Bcm news wire issue 423

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 423 – April 15, 2016
BCM NewsWire provides short summaries of news collected from around the world. Each article is
kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full
article.
NEWS HIGHLIGHTS:
Business:
 State-run company to run thermal station in Khuvsgul;
 Faster, cheaper Internet now available outside UB;
 Erdene commences drill program at Bayan Khundii gold project;
 Japan firm offers launchpad deal for Mongolia's first satellite;
 Golomt finances IMAX projects;
 Mongolia seeks first Top Model;
 The Daily Drucker management guide for sale in Mongolian language;
 Mongolia universities partner with foreign institutions for cultural research exchange;
 New buildings, labs commissioned for Mongolian-Korean university;
 Bus companies demand backpay from UB;
 AIIB, World Bank to work on joint projects;
 EBRD marks 25th anniversary.
Economy:
 Mongol Bank: currency auctions, swaps, 1-week bills, T-bills;
 Hard times ahead for Mongolia, says World Bank;
 Mongolia, China team up for $11bn energy park to launch energy export industry;
 Wind power stations to commission as early as 2017;
 Cashmere producers brace for VAT impact;
 Government cuts subsidy to wheat farmers;
 UNDP official commends Mongolia for 15-year sustainable development plan;
 Invest in Mongolia? Try the meat;
 Diabetes in Mongolia;
 Mongolia: when your animals are your life;
 U.N. hands over supplies for dzud-affected households;
 Land for summer homes up for privatization;
 UB collects MNT1.6 bn from 'city' tax;
 Apartment prices continue to fall in UB;
 UB cops learn English;
 Waste collection trucks equipped with automatic loaders;
 Archaeologists find ancient mummy approximately 1,500 years old;
 East Asia-Pacific growth remains resilient in face of challenges, says World Bank;
 Mongolia Is ultimate place to invest, says prime minister—VIDEO.

Politics:
 Mongolia to spend MNT16.4 bn on elections;
 MP Bold calls for 20% youth vote quota for elections;
 Parliament to vote on India's $1 bn credit line;
 Establishment parties court MPRP for coalition;
 IAAC head signals that he will step down at end of 2017;
 Russia, Mongolia sign medium-term strategic partnership program;
 Australia commits to AUD10.8 mn in aid to Mongolia;
 Belarus, Mongolia commit to peaceful foreign policy;
 Mongolia inks diplomatic ties with Saint Kitts and Nevis;
 Gobi Wolf 2016 tests humanitarian assistance and disaster relief capabilities;
 Police raid Battulga's office;
 MPRP demonstrates on anniversary of Enkhbayar’s 2012 arrest;
 Youth group holds demonstration against corruption at Chinggis Square.
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 Knowledge Sharing Sessions;
 Advocacy Notes;
 Working Groups News
 BCM in the University Classroom Series;
 Cooperation & Member discounts;
 Member Vacancies;
 Websites Update - Presentations, Mongolia Reports, Interviews;
 Media Coverage & Social Networks.
Economic Indicators:
 Inflation;
 Central Bank Policy Rate;
 Currency Rates.
*Click on titles above to link to articles.
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BUSINESS
STATE-RUN COMPANY TO RUN THERMAL STATION IN KHUVSGUL
A new state-run company will be formed for operating a thermal-power station in Khuvsgul. The
Cabinet Secretariat on 12 April approved plans to form the company, which will focus on building
the plant commissioned in September 2014. Up until now, the Khuvsgul plant has been under the
management of the Pre-Exploitation Authority.
Source: Montsame
FASTER, CHEAPER INTERNET NOW AVAILABLE OUTSIDE UB
New infrastructure put in place by Mongolia-listed Mongolian TeleCommunications JSC will speed up
Internet services outside the city and cut costs. Rural communities have had to live with Internet
speeds four-to-five times more expensive than in the capital. On 12 April, providers received access
that will put speeds on par with those offered in Ulaanbaatar.
Source: News.mn
ERDENE COMMENCES DRILL PROGRAM AT BAYAN KHUNDII GOLD PROJECT
Erdene Resource Development Corp. has launched its second-quarter drill program at its wholly-
owned Bayan Khundii gold project in southwest Mongolia, it reported on 8 April. The diamond drill
program is comprised of approximately 3,500 meters (approximately 30 holes) and will test both
strike and vertical extensions of the high-grade gold mineralization intersected in the fourth
quarter of 2015. “Bayan Khundii has rapidly become the highest priority project for the Company
based on its very high grades, excellent metallurgy, wide zones coming to surface, and size
potential,” said Peter Akerley, Erdene's president and chief executive.
Objectives from the drill program will test the lateral and vertical extent of the high-grade striker
zone, adjacent parallel mineralized zones within the main mineralized area, and the known gold
mineralization at greater depths. The project has not been drill tested below 50 meter vertical
depth. Over the course of the year Erdene plans include the completion of detailed geologic
mapping, infill geochemical surveys over specific target areas and expanded surveys over the entire
license.
Source: Erdene Resource Development Corp.
JAPAN FIRM OFFERS LAUNCHPAD DEAL FOR MONGOLIA'S FIRST SATELLITE
Mongolia National University (MNU) has revealed plans to cover half of a USD100,000 fee to launch
Mongolia's first satellite into space. Japan's Kyushu Institute of Technology has offered Mongolia as
well as Ghana, Bangladesh and Nigeria its launch pad for taking satellites above the Earth's
atmosphere at a cost of USD100,000 per launch.
In Mongolia, three researchers are already studying at the Kyushu Institute of Technology while JICA
is contributing USD125,000 through its Engineering and Technological project to establish a ground
station at MNU. The university will cover above half of the launch fee, while the rest is expected to
come from public donations.
Source: Unuudur
GOLOMT FINANCES IMAX PROJECTS
Golomt Bank LLC is financially backing projects to bring IMAX screens to Mongolia. The bank is
providing loans to install the special screens that bring larger images and higher-quality sound to
the soon to open Urgoo-IMAX Theater at Shangri-La Center using a financing mechanism from the
Canadian Export Financing Agency.
Golomt was the first bank in Mongolia to establish an agreement with Canadian Export Financing
Agency.
Source: Mongolia.GoGo.mn

