantly enhance Mongolia’s port capacity, potentially doubling it and raising coal exports from the current average of 83 million tons per year to 165 million tons.

The anticipated increase in coal sales revenue – projected to hit USD 1.5 billion annually – will not only bolster Mongolia’s economy but also aid in reaching the government’s goal of achieving a GDP per capita of USD 10,000. This development promises to boost the National Sovereign Wealth Fund’s Accumulation Fund, creating a solid foundation for long-awaited tax reforms.

The implementation of Gashuunsukhait-Gantsmod project will facilitate the phased development of other railway connections at key ports, including Shiveekhuren-Sekhee, Bichigt-Zuunkhatavch, and Khangi-Mandal.

On January 17, Mongolian Prime Minister Oyun-Erdene Luvsannamsrai met with Laurent Saint-Martin, France’s Minister Delegate for Foreign Trade and French Nationals Abroad, and Nicolas Maes, CEO of Orano Group.

At the meeting, Prime Minister L. Oyun-Erdene highlighted France as Mongolia’s “third neighbor,” a reliable European partner, a permanent member of the UN Security Council, and a founding member of the European Union. He emphasized that fostering mutually beneficial cooperation with France is a key goal of Mongolia’s foreign policy.

“This year marks the 60th anniversary of diplomatic relations between our countries. Today, as we sign the agreement on the long-stalled uranium project, we mark a historic day in Mongolian-French relations,” he said.

Laurent Saint-Martin noted that the uranium project and investment agreement represent a significant milestone, not only for Mongolia and France but also for Mongolia-EU cooperation. He expressed gratitude to the Mongolian government for introducing French uranium mining technologies and expertise, opening a new chapter in Mongolia’s mining industry.

The investment agreement with Orano Mining is Mongolia’s second major agreement with a “third neighbor” and is poised to become a benchmark in the mining and minerals sector.

The parties acknowledged that the state visits of French President Emmanuel Macron to Mongolia and Mongolian President Khurelsukh Ukhnaa to France in 2023 have strengthened bilateral relations and paved the way for tangible outcomes in joint projects.

Prime Minister L. Oyun-Erdene reaffirmed Mongolia’s commitment to advancing cooperation with France, including the development of the Mongolian National Satellite Network. He also emphasized the government’s interest in collaborating with France on transport and urban development projects to address Ulaanbaatar’s congestion issues.

On September 11, the Cabinet convened for its regular meeting, with key highlights from the session summarized as follows:

Government to Expedite Implementation of Mega Projects

The coalition government, formed following the 2024 parliamentary elections, has outlined 14 major infrastructure and development projects in its action plan. The Prime Minister of Mongolia has tasked cabinet members with accelerating the execution of these projects.

Each cabinet member has been assigned to implement between 3 to 9 measures, totaling 129 distinct actions. Additionally, they are required to inform the public about the significance and expected outcomes of these projects. The members are also directed to prepare a comprehensive report on the government’s activities, due by December 20, 2024.

Parents to Share the Cost of Kindergarten Meals

The Cabinet has decided to raise the cost of kindergarten meals by 1,000 MNT. As a result, the daily cost of meals will increase to 4,000 MNT for kindergartens operating 8 to 10 hours a day, and 5,100 MNT for 24-hour kindergartens. Parents or guardians will be responsible for covering 1,000 MNT of this amount.

This resolution will apply to over 135,000 children enrolled in 310 state-run kindergartens across Ulaanbaatar. For parents, this translates to an additional 22,000 MNT per month or 190,000 MNT annually. The government will continue to cover 75% of the total meal cost, while parents contribute the remaining 25%.

Furthermore, the government will fully subsidize meal costs for 50,440 children from vulnerable groups, including orphans, children with disabilities, and those from low-income families. This decision will take effect on October 1, 2024.

“Paperless Government” Initiative to Digitize Operations

At the Cabinet meeting, N. Uchral, Chief of the Cabinet Secretariat, presented the “Paperless Government” initiative, aimed at digitizing government operations to enhance efficiency and reduce costs.

Cabinet members, along with local governors and government institutions, have been instructed to facilitate the digital exchange of documents. In addition, N. Uchral and O. Altangerel, the Minister of Justice and Home Affairs, have been tasked with refining the legal framework to support digital information exchange and streamline government processes.

A study by the State Productivity Committee revealed that the average annual paperwork cost for a single ministry amounts to 44.1 million MNT, with the total cost for 15 ministries reaching 662.3 million MNT. Additionally, ministries collectively spend 574.2 million MNT annually on postal and communication services.

The shift to digital operations is expected to reduce these costs and accelerate the provision of government services to citizens.

“New Cooperative Movement” to Be Strengthened Nationwide

The Government of Mongolia has launched the “New Cooperative Movement” to support herding families, increase revenue from livestock, and boost the incomes of herders through the production of animal-derived raw materials and products.

A five-year action plan, titled “New Cooperative – Prosperous Herders,” has been approved, and the government has committed to providing preferential investment loans to cooperative members. In the past 3 months, these loans were provided by commercial banks, with the government subsidizing interest rates.

To date, loans amounting to 502.3 billion MNT have been distributed to 14,600 herders belonging to 4,400 cooperatives. Additionally, 1,570 herders have submitted projects worth 88.3 billion MNT, which are currently under review by banks.

Following the Cabinet’s discussion, relevant government members and provincial governors were instructed to intensify the “New Cooperative Movement” at the national level.