On June 1, Parliament’s fourth
regular session closed after lasting
62 days. In the last day of the spring
session, they adopted many mining
and economic related laws as planned
with the purpose to intensify the
economy. For example, a revised Bill
on Oil, a Bill on Transparent Account,
Bills to amend the laws on Mineral
Resource, Customs Tariff and Customs
Tax, and on Value-added Tax, and
parliamentary resolutions on settling
the participation of state ownership
in the Tsagaan Suvarga Deposit and
approving basic guidelines to develop
Mongolia’s socio-economy in 2015,
which will be reported in detail by the
Mongol Messenger over the next few
During the spring session, a
total of 79 Bills of laws and drafts
of parliamentary resolutions were
discussed and passed, of which
nine were independent laws, 43
were amended laws, 2 were laws on
annulment, 4 laws on ratifcation of
agreements and treaties as well as 21
parliamentary resolutions.
In his speech to close the
parliament session, Parliament Speaker
Z. Enkhbold stressed the necessity to
toughen macro-economic policy and
restrict credit issuance at this time
when income from foreign currency
has decreased, causing infation to
rise, and loan quality to worsen.
“When Parliament approved the
basic guidelines on State monetary
policy for 2014, it focused on
maintaining the infation rate at 8
percent by the end of this year and
reducing it to 7 percent in 2015-
2016 to create conditions for macro-
economic stability in the mid-term.
But the infation rate as of May of this
year is at 13.7 percent; thus it shows
little possibility for this objective to
come true. Foreign currency income
declined much more than predicted,
causing the accumulation of State
Budget revenues to be intermittent.
The quality of the loans disbursed
to real sectors tends to turn bad. The
running balance declined by 56 percent
or USD728.2 billion compared with
the same period of the previous year,
but it still has a defcit of USD580.5
million. Making attempts to maintain
high growth of the economy stimulated
by the mining sector at the present
time when direct foreign investment
abruptly decreased, was a root for
the payment balance to be lost, the
national currency rate to drop, and
infation to rise. Therefore, we need to
realize a policy that toughens macro-
economic policy and restrict demands.
“Despite the fact that a restriction of
loan issuance will harshly affect the
real economy, in particular citizens
and businesses, we believe it is a
quite better option, preventing the
entire economy from crisis. I hope
that citizens and economic entities
will comprehend it and collaborate to
overcome this short-term economic
challenge, devoting hearts and
efforts. Nevertheless it escalates the
necessity to intensify a policy for
protecting jobs and real income of
low and middle-income citizens and
building an environment that domestic
production and national companies
can sustainably develop.
“If tolerable expenditures of
the government and refundable
investments of the budget continue Inside
Bloomberg commodity price 2014/07/03
GOLD USD/t oz. 1,322.70
COPPER USD/lb. 325.75
SILVER USD/t oz 21.10
SUGAR USd/lb. 16.44
WHEAT USd/bu 575.50
Continued on page 4
Since 1991
PM held e-meeting ........................p3
Gov’t ofcials overspent budgets....p4
Environmental activist sentenced for
7-year imprisonment......................p5
Night of Modern Ballet...................p7
to Minerals
law ends
on new
Spring session closes by adopting economic related laws
Z. Enkhbold: “Macro-economic policy needs to be toughened”
On July 1, Parliament passed
an amendment to the Minerals
law, putting an end to a four year
moratorium on new exploration
licenses. The amended Minerals Law
states that a license will be issued
only on permitted areas by the State.
The mining minister once explained
this regulation as issuing exploration
licenses orderly from the beginning
for about 20 percent of the territory.
“Exploration is the most important
part of the geological and mining
sector. There is no way to exploit a
mineral deposit without conducting
exploration and identifying the reserve
of minerals. The geological work runs
15-20 years before the extractive work’
said Mining Minister D.Gankhuyag.
Complying with the law
prohibiting mineral exploration and
mining operations at head waters
of rivers, protected zones of water
reservoirs and forested areas (aka
the law with a long name), as well as
on special purpose territories which
cover around 70-80 percent of the
total territory, exploration and mining
operations will not be permitted there.
The exploration licenses will be issued
by auction if a feld with high potential
is found as a result of geological
research funded by the State Budget.
To increase its value the license will be
issued after exploration and evaluation
work is done by a specialized private
company with good experience in
extractive industries.
Parliament passed a Law banning
new exploration licenses for mineral
resources on June 17, 2010 and the
Spring session ends, but irregular session may be called. Photo P.Tuguldur
Continued on page 3
B. Ooluun
On July 1, Parliament made a
decision to have fve days-off during
the National Naadam Holiday. The
government proposed to amend the
Law on public holidays and remarkable
days by adding two days off and
extend the Naadam Holiday to July
11-15. The National Naadam Holiday
is not only a symbol of Mongolia’s
independence and sovereignty,
but also a signifcant festival that
disseminates traditional culture, sports
and nationalism. At the present time
of globalization, it is our important
duty to develop, maintain and inherit
the features of the nation, lifestyles,
invaluable heritage of art and culture,
heroic history of ancestors, patriotism
and efforts, along with strengthening
friendly relations with world countries.
The National Holiday is said to be
a realization of this esteemed duty.
The Bill to amend the Law on public
holidays and remarkable days was
worked-out with a purpose to create a
possibility to disseminate and promote
national culture and lifestyles that has
been passed down for hundreds years
and assure that citizens can celebrate
the national holiday pleasantly.
According to the Law on public
holidays and remarkable days, the
National Naadam Holiday and
celebration of the People’s Revolution
are legal to be celebrated publicly
on July 11, 12 and 13 of every year.
However, there was no legal regulation
to have days off on working days in
case the celebration days of the holiday
fall on weekends as prescribed by the
Labor Law. This year, July 12 and
13 fall on the weekend, which led to
amend the law.
Making Naadam with fve days
off, the number of days for public rest
throughout the nation reached 13 this
year. When the Bill was considered at
the meeting of Standing Committee on
State Structure, MPs expressed support
to have more days of celebration during
national holidays such as Tsagaan
Sar and Naadam and Parliament set
up a working group responsible for
working-out a revised Bill on public
holidays and remarkable days with
the purpose to set an appropriate ratio
of public working days and day offs
a year.
Five days of granted for the Naadam Holiday
Friday, July 04, 2014 2 THE MONGOL MESSENGER
Editor-in-Chief: Givaandondog PUREVSAMBUU
English Editor: DAVID BROWN
Journalists: Batbayar OOLUUN
Translator: Mishigdorj UNURZUL
Khashbaatar SARNAI
Layout/design : Nyamdash BAT-SUKH
The Mongol Messenger, C.P.O.Box 1514, Ulaanbaatar-15160,
Telephone: (976-51) 266740, Tel/Fax: (976-11) 325512,
E-mail: mongolmessenger@yahoo.com
The Mongol Messenger is operated by the government news agency
MONTSAME and is printed by the MONTSAME
ISSN 1684-1883
n Ulaanbaatar and Central Aimags: Night temps
between 9
C and 15
C. Day time temps between 23

and 25
C. Rain on July 10
n Eastern Aimags:
Night temps between 11
C and 16
C. Day time temps
between 26
C and 31
n Western Aimags:
Night temps between 8
C and 13
C. Day time temps
between 18
C and 23
n Gobi Aimags:
Night temps between 14
C and 19
C. Day time temps
between 26
C and 31
Sunrise: 05.07 Sunset: 20.58
lOn June 26, a resolution became valid on the
list of the countries whose people can travel
Mongolia without visas in the period 2014-2015.
The governmental resolution was approved by
the Cabinet in frames of works to intensify the
national economy.
Ordinary passport holders of 42 countries with
the highest rates of GDP and human development
index are allowed to visit Mongolia without visas.
They are the United Kingdom, Luxembourg,
Norway, Switzerland, Austria, the Netherlands,
Ireland, Sweden, Iceland, Belgium, Denmark,
Finland, France, Italy, Malt, Slovenia, the Czech
Republic, Slovakia, Estonia, Greece, Spain,
Portugal, Lithuania, Latvia, Poland, Hungary,
Bulgaria, Romania, Lichtenstein, Monaco,
Andorra, Gibraltar, Vatican, the Bahamas, Iceland,
Trinidad and Tobago, Argentina, Uruguay, Panama,
Chile, Grenada, Costa Rica and the Republic of
Seychelles. (there are 44 countries listed here --
what about the USA?)
lThe Government of Canada offcially included
Mongolia on the special list of offcial development
assistance recipients. Twenty fve countries were
placed on the list which is updated every fve years
and will receive some 90 percent of the total ODA
to be provided by the Government of Canada in
the coming 5 years.
Thereby the Government of Canada strives
to provide consistent support to strengthen
democracy in Mongolia. Stephen Harper, Prime
Minister of Canada played a crucial role in making
this decision, Gregory Goldhawk, Ambassador of
Canada to Mongolia noted this at a meeting with
L.Bold, Mongolia’s Minister of Foreign Affairs.