MONGOLIA SEEKS FIRST TOP MODEL
The Next Top Model television program will be remade in Mongolia for the first time following a
deal between local broadcaster EduTV and distributor CBS Studios International. The Mongolian
version will feature contestants competing over 16 episodes. The format originally aired on UPN in
the United States in 2003 and has since been shown on The CW and latterly VH1, airing 22 seasons
to date. There have been 20 local versions of the show, in countries including Germany, Poland, the
UK and Vietnam.
“The show is already creating a buzz amongst Mongolian models and modeling agencies, along with
local audiences. As it’s the first time the series has been licensed in Mongolia, our team is putting
in a great effort to make this franchise a success,” said Khankhuu Galbaatar, executive producer at
EduTV.
Source: C21 Media
THE DAILY DRUCKER MANAGEMENT GUIDE FOR SALE IN MONGOLIAN LANGUAGE
The Daily Drucker by management guru Peter Drucker has been made available for sale in Mongolian
language. Drucker is the author of 39 books and is considered a top thinker on management and the
forefather of modern management who the Wall Street Journal has hailed as “the dean of this
country’s business and management philosophers.” Mongolian executives, managers, and leaders
who today strive to compete at a global level through export, trade and research can learn from
Drucker’s insights on topics ranging from purpose of business, responsibility of leadership,
attracting and managing talent and knowledge workers, global trends, to managing in turbulent
times.
Source: Togtokh Trade
MONGOLIA UNIVERSITIES PARTNER WITH FOREIGN INSTITUTIONS FOR CULTURAL RESEARCH
EXCHANGE
National University of Mongolia (NUM) will collaborate with the Charles University of the Czech
Republic to expand Mongol language and studies. The cooperation contract was inked last Friday by
R. Bat-Erdene, a rector of NUM, and by Tomas Zima, the Charles University rector, in Prague. The
universities intend to broaden their ties and collaboration by exchanging students, augmenting the
quotas of students, holding scientific seminars and meetings, boosting the Mongol studies and
language, Zima said.
Meanwhile, the State University of Education has agreed to work with Germany's Ruhr University
Bochum for exchanges on research regarding Mongolian history and culture. A ceremony was held on
13 April at the institution, which will work with 12 schools to prepare teachers to collaborate in six
different languages, including German, English and Russian.
Source: Mongolia.GoGo.mn, Montsame
NEW BUILDINGS, LABS COMMISSIONED FOR MONGOLIAN-KOREAN UNIVERSITY
Two new buildings and six laboratories worth a total USD2.4 million have been commissioned for a
Korean and Mongolian higher-education institution here. The project to build facilities for Derim
University coincides with an intergovernmental agreement for improving educational facilities from
2010. Labor Minister G. Bayarsaikhan, at a commissioning ceremony for the new facilities, said that
the school is expected to be a model school in Mongolia.
Source: Unuudur
BUS COMPANIES DEMAND BACKPAY FROM UB
Bus companies providing public transportation in Mongolia are demanding money owed from
Ulaanbaatar as they are unable to pay salaries to their workers any longer. On 9 April, bus
companies began posting announcements for their demands of first-quarter financing for this year.
Without the funds, they say they have not been able to pay salaries and have been forced to borrow
to pay for fuel. A spokesperson for the Ulaanbaatar Transportation Department, D. Bold, said the
city would transfer the money as soon as the funds became available.

Source: Unuudur
AIIB, WORLD BANK TO WORK ON JOINT PROJECTS
The Asian Infrastructure Investment Bank (AIIB) has struck an agreement to undertake joint projects
with the World Bank as the China-led institution attempts to counter the perception that it is a rival
to longer established multinational institutions. Jin Liqun, president of the AIIB, told an audience
in Washington that he expected the first projects to be approved in June, saying that it was
sensible given the risk and scale of infrastructure projects to partner with the World Bank and Asian
Development Bank, as well as pursuing solo ventures. “Infrastructure projects are very large and it
is not a very good idea for one bank to spend USD2 billion or USD3 billion on one project,” he said.
China launched the AIIB last year with 57 countries, including Mongolia, joining as founding
members as Beijing attempts to bolster its overseas influence. Under the new agreement, the World
Bank is set to prepare and supervise the co-financed projects.
Source: Financial Times
EBRD MARKS 25TH ANNIVERSARY
The European Bank for Reconstruction and Development (EBRD) celebrated its 25th anniversary on
Monday, looking back on its successful support for emerging economies over the last quarter of a
century and ahead with confidence to future challenges. Since its creation in 1991, the EBRD has
played a key role in the transformation of a region that now spans three continents–from Mongolia
in Central Asia to Morocco on the shores of the Atlantic Ocean, from Estonia on the Baltic to Egypt
on the Mediterranean.
EBRD has helped to narrow infrastructure gaps and improve the quality of services delivered by
local authorities. It has promoted the development of environmentally-friendly energy to fuel
expanding economies and worked to reduce energy waste and pollution. It has also played a key
role in supporting the growth of small- and medium-sized firms that are so crucial to job creation
and helped ensure more equality of opportunity across societies.
Source: European Bank for Reconstruction and Development
ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, T-BILLS
The Bank of Mongolia on 12 April rejected USD34 million in bids from commercial banks in currency
auctions. It also rejected USD300,000 and CNY2 million in buying bids from banks. Also that day, it
accepted tugrug swaps with commercial banks for an equivalent of USD52.5 million, but rejected
dollar swaps worth USD20 million.
The Bank of Mongolia on 13 April issued one-week bills worth MNT91 billion at a weighted interest
rate of 12 percent. Also that day, the central bank received MNT20.5 billion in bids for the auction
of 52-week treasury bills with a face value of MNT15 billion that were sold at a discounted price
with a weighted average yield of 14.318 percent.
Source: Bank of Mongolia
HARD TIMES AHEAD FOR MONGOLIA, SAYS WORLD BANK
The World Bank has forecasted 0.7 percent growth of 2016 amid a fourth-straight year of falling
foreign investment figures and growing debt. Manufacturing activity has fallen by 1.3 percent while
wholesale and retail trade are down 3.6 percent and construction by 1.4 percent. Agriculture
remained unchanged at 10.7 percent of total economic activity. Exports, which fell by 36 percent
at the end of 2015, stood at 30.4 percent of the economy.
“Mongolian debt has increased by 65 percent in 2015,” said a World Bank official in Ulaanbaatar.
“This is a very serious situation. Mongolia will face a very hard time in 2017-2018, when Mongolia
starts to pay the USD1.080 billion.”
Source: News.mn

MONGOLIA, CHINA TEAM UP FOR $11BN ENERGY PARK TO LAUNCH ENERGY EXPORT INDUSTRY
Mongolia has unveiled plans to work with China for an enormous, USD11 billion energy production
park that combines coal-fired, solar and wind energies for export. Mongolia hopes to expand its
energy generating capacity by tapping into its immense renewable energy potential for export
throughout northeast Asia by 2020, said Energy Minister D. Zorigt. Called the Shivee Ovoo Project,
Zorigt and representatives of China's State Grid Group signed an agreement at the Shangri-La Hotel
on 13 April to spend about as much as the first two phases of the Oyu Tolgoi copper-gold mine
combined to build a 9,240 megawatt coal-fired plant, a 2,800 megawatt wind farm and 1,200
megawatt solar station. The project would also require 1,300 kilometers of electric lines and the
production of 34 million tons of coal a year from the Shivee Ovoo coal mine. Mongolia aims to have
further agreements set for construction to launch in 2017.
WIND POWER STATIONS TO COMMISSION AS EARLY AS 2017
Mongolia's renewable energy sector will expand with new facilities planned for commissioning as
early as next year, but there is some uncertainty settled on political risk and financing while
investment sentiment remains poor. The Energy Regulation Committee has permitted plans by
Aidiner Global to build a 50.4 megawatt wind farm at Gobi-Sumber Aimag, Germany Ferrostaal
Industrial Projects for a 52 megawatt facility at the long-neglected Sainshand industrial park, and
Clean Energy Asia's 50-megawatts planned for Tsogttsetsii Soum, Umnugobi Aimag. Meanwhile AB
Solar will build a facility for 100 megawatts and Cleantech will build one for 50 megawatts.
Clean Energy Asia's USD100 million project is expected to complete in 2017. No construction date
has been set for Cleantech's project, but it has projected that work would take between 8 and 12
months on the USD200 million project. The project in Sainshand would need 18 months and USD110
million for completion.
Source: Unuudur
CASHMERE PRODUCERS BRACE FOR VAT IMPACT
A new value-added tax on cashmere is expected to have a hit on local producers. Domestic
producers buy up only about 10 percent of the 8,000 tons of raw cashmere, while Chinese producers
are able to offer better prices on deals. VAT on the goods will give producers even further leverage
while herders take on the burden of additional tax.
Source: Udriin Sonin
GOVERNMENT CUTS SUBSIDY TO WHEAT FARMERS
Government this year is expected to pay out only about three-quarters of the MNT70,000 it planned
to pay in subsidies per ton of wheat to farmers. MNT50,000 will be paid per ton for a total of
MNT5.6 billion in subsidies for wheat after Mongolia lost half of its wheat crops from a summer
drought.
Source: Unuudur
UNDP OFFICIAL COMMENDS MONGOLIA FOR 15-YEAR SUSTAINABLE DEVELOPMENT PLAN
Mongolia has drafted a plan to become one of the world's earliest adopters of so-called
Sustainability Development Goals (SDGs) to eliminate poverty and reduce equality while mitigating
environmental impacts such as climate change. U.N. Resident Coordinator and U.N. Development
Program (UNDP) Resident Representative Beate Trankmann at a ceremony observing the handover
of Mongolia's 2030 sustainable development vision at the Government Palace on 11 April lauded the
15-year plan. “By 2030, the Development Vision envisages Mongolia to be one of the leading middle-
income countries that will have eradicated poverty in all its forms and preserved the ecological
balance while continuing to build strong and stable governance systems,” said Trankmann.
She added that the United Nations and UNDP are also setting up a platform for transferring the
goals into Mongolia’s national and local policies. “As part of this, we will support the development
of an integrated financing assessment of Mongolia’s development vision and introduce a screening

