The Development Bank of Mongolia provides financing for large-scale infrastructure projects that support the country's development goals. It is funding projects to expand Mongolia's rail network, build roads, develop urban areas, and establish an industrial park. The bank is playing a key role in major initiatives like quadrupling the rail system to transport minerals and providing long-term loans for transportation, energy, and telecommunications projects to improve current infrastructure capacities.

1. DEVELOPMENT BANK OF MONGOLIA
August 29, 2012
Financing Infrastructure in Mongolia

2. DevelopmentBank
of Mongolia
The Development Bank of Mongolia
 Inaugurated on May 12, 2011 as the development policy bank to provide
long-term financing for projects consistent with the Government
Development Strategy.
 100% state-owned bank under the Development Bank of Mongolia Law.
 Key instrument for implementation of the State Policy.
 DBM shall be for profit and state owned legal entity
 DBM shall provide loans to finance large scale development projects and
programs approved by Parliament on annual basis.
 Board of Directors of the DBM shall approve the list of projects financed from
other sources apart from those for which the GoM issued guarantee.
 Total Equity 49.76bln MNT as of 2nd quarter of 2012.
 Successfully issued USD 600 million international bond during 2011~2012.
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Highlights of Development Bank of Mongolia

3. DevelopmentBank
of Mongolia
The Development Bank of Mongolia
Primary focus on infrastructure and industrial development
 Quadrupling its rail network will
allow Mongolia to fully
capitalize in its commodity
endowment
 Strengthen Mongolia’s
bargaining power for its
resources
 Access to currently untapped
metal deposits in Mongolia
 Creation of downstream
industries would enable
Mongolia to achieve a more
diversified and balanced
economic growth
 Located in southern Mongolia
with intersecting rail access on
Tavan Tolgoi-Choibalsan railway
 The industrial complex could
include copper smelter, coking
coal plant and water supply
network and other plants
 Current infrastructure capacities no
longer meet increasing demand of
quality basic public services
 Improvements to current infrastructure
would include:
 Energy
 Transportation
 Telecommunications
 Infrastructure for housing projects
Integrated Mining & Railway Strategy Infrastructure & Urban Development Sainshand Industrial Park
Projects and Programs
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4. Development Bank
of Mongolia
The Development Bank of Mongolia
Road Development Projects
DBM is mandated to provide its funds for the road projects which totals USD
749 million by Government Resolution #105 and 336 issued in 2011, #47 and
106 in 2012. Projects are expected to boost its regional socio-economic
developments.
Projects consist of 17 road construction works in Ulaanbaatar city and 16 in the
rural area, that connects regional centers together and to the border ports, and
designing of 36 roads in Ulaanbaatar and rural areas.
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Length
(km)
Amount
(USD million)
Ulaanbaatar city road construction projects 48.7 95.6
Rural road construction projects 1590.0 646.8
Road designing in Ulaanbaatar city - 1.2
Road designing in the rural area - 7.7
749.4

5. Existing roadCurrently under constructionDBM funded project
Shaamar – Tsagaannuur
135 km
Murun – Tarialan
79 km
Altai – Darwi
80 km
Bayankhongor – Baidrag bridge
129.5 км
Baidrag bridge – Altai
127 km
Dalanzadgad – Mandalgovi
83 km
Ulaanbaatar – Mandalgovi
104 km
Munkkhaan – Baruun Urt
132.6 km
Undurkhaan – Choibalsan
94 km
Altai – Darwi
85 km
Altai – Darwi
90 km
Uliastai – Tosontsengel
67km
Uliastai – Tosontsengel
114 km
Tsahir – Tosontsengel
127.1 km
Undurkhaan – Munkhkhaan – Baruun Urt
45.3 km
Ulaangom – Naranbulag
90 km
[Appendix] ROAD CONSTRUCTION PROJECTS
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6. Existing roadCurrently under constructionDBM funded project
[Appendix] ROAD DESIGNING PROJECTS 4200 km
To be designed by DBM
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5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
2023
21
22
24
25
26
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2
3
Project Length (km)
1 Dalanzadgad – Mandalgovi 83.0
2 Baruun Urt – Munkkhaan 132.6
3 Khowd – Ulaangom 190.0
4 Dashinchilen - Bulgan 121.0
5 Ulaangom – Naranbulag 51.0
6 Songino – Khyargas 172.0
7 Numrug –Songino 167.0
8 Ugii lake – Battsengel – Ikh Tamir 113.0
9 Bayankhongor – Bayanbulag 237.0
10Uliastai – Altai 139.0
11Bayanbulag – Uliastai 233.0
12Uliastai – Durwuljin 104.0
13Durwuljin - Sarkhairkhan 159.0
Project Length (km)
14Sarkhairkhan – Myangad bridge 158.0
15Bayankhongor – Bayanlig 212.0
16Bayanlig – Gurwantes 293.0
17Undurkhaan – Norowlin 200.0
18Baruun Urt – Erdenetsagaan - Bichigdt 290.0
19Choibalsan – Ereentsaw 242.0
20Norowlin – Bayan Uul- Ulikhan 100.0
21Altai – Bugat 143.0
22Bugat – Burgastai 166.0
23Numrug- Bayantes – Artssuuri 199.0
24Khutag undur – Teshig – Baga ilenkh 135.0
25Dulaankhaan – Yeruu – Khuder 113.0
26Bayangol - Mandal 48.0
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7. Development Bank
of Mongolia
The Development Bank of Mongolia
New Railway Project 1
In June, 2010 the State Great Khural
(Parliament of Mongolia) has
approved Mongolian State Policy on
Railway by its Resolution No. 32. This
resolution designates routes for the
railway in 3 phases.
The new railway is important for the
economic development of Mongolia. It
will serve economic and industrial
growth through connecting strategic
coal and copper mines to the
international market with competitive
cost of logistic.
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1st PHASE – 1100 km
Dalanzadgad – Tavan tolgoi – Zuunbayan
(Sainshand)
Sainshand – Baruun Urt
Baruun Urt – Khuut
Khuut – Choibalsan
2nd PHASE – 900 km
Nariin Sukhait – Shivee Khuren
Ukhaa Khudag – Gashuun Sukhait
Khuut – Tamsagbulag - Numrug
Khuut - Bichigt
3rd PHASE – 3600 km
Western Railroad Network
Timeline of the Railway policy
 Transportation of commodities from Strategic mines
 Stimulating domestic industrial development such as
Sainshand Industrial Park
 Establishing domestic railway network
Incentive of the Railway policy