Since 1997, Mongolia has received USD 5.1
million in assistance from the Government of
Canada within frames of the ODA.
lOn June 26, Dr. Marc Jacobs, representing the
World Health Organization, presented a ‘certifcate
of verifcation’ to Prime Minister N.Altankhuyag
for the total elimination of measles in Mongolia.
Dr. Marc Jacobs, Director for Combating
Communicable Diseases at the WHO Western
Pacifc Regional Offce, noted the similar
achievement in other three countries such as
Australia, South Korea and Macau, showing
that the elimination does not depend on the
development level of countries, but rather on
proper administration of vaccination and reasoned
mechanisms. Mr. Altankhuyag attributed this
success to the efforts of Mongolian doctors and
nurses who have been making great efforts for
proper vaccinations against measles here since
1973. Mongolia became the frst Asian country to
eradicate smallpox in 1940 and poliomyelitis or
infantile paralysis in 2000.
lFollowing its launch in September 2013, the
UK Alumni in Mongolia (UKAiM) association
continues to grow. The number of members is
now 200, including 15 Chevening scholars. The
association’s main aim is to promote UK education
and culture in Mongolia through various events
and social activities. A recent example of this was
a breakfast reception during Hugo Swire’s offcial
visit to Mongolia (this May 21-22). In his speech
to the group, Mr. Swire noted the importance of
the Chevening scholarship scheme. He said that
all British alumni around the world are a part of
the UK’s extended family and encouraged the
gathered to maintain their links with the United
Having graduated from Manchester, Leeds, Cardiff,
Edinburgh, Birmingham and the University of
London, the alumni have been working here in
many spheres, including sciences, innovation,
engineering, law and fnance.
lA delegation headed by General Iwata Kiyofumi,
Chief of Staff Japan Ground Self Defense Force, is
paying a working visit to Mongolia. On June 26,
the delegation was received by Major-General
Z.Boldbaatar, State Secretary of the Defense
Ministry, and Lieutenant-General Ts.Byambajav,
head of the General Headquarters of Mongolia’s
Armed Forces (GHMAF). They discussed issues
regarding ties and cooperation in defense between
the two countries.
On June 27, a military engineering training team at
the Japan Ground Self Defense Force exchanged
experiences with servicemen of the #014 military
unit on road construction and took part in opening
a joint training program. Moreover, the Japanese
delegation will get au fait with the course at the
‘Khaan Quest’ international military feld exercises
for peacekeeping operations, and will meet with
The visit will last until Saturday.
lOn June 27, Parliament Speaker Z.Enkhbold
received Mr. Naoyuki Shinohara, Deputy
Managing Director of the International Monetary
Fund (IMF) and Mr. Markus Rodlauer, Deputy
Director of the IMF for Asia-Pacifc Affairs
together with other offcials.
The Speaker thanked the guests for visiting
Mongolia and underlined that the legislative body
is altering some laws on the national economy in
frames of the ‘100 days for intensifying economic
growth’, being implemented by the government.
Mr. Shinohara said Mongolia should shrink its
policy on stretching the budget and the fscal
policies being run to deal with temporary
economical problems. He suggested that Mongolia
minimize the fscal supply and the size of loans by
maximizing the policy rate, which was used during
the 2009 economic crisis around the world and in
Mongolia. But this fscal policy cannot overcome
the diffculties alone, so it should be supported by
budget policy, he added. Non-budget investments
especially cause an increase in the credit supply
and stretches the budget, he said.
IMF cannot deny the role of the Development
Bank of Mongolia (DBM) in the development of
the country, but it must work under control and
calculate loans and fscal supply from foreign
countries together with the budget, Mr. Shinohara
said. He also emphasized that Mongolia needs to
urgently reduce budget expenditures to overcome
temporary economic diffculties in a short time.
The Speaker thanked the guests for concluding the
current situation in our economy. “Maximizing
the policy rate may cause people and enterprises
some diffculties and reduce the granting of bank
loans, but our parliament, government and related
bodies are paying great attention to not putting the
economy in crisis,” Mr. Enkhbold said.
lOn July 1, deputy Minister of Foreign Affairs
D.Gankhuyag met Ms. S.Oyun, Minister of
Environment and Green Development in the State
On behalf of the Minister of Foreign Affairs and
all diplomats of Mongolia, the Vice Minister
congratulated her on taking part as Chair of the
frst United Nations Environment Assembly
(UNEA) on June 23-27 in Nairobi, Kenya, and
gave her a Gerege (paiza).
Ms. Oyun served as the Minister of Foreign Affairs
in 2007-2008.
lOn June 23-24, Mongolia was elected one of
the member states of the Steering Council of the
Climate Investment Funds (CIFs) during the CIFs
Partnership Forum took place in Montego Bay,
Jamaica. The forum was organized by the World
Bank Group, and it covered areas like knowledge
and learning on low carbon, climate resilient
development and a key meeting place for climate
change champions from around the world.
Presently, the CIFs collected USD 8.8 billion
and the capital is being spent for low-income and
developing countries. The CIFs Partnership Forum
decided to give non-refundable aid of USD 300
thousand to Mongolia to work out an investment
plan for renewable energy after being involved
in the list of countries to implement projects in
frames of the Scaling-Up Renewable Energy
Program (SREP).
Approved in 2009, the SREP is aimed at
demonstrating the economic, social and
environmental viability of low carbon development
pathways in the energy sector by creating new
economic opportunities and increasing energy
access through the use of renewable energy.
lOn June 30, a credit agreement for the
project’s frst phase was signed by N.Batbayar,
Minister of Economic Development, by Robert
Schoellhammer, Country Director of the ADB for
Mongolia, and by S.Ochirbat, Deputy Mayor of
Ulaanbaatar in charge of urban development and
investment matters.
With this three-year project, the sides will
redevelop ger (national dwelling) areas, improve
the water supply, sewage plants and heating
services, upgrade social-economic infrastructure,
support small-sized fnancing, and increase the
potential of organizations that are to realize the
project. The expected sum for the project is 104.5
million USD, of which 82.08 million is for soft
loans, commercial loans and non-refundable aid
from the ADB and the European Investment Bank
(EIB), and 22.42 million will be given by the UB
The Ministry of Economic Development said
the project is supposed to renew engineering
infrastructure in ger areas, improve the adequacy
of economic and state services for people and
create 12,000-22,500 new jobs.
lOn June 28, a national anti-cancer campaign
successfully ended in its last destination in western
Uvs Aimag. In February, the National Oncology
Center, Khan Bank and Mongolian National
Broadcaster signed a cooperation memorandum to
launch the fourth edition of the ‘National Campaign
against Cancer’. It started in Darkhan-Uul Aimag
on May 11. Since then, a series of actions were
carried out in provinces with the highest cancer
rates such as Uvs, Khovd, Bayan-Olgii, Selenge,
Dornod, Sukhbaatar, Zavkhan and Govi-Altai.
The actions included check-up trips by specialists
and doctors of the National Oncology Center.
Mongolia-Japan hold frst strategic consultation in Tokyo
President delivers closing remarks at ‘Khaan Quest 2014’
Honorary Consulate operations open in Belgrade
Mongolia’s Ambassador presents credentials in Switzerland
On June 26, the Foreign Ministries of
Mongolia and Japan held their frst ever strategic
consultation meeting in Tokyo.
Under the leadership of Deputy Foreign
Ministers of the two countries–D.Gankhuyag
and Shinsuke Sugiyama, the sides reviewed
the current state of Mongolia-Japan strategic
partnership and discussed their further goals in
The Japanese side emphasized that a
statement delivered by Mongolia’s President
Ts.Elbegdorj at Japan’s Parliament during his visit
to the country in 2010, as well as an agreement
between the two parties on developing a strategic
partnership, have given valuable impetus to
stimulating bilateral ties.
Mr. Gankhuyag highlighted the expansion
of the bilateral strategic partnership in all felds
of development including politics, security,
economy, culture, education, people exchange
as well as with regional and international
The sides agreed on the effective
implementation of a mid-term program on the
strategic partnership and the intensifcation of
bilateral collaboration in the economic area. In
this regard, the Government of Mongolia will
organize a Mongolia-Japan business forum in
cooperation with the Japan Business Federation
and the Japan External Trade Organization in
Tokyo in July.
On June 27, Honorary Consulate operations
opened in Belgrade under the leadership of
recently appointed Honorary Consul Dr. Marco
Bumbasirevic, a Professor of Orthopedic Surgery
and Traumatology and Chair of the Orthopedic
Surgery Department.
Participating in the opening ceremony were
Ambassador of Mongolia to Serbia T.Gandi,
Serbian Deputy FM Dragan Momcilovic,
Minister of Foreign Affairs Australia and Asia
Pacifc Director Milisav Paich, Honorary Consul
Marco Bumbasirevic and Serbia’s political and
economic organization offcials, representatives
of sports, tourism and business sector and
representatives of the media.
