PRIME MINISTER SAYS PROGRESS OF ECONOMIC REVIVAL AGENDA IS AT 60 PERCENT
Prime Minister U.Khurelsukh announced to Parliament that the progress of the economic revival agenda is at 60.9 percent and called on for an intensification of the agenda. In his statement, the PM touched on how the economic revival agenda along with the IMF program has helped signal positive signs in the economy. However, he added that the progress of key projects to help advance the economy is not satisfactory.
U.Khurelsukh underlined the need to fund and move forward with key projects in mining, agriculture, transport, and energy. The PM mentioned specific projects in all four sectors during his address to Parliament.
In mining, the PM highlighted the need to speed up iron ore projects such as the Tsakhiur Ovoo, Dulaan Khar, Shiren Ovoo, and Khar Ovoo mines. He also highlighted the decreasing production of petroleum and underlined the need to boost production. In addition, finalizing the agreements to build a concentrator plant at Tavan Tolgoi, and selecting and finalizing the investors and executors of the copper concentrator plant were areas that needed to be focused on, said U.Khurelsukh.
The pressing issue of allocating funding for Thermal Power Station No. 3, and Choibalsan thermal power station were the main areas of concern in terms of energy. U.Khurelsukh noted how the agreements regarding the 450 Mw power plant to be built in Tavan Tolgoi are not being made fast enough.
Regarding transport, the feasibility study of the Tavan Tolgoi–Gashuunsukhait railway has not yet been drafted and is behind schedule, reported the PM. He underlined, however, that Cabinet is working to get the projects of Nariinsukhait-Shiveekhuren railway and Zuunbayan-Khangi railway approved by Parliament. In addition, he stressed the need to focus on other railways such as the Khuut-Bichigt and Bogdkhan railways.
In terms of agriculture, as the law on the genetic reserve of livestock has not yet been approved by Parliament, the PM reported that these bills will be discussed in the autumn session of Parliament. He also reported that the cashmere project and the project for livestock health have not been made ready yet.
U.Khurelsukh reported to Parliament that moving forward, his Cabinet will be focusing on funding largescale projects as part of the economic revival agenda.
Reporting on the recent staff-level agreement with IMF on the first and second review of the extended fund facility, the PM stressed that the economic revival agenda is closely interconnected with the IMF program. He stressed that the IMF Executive Board approving the second review of the program will help further signal revival in the economy of Mongolia.
Despite the shortcomings of the agenda mentioned by the PM, he expressed confidence in the economy.
“The good progress of the IMF program, the issuance of the new bond to refinance a large bond in 2018, and the GDP growth likely to reach three percent in 2017, we have observed signals in the economy that we have largely overcome the economic hardships we faced in recent years,” said U.Khurelsukh.
Going forward, the PM stressed that his Cabinet will be working to maintain fiscal discipline. He outlined how his Cabinet will work to “smartly” invest the state budget into beneficial sectors while not increasing expenditures.
The economic revival agenda has been planned to continue until mid 2018.
Prime Minister U.Khurelsukh addresses Parliament regarding the economic revival agenda