Cabinet reviews infrastructure, energy and oil projects

During Cabinet's weekly Wednesday meeting, Cabinet approved the mid-term national program to implement state policies toward energy and roads, and included required funds for carrying out those policies into the state and local budgets from donation and assistance from foreign countries and international organizations, investment program, and public and private sectors.

Cabinet decided to build a narrow-gauge railway connecting Mongolian Shiveekhuren border checkpoint to China’s Sekhee port before, and Cabinet ministers agreed to build the Nariinsukhait-Shiveekhuren railway along with the ShiveekhurenSekhee railway.

According to Cabinet’s new decision, ministers will submit a proposal to amend Parliament’s Resolution No. 64 adopted in 2014 to Parliament.

The government believes that after the NariinsukhaitShiveekhuren railway is built, new opportunities for increasing the flow of coal export and border checkpoint capacity by three-fold will open up, cutting transportation cost by two to fourfolds, and lessening negative impacts on the Gobi’s environment.

During the meeting, Cabinet handed over the ownership of Mongolian Oil Refinery stateowned limited liability company to the Ministry of Mining and Heavy Industry and the Government Agency for Policy Coordination on State Property.

The prime minister instructed some ministers and heads of government agencies to hold meetings and talks on creating reliable oil supply, resolving financial sources for the oil pipeline that will be built under the petroleum refinery being constructed in Dornogovi Province, and select a company for the oil pipeline project’s management consultancy and contractor.

Cabinet approved a list of 26 companies that will hold a 30-day reserve of gasoline and diesel next year. Under the government’s decision, the companies are assigned with creating fuel reserve of 116,550 tons next year. Some 21 companies kept the reserves of gasoline and diesel at no less than 94,700 tons by importing gasoline and diesel last year.