Сонгон уу

Donor aid: MCA work to commence in July (2008-05-15)

As informed earlier, the Compact agreement worth 285 Million USD is concluded between the MCA Corporation and the Government of Mongolia to support the poverty reduction through fostering economic growth in Mongolia. The focus areas of the Compact agreement include rail roads, property rights, vocational training and health sectors, with a particular emphasis on enhancing effectiveness and strengthening capacity of the rail road network as a pillar of Mongolia’s economic growth. Mr. I. Reed, representative of MCA in Mongolia and Mr. N. Bayarbaatar, CEO of Mongolia MCA held a press conference yesterday informing on the latest developments of the MCA. MCA Mongolia was set-up in January and Board of Directors has been approved recently. MCA will manage the implementation of aforementioned projects in five years. Currently, five project implementing units established, directors of units appointed and the project start-up, including staffing is on-going. Project tenders are announced from this month and upon completion of preparatory work in July, the actual implementation will commence.

Out of total 285 Million USD, the lion’s share - 188.38 Million USD is allocated for the Rail road project. Rail road is the vital transport mean for the Mongolian economy. The current system with outdated infrastructure, obsolete equipment and machinery and work approaches cannot meet the growing demands for rail road services. It triggers inflation rate increase and limits foreign and domestic trade and hence causes serious challenges to the national economy. The allocated funds will be disbursed to reform the current system, to change the management system, ensure financial transparency and commercialization of the rail road system.

23.06 Million USD allocated for the Property rights project. The project intends to introduce the system for land ownership and renting of pasture land in city area, to enhance pasture and livestock management and to provide investments for businesses. Similarly, 25.51 Million USD allocated for the Vocational training project and 17.03 USD is allocated for the Health project.