tool,” she said.
Source: Montsame
INVEST IN MONGOLIA? TRY THE MEAT
Poor Mongolia has had a rough ride of late. Its mining boom, based on feeding neighboring China
coal and copper, has turned into a bust. The country’s currency has plunged and foreign exchange
reserves have depleted. It did manage last week to raise a USD500 million bond from international
markets, but at an interest rate of nearly 11 percent. Less than three and half years ago, it paid
4.125 percent on a similar bond.
Prime Minister Saikhanbileg Chimed, speaking to investors at a Credit Suisse conference in Hong
Kong, tried to put a happy face on the non-mining parts of the economy. For instance, he boasted
of the country’s herd of 54 million livestock, notably sheep, goats, horses, camels and yaks, who
graze on Mongolia’s vast and empty steppes. “We have the most democratic livestock, because they
are free to go where they want and eat what they want,” he said. That makes for the world’s
tastiest organic meat, apparently. Too bad meat isn’t as valuable as copper.
Source: Wall Street Journal
DIABETES IN MONGOLIA
Health authorities are planning to add diabetes medication to the list of approved medicines to be
subsidized by the government before July. On 8 April, the United Nations focused on diabetes for its
World Health Day campaign. Mongolia has 300,000 diagnosed diabetics, though the true number of
people suffering from the disease is unknown. It's likely much higher as the registered number of
patients has grown six times over the last 11 years, while the number of deaths has quadrupled.
The director for the City Health Authority, Sh. Enkhbat, said that in the coming months, diabetes
medicine would be added to a list of 300 medications discounted by the government.
Source: News.mn
MONGOLIA: WHEN YOUR ANIMALS ARE YOUR LIFE
How would you feel about keeping a goat or two in your living room? Every night, Bayankhand
Myagmar shares her ger with her husband, son, daughter, and some cold and hungry goats. This
traditional herder family is caught up in Mongolia’s dzud—a hot, dry summer followed by an
extremely cold winter. Dzuds happen every few years and in each one, families can lose entire
herds. Bayankhand has already lost 400 of her 700 cows, sheep and goats. “If they get weak and die
in front of my eyes, it’s very, very hard,” she says.
The Myagmar household is among 5,100 families who are getting Red Cross support this year. They
can use grants to meet their most pressing needs, usually paying for shelter, fuel and healthcare.
Future preparation for dzuds and other disasters will be essential. Simple steps such as storing hay
where it can be reached in harsh winter conditions can make a big difference.
Source: Red Cross
U.N. HANDS OVER SUPPLIES FOR DZUD-AFFECTED HOUSEHOLDS
The United Nations is responding to dzud-like conditions that have killed hundreds of thousands of
livestock with USD2.4 million in emergency relief aid. Cold temperatures dropping below -55Celsius
has directly impacted 63,000 nomadic households in Mongolia, or 41 percent of the total herder
population. The United Nations mobilized USD2.4 million from its Central Emergency Relief Fund
(CERF) as well as deliveries of food, nutrition packages and hygiene kits by the National Emergency
Management Agency (NEMA) to women and children in affected communities.
The U.N. Populations Fund (UNFPA) has provided 7,962 Dignity Kits to the women and girls in the
affected areas. Kits include sanitary supplies, underwear, clothes, socks, towels and soaps and
protection items including whistles and torches with batteries. "Women and girls are the backbone
of Mongolian society and we must take concrete steps to ensure their safety and dignity is
protected in Dzud situations" says Naomi Kitahara, UNFPA Representative.

LAND FOR SUMMER HOMES UP FOR PRIVATIZATION
Ulaanbaatar's Sukhbaatar and Chingeltei districts have completed registration for the privatization
of land used by residents for summer homes. In July 2015, the city reported that 40,059 plots had
been registered for privatization while 18,216 were ready for allocation.
The Songinokhairkhan and Bayanzurkh Districts are next expected to open up registration for land
privatization.
UB COLLECTS MNT1.6 BN FROM ‘CITY' TAX
Ulaanbaatar has collected MNT1.58 billion in the five months since launching an excise tax on
alcoholic beverages, tobacco products and a service tax on restaurateurs and hotels in the city.
Ulaanbaatar has collected the tax from a total of 5,406 companies registered to pay the city tax
since its launch last October.
Earnings are coming slower than expected however, as the city has only taken in about 18 percent
of the MNT577 million it expected from the first quarter of this year.
Source: News.mn
APARTMENT PRICES CONTINUE TO FALL IN UB
Apartment prices in UB have fallen 10.9 percent in March from the year before, according to an
index. The Apartment Price Index by Tenkhleg Zuuch compiling data from 5,084 old and new
apartments showed the nearly 11 percent fall for both new and old apartments, with new
apartments alone falling 7.8 percent. The index was down 0.9 percent from February, with new
apartments falling 0.9 percent.
Source: News.mn, Zuunii Medee
UB COPS LEARN ENGLISH
Ulaanbaatar is prepping local police with English lessons to better assist tourists during the
industry's peak months of summer. The city is aiming to service up to 5 million tourists during the
season, which includes improving communication by local law enforcement. The English speaking
courses for UB police patrol officers launched on 12 April.
Source: News.mn
WASTE COLLECTION TRUCKS EQUIPPED WITH AUTOMATIC LOADERS
Ulaanbaatar has started installing automatic loaders on its 118 waste collection trucks. Authorities
have planned for the installation of 1,650 dumpsters that fit the automated loaders at waste
collection areas. Some of the metal boxes have already been installed at schools and kindergartens.
Source: Unuudur
ARCHAEOLOGISTS FIND ANCIENT MUMMY APPROXIMATELY 1,500 YEARS OLD
Remains of a suspected female of Turkic origin were found at an altitude of 2,803 meters in the
Altai Mountains. The ancient human remains are wrapped in felt, but the excavation is being hailed
as the first complete Turkic burial found in Central Asia. “This person was not from elite, and we
believe it was likely a woman, because there is no bow in the tomb,” said B. Sukhbaatar, a
researcher at Khuvd Museum.
The grave was located 2,803 meters above sea level at the Altai Mountains that unite Russia,
Mongolia, China and Kazakhstan, said B. Sukhbaatar, where cool temperatures helped preserve the
grave. “The finds show us that these people were very skilled craftsmen,” said Sukhbaatar, noting
the presence of a saddle, bridle, clay vase, wooden bowl, trough, iron kettle, the remains of an
entire horse, and four different “deel” robes. “Given that this was the grave of a simple person, we
understand that craft skills were rather well developed.”
Source: Siberian Times