At the Opening ceremony, speeches were
given by Ambassador T.Gandi, Deputy Minister
Dragan Momcilovic, Honorary Consul Marco
Bumbasirevic and required documents were
granted to Mr. Marco Bumbasirevic, wishing
great success.
Mr. Bumbasirevic, the frst-ever honorary
consul of Mongolia to Serbia, expressed
commitment to protect the legal rights of
Mongolians residing in Serbia, to develop
Mongolia-Serbia relations and cooperation
in all felds, as well as to promote Mongolia
in Serbia. He also noted the readiness of the
Serbian governmental organizations to support
his efforts.
Prior to the ceremony, Ms. Gandi met with
the Consul to ask him to make it a priority to
increase the number of Mongolian students
seeking high education scholarships from the
Serbian side, and grant two scholarships in the
academic years 2014-2015. She also gave Mr.
Bumbasirevic recommendations that Mongolia’s
Embassy wants to refect in the 2014 action
plans of the Honorary Consul, and signed a
memorandum of understanding with him.
On July 1, V.Purevdorj Mongolia’s
Ambassador to Switzerland presented his
credentials to Didier Burkhalter, President of
Following the offcial ceremony, the sides
shared views on issues of bilateral relations and
cooperation. Ambassador V.Purevdorj noted that
Mongolia and Switzerland have developed closer
ties over the last 50 years since the establishment
of diplomatic relations, especially since the
beginning of democratic transformations in
Mongolia is thankful to Switzerland for
implementing projects and programs through
the Swiss Agency for Development and
Cooperation (SDC) which are conducive to
priority development guidelines of Mongolia’s
advancing democracy, developing agricultural
industry, promoting rural development,
protecting the environment and developing
vocational education.
Mentioning that the two countries maintain
closer collaboration within UN and other
international organizations, Ambassador
Purevdorj congratulated Switzerland on chairing
the OSCE this year.
President Burkhalter said that this year
the sides are marking the 50th anniversary of
diplomatic relations and the 10th anniversary
of SDC in Mongolia. He then highlighted the
great potential for deepening bilateral trade and
economic cooperation.
On July 2, the Ministry of Foreign Affairs of
Mongolia held a workshop in cooperation with
the Asia Foundation titled, ‘Asian approaches
to development cooperation: Strategies for
Mongolia’s International Aid Fund’.
The workshop focused on objectives and
guidelines of Mongolia’s International Aid
Fund’s activities, features of development
cooperation policies of Asian countries, targeted
programs and initiatives, models of international
development assistance of donor nations,
education for democracy, regional cooperation,
economic dialogues, capacity building, and
knowledge dissemination.
The participants resolved to combine efforts
to consolidate Mongolia’s International Aid
Fund’s activities and host such workshops and
events in the future.
Asian approaches to development cooperation
On July 1, the annual ‘Khaan Quest 2014’
multinational peacekeeping exercise concluded
successfully. Over 1200 military personnel from
23 countries participated in the command post
exercise, feld tactical exercise, joint medical
exercise and joint construction exercise which
took place from June 20 to July 1, 2014.
President and Commander in Chief of the
Armed Forces of Mongolia Tsakhia Elbegdorj
delivered remarks at the closing ceremony of
‘Khaan Quest 2014’. He said, “I am confdent
that you learned a lot by participating in the
peacekeeping exercises and got acquainted with
the unique nomadic culture of our beautiful
Mongolian country and became close friends. I
am sure that you bonded in Mongolia, inspired
by your knowledge about Mongolia’s life, values
and traditions; you will further seek to contribute
to global friendship and mutual relations among
nations, cherishing your most tender memories
of Mongolia.”
“Mongolian peacekeepers are praised many
times by the U.N., heads of state and government
of the countries involved in international
peacekeeping operations and military offcials
for their successful and honorable discharge
of our mission. All these achievements are
brought by the ‘Khaan Quest 2014’ international
peacekeeping exercise.”
Khaan Quest is a regularly scheduled,
multinational exercise co-sponsored by the
United States Marine Corps Forces Pacifc and
United States Army Pacifc and hosted by the
Mongolian Armed Forces. Khaan Quest 2014
is the latest in a continuing series of exercises
designed to promote regional peace and
Ts.Elbegdorj at the closing ceremony
Workshop at the Foreign Ministry
Deputy Foreign Ministers meeting in Tokyo
THE MONGOL MESSENGER 3 Friday, June 6, 2014
On June 26, the Cabinet
discussed following issues at an
irregular meeting
The Board of Directors of the
Development Bank of Mongolia
(DBM) was allowed to build a credit
agreement of USD75 million with
Russia’s Vnesheconom Bank for the
purpose of fnancing the expansion
and capacity of Thermal Power Plant
#4 by purchasing a 100MW turbo
generator to be newly installed.
Vnesheconom Bank proposed
to coordinate the term of DBM’s
fnancing with another term stated
in the agreement ‘Project fnancing
and repayment settlement’. In case
of extending the term of credit
repayment as stated in Government
Rresolution #99 in 2012 and in the
agreement, it is possible to render
fnancing of 5-8 years consistent
with the term.
So, the 3rd clause of Government
Resolution #99 was annulled and the
credit repayment term was extended
to amend the agreement. It gives
the possibility to receive long-term
fnancing from the bank under
refundable terms in 2022.
To fnance required money to
expand capacity of the Thermal
Power Plant #4, the DBM has
established a ‘Project fnancing
and repayment settlement’ and
will disburse the project fnancing
according to relevant construction
contracts and project performance.
So far, it has disbursed fnancing of
USD48.5 million for the project.
Development Bank of Mongolia to
cooperate with foreign banks
At the Cabinet meeting, the
DBM’s Board of Directors was
allowed to open a loan issuance equal
to 10 percent of its own equity and
build relevant agreements with the
purpose to fnd required fnancing
to fund projects within the ‘Export
Promotion Program’.
According to the government
ordinance, a total of 1151 projects
were received within frames to select
projects that can promote exports
and substitute imports. Of them, 599
that require fnancing less than Tgs2
billion were transferred to the Labor
Ministry’s Fund to Promote Small
and Medium-sized Enterprises. Of
286 projects that require fnancing
greater than Tgs2 billion remain at
the DBM. Of them, 161 have a plan
to import equipment worth Tgs2.43
trillion from foreign countries;
therefore, the DBM plans to fnance
them with fnancial sources in
collaboration with ExIm banks of the
USA, South Korea, China, Turkey,
Japan, Russia and Italy.
‘Soum center development’ project
In collaboration with relevant
professional organizations, the
Ministry of Construction and
Urban Development has worked
out a general development plan
and engineering line blueprints
for 16 soums where the ‘Soum
center development’ project will be
implemented. They announced a
tender under the law.
If the project is entirely
implemented, over 65 thousand
citizens of 16 soums will be
provided with drinking water that
meets hygienic requirements and be
connected to a drainage system and
central heating supply.
In brief
-At its irregular meeting, the Cabinet
supported Bills to amend the laws
on customs, customs tariff, customs
tax and VAT. The Cabinet decided
to submit them to Parliament.
On June 28, the Cabinet held its
regular meeting and discussed the
following issues
Bill to amend the Law on Corporate
Income Tax discussed
To run the second phase of tax
reform that promotes business, the
Cabinet made a decision to reimburse
90 percent of the income duties paid
to the State by businesses that operate
in sectors other than mining, mineral
resources, oil products import, cell
phone operation services, alcoholic
drink production, tobacco and
banking and fnance, and that have
annual sales income no higher than
Tgs1.5 billion. Reimbursement of
90 percent of corporate income tax
will ensure SMEs to accumulate
capital, invest in equipment, and
expand their activity. According to
the Bill, the businesses will be given
a tax reimbursement if they meet the
following requirements:
1. They must operate in a
sector which is not legally forbidden
2. Sales income of the
company throughout the taxable year
must be up to Tgs1.5 billion
3. Must submit a punctual
fnancial report
4. Duties must be paid.
If the Bill is approved, 45.3
percent or 40,232 entities are
expected to be involved in the tax
Revised Bill on compulsory health
insurance to be submitted to
Since 2013, 97 percent of
Mongolia’s population has been
involved in health insurance. Since
the civil health insurance law was
frst passed in 1993, the law has been
amended nine times and revised
in 2002. These amendments and
revisions were directed to resolving
pressing issues of the particular time,
but there were no substantial changes
to tackle challenges in the insurance
system, including protecting rights
of insured people, developing an
insurance organization that can
provide quality services and ascertain
duties and rights of participant bodies
in the system.
Thus, the Bill focused on issues
regarding the rights of insured
people, service quality, protecting
insured people from fnancial risk
and prevention.
