The Mongolia Group LLC outlined plans to construct 195km of roads, including a 135km route from Darkhan to Altantbulag and Shaamar-Tsagaannuur and a 60km asphalt road from Tsogt Ovoo to Tsogttsetsii. The 7m wide, two-lane roads will follow a four stage process: earthworks, anti-freezing measures, gravel base, and asphalt paving totaling 7cm in two layers. Completion is targeted within 12-18 months while avoiding winter months. A $115 million loan over 6 years at 6.7% interest is requested, backed by government guarantees, to fund the estimated $600,000
6. LOAN PROCESS AND REQUEST
The project requires a loan of
US$ 115 million over 6 years
• Duration of the Project under
contract (12 months up to 18
months )
• Suitable time for construction
during the year (No constriction
during December, January
and February )
Strong Government Financial
Guarantee for full repayment of
the loan
Average $600 000 per
km.
6,7 % annual interest
Government Concession
Agreement
Government Guarantee
TOTAL AMOUNT TO BE REPAID
US$ 153 525 000