EAST ASIA-PACIFIC GROWTH REMAINS RESILIENT IN FACE OF CHALLENGES, SAYS WORLD BANK
Growth in developing East Asia and Pacific has remained resilient and is expected to ease only
modestly during 2016-18, according to a new World Bank report. The outlook is subject to elevated
risks and countries should continue to prioritize monetary and fiscal policies that reduce
vulnerabilities and strengthen credibility, while deepening structural reforms. Growth in developing
East Asia is expected to ease from 6.5 percent in 2015 to 6.3 percent in 2016 and 6.2 percent in
2017-18 as China gradually shifts to slower, more sustainable growth.
“The outlook for individual countries varies, depending on their trade and financial relationships
with high-income economies and China, as well as their dependence on commodity exports,” said
Victoria Kwakwa, incoming vice president for East Asia and the Pacific at the World Bank. She
added, “Several small economies, including Lao PDR, Mongolia, and Papua New Guinea, will
continue to be affected by low commodity prices and weaker external demand.”
Source: World Bank
MONGOLIA IS ULTIMATE PLACE TO INVEST, SAYS PRIME MINISTER—VIDEO
Prime Minister Saikhanbileg Chimed discusses Mongolia's economy and why he says it’s a great place
to invest. He spoke exclusively to Bloomberg's Haidi Lun on "Asia Edge" from the Credit Suisse Asian
Investment Conference in Hong Kong.
Source: Bloomberg
POLITICS
MONGOLIA TO SPEND MNT16.4 BN ON ELECTIONS
Parliament's Standing Committee for Government Structure has set a budget of MNT16.4 billion for
this year's election, scheduled for 29 June. This year's budget falls just short of 2012's MNT16.8
billion.
MP BOLD CALLS FOR 20% YOUTH VOTE QUOTA FOR ELECTIONS
MP L. Bold has proposed a voting quota requiring 20 percent of young people to hit the polls on 29
June. “80 percent of our population is the youth, and over 50 percent of them are voters said Bold
at a 11 April press conference. “Every fifth person is younger than 30 years old.
The Democratic Party lawmaker said the government has two bills to consider where it could
include provisions for young people voting, although he did not say what incentives should be
offered or what should happen if the electorate failed to meet his proposed quota. “I was first
elected when I was 29,” he said. “The revolution in 1990 was conducted by young people as well.
The most important thing is voters will be not satisfied if barriers set in the election law are not
removed.”
PARLIAMENT TO VOTE ON INDIA'S $1 BN CREDIT LINE
Parliament will vote on whether it should take a USD1 billion dollar credit line amid growing
national debt to foreign creditors. The Cabinet Secretariat supported the intergovernmental
agreement with the Exim Bank of India for the credit line on 11 April with the condition that
Parliament should also weigh in before taking on more debt. A working group was created by the
Prime Minister to decide on which projects should be eligible for the financing.
The credit comes with 1.7 percent annual interest over 20 years, with first payment coming 5 years
after receiving the funds. Lending for projects worth over USD200 million and/or those of strategic
national importance valued over USD100 million will have 7 years before payment and 25 years of
repayment.
Source: Montsame

ESTABLISHMENT PARTIES COURT MPRP FOR COALITION
The Mongolian People's Revolutionary Party (MPRP) is the most popular girl for a date at the ball for
this year's election, as both the Mongolian People's Party (MPP) and the Democratic Party mull a
possible coalition agreement for this year's election. The MPRP in 2012 joined the Democrats for the
coalition government making an uneasy but fitting relationship to govern the country while
antagonizing the MPP from which it broke off. Last weekend, both the Democrats and MPP held
party meetings to decide on campaign plans. The MPP board of executives formed a body to work
out a possible deal to campaign alongside the MPRP after receiving a proposed 60:40 seat-holding
agreement from the MPRP if they won together.
Meanwhile, the Civil Will-Green Party, another coalition member, has received offers from several
smaller parties for a campaigning coalition. Offers from the National Labor Party (KhUN), the
Mongolian National Democratic Party and Ekh Oron were discussed on 16 April.
Source: Undesnii Shuudan, News.mn, 2
IAAC HEAD SIGNALS THAT HE WILL STEP DOWN AT END OF 2017
The head of the Independent Agency Against Corruption has signaled that he will not pursue
another term after his term ends at the end of 2017. N. Ganbold in a letter to the president
recommended the head of the General Intelligence Agency B. Khurts and former head of the
Statement Emergency Agency Ts. Amgalanbayar as his successors.
Khurts is a former top Mongolian spy who was arrested in Britain and expedited to Germany for the
kidnapping and false imprisonment of Damiran Enkhbat under the orders to take him to Mongolia to
faces charges connected with the assassination of Sanjaasuren Zorig. Enkhbat's family, who still live
in Germany, blame Khurts for Enkhbat's death after being arrested.
Source: Udriin Sonin, BBC
RUSSIA, MONGOLIA SIGN MEDIUM-TERM STRATEGIC PARTNERSHIP PROGRAM
Russia and Mongolia will signed a medium-term program for the development of a strategic
partnership between the two countries on 14 April. The signing ceremony was held during Russian
Foreign Minister Sergey Lavrov’s official visit to Ulaanbaatar. "We have worked hard, meticulously
developing this program," the Mongolian foreign minister said. "I think this is not only a medium-
term plan for the bilateral relations development, but also a kind of compass, a benchmark for our
future actions over the next five years."
Foreign Minister L. Purevsuren said the document was needed because under the existing
regulations, the planning of bilateral relations is carried out only on a yearly basis based on the
protocol of the Russian-Mongolian Intergovernmental Commission currently in effect, which is not
enough to realize the full potential of the strategic partnership.
Source: Tass
AUSTRALIA COMMITS TO AUD10.8 MN IN AID TO MONGOLIA
Australia plans to deliver AUD10.8 million in aid to Mongolia as it steps up diplomatic relations with
Mongolia, where numerous Australian mining and mining services companies operate. Australian
Ambassador John Langtry in a meeting with officers from the Ministry of Foreign Affairs pointed out
similarities between their two countries, such as dependence on foreign investment and export-
oriented mining industries. He said Australian companies were working in education, infrastructure,
mining and other industries in Mongolia where Australia's aid would support cooperation.
Source: Unuudur
BELARUS, MONGOLIA COMMIT TO PEACEFUL FOREIGN POLICY
Both Belarus and Mongolia are committed to a peaceful foreign policy, Deputy Chairman of the
House of Representatives Viktor Guminsky said as he met with Chairman of the Peace and
Friendship Organization of Mongolia Deleg Zagdjav on 8 April. “Both Mongolia and the Republic of
Belarus are committed to the foreign policy of peace and cooperation. Mongolia implements this
policy relying on the principles of mutual understanding, cooperation, the dialogue of equals,