In brief:
-The cabinet appraised results of
the 6th meeting of the Mongolia-
Kazakhstan intergovernmental
commission on trade, economy,
science, technique and cultural
cooperation that was held on May
26-27, 2014 in Ulaanbaatar and
assigned S.Erdene, head of the
Mongolian side to the commission
to control implementation of
follow-up action plans.
-A draft of the directive to be adhered
by the Mongolian side during the
offcial visit by Frank-Walter
Steinmeier, Federal Minister for
Foreign Affairs on July 6-7 and
was decided to be approved by the
Prime Minister.
- A draft concept for the Children’s
protection Law and a draft of
the concept for a revised Bill on
Children’s rights was discussed.
Prime Minister holds e-meeting with aimag authorities
to be fnanced out of the budget with
a source of the Development Bank
of Mongolia, the running balance
of the payment will probably create
a real crisis if government does not
implement some connected laws
adopted by Parliament. The study
indicates that the DBM disbursed out-
of-budget fnancing equal to 5 percent
of the Gross Domestic Product (GDP).
If it continues further and projects and
programs in anticipation at the DBM
are fnanced with the USD1 billion
in bond money, which is currently
deposited in the DBM, the total budget
loss is likely to reach 10 percent of
“Therefore, a State Budget
adjustment needs to be worked-out
under a policy to refect all fnancing
and the expenditure and budgetary
activities of the Chinggis and Samurai
bonds being made by the DBM in the
State Budget, and decrease the total
budget loss to the level stipulated in
the Budget Stability Law stage by
The budget adjustment Bill has to
be submitted to Parliament in August”
he said.
Moreover, he said that the Bank of
Mongolia needs to work initiatively to
tighten inspections in the banking and
fnancial sector, take prompt action
to restrict loans whose loan quality
worsens, change the inappropriate
ratio of foreign currency loans, and
improve the legal environment to
coordinate entire currency loans.
During the spring session
of Parliament, the DP Group in
Parliament took breaks 3 times that
took 15 days, MPP Group –9 times
(37 days) and ‘Justice’ Coalition – 4
times (16 days), or 16 times for 68
days in total on 16 issues discussed
at plenary meetings of Parliament and
meetings of standing committees. It
caused trouble to resolve some laws
and legislation on time. Moreover,
due to some underworked Bills and
a draft of resolutions submitted by
the government and/or conficts of
ideology between groups of political
parties and coalitions in Parliament,
some Bills and draft resolutions namely
on ‘Control,’ ‘Oil,’ ‘Ratifying a loan
agreement on payment system reform
project between the Government of
Mongolia and the Asian Development
Bank’ as well as ‘Instructions’ were
rejected, taking much time”, stressed
the Speaker.
On May 8, 2014 the Parliament
passed Resolution #34 on some
actions to intensify the economy. He
appealed to the government to focus
on satisfying implementation of the
resolution and work actively without
losing time because the term of the
resolution’s realization is clear. If there
is a matter that requires a Parliament
resolution, an extraordinary session of
Parliament will probably be called.
Spring session closes by adopting economic related laws
Continued from page 1
On July 2, 2014, Prime Minister
N. Altankhuyag held an e-meeting
with authorities of aimags. At the
meeting, Mr. Altankhuyag said that
the government submitted a Bill to
Parliament to amend the Law on
Public Celebrations and Remarkable
Days. The Bill refects a clause on
extending the Naadam Holidays from
three to fve days and Parliament
approved this law.
“We plan to include a competition
‘Horseman’ in the Naadam Festival
program. In order to promote tourism,
we are intending to make Mongolia’s
Naadam Holiday and ‘Horseman’
competition a world brand”, he noted.
On July 12, a concert ‘Let’s sing
together about the homeland’ will be
organized on Chinggis Khaan Square
in Ulaanbaatar. Such cultural measures
should be organized in rural areas, the
prime minister said.
The Government launched a
soum renovation program. This
year, the ‘New Soum’ project will
be implemented in 16 soums. A total
of Tgs5 billion is budgeted for each
soum within the project
This year, the centers of Dornod,
Sukhbaatar, Umnugobi, and
Khuvsgul aimags will be connected to
Ulaanbaatar by paved asphalt roads.
Local governments should pay special
attention to the implementation of this
project, Prime Minister Altankhuyag
said. The government is making
efforts to connect centers of all 21
aimags to Ulaanbaatar with paved
roads by 2015.
At the ‘Hours of Construction’
meeting on June 30 2014, the National
Committee to reduce air pollution
reported on works done in the past six
J.Erdenetsogt, head of the working
group of the National Committee, said
“A new source to supply heat will be
put into operation this year. This sub-
station is being constructed relying on
Thermoelectric Power Station No 4.
It is planned to provide 45,000
households in Ulaanbaatar with
improved smokeless stoves at a
discounted price. As of today, 29,000
families received the improved stoves.
The remaining 16,000 households will
be given the stoves before winter. By
doing so, about 170,000 households
will be provided with smokeless
stoves. A smart monitoring system
on air quality will be introduced to
provide people with information on air
pollution. In the frst stage, information
on air quality will be delivered on LED
screens at bus stations where traffc
movement density is high.”
The National Committee is
making an effort to increase the
storage capacity of liquefed gas as
part of the work to reduce air pollution.
They commenced work to increase
the capacity of reserve containers
of gas distributing companies from
2,800m3 to 5,200m3. Moreover, they
plan to provide 5,000 households
with gas stoves in order to increase
the consumption of gas. Furthermore,
they are negotiating with Kazakhstan
to import liquefed gas at a low cost.
The National Committee is supporting
companies that produce biofuel.
T.Khasbaatar, an advisor to the
Prime Minister, said “At the policy
level, it was legalized to exempt
energy saving products and improved
smokeless stoves from customs and
VAT taxes. A regulation on imposing
payments to air polluters will be
This year, we will spend Tgs 20.2
billion on measures to reduce air
pollution. As of today, Tgs 3.9 billion
was spent to reduce air pollution.
Actions to reduce air pollution introduced
In Ulaanbaatar, air pollution is one of the most serious problems. Photo P.Tuguldur
Online meeting between the PM and aimag offcials
Friday, July 04, 2014 4 THE MONGOL MESSENGER
law’s term was extended until now;
so, no licenses have been issued in
these four years. Due to the ban on
exploration licenses, a great number
of licenses that were improperly
issued were arranged and the number
of licenses was abruptly reduced.
However, it is considered necessary
to annul the ban which played its role
because investment in the exploration
sector drastically declined. It has
become diffcult to develop geology
and exploration sectors and new
exploration works have not been
carried-out, which limits wealth
resources, economic capability, and
credit rating indicators to decrease.
According to the minister, since license
issuing was banned, many works were
done to improve license registration
and the control system. Prior to the
ban or from 2005 to 2010, the licensed
area of mineral resources covered
up to 46 percent of Mongolia’s total
Today, it has been reduced to 7.6
percent. In 2010, there were 4,137
licenses issued, but now there are
Due to climatic features of
Mongolia, the suitable period for
conducting geological research
and explorations is seven months.
Parliament supported the government’s
proposal to change the term of an
exploration license that was nine years
in total, to 12 years with the amended
The government developed the
amendment to the law based on a
minerals policy adopted by Mongolia’s
Parliament that seeks to limit the
state’s role in mining and create
stability in the sector. However some
clauses related to state participation
in minerals deposits caused disputes
among party groups and some MPP
members during the discussion.
MPs G.Uyanga, B.Bat-Erdene
and Kh.Bolorchuluun expressed
opposition that the amendment to the
Bill signifcantly lowers the state’s
share in mineral deposits, breaking
people’s hope to beneft from mineral
The ‘Justice’ coalition took a break
and later the coalition and DP group
agreed to cancel new clauses related
to the state’s participation in deposits.
Therefore, the state’s participation
and share in the deposits remain the
same as stated in the current law.
The percentage of the State share in a
minerals deposit shall be established
by an agreement on exploitation of the
deposit where State funded exploration
was used to determine reserves. The
State may participate up to 50 percent
jointly with a private legal person
in the exploitation of a minerals
deposit of strategic importance where
State funded exploration was used
to determine proven reserves. The
percentage of the state’s share shall
be determined by an agreement on
exploitation of the deposit considering
the amount of investment made by
the State. The State may own up to 34
percent of the shares of the investment
made by a license holder in a mineral
deposit of strategic importance where
proven reserves were determined
through funding sources other than the
State Budget.
Amendments to the 2006 Minerals
law also include creating a national
geological survey and forming a Policy
Council to oversee legal changes in
the mining sector. With a purpose to
encourage domestic companies, the
law states that a taxpayer registered
in Mongolia shall be privileged in
the frst turn when the exploration
and mining license holder makes
procurement and chooses a contractor.
To ensure that the exploration license
holder conducts complete prospecting
research, the license transfer or sale
is prohibited for three years after its
issuance. Furthermore the exploration
license holder should give back 10
percent of the licensed areas in the
third year and 20 percent in the sixth
year to the state.
