Bcm news wire issue 419

BUSINESS COUNCIL of MONGOLIA
NewsWire
www.bcmongolia.org
info@bcmongolia.org
Issue 419 – March 18, 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:
 Aspire Mining Ltd. looks to bridge Mongolian rail funding from China;
 Cummins to open engine-rebuild center;
 State Bank launches 10% lending to herders;
 APIP aims to be world's top emerging-market real estate firm with merger;
 Archetype expands presence in Asia with merger;
 After settling for $70mn, Khan Resources and Mongolia drop legal petitions;
 Japan's Sysmex to improve public diagnostics;
 Mongolia, Azerbaijan eyeing Belarusian UAV manufacturing technologies;
 EBRD helps Mongolia’s Molor Zam increase turnover;
 Anviz Biometrics Tech protects Trade and Development Bank of Mongolia;
 Erdene announces exploration plans;
 Wolf Petroleum suspended from ASX;
 Firefighters will receive Rosenbauer firetrucks;
 BCM: Supporting sustainable business growth and development;
 Areva Mongol launches charity, tourism promotions;
 'Friendly Ulaanbaatar' presented at ITB Berlin;
 Chinese gold-miner head flees from tax evasion case;
 Sub-contractors demand back pay amid Samsung C&T railway scandal;
 Tips for NGOs wanting to set up shop in Mongolia;
 Sam Walsh to step down as Rio Tinto chief executive.
Economy:
 Mongol Bank: currency auctions, swaps, 1-week bills, T-bills;
 Mongolia eyes USD500 mn from syndicated loan debut;
 Moody's: Outlook for Mongolia’s banks remains negative in challenging operating
environment;
 FDI nearly halved in 2015;
 Copper exports climb in volume but with lesser returns;
 5% mortgage scheme launched for select borrowers;
 Unqualified loans on the rise;
 Saikhanbileg government employs MNT948.3 mn for measles vaccinations;
 Mongolia-Canada developmental cooperation to expand;
 Belarus views Mongolia as promising partner in Asia;
 Mongolia’s clocks spring ahead on 26 March;
 Temperatures dropped to -55 Celsius in February;

 Governor orders new boundaries for Khushig airport;
 Prague Zoo plans transport of Przewalski's horses to Mongolia;
 UB to begin approval of construction permits in certain districts.
Politics:
 President puts up 'Double Deel' bill for another vote;
 Authorities checking up on foreign residents ahead of ASEM;
 Enkhsaikhan courts minor party for merger with MNDP;
 PM ignores Baasankhuu's TV challenge;
 Foreign Affairs Ministry denies claims of smuggling by Pyongyang officials;
 UAE Embassy opens in UB;
 Mongolia cancels 2016 visa on arrival facilities for 42 countries;
 East Kazakhstan region proposes close cooperation with Mongolia's western provinces;
 Alaska Guardsmen participate in cold weather exchange with Mongolian Armed Forces;
 Investigation opened into foreign religions;
 Micro-bus drivers protest.
BCM Updates:
 Announcements;
 New Mongolian Laws;
 Knowledge Sharing Sessions;
 Advocacy Notes;
 Working Groups News
 BCM in the University Classroom Series;
 Cooperation & Member discounts;
 Websites Update - Presentations, Mongolia Reports, Interviews;
 Social Networks;
 Member Vacancies.
Economic Indicators:
 Inflation;
 Central Bank Policy Rate;
 Currency Rates.
*Click on titles above to link to articles.
SPONSORS
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Mongolian Business Database

BUSINESS
ASPIRE MINING LTD LOOKS TO BRIDGE MONGOLIAN RAIL FUNDING FROM CHINA
Aspire Mining Ltd. has announced it is working with China Railways Bureau 20 Group toward a debt
facility to fund pre-development of a railway between its Ovoot coal project and the city of
Erdenet. Aspire is actively developing projects in Mongolia with stakes in both coal mining and
railroad projects in the north of the country as its Mongolian rail infrastructure subsidiary, Northern
Railways LLC, works with consortium partner China Railways Construction Bureau 20 Group for
bridge funding from a Chinese bank.
The line of credit is intended to be supported by guarantees from construction contractors and
Aspire. “With the continued support of the Mongolian Government, CRCB20G and now with the
support of UBTZ, the Erdenet to Ovoot to Arts Suuri railway continues to progress as a viable
inclusion in Mongolia’s “Economic Corridor” between China and Russia,” said Aspire’s managing
director, David Paull.
Source: Proactive Investors
CUMMINS TO OPEN ENGINE-REBUILD CENTER
The Mongolia office of U.S. engine maker Cummins Inc. is launching a new workshop and office
facility for administration and engine rebuilds. Cummins Investment Mongolia LLC will hold an
opening ceremony for the new facility on 25 