observing the principle of sovereignty and non-interference in the internal affairs of each other. We
have a like-minded policy,” Viktor Guminsky said.
According to the vice speaker, in spite of its territorial remoteness, Mongolia is a like-minded
country for Belarus. Viktor Guminsky believes that the trade and economic relations of Belarus and
Mongolia have good prospects. Belarus can give a lot to its Mongolian partners in machine-building,
he added.
Source: Belarusian Telegraph Agency
MONGOLIA INKS DIPLOMATIC TIES WITH SAINT KITTS AND NEVIS
Diplomatic relations were launched with the Federation of Saint Kitts and Nevis on 12 April in
London. Mongolia is working towards opening diplomatic relations with all members of the United
Nations.
Source: Montsame
GOBI WOLF 2016 TESTS HUMANITARIAN ASSISTANCE AND DISASTER RELIEF CAPABILITIES
U.S. Army Pacific soldiers joined an international team to conduct an earthquake-readiness exercise
in Ulaanbaatar, Mongolia from 4 to 8 April. Exercise Gobi Wolf 2016 was a civil-military disaster
preparedness and response initiative focused on regional readiness in response to natural and man-
made disasters. Gobi Wolf is part of the Pacific Resilience Disaster Response Exercise and Exchange
program, which focuses on inter-agency coordination and foreign humanitarian assistance.
The exercise is designed to test disaster response processes while maximizing realism through a
series of scenarios. The specific scenario simulated for Gobi Wolf 2016 was a severe earthquake
that hit the mining city of Erdenet, the third largest city in Mongolia. "In addition to supporting
capacity building for humanitarian assistance and disaster relief, this is a great opportunity to
strengthen relationships and promote inter-agency coordination with our Mongolian partners," said
Andrew R. Benziger, the chief of readiness and contingency operations for the U.S. Army Corps of
Engineers Pacific Ocean Division.
Source: Defense Video & Imagery Distribution System
POLICE RAID BATTULGA'S OFFICE
Police raided the office of former minister of industry and agriculture Khaltmaa Battulga at the
Bayangol Hotel. More than 30 police arrived at the hotel to search the office while Battulga, who is
currently an elected official of Parliament, and his lawyer D. Purevebaatar watched from inside the
room. Police locked the office rooms from the inside and prohibited anyone from entering.
An unnamed source said that police received permission for the search from the prosecutor based
on allegations of corruption related to the Sainshand Industrial Complex.
MPRP DEMONSTRATES ON ANNIVERSARY OF ENKHBAYAR’S 2012 ARREST
The Mongolian People's Revolutionary Party (MPRP) and its supporters held demonstrations on the
anniversary of the 2012 arrest of Party Chairman Nambar Enkhbayar. Officials' continued targeting
its members for corruption investigations. Enkhbayar spent a year in prison after being convicted of
corruption related to the sale of state properties before being pardoned a year later and returning
to Mongolia this year after more than a year of medical treatment in South Korea. The Independent
Authority Against Corruption (IAAC) arrested Enkhbayar's bodyguard, M. Munkhuu, on 8 April [The
source is not clear on the charges against Munkhuu, but describes them as “cheating” -ed]. The
body guard was reportedly suffering from a leg injury when the agents came to his home for his
arrest.
Source: News.mn
YOUTH GROUP HOLDS DEMONSTRATION AGAINST CORRUPTION AT CHINGGIS SQUARE
On 8 April, people left 3,000 shoes on the grounds of Chinggis Square as a form of silent
demonstration by the Mongolian Youth Federation. “We want to save Mongolia from corrupt

officials,” reads a statement from the group. “Where is Mongolia’s future? I am afraid of how many
times that Mongolian per capita debt has increased.”
The demonstration follows an incident where an irate audience member at the Mongolian Economic
Forum tossed a sock at the speaker of Parliament, Zandaakhuu Enkhbold, in March.
Source: News.mn
BCM UPDATES:
ANNOUNCEMENTS
1ST ANNUAL BCM SUMMIT, 21 APRIL, BLUE SKY HOTEL
The Business Council of Mongolia (BCM) will host its 1st Annual BCM Summit on 21 April at Blue Sky
Hotel and Tower in Ulaanbaatar. The Summit is different from other conferences in terms of
diversity of topics and coverage, with an advocacy approach of collecting and reflecting the voice
of the business community in advance and as a follow up with Summit Proceedings to be distributed
widely to the public and political parties. The forum consists of a panel on international finance and
5 sessions on mining & industrial supply; business strategies in an economic downturn; capital
markets; innovative business trends; and messages to Government leaders. In conclusion will be a
summary of Summit Proceedings including, most importantly, a wrap-up of issues and
recommendations from the business community targeted to political parties and the next
government.
BCM acknowledges the generous sponsorship of Transwest Mongolia LLC; ELC LLP Advocates;
Erdenes Mongol LLC; Porsche Mongolia; Golomt Bank; Monpolymet; Trade and Development
Bank; Valiant Art & Interiors; British School of Mongolia; Engie Mongolia; and Wagner Asia LLC.
Media coverage by Bloomberg TV Mongolia; Mongolian Economy Magazine; News.mn website
and great support from Cover Mongolia; Mongolian Business Database; North America-Mongolia
Business Council; and Oxford Business Group.
Registration for the BCM Summit is oversubscribed. For information, email Saruul at
saruul@bcmongolia.org.
_________________________________________
2016 COAL & METALS MONGOLIA, 6-7 MAY, CORPORATE HOTEL AND CONVENTION CENTER
Join to learn about Mongolia's major infrastructure and coal assets at Coal & Metal Mongolia
conferences—now an annual event. Hear from Mongolian government officials and expand your
business contacts while learning about infrastructure in Mongolia and how to the capital investment
environment can become more competitive. Over 500 guests are expected and 80 companies
exhibiting their services.

For more information, call 9911-6135, 7011-5590. BCM members can receive a 10 percent discount
at registration by emailing saruul@bcmongolia.org for a special discount code.
_________________________________________
EXPO MONGOLIA – THE PLACE TO BE IN MAY 2016 FOR DOING BUSINESS!
A perfect time for international investors, associations and private companies to start business in
Mongolia and to play a key role in future development. Therefore Expo Mongolia, the international
trade fair in Buyant-Ukhaa Sport Complex, Ulaanbaatar, is the meeting place for all industries.
From 23–25 May in the Buyant-Ukhaa Sport complex, official pavilions and individual exhibitors are
warmly welcomed to the unique networking platform in the expanding eastern market to establish
business contacts and to present new innovations to trade professionals from Mongolia and
surrounding countries.
BCM members will have 10% discount on registration. Please contact saruul@bcmongolia.org to get a
special discount code. For more information please visit www.expomongolia.com.
Please contact us via e-mail: em@expomongolia.com. Tel: +976 94009471 , +976 70009471
BCM ADVOCACY NOTES
Revisions to latest draft of Labor Law bill
Ministry of Labor has recently made revisions to the latest draft, particularly in areas of joint
agreement and annual leave. Currently, this draft is being reviewed and commented by other
Ministries. Labor Minister Bayarsaikhan.G reconfirmed his intentions to submit the draft for the
autumn Parliamentary session.
The latest draft can be found here.
BCM WORKING GROUP NEWS
Legislative Working Group
BCM’s Legislative Working Group’s meeting was held on Thursday, April 14, 12th floor Express
Tower, with 13 members in attendance, representing Minter Ellison, Hogan Lovells, Oyu Tolgoi, ELC
Law Office, Newcom, PATC (Professional Accounting and Tax Consulting) and MCS.
Agenda of the meeting:
16:00-16:10 Opening remarks and introduction of plan for 2016 - Legislative WG Co-Chairs
16:10-16:40 Overview and update of recent changes to the draft labor law - Sebastian Rosholt,
Minter Ellison
16:40-17:10 Proposed tax legislation revision - Anthony Woolley, Hogan Lovells
17:10-17:30 Issues in VAT law and the CIT draft law - Munkhtur T, Director of Business
Development, MCS
Meeting began with BCM’s Executive Director Jim Dwyer’s introduction of the newly appointed Co-
Chairs of the Legislative Working Group: Sebastian Rosholt of Minter Ellison and Anthony Woolley of
Hogan Lovells. Jim extended his gratitude to both gentlemen for volunteering as Co-Chairs.
Sebastian’s presentation focused on the changes in the February to March drafts of the Labor Law,
highlighting the positive developments especially on the annual leave days and the negative
developments that were added into since the December draft. Sebastian also emphasized that some
of the negative developments from the employer’s perspective presented in his presentation were
the provisions originated from the December draft.
Anthony gave a comprehensive overview of the tax regime of Mongolia up to the current draft of
the Corporate Income Tax (CIT) law. The CIT Law draft was scheduled for discussion at the
Budgetary Standing Committee on 11 April, but was postponed. The presentation covered changes
in the threshold of the standard tax rates, affiliated parties, tax returns, tax exemptions and cross
referrals to other legislation.
Munkhtur from MCS shared with the group specific risks project developers see in the current