According to the Mining Ministry,
the amendment will improve mining
rehabilitation and closing standards
and regulations in harmony with
international standards, promote
effcient and leading techniques and
technology which have minimal
negative effects on human health
and the environment, and support the
export of value-added products by
improving minerals processing rather
than exporting raw minerals.
economic news
Current defcit stands at
USD 580.5 million
The current account defcit stands
at USD580.5 million which is a
decrease of 56 percent or USD728.2
million from the previous year, says
the Central Bank of Mongolia.
This includes a 98 percent
decrease of international trade in
goods’ defcit for the frst fve months
of 2014, thus showing a surplus
of USD8.4 million. Meanwhile,
the defcit in international trade in
services’ decreased by 12 percent
to USD561.3 million, the defcit
on income account dropped by 57
percent to USD 101.9 million, and the
surplus on current transfer increased
by 42 percent to USD 91.1 million.
Capital and fnancial accounts
showed a defcit of USD2.6 million,
decreasing 100 percent or USD969.6
million from 2013. This is due to a
64 percent decline in direct foreign
investment to Mongolia which
equals USD708.0 million. There was
an increase of USD611.3 million in
other investment defcit.
Such increase in other investments
was caused by a USD176.8 million
increase in trade credit receivables,
an increase of USD407.1 million
in FX fow to the domestic market,
a decrease of USD108.4 million
of currency and deposits, and a
USD111.3 million decline in the
disbursement of loans.
Commercial banks fund 18,472
requests for loans
Commercial banks of Mongolia
have received re-fnancing requests
for low interest mortgage loans
totaling Tgs850.6 billion. Since
commencing the annual 8 percent
mortgage program last June, the
banks received requests to refund
already-awarded housing loans
of Tgs850.6 billion under the
Government program to stabilize the
nation’s mortgage system. Refunding
requests for loans totaling Tgs534.2
billion from 18,472 people have been
approved by commercial banks.
During the same period,
commercial banks have received low
interest mortgage loan applications
totaling Tgs1.1 trillion. After careful
consideration over the new requests,
the banks decided to grant mortgages
totaling Tgs1 trillion, 49.8 billion to
20,734 applicants.
Viking Mines signs 2nd MoU with
Erdenet Power Plant
Viking Mines signed a second
future coal supply agreement with
the Mongolian Government for its
Berkh Uul Bituminous Coal project.
This further validates the rationale for
Viking to takeover Auminco Mines
and Berkh Uul’s potential to deliver
high quality thermal coal, says news
published on the Proactive Investors
The non-binding Memorandum
of Understanding was signed with
Erdenet Power Plant State-owned
Stock Company (EPP), a major
supplier of electricity to the Erdenet
copper mine. “The fact that the Berkh
Uul Project continues to be recognized
by the Mongolian Government as a
potential key supplier of coal to the
EPP, is a further signifcant milestone
in the development of the project”,
said Managing Director Peter
McMickan. “Auminco’s ongoing
discussions with domestic end-users
continue to confrm a local industrial
demand in northern Mongolia for
unwashed Berkh Uul coal, due to its
low ash, low sulphur and relatively
high calorifc value. This second
MoU provides more evidence of the
potential customer base for Berkh
Uul’s coal”, he noted.
BoM to cooperate with Japan’s FSA
The Bank of Mongolia (BoM)
will cooperate with the Financial
Services Agency of Japan (FSA).
On June 30, a memorandum of
the cooperation was inked by
N.Zoljargal, BoM President, and by
Ryutaro Hatanaka, Commissioner
of the FSA.
Accordingly, the sides will
upgrade the fnancial regulation
system; develop the fnancial
market, and share knowledge
and experiences in the fnancial
B. Ooluun
The MPP Group in Parliament
claimed that offcials have overused
their powers, spent budget money
ineffectively, and is proven in a
report of the National Audit Offce
given during the discussion of a
parliamentary resolution on approving
realization of the 2013 Master Budget
of Mongolia.
At the July 1 plenary meeting
of Parliament, a draft parliamentary
resolution on approving realization
of the 2013 Master Budget of
Mongolia and the second discussion
of Mongolia’s unifed fnancial report
for 2013 were conducted, resulting in
approvals respectively supported by
most MPs. Equilibrated revenue of
the 2013 State Budget was approved
to be Tgs4,010,398.6 million (four
trillion, ten billion, three hundred
ninety eight million, six hundred
thousand) while expenditures of the
budget realization (adjusted with
the equilibrated revenue) totaled
Tgs4,683,038.2 million (four trillion,
six hundred ninety three billion, thirty
eight million, two hundred thousand).
Prior to the approvals, MP Ch.
Khurelbaatar introduced the MPP
Group’s conclusion. The conclusion
reads that 65 percent of budget
managers exceeded their foreign
visit expenses of Tgs2.2 million to
Tgs558.3 million and 11 budget
managers exceeded the planned budget
for foreign guests by Tgs1 billion,
breaking the Law on Budget. It was
found that 222 offcials, apart from
those who are eligible to use offcial
cars according to the government
resolution #349 in 2007, are using
offcial automobiles. The estimation
said that Tgs3.3 million was spent per
servant who overspent their authority.
At a time when the country is suffering
budgetary and fnancial diffculty,
offcials choose luxurious, not
economical use for themselves, and
spent Tgs20.5 billion on purchasing
automobiles which each cost between
Tgs52.1 million and Tgs354.5 million
and consume 17 liters of fuel every
100kms. Over the past three years, a
total of 61 automobiles, each costing
over Tgs83 million, were purchased
for state servants, of which 22 were
bought in 2012 and 29 in 2013.
“- We think this is clear evidence
of how power holders enjoy luxury
with State Budget money and spend
taxpayers’ money ineffectively. Prime
Minister N.Altankhuyag’s made a
commitment saying “Expenses on
high uses and feasts will be cut and
offcials will not be allowed to visit
abroad more than two times a year
and will even work on weekends”
was forgotten and shows us how
things are in reality. The MPP Group
in Parliament strictly condemns that
offcials enjoy luxuries with taxpayers’
money while the people are living
tight-belted, trying to overcome the
crisis with little loss”.
In connection with the
abovementioned issues, the MPP
Group in Parliament sent the following
demand with ten provisions to the
- Government shall move into a
saving mode and liquidate ministries
that have the same function and
merge them to make the government
composition be nine, as well as to
work out and urgently submit Bills to
Parliament to amend relevant laws;
- To take urgent action to include
spending of ‘Chinggis’ and ‘Samurai’
bonds in the State Budget which are
being spent uncontrollably from
Mongolia’s State Budget consistent
with the Laws on State Budget and
Fiscal Stability;
- To satisfy fulfllment of the
examination report on infringements
made by the National Audit Offce for
realization of the 2013 State Budget of
Mongolia, take legal action on guilty
offcials, and report the results to
Parliament before October 15, 2014;
- To sell automobiles being used
by 222 offcials who are not eligible to
have automobiles and return income
from the sales to the State Budget;
- To take legal action on over 100
offcials who took budget discrepancy
worth Tgs157 billion as stated in
the auditing report and report to
the relevant parliamentary standing
committee about what measures have
been taken;
- To issue an auditing conclusion
on spending special funds of the
government and report it to Parliament
before October 15, 2014;
- To take legal action on budget
managers who loosened fnancial
control and raised groundless debits.
A parliamentary resolution on
some actions to be taken in connection
with approval of realizing the 2013
State Budget of Mongolia was adopted
on July 1 and it contains some of the
provisions in the abovementioned
demand of MPP.
Government ofcials overspent budget money by great amounts
Despite MPP’s concerns, will the government make any corrections?

Amendment to Minerals law ends moratorium on new exploration licenses
Continued from page 1
About 90 percent of business
entities in Mongolia are small and
medium-sized enterprises and form
over 10 percent of the country’s
budget revenue. On June 27, 2014, a
frst ever consultation was organized
among small and medium enterprises
in Ulaanbaatar.
Nationwide, there are 66,500
small and medium-sized enterprises
of which 93 percent have up to 30
employees. Moreover, 45 percent of
the total SMEs are operating in the
trade and service sectors. Over eight
years has passed since the government
started to grant loans for supporting
small and medium-sized enterprises.
This loan is granted for a 5-year term
with an interest rate of 7 percent per
year. In order to grant loans to small
and medium-sized enterprises, Tgs 1
billion was budgeted in the national
budget in 2006, Tgs 3 billion in 2007
and 2008 and Tgs 30 billion in 2009
and 2010. In 2011, the government
issued bonds worth Tgs 300 billion. In
connection, Tgs 150 billion was loaned
to support small and medium-sized
production. Currently, circulating
capital of the loan for supporting small
and medium production amounts to
Tgs322 billion of which, Tgs90 billion
is being spent on developing soums.
