Tender issue of oil refinery project discussed

Deputy Prime Minister of Mongolia S.Amarsaikhan received Ambassador of India to Mongolia Mohinder Pratap Singh and a delegation of Exim Bank of India on March 31 to exchange views on some issues slowing the implementation of the oil refinery project.

The sides emphasized that due to the current border situation, inventory and shipping prices have increased and the selection of the next stage of contractors has been hampered. They agreed to resolve all issues in a timely manner and strive to complete the project on time.

During the meeting, Minister of Mining and Heavy Industry G.Yondon said, “I am confident that the historic project between our two countries will be completed on time. The construction of the refinery is proceeding according to plan. Therefore, we propose to urgently resolve the tender selection for the next stage of the project and continue the project without delay.”

Chairperson and Managing Director of Engineers India Limited Vartika Shukla noted, “In recent months, we understand that there have been problems with the tender bid for the next phase of the project, regardless of the governments of the two countries. It’s necessary to lower the tender offer for companies to execute the next phase of the Oil Refinery Project bolgood oorchilchiy.”

Deputy Prime Minister S.Amarsaikhan highlighted that the government of Mongolia is paying special attention to this joint project. “We hope that the tender issue will be resolved as soon as possible. It is important to carefully estimate potential risks and costs and to use as much Mongolian manpower and inventory as possible,” he added.

The parties agreed to meet again and discuss issues depending on the Indian side.

The oil refinery is planned to be built with a 1 billion USD loan from the Exim Bank of India and it will have a capacity of 1.5 million tons of oil per year. Mongolia imports oil products worth 1 billion USD a year. According to the preliminary estimation, as the money stays in the country, the exchange rate of the tugrug will stabilize, GDP will increase by more than 10 percent, and state and local budget revenues will be raised by 150 million USD. Moreover, 600 jobs will be created in addition to developing small and medium-sized businesses along with the establishment of the oil refinery.