proposed CIT Law. Main concerns are in regards to the VAT on the purchased PPE, works performed
by non-residents and the tax levied on sales of securities.
Bayar, Managing Partner, ELC Law Office, suggested that these concerns from the businesses could
be further explored with BCM’s Tax WG and advocated immediately. WG Co-Chairs agreed to the
suggestion and assured the group that after a consultation with Tax WG chair and key members, a
statement by the BCM’s Legislative WG will be issued.
It was agreed that the recommendations on the CIT law will be incorporated in the 1st Annual BCM
Summit Proceedings for further advocacy.
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM, at khulangoo@bcmongolia.org.
_________________________________________
Capital Markets Working Group
BCM’s Capital Markets Working Group’s meeting was held on Tuesday, 5 April at Suite 1201, 12th
floor Express Tower, with 15 members in attendance, representing OT, BDSec, Khan Bank, Golomt
Bank, TDB, XacBank, Mongolia Growth Group, Ernst & Young Mongolia Audit, Nova Terra, Wagner
Asia Equipment LLC and Mahoney Liotta.
16:00-16:10 Opening remarks and re-cap from last meeting
(Capital Markets WG Co-Chairs)
16:10-16:50 Guest speaker: "Oyu Tolgoi Project Financing"
(Dorjpalam Kh., Senior Advisor Corporate Finance, OT LLC)
16:50-17:10 Member time: Update on Custodian Banking
(Ariunjargal Ch., Head of Custody Services Dept., Khan Bank)
Nick Cousyn, Co-Chair of the Capital Markets Working Group, provided a recap of the last meeting
to the members and updated the members on the latest market news of the Government of
Mongolia’s coming into the market twice with Credit Suisse syndicated loans.
Ms. Dorjpalam Kh, Senior Advisor Corporate Finance of OT LLC, gave a comprehensive overview of
the Oyu Tolgoi Project Financing. The presentation covered key topics: the significant benefits to
Mongolia, list of project financing participants, financing plan with its tranches and key financing
terms. Participants were mostly interested in knowing the drawdown of the financing and how the
financing schedule is tied to the technical certification of the underground development.
Ms. Ariunjargal Ch., Head of Custody Services Department at Khan Bank, updated the members on
the engagement with Financial Regulatory Commission (FRC) on the issue of Custodian Banking
Services, in particularly failed trade management and establishment of the market infrastructure at
Mongolian Stock Exchange through Millennium IT. Due to the re-organization at the FRC, its
Chairwoman’s resignation to run for office in the parliament, regulations required for the failed
trade management have not been finalized at the Government level. On the recent FRC Working
Group tasked on the custodian banking issue, brokerage firms and commercial banks have clarified
impending issues on the T+1 and T+2 settlement issue.
During the discussion period, BCM reminded the members of the 1st Annual BCM Summit scheduled
on 21 April and encouraged members to send up to 3 issues and challenges faced by the business
and sector in relation to the regulatory environment and related recommendations on those issues
that need to be addressed by the political parties and the next government.
Coordinator of BCM atkhulangoo@bcmongolia.org.
_________________________________________
Risk Working Group
BCM’s Risk Working Group’s meeting was held on Wednesday, 9 March at Suite 101, 12th floor
Express Tower, with 9 members in attendance, representing Mandal General Insurance, MIG
Insurance, XacBank, Wagner Asia, Bagatumurch LLC, State-owned Agricultural Reinsurance JSC and
National Emergency Management Agency.

16:00-16:10 Introduction and Opening remarks by Risk WG Co-Chairs
16:10-16:50 Status Report on dzud condition in the countryside, Tuya Ch., Specialist, National
Emergency Management Authority of Mongolia/NEMA/
16:50-17:20 "Index-based livestock insurance scheme and Introduction of state-owned Agricultural
Reinsurance JSC", Enkhtaivan G., CEO of Agricultural Reinsurance JSC
Captain Tuya Ch., NEMA, gave the members a comprehensive overview of the dzud and dzud-like
situation in 18 aimags and 98 soums of Mongolia. As of 9 March 2016, the total tally of perished
livestock is 360,000. While this number is incomparable to the 2010’s record high loss of 6,310,800
livestock, Captain Tuya emphasized that at any dzud situation, it is the herders that are afflicted
the most as they are faced with enduring long cold days without basic medical assistance and the
ever-increasing need to tend after their cattle, their main source of income. Captain Tuya’s
presentation was complimented with a weather assessment presentation, which can be found here.
Specialist Oyunbat N., Agricultural Reinsurance JSC, presented the index-based livestock insurance
scheme and how it evolved into laying the very foundation of the state-owned Agricultural
Reinsurance JSC. Members were interested in knowing the reason behind the decline in the number
of policyholders, if the Agricultural Reinsurance JSC is exploring the bloodline insurance and the
JCS’s global reinsurers. Members in attendance were distributed “Mongolia: Dzud Emergency
Response Preparedness” snapshot by OCHA (Office for the Coordination of Humanitarian Affairs)
Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Tax Working Group
BCM’s Tax Working Group’s 2016 kick-off meeting was held on Wednesday, 2 March at Suite 101,
12th floor Express Tower, with 16 members in attendance, representing Oyu Tolgoi, PwC, Deloitte
Onch Audit, Sumitomo Corporation Mongolia office, International SOS, WCS, MahoneyLiotta, Lehman
Lee & Xu and PATC.
Agenda of the meeting: 16:00 - 16:10 Opening remarks (Chair, Tsendmaa Choijamts, PwC) 16:10 -
17:00 Introducing new VAT law (Altankhorol O, Senior state tax inspector, Revenue department of
the General Department of Customs and Taxation) 17:00-17:30 Q&A session and discussion on TWG
plans for 2016 (Members, state tax inspector)
Ms. Altankhorol, General Department of Customs and Taxation of Mongolia, reviewed the newly
adopted Value-Added Tax (VAT) law of Mongolia, which took effect on 1 January 2016. The
presentation covered key policy changes, changes in the other related regulations and frequently
asked questions from businesses. Members in attendance were interested in the procedural changes
in the new VAT law, such as the registration and de-registration as a VAT payer, VAT-exempt goods
and services and VAT zero-rated goods and services.
Ms. Tsendmaa Ch, Tax Executive Director of PwC Mongolia, shared with the members Tax Working
Group’s draft plan for 2016. As Chair of Tax Working Group, MS Tsendmaa, informed the members
of the intent of engaging representatives from the government entities to the WG meetings in order
to learn more about legal and procedural changes and to exchange expert views with
representatives from government bodies.
Next meeting is scheduled for May. For more information about this meeting, please contact
Khulangoo Purevjav, Working Group Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Business Ethics Working Group
Business Ethics Working Group meeting was held on 1 March at Express Tower from 16:00 to 17:30
with 12 members in attendance representing Atlas Copco, Transparency International, Mandal
General Insurance, US Embassy, Wagner Asia, Deloitte Onch Audit, Asia Foundation, Valliant Art and