Equipment for small and medium-
sized production was exempted from
customs and VAT taxes. Last year,
936 different kinds of equipment were
included in the tax exemption. Small
and medium-sized enterprises saved
Tgs 26 billion due to the tax exemption
measure. Most of the SMEs operate in
Ulaanbaatar in connection with the
population density and Ulaanbaatar is
home to about 26,000 SMEs.
At the opening of the consultation,
T.Bat-Erdene, Deputy Mayor
responsible for ecology and green
development, said “Tgs 5 billion is
budgeted for granting discounted
loans to SMEs in Ulaanbaatar. High
interest rates are the biggest problem
for SMEs. So, we plan to grant loans
with an interest rate not more than 5
percent per year. This is the lowest
interest rate in Mongolia.” He went
on to say that we grant loan to SMEs
which have the best projections.
The discounted loan aims at
expanding small and medium-sized
production, renovating equipment;
increasing employment, promoting
eco friendly manufacturing and
introducing a loan guarantee service.
Relying upon conclusions made
at the consultation, the ‘Ulaanbaatar
Production’ project will be
Ulaanbaatar ofers 5 percent interest loans for SME development
THE MONGOL MESSENGER 5 Friday, July 04, 2014
On 27 June, the Supreme Court
confrmed the capital court’s decision
to sentence Ts.Munkhbayar, an
environmental activist and head of the
Gal Undesten movement to 7 years.
Ts.Monkhbayar and six others were
charged for placing grenades in several
places near the State House, opening
fre on civil servants and attempting
to threaten civilians. The sentences to
other suspects also remained according
to the capital court’s charges on April
6. Movement member G.Boldbaatar
was sentenced to 6.11 years,
D.Tumurbaatar to 10.6 years, and
J.Ganbold to 1 year, and Dashtseren to
2 years. D.Tumurbaatar was sentenced
to more years than others because he
was previously involved in a crime.
Two other suspects, O.Sambuuyondon
and B.Gantulga were affrmed to be
Although Ts.Munkhbayar and
others requested to participate in
the hearing, the court considered
it unnecessary. MP G.Uyanga,
Ts.Davaasuren and Kh.Bolorchuluun
attended the Supreme Court’s hearing
with their offcial requests and after the
trial, they expressed their opposition
against the Supreme Court’s decision,
saying that they would appeal to the
President of Mongolia. MP G.Uyanga
said “Ts.Munkhbayar did not commit
a crime. He fghts for the motherland
and nature. I do not see justice. Half
of the territory is being destroyed.
Due to an erroneous agreement for
the Oyu Tolgoi project, Mongolia is
paying USD150 million annually. But
offcials who made the agreement have
not borne any responsibility. I don’t
imagine such a decision would be
made when the Democratic Party is in
power. I will do my best to free him”.
MP Ts.Davaasuren said “Their form of
fghting might have been wrong, but it
was a political fght. Democrats also
reached today’s position by making
political fghts. I expected them to see
this case from another angle, but they
made a far worse decision than those
of the communist era”.
The incident occurred on
September 16, 2013. Parliament was
discussing an amendment to the law
on banning mineral exploration and
exploitation at river sources, water
basins and forested areas at its irregular
session when the demonstration
by Gal Undesten movement was
held. The group of people including
Ts.Munkhbayar entered the State house
garden, a specially protected zone with
frearms, and when government special
guards detained three protesters of the
movement, they fred a shot. There
were no human casualties or injuries.
According to the investigation
department of the Intelligence Service,
an explosive device was discovered
soon afterwards in the garden.
Another call was registered by police
later in the day and TNT explosives
were discovered in a trash can outside
Central Tower and in a fower-bed
near the Ministry of Environment and
Green Development. One frearm,
one saiga gun, 46 bullets for a 7.62
mm rife, and 9 hand grenades were
confscated from the three members of
the movement.
Since then, they have been detained
in a detention center and at the primary
criminal court Ts.Munkhbayar,
G.Boldbaatar, D.Tumurbaatar, and
J.Ganbold were each sentenced to a
21.6 year jail term. Afterwards, MP
G.Uyanga unsuccessfully requested
that the district court release
Ts.Munkhbayar on bail in November
Ts. Munkhbayar began the Onggi
River Movement environmental
group in 2001. He struggled for the
protection of nature against mining
activities and was awarded the 2007
Goldman Environmental prize for his
environmental achievement in Asia.
How can the citizens of Mongolia
be protected from disasters? How
can hospitals, school buildings and
local communities be made safer and
stronger, before earthquakes or foods
How can government agencies
and the people work together to
reduce the risks from natural hazards?
The answers to these questions
were discussed at a Disaster Risk
Management (DRM) workshop in
On June 27, a workshop was hosted
jointly by the National Emergency
Management Agency (NEMA) and
the World Bank to bring together
over 70 participants from the Offce
of the Deputy Prime Minister, UB
Municipality, line ministries, aimag
authorities and others.
This workshop was the frst
part of support for the Mongolia
Disaster Risk Management Program
being undertaken by World Bank
in collaboration with NEMA. The
program aims to enhance the capacity
of the Government of Mongolia to
mitigate and manage the impacts of
natural disasters with an emphasis
on strengthening institutional
coordination and increasing
professional capacities among
Citizens made claims to parliment
that the civil health insurance system
is working so bad, citizens have
little awareness of protecting their
health and preventing illness, related
law implementation is insuffcient,
hospitals operate with high loads and
have red tape; thus it is necessary
to improve the service quality and
accessibility, privatize hospitals
to a certain extent, control private
hospital service, and render special
assistance to those whose diseases
have complicated.
On June 13, at the meeting of
Parliament’s Standing Committee on
Petitions members discussed reports
given by Health Minister N.Udval
in connection with petitions on
health sector sent by citizens. MP D.
Sarangerel introduced petitions related
health sector, sent by citizens.
Petitions sent by citizens in 2013-
2014, requesting fnancial assistance
for treatment charges, were resolved
by means of delivering to responsible
offcials and sending recommendations
to the citizens.
According to the regulation on
‘Granting fnancial assistance to
citizens who are essential to receive
medical treatment abroad’ approved
by the government resolution #226 in
2011 and Health Ministry’s resolution
#313 in 2013, fve percent of total
expenditure to be spent on receiving
medical treatment abroad is granted as
fnancial assistance.
In their petitions, citizens also
claimed that sickness in the rate
of cancer, nervous system, blood,
immunity, arthritis and bones
Following the introduction of
petitions, Health Minister N.Udval
made her reports in fve directions;
the present situation of control in
health sector, implementation of
legislation on health service, results
of inspections, actions taken, and
proposals for further action.
Throughout the nation, there
are a total of 1736 hospitals and
sanatoriums, of which 228 health
centers are for family, 329 inter-soum
hospitals, 26 central hospitals, fve
regional diagnostic and treatment
centers, 16 clinics and professional
centers, three maternity hospitals,
197 private inpatient hospitals,
822 outpatient hospitals, 71 spring
sanatoriums and 31 affliated hospitals
such as railways, border military and
an organization of court decision
enforcement. According to the risk
evaluation carried out in health
organizations in 2013, 33.1 percent
of all health organizations have been
evaluated low, 55.1 percent medium
and 11.6 percent qualifed.
“Implementation of the Health
Law was considered effective at 71.3
percent in 2012 and 65.3 percent
in 2013. Observance of quality
and safety standards in reception,
emergency and pediatric health
services and the implementation of
standards of operations and structure
of the hospitals runs at 74 percent.
“Total violations and
infringements detected in health
organizations generally connect
with the insuffciency of the legal
environment, budget and fnancing,
management of health organization,
human resource necessity, provision
and capacity, ethics, responsibility and
legal knowledge of physicians and
health workers, as well as provision of
diagnostic and treatment equipment.
Health organizations receive
fnancing from the health insurance
fund with about 2500 diagnosis of 115
types; however, they follow just 435
standards and over 30 directives in
health services. It means that there are
not yet conditions to provide reliable
health services. So far, standards of
structure and actions of some kinds
of hospitals have been approved,” the
Health Minister said.
Insuffciency of human resources,
facilities, reform and provision
infuences on service quality.
Therefore, a draft of the project for
‘Coordination center for provision,
standards, verifcation, training
and repairs of medical equipment
and facilities’ was worked-out and
discussed at the meeting of the Council
of Health Minister, resulting in being
decided to set up under the structure of
the Health Development Center.
It is planned to equip central
hospitals and special health centers
with high-quality digital X-ray
apparatus, expert ultrasonic apparatus,
X-ray computed tomography and
MRI apparatus. Furthermore, specifc
laboratories are intended to establish
inspection, adjust and verify medical
diagnostic and treatment apparatus
and equipment.
In connection with the report,
MPs O. Sodbileg, Ch. Khurelbaatar,
D. Sarangerel, D. Sumyabazar, Z.
Bayanselenge and J. Batzandan had
some queries and suggestions. MP D.
Sarangerel and J. Batzandan suggested
employing experienced physicians
in the primary hospitals and re-
considering the status of Hospital II to
make it available for citizens.