8. DevelopmentBank
of Mongolia
The Development Bank of Mongolia
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New Railway Project 2

9. Development Bank
of Mongolia
The Development Bank of Mongolia
New Railway Project 3
According to New Government Resolution #93 dated on March 27, 2012 and
#161 dated on May 9, 2012 Government of Mongolia approved New scheme.
 New shareholding company with prevailing Government shares will be
established to own railway base structure
 At present, GoM gave concession right to three companies to implement
railway
 Sainshand – Tavantolgoi (225km) : Eastern Railway LLC, Mongolian Trans Line LLC
 Ukhaa Kuhdag - Tavantolgoi – Sainshand(225km) : Infrastructre Development LLC
 Ukhaa Khudag – Gashuun Sukhait (260km) : Energy Resource LLC, ER Rail LLC
 SPC will take measures to incorporate Erdenes Tavantolgoi(“ETT”) in
implementation of Railway Project in the direction of Sainshand-Tavantolgoi-
Ukhaa Khudag-Gashuuin Sukhait to have state participation and monitoring
 DBM provide MNT399billion to ETT
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10. Development Bank
of Mongolia
The Development Bank of Mongolia
[Appendix] Route of New Railway
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Ulgii
Khowd
Ulaangom
Uliastai
Altai
Bayanhongor Arvaiheer
Tsetserleg
Bulgan
Murun
Erdenet
Darhan
Zuunmod
Ulaanbaatar
Choir
Mandalgovi
Dalanzadgad
Undurkhaan
Baruun Urt
Choibalsan
Ulaanbaishint
Khandgait
Arts suuri
Hanh
Altanbulag
Ulihan
Bichigt
Zamiin Ude
Burgastai
Yarantai
Dayan
Kharhorin
Sainshand
Ereentsaw
Tosontsengel
Khuut
Tavan tolgoi
Numrug
Gants Mod
Nariin Sukhait
Shivee khuren
Existing Route
1st Phase Route
2nd Phase Route
Oyu tolgoi
The policy states, after construction of 1st phase, the route will be connected to the borders by
constructing 2nd phase.
The Railway Policy is intended to create eastward flow of coal and commodity freight. Making routes
available through Russia and North-Eastern China.

11. DevelopmentBank
of Mongolia
The Development Bank of Mongolia
Sainshand Industrial Park(“SIP”)
DBM role in SIP
• GoM designated DBM as the FA of
the project by resolution #216
• Parliament Resolution #15 of 2011,
has designated DBM to provide fund
for the Sainshand Industrial Park
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Importance of SIP
• The complex is planned to support
and diversify Mongolia’s export-
oriented industry of value added
products with state of the art
technological solutions
• creates about 2.500 new permanent
jobs for Mongolians at different
levels including management,
special expertise and daily
operations

12. Development Bank
of Mongolia
The Development Bank of Mongolia
-P.M.U
-F.A
-L.A
-C.A
Industrial Park
11
Understanding of the SIP
 Planned Factories: $ 5,873 M
 Coke Plant - $ 2,265 M
 Copper smelter - $ 1,775 M
 Iron Ore pelletizing plant - $ 379 M
 Iron plant - $ 576 M
 Cement plant - $ 315 M
 Coal Gasification - $ 563 M
 Public/PPP facilities: $ 3,987 M
 Power plant -$ 1,137 M
 Public facilities -$ 2,850 M
(Logistic facility, Inter park rail, roads, utility etc)
Potential Project Structure
Project Overview
“SIP” LLC
Public Facility
PPPs
Private Facility
GoM
DBM
Private
Strategic
Investor
Financial
Investor
MLA, ECA, DBM
Commercial Lenders
State Budget, DBM,
Donor organizations
Advisors

13. DevelopmentBank
of Mongolia
The Development Bank of Mongolia
List of concession items in the infrastructure
* Source: Government Resolution No 198. dated on July 21, 2010.
Role of DBM in PPP
 Provide feasibility study fund in collaboration with donor financing institute and
SPC
 Provide Financial Advisory Service
 Provide co-financing and/or syndicated loan with International financial institute
on those project
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PPP (Public Private Partnership)
Concession item Type
245km road from UK-GS BOT
53km UB-Khusigt airport highway BOT
367km Altanbulag-UB highway BOT
630km UB-Zamiin uud highway BOT

14. DevelopmentBank
of Mongolia
The Development Bank of Mongolia
Thank you for your attention…
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For further information please contact to:
Development Bank of Mongolia
Government Building II, United Nations Street 5-1, Ulaanbaatar
Mongolia
Phone.
Fax.
Web.
Email.
(976) 7013 0513
(976) 7013 0602
www.dbm.mn
info@dbm.mn