Interiors, World Vision and the Institute of Finance and Economics.
Agenda of the meeting: - Introduction of members and guests (Anders Berglund, Atlas Copco) -
Recap from the last meeting (Christine Hudetz, TI Mongolia) - Insurance sector transparency (Zaya
Bolorbold, Mandal Insurance) - Discussion on topics and plan for 2016 (Christine Hudetz, TI
Mongolia).
The meeting begun with recap of the last meeting: development of the draft plan for 2016 and
collective agreement on the need to reach-out for more local companies as members of the
Working Group. Given the delicacy of the issues the WG intends to cover at its meetings and the
subsequent low interest from BCM members to sign-up for this WG, nonetheless members have
agreed to continue with its meetings and aim to draw more attention from local companies.
Ms. Zaya, Mandal Insurance, presented an overview of the insurance industry and Mandal fight
against kickbacks and the adverse effects of kick-back culture within the industry. Attendees were
highly impressed with Mandal’s meticulous top-down approach against kick-backs, from its
philosophy to its hiring procedure. During the discussion time on plan for 2016, Wagner Asia has
volunteered for a presentation in November and Asia Foundation offered to share its study findings
on corruption in Mongolia.
Co-Chair reminded the members of the next meeting topic item: Gift giving policy on Tuesday, first
week of May. For more information about this event, please contact Khulangoo Purevjav, Working
Group Coordinator of BCM at khulangoo@bcmongolia.org.
_________________________________________
Energy & Environment Working Group
BCM’s Energy and Environment Working Group’s 2016 kick-off meeting was held on Thursday, 25
February at the Open Society Forum’s meeting room with 17 members in attendance. Represented
were GGGI, US Embassy, XacBank, Mongolian Bankers’ Association, Arig Bank, Invest Mongolia,
Wildlife Conservation Society, Techenomics, Mongolian National Mining Association, Mongolian Wind
Association, Newcom Group, Economic Development Center and the newest addition to the Working
Group, the Institute of Energy Economics.
The meeting was organized under the theme of: "Green credit - private and public initiatives".
- Sustainable Finance Initiative: Latest developments, progress towards private fund establishment,
Mr. Tumurkhuu, Head of Sustainable Finance Initiative Steering Committee and CEO of Arig Bank
- National concessions list: Latest developments, quick look at near-term projects, Mr. Ts.
Batbayar, Head of Concessions Division, Invest Mongolia
- Facilitated discussion on business implications of green finance and concessions opportunities in
Mongolia, Mr. Tumurkhuu, CEO of Arig Bank.
Mr. Tumurkhuu emphasized that the Sustainable Finance Initiative is in full swing with initial loans
being issued at 14 commercial banks of Mongolia since 2015. Mr. Batbayar, Division Head at Invest
Mongolia, shared latest developments on concession and the Agency’s efforts in improving the legal
environment for regulating concession issues in Mongolia. Mr. Jon Lyons, co-chair of the Energy &
Environment WG (EEWG,) facilitated the discussion on green finance and concessions opportunities
in Mongolia. Working Group members were mostly interest in the government’s guarantee to the
concessionaire and the updates of the Water Treatment Facility and CHP-ͷ concessions. As part of
BCM’s effort in increasing stakeholders from the government entities, Mr. Amarsanaa, Head of the
Institute of Energy Economics (IEE), an institute under the Ministry of Energy, attended the meeting
and agreed to introduce the IEE at the next Working Group meeting. For more information about
this meeting, please contact Khulangoo Purevjav, Working Group Coordinator of BCM at
khulangoo@bcmongolia.org.
BCM’s Logistics Working Group
BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office
Building with 7 people in attendance representing Monex, Representative Office of Mitsui & Co.,
Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-Dolgoon Delgerekh LLC.

• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”
• Discuss and plan WG’s 2016 activities
Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.
Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the
company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service
in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in
the delivery logistics within Ulaanbaatar.
Meeting participants were interested in the expansion plans of the company, such as delivery
services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave
comprehensive answers about the company’s plan for establishing cargo service between South
Korea and Mongolia initially and delving into other markets.
Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.
He again encouraged our members to read through the soft ideas laid out and provide comments.
Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,
so that members interested or operating in that topic area can actively participate and bring in
more insight.
The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the
questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.
Coordinator of BCM, at khulangoo@bcmongolia.org.
_________________________________________
BCM Education Working Group
BCM’s Education Working Group was held on 26 November at the Executive Excellence International
Business Center, 10F Galaxy Tower from 16:00 to 18:00. Fifteen people attended the event
representing foreign mission in Mongolia, private sector, universities and consultants of donor
funded projects:
Foreign Mission: Canadian Embassy;
Universities: National University of Mongolia, Mongolian University of Science and Technology
Private sector: PwC, Minter Ellison
Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education
and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The
Global Fund;
Meeting minutes summary:
Opening remarks by Education Working Group Chair - Saha Meyanathan. Saha related information
about being selected as the best Working Group of the year 2015.
Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB
funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities
will be organized first week of December.
During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of
building the capacity of the professors, as they are the ultimate knowledge givers to the students.
The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher
education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to
highlight a few:
For more information about this event, please contact Khulangoo Purevjav, Working Group
Coordinator of BCM at khulangoo@bcmongolia.org.
‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES
‘BCM in the University Classroom’ is expanding to high schools!
We are pleased to share that Amartuvshin Sh, CEO of Axel Fischer Academy, spoke at American
School of Ulaanbaatar (ASU) on 12 April 2016. Mr. Amartuvshin's speech entitled "New Season" was

targeted for staff at the ASU, to empower them with a new sense of purpose and motivate them
further in their service in the education sector. We thank ASU for hosting us and making it available
during spring break. BCM extends gratitude to Amartuvshin Sh for taking the lead in our first ever
"BCM in the high-school classroom" lecture initiative.
Please be checking our posts on "BCM in the University Classroom" series, as interesting presenters
are lined up this month!
_________________________________________
Guest Speaker: Nomin Jargalsaikhan
Presentation topic: "What successful people do in their free-time?"
Where & When: Institute of Finance and Economics, 31 March 2016
Nomin.J, Director at Mongolia Talent Network, was BCM’s second speaker at the Institute of Finance
and Economics in 2016. Her presentation entitled "What successful people do in their free-time?"
was attended by 60 students from the Banking and Business Administration majors.
Ms. Nomin, who has background in psychology, shared remarkable observation and insight collected
from her interviews conducted with Executives from various industries. Ms. Nomin’s presentation
was comprised of a practical guide to making an efficient “to-do-list”, managing a regular working
day and creating own motivational icon. A record-breaking headhunter within the Mongolia Talent
Network, Ms. Nomin gave-away important tips to remember when writing a “stellar” cover letter
and common mistakes candidates make when giving a job interview.
For more information about this presentation and “BCM in the University Classroom” lecture series,
please contact Khulangoo P., Working Group Coordinator at khulangoo@bcmongolia.org.
_________________________________________
Guest Speaker: Narantuya Dangaasuren
Presentation topic: "Editorial policy-Print Media"
Where & When: University of the Humanities, 15 March 2016
Narantuya.D, Vice Director of News Agency, was BCM’s third speaker at the University of the
Humanities in 2016. Her presentation titled "Editorial policy-Print Media" was attended by 90
students from the Journalism and ICT Faculty of the University of the Humanities.
Ms. Narantuya’s presentation began with current assessment of journalism in general and focused
on the print media and how it is evolving in a digital era. Her 20 some years of journalistic
background coupled with experience in managing Mongolia’s top-rated news website
(www.news.mn) gave Ms. Narantuya’s presentation more unique and a true voice of Mongolian
media. Students did not shy away from raising controversial questions such as the issue of biased
editorial contents and the rise of unethical journalism in Mongolia. Ms. Narantuya did acknowledge
the existence of such unfortunate situation; however she gave hope to soon-to-be journalists by
informing them of the active and budding enthusiasm of the newly formed Media Council of
Mongolia. The presentation is available here.
KNOWLEDGE SHARING SESSIONS
A BCM Knowledge Sharing Session was organized on 21 March in partnership with our member,
Corporate Governance Development Center (CGDC), on the topic "Methods for analyzing current
organizational strategy and identifying the strategic vision". The session was led by Enkhbold
Chuluunbaatar, Ph.D., business strategy manager at CGDC and a senior lecturer in the Department
of Business Administration at the Institute of Finance and Economics. His research interests include
entrepreneurship, culture and creativity, and strategy management. The focus of the session was
given on how to define organizational vision based on identifying organizational resources and
assessing factors that create value in the organization. A total of 15 people representing 12 member
companies attended the session.