Health organizations in need of urgent upgrading
Citizens petition to improve services and accessibility
Supreme Court upholds environmental activist’s 7 year prison term
MPs Ts.Davaasuren, G.Uyanga, and Kh.Bolorchuluun consult each other outside the Supreme Court building
In Mongolia, expensive high tech medical equipment is quite scarce


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Representation of Aerofot
Ulaanbaatar, Seoul street 15
Tel.976-11-320720, Fax 323321
e-mail: ulntosu@aerofot.ru
Flight ¹ Days Aircraft Destination
SU-330 2,5,6,7 À-320 MOW-ULN 20:00 06:10+1 01APR-30MAY
SU-331 1,3,6,7 A-320 ULN-MOW 07:10 09:50 01APR-31MAY
SU-330 Every day À- 320 MOW-ULN 20:00 06:10+1 31MAY-21SEP
SU-331 Every day A-320 ULN-MOW 07:10 09:50 01JUN-22SEP
SU-3850* 4,7 B-767 MOW-ULN 21:10 07:15+1 01APR-25OCT
SU-3851* 4,7 B-767 ULN-MOW 09:20 11:55 01APR-25OCT
You can check yourself in for any Aerofot*
fight out of Moscow (Sheremetyevo) оr from the
airports where is Online system for Check-In.
Online Check-In starts 24 hours before departure
Before the fight, you can check the departure time
on our website www.aerofot.ru
or by calling the airport reference 1980,
also on sites www.airport.mn,
All fights on the route Ulaanbaatar Moscow is
codeshare fights
*–operated by MIAT–Mongolian airlines
Aerofot time schedule
for summer 2014
in front of Bayangol Hotel is for rent.
USD400 per month.
Ph: 99759825
THE MONGOL MESSENGER 7 Friday, July 04, 2014
The lawyer’s advice
Address : Sukhbaatar District, Khoroo 6,
Sukhbaatar Street 11-2,
Offce of the Legal Education Academy
(inside the court of the Children’s Art
Center, in the right side) Tel : 321294
-What documents are necessary
for the registration of the non-
banking fnancial organization?
-Law on non-banking fnancial
activities (Article 7) provides that non-
banking fnancial activities cover the
following activities:
•factoring service;
•issuance of payment guarantee;
•issuance of payment means;
•electronic payment and money
transfer service;
•foreign currency exchange/trade;
•trust services;
•investment to short term fnancial
•consultancy to and information
on investment and fnance;
•fnancial mediation with regard
to immovable (real estate) property
Legal entities of Mongolia as well
as legal entities of foreign countries
may undertake non-banking fnancial
activity in conformity with the license
issued by the Financial Regulatory
Committee. Entities seeking for the
permission to undertake such activities
complete the following documents and
submit them to theFinancial Regulatory
•a request application for the
license (with specifcation regarding
the type and term of the activity);
•State registration certifcate of the
legal entity;
•bill of the stamp fee;
•charter and founding document
of the entity to undertake Financial
Regulatory Committee.
•business plan;
•document evidencing the
accomplishment of the lowest level
of the capital set by the Financial
Regulatory Committee;
•fnancial report confrmed by the
auditing agency;
•information on staff, techniques,
equipment and work place;
•registration of shareholders and
number of shares owned;
•necessary information on income
statement of the shareholders owning
solely not less than 10% of total shares
of the named non-banking fnancial
organization and the origin of the
money they invested to the capital
•charter, registration of
shareholders, fnancial report and
conclusion of auditing agency (Article
8 of the law) of the legal entity owning
solely not less than 10% of total shares
of the named non-banking fnancial
If the documents submitted are
considered incomplete or unclear,
the Financial Regulatory Committee
maydo inquiry regarding the founders,
shareholders and administration of the
non-banking fnancial organization.
Financial Regulatory Committee
receives the delivered application
documents to undertake non-banking
fnancial activity and reviews them
within 30 business days (the period
is extended for 14 days in case if the
documents are need to be investigated
and accredited), and issued a license
provided the following requirements
have been accomplished (Article 9 of
the law):
•capital of the non-banking
fnancial organization has reached the
amount set by the Financial Regulatory
•strategy and factors that infuence
to the successful undertaking of the
non-banking fnancial activity have
accurately been specifed in the
business plan;
•the management of the non-
banking fnancial organization meets
the particular requirements (no overdue
obligations under a loan or guarantee
contract, no criminal records, ethical
and business reputation that do not
adversely affect management of the
non-banking fnancial organization,
having banking or fnancial degree
and work experience in the feld) set
specifed in the Law on non-banking
fnancial activities;
•technique and equipment
necessary to undertake non-banking
fnancial activity satisfes appropriate
safety operation requirements.
The license specifes the type and
term of non-banking fnancial activity.
In cooperation with Hanns -Seidel-
Foundation Project Mongolia and its
“Legal Education” Academy
On July 5, a ‘Japanese pop cultural
day’ event is being organizing by the
Ministry of Japan at the ASA circus
between 11:00-19:00 hours.
This event will be co-organized by
the Union of Japanese culture amateurs
consisting of amateurs of Japanese
Anime, Manga and Cosplay which are
currently very famous in Mongolia.
There will be many performances such
as a Maid-butler dance performance,
Anima song competition, Cosplay
competition, Tata-tunga competition,
a Drawing competition, and corners
namely Music corner, Maid Cafe,
Pop corner and Photo corner in this
event. Moreover, the special guests
of the event are Japanese singer and
composer Kio Sakai and guitarist
Katsuhiko Sato.
The Government agency of Japan
and Tourism is planning to open the
frst ‘Visit Japan Fair’ event corner for
traveling in Japan.
On July 19-20, the 375th
anniversary of the founding of
Ulaanbaatar, ‘Playtime-2014’
Mongolian live music festival will
take place under the theme of ‘We are
starting friendly Ulaanbaatar’.
The ‘Playtime-2014’ Mongolian
live music festival is an annual
event which spans two days during
the summer. This year, the outdoor
live music festival will be held just
outside the capital city of Ulaanbaatar.
The number of spectators and the
participating artists and bands
increases year by year. This year’s
festival lineup includes 35-40 bands
performing on two separate stages,
consisting of new and upcoming
artists and already established artists,
delivering a range of genres to suit the
tastes of all music loving festival-goers.
This year, foreign music guests world
famous Russian rock band ‘Mumiy
Troll’, Great Britain rock band “The
Wombats” and ‘Envy’ hardcore band
from Japan are expected to entertain
Mongolian live music enthusiasts with
their songs.
Mumiy Troll is a Russian rock
group, founded in 1983 in Vladivostok
by vocalist and songwriter Ilya
Lagutenko. The literal name of the
band, ‘The mummies’ troll’, is a pun
on Moomin Troll, the series of Finnish
children’s books by Tove Jansson.
Mumiy Troll is well known in Japan,
China and Europe.
Envy is a rock band formed in
Tokyo in 1992. They are signed with
Rock Action Records in Europe and
Temporary Residence Limited in
North America, though originally they
worked with Level Plane Records.
Initially infuential in the post-hardcore
scene, Envy more recently has grown
to include elements of post-rock in
their career.
This festival includes
contemporary art performances,
exhibitions, workshops, and freworks,
and many other interesting activities.
In addition, a tent district and all types
of food and beverages will be served.
WiFi buses, car parking, sanitation
and security services can be accessed
free of charge.
The festival is being held for the
13th year this year and is exclusive
because it allows live music lovers
to spend two nights watching
performances of artists and bands in
the open air. The groups can pitch a
tent in the camp area and stay there in
comfort. Hi-Fi Records, the organizer
of the event, feels that this is a huge
achievement as the festival itself comes
from humble beginnings growing from
only 5 bands at the frst Playtime music
festival in 2002 to being recognized as
‘the’ live music event of the year. The
festival itself has been a major force
in introducing widely recognized and
prominent artists to the masses, acting
as a musical springboard boosting
their audience range and helping the
cultural and musical development
of the country as a whole. At last
year’s Playtime festival, we were
proud to have the acclaimed Japanese
band Mono in our line-up, further
enhancing the name of our festival on
an international scale.
The playtime music festival has
seen exponential growth and success
over the years. When it started out it
had a turnout of around 600 festival
goers; but in recent years, it attracted
an attendance of over 5000 music
lovers. Playtime has been held at
Hotel Mongolia in Gachuurt village
since 2009 allowing the festival to
set up the Playtime camp allowing
attendees to set up their tents for the
two-day event.
Tickets will be available from the
Hi-Fi store.
On July 4 the ‘Night of Modern’
ballet show of the ‘Boston ballet’
theatre from the USA will be staged
at the State Academic Drama Theatre.
The ‘Night of Modern’ ballet is
being performed with support of the
‘Mongolian Ballet Development
Fund’ and City Administration Offce.
Within the journey of ‘Hospitable
Ulaanbaatar-375’ the dance
show Mongolian ballet dancer
D.Altankhuyag is participating
with soloists Sabi Varga, Whitney
Jensen, John Lam and principle
dancers Jeffrey Cirio and Lia Cirio
from the Boston Ballet, an American
professional classical ballet company
based in Boston. Famous ballet
dancer D.Altankhuyag talked about
the show saying “more than a year
ago, we began organizing this show.
Now, highly skilled, amazing dancers
have come to our country. I admire
and study their dancing skills. Ballet
shows the expression of the mind and
intellectual universe. Dancers can
render all the cells of their body and
exert enormous, passionate energy
located within human compassion and
forgiveness”, he said.
Jeffrey Sirio, a U.S. citizen and
dancer of the ‘Boston Ballet said that
this is his frst time to visit Mongolia
and said everyone has been very nice to
him. I know that ballet art in Mongolia
has been developing for 50 years.
“D.Altankhuyag and I are solo dancers
of the ‘Boston Ballet’ company. In
this sense, I am happy to support and
participate in the innovative work of
my friend”, he said.
The Mongolian Ballet Foundation
organized similar event under the
name ‘Night of Modern’ international
ballet in 2011 to promote classical art,
especially ballet the ‘Night of Modern’
ballet has been performed at world
renowned venues such as the White
House in the U.S, Royal Ballet of
London, Bolshoi Ballet of Russia and
La Scala of Italy. Over the last three
years, this Foundation performed fve
international ballets for Mongolian
audiences. In December of this year
we will perform ‘The Nutcracker’
ballet organized by the ‘Mongolian
Ballet Development Fund’. Dancers
of the ‘Boston Ballet’ will participate
in the ballet.
The ‘Night of Modern’ ballet will
continue from July 4 to 6.
World-famous ‘Night of Modern’ ballet staged in Mongolia
Ballet artist D.Altankhuyag is talks to media about this weekend’s performance

‘Playtime-2014’ expected to attract 5000 music lovers
From June 29 to July 3, a Seminar
on Cooperation towards Strengthening
Networking and Information Sharing
of Intangible Cultural Heritage
(ICH) in North-East Asia was held
in Ulaanbaatar under the theme
‘Facilitating Documentation of Living
Heritage and Information Exchange
for ICH Safeguarding in North-East
Jointly organized by the Ministry
of Culture, Sports and Tourism of
Mongolia, the Mongolian National
Commission for UNESCO, the
International Information and
Networking Centre for Intangible
Cultural Heritage in the Asia-
Pacifc Region (ICHCAP), and
UNESCO Beijing Offce, this
Seminar specifcally involves
fve North-East Asian countries
(Democratic People’s Republic of
Korea, Japan, Mongolia, People’s
Republic of China and Republic of
Korea), and aims to foster regional
cooperation in ICH safeguarding to
enhance documentation practices
of intangible cultural heritage in
North-East Asia, while strengthening
information exchange for regional
ICH safeguarding.
The seminar presents relevant
stakeholders with the opportunity to
be sensitive to recent developments in
documentation and information sharing
practices of ICH in the international
and regional context; to explore
current challenges and practices in
the documentation and information
sharing of ICH in North-East Asia;
and to discuss future cooperation in
ICH information sharing in North-
East Asia and beyond.
On the frst day of the seminar,
participants took a tour to the Nalaikh
District in Ulaanbaatar to document
Intangible Cultural Heritage. The
knowledge and experience obtained
during this tour was discussed at the
next day’s seminar.
During the seminar, G.
Jargalsaikhan, Secretary General of
the Mongolian National Commission
for UNESCO, said “Documentation
is defned as the process of recording
Intangible Cultural Heritage in its
current state and variety, through
transcription and/or audio-visual, and
collecting related documents – is a key
example of safeguarding measures
aiming to ensure the continued
viability of an ICH element. Involving
members of communities and groups
concerned with government ministries,
local authorities, NGOs or academia,
documentation in the feld of ICH
contributes to encouraging enactment
and transmission of the element as far
as possible within the original context
of the community concerned.
Mongolian Government delegates
attended the 5th session of the General
Assembly of the States Parties to
the Convention for Safeguarding
Intangible Cultural Heritage which
was held in Paris, France on June
2-5, 2014. At the session, Mongolia
was elected one of the 24 members
of the Intergovernmental Committee
for Safeguarding Intangible Cultural
The Convention for Safeguarding
Intangible Cultural Heritage is a
UNESCO treaty adopted by the
UNESCO General Conference in
Five North-East Asian countries cooperate in safeguarding ICH
Japanese ‘pop cultural day’ hosted this weekend
Representatives unite to protect ICH in the region

Friday, July 04, 2014 8 THE MONGOL MESSENGER
On July 11 and 12, the University of
Culture and Arts and the Arts Council of
Mongolia are organizing the ‘Awakening
Steppe’ Culture Naadam at Hui Doloon
Hudag to showcase traditional Mongolian
nomadic arts and culture for Mongolian and
international visitors. Culture Naadam has
been organized since 2008 with over 200
workers from the University of Culture and
Arts and the Arts Council of Mongolia.
The 2014 Culture Naadam will focus on
the UNESCO Intangible Heritage elements
of Mongolia, including such traditional
cultural elements as long song, throat-
singing, and folk music performances.
Mongolian painters and designers will
be on-site to discuss and showcase their
interesting works. Mongolian nomadic
culture, lifestyle, and ceremonies will be
exhibited through ‘A day in Mongolia’,
with activity stations to explore arts and
culture crafts, Mongolia’s different ethnic
groups, ‘Giant Mongolia’ sculptures,
traditional writing, felt, archery, Mongol
costumes and face painting.
Culture Naadam 2014 is being
supported by the Ministry of Culture,
Sports, and Tourism, the Arts and Culture
Development Foundation, Khan Bank, and
the National Naadam Festival Organizing
The Mongol Messenger is operated by the government news agency MONTSAME and is printed by the MONTSAME.
Home Page: www.mongolmessenger.mn; E-mail: mongolmessenger@yahoo.com (ISSN 1684-1883)
Arts Council of Mongolia, Delta Foundation Center, IV foor, Tourists Street-38, Chingeltei District Tel/Fax: 976-11-319015 E-mail: education@artscouncil.mn Web: www.artscouncil.mn
The Red Ger Art Gallery was established
in 2003 to promote Mongolian fne arts
domestically and internationally and to support
the long-term sustainability of the culture sector
by providing a market for artists. Over its eleven
years of operation, the Red Ger Art Gallery has
showcased the work of several famous and
young emerging artists and is an invaluable
resource for trainings and public lectures. The
ACM also organizes building the capacity of
Mongolian arts and culture professionals. The
Red Ger Art Gallery is located on the frst
foor of the main Khan Bank building on Seoul
The Red Ger Art Gallery is open Monday
through Saturday from 9 a.m. to 6 p.m. and
entrance is free. This month, we are proud to
feature two international collaborations. From
June 26 through July 7, the ‘Scarlet’ young
artists will hold a joint exhibition. Afterwards a
‘Collection of Art’ exhibition will be on display
at the Red Ger Gallery to sell artworks during
July and August.
For more information, please call
88708969, 319017 or contact us online at
redger@artscouncil.mn or www.facebook.com/
Visit the Red Ger Art Gallery!
The UB City Mayor’s Offce and City
General Plan Place are organizing ‘Ulaanbaatar
sculpture’ festival for the frst time with
professional agencies. This festival is going to be
held every year and will contribute to professional
organizations improving partnerships, create a
favorable legal environment, statue monuments,
and outreach by establishing physical access to
social advertising, public art and education. All
citizens of the city are invited to participate in
the Sculpture festival.
This frst space arts festival is being held
for the 375th anniversary of Ulaanbaatar. The
purpose of the festival is to promote artists,
creative thinking, the city, and increase public
satisfaction, comfort. The lack of capital allows
develop various types of small decorative
A design refecting the image of the city is
one of the most important elements of the statue.
The image is to become a celebrated monument
along with 90 percent of the monuments situated
in the territory of Ulaanbaatar. Monuments of
the country’s cultural values that work, as well
as arts education is an important factor for city
residents. Also, the monument will be publically
accessed as a physical social marketing
promotion image.
Today, we need to build new monuments,
sculpture, history and custom revolution of
the time and educate citizens on aesthetic and
social advertising physical artwork. Therefore,
young artists are most welcome to participate
in the festival and invest in the city’s colors and
For detailed information please contact
315320, 315335 or visit our website at www.
ulaanbaatar.mn, www.mpa.ub.gov.mn
‘Awakening Steppe’: 2014 Culture Naadam
‘Ulaanbaatar Sculpture’ competition announced
Traditional folk performances include Mongolian dance, music, attire and cultural activities of nomadic people
The Red Ger Art Gallery is located in Khan Bank’s main offce on Seoul Street

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