COOPERATION & MEMBER DISCOUNTS:
- Oxford Business Group (OBG) offers BCM members and the 1st Annual BCM Summit participants a
complimentary read-only, online subscription to all of OBG’s digital reports
- Axel Fischer Academy offers 20% discount to BCM members on “Equipping your rising star Leaders”
in a three months training
- PROSUM LLC offers 10% discount to BCM members on promotional products they distribute from
European producers
- Corporate Governance Development Center (CGDC) offers 20% discount on all of its trainings to
BCM members
- News.mn offers 20% discount of its products and services for BCM members
- Mongolian Economy offers 50% discount for its advertisements & paid articles on website and 55%
subscription discount on its online magazine for BCM members
- NPC&Mandal offers 20% discount to BCM members
- Birches Group offers 10% discount on Mongolia Compensation and Benefits Survey for BCM
members
- New Media offers 25-50% discounts to BCM members on its online accounting software, E-
commerce platform, web & mobile application development and job searching software.
For more information about announcements and discounts, click here or contact Otgongerel,
Partnership Manager at otgongerel@bcmongolia.org.
MEMBERS’ VACANCIES
- Thiess Mongolia is hiring an Electrical Engineer & Mechanical Engineer. Deadline for
Application: April 20, 2016. For more information: contact: 70129820
- Save the Children is hiring a Finance Assistant. Deadline for Application: 5 pm April 08, 2016. For
more information: contact 11-329371; secretary@savethechildren.mn
- Euro Khan is hiring a Sales Engineer. For more information: contact at 11-325867, email:
info@euro-khan.com
- Atlas Copco Mongolia LLC is hiring a Sales Engineer. For more information: contact at +976
70129294 or send your CV to e-mail address anders.berglund@mn.atlascopco.com
For more information about vacancies, click here. To post your vacancy on BCM website, contact
Dolgorsuren at dolgorsuren@bcmongolia.org.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS
PRESENTATIONS:
BCM Monthly Meeting, 28 March:
- Steve Rose, General Manager, Cummins Mongolia Investment - "Cummins supporting Mongolian
customers"
- Barrie Evans, Director, Churchill's - "Their life in your hands"
- P. Tsagaan, Chief of Staff, Office of the President - "Update on ASEM"
BCM Monthly Meeting, 22 February:
- A. Baatarpurev, Director of Markets Development Department, Financial Regulatory Commission -
"Financial Market Developments in Mongolia"
- Jennifer Bielman, Country Director, MercyCorps Mongolia - "Mercy Corps: Building Resilience in
Mongolia"
- D. Uuriintuya, Chairman, Mineral Resources Authority of Mongolia - "Mongolian Events during PDAC

2016 in Toronto"
- N. Munkhnasan, General Director, Monpolyment - "Overview of Monpolyment"
BCM Monthly Meeting, 25 January:
- Sodontogos Erdenetsogt , Chief/National Coordinator of National Secretariat for Development of
the Second Compact agreement between Government of Mongolia and the USA Millennium
Challenge Corporation -
“Development process of the second compact agreement between government of Mongolia and USA
Millennium Challenge Corporation”
- Gantugs D, CEO, Mongolian Mortgage Corporation - “MIK Holding IPO and RMBS Issuance”
_________________________________________
MONGOLIA REPORTS:
- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”
- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform
Priorities (Sep 2015)
_________________________________________
INTERVIEWS:
- Jim Dwyer, Executive Director, 30 March 2016, BCM interview to Mongolian National Broadcasting
TV
- VIP76 website, March 2016, “BCM Monthly meeting coverage”
- Jim Dwyer, Executive Director, BCM, Bloomberg TV, 27 January 2016, "Business community calls
for political stability
WEBSITE:
"According to Google Analytics report, as of 13 April 2016, the daily web traffic to the BCM
website was 67 visitors with 82 sessions. 76% were from Mongolia, 5% from United States and
3% from Japan."
The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos
from BCM events.
As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy
newly introduced interactive features such as: edit your organization's profile information; post
vacancy notices from your organization; post cooperation proposals with other members or deals
you would like to offer to other BCM members; and start a forum and ask questions directly on the
web platform. Of course you can also visit our website for news information, interviews, event
photos, videos and announcements regarding BCM.
MEDIA COVERAGE
BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column
featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and
proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study
Tours of Businesses.” The third column was in the edition, September 2015: "Wagner Asia
Technology Innovations."
Elisabeth Ellis, a partner at Minter Ellison LLP was featured in November 2015 edition in the article
titled "In Order to Make the Labor Law More Effective."
_________________________________________

BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.
From January 2013 to April 2016 we posted a total of 112 news items related to BCM activities,
economic and business related updates.
SOCIAL NETWORKS
The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.
Keep up to date on the latest business deals in Mongolia and how the climate for investment is
improving each day with BCM.
Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the
latest announcements and comment on events carried in the BCM NewsWire with the community.
Hear breaking news and announcements as they happen when you follow BCM on Twitter at
https://twitter.com/bcmongolia.
The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's
Mongolian-speaking audience and members. Please click on the below link to follow us on our new
LinkedIn page.
http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.
Social stats: BCM now has 12,149 fans on our Facebook fans page, 1,988 connections on
LinkedIn network, and 2,039 followers on Twitter.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
March 31, 2016 *1.7% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.1% y-o-y; 3.1% Core - Ulaanbaatar City, March 31, 2016
CENTRAL BANK POLICY LOAN RATE
December 31, 2008 9.75% [source: IMF]
March 11, 2009 14.00% [source: IMF]
May 12, 2009 12.75% [source: IMF]
June 12, 2009 11.50% [source: IMF]
September 30, 2009 10.00% [source: IMF]
May 12, 2010 11.00% [source: IMF]
April 28, 2011 11.50% [source: IMF]
August 25, 2011 11.75% [source: IMF]
October 25, 2011 12.25% [source: IMF]
March 19, 2012 12.75% [source: Mongol Bank]
April 18, 2012 13.25% [source: Mongol Bank]
January 25, 2013 12.50% [source: Mongol Bank]

April 8, 2013 11.50% [source: Mongol Bank]
June 25, 2013 10.50% [source: Mongol Bank]
July 30, 2014 12.00% {source: Mongol Bank}
January 14, 2015 13.00% {source: Mongol Bank}
January 14, 2016 12.00% [source: Mongol Bank]
CURRENCY RATES – 14 April 2016
Currency
US dollar USD 2,008.46
Euro EUR 2,258.71
Japanese yen JPY 18.35
British pound GBP 2,833.33
Hong Kong dollar HKD 258.91
Chinese Yuan CNY 309.66
Russian Ruble RUB 30.16
South Korean won KRW 1.74

Bcm news wire issue 423

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Bcm news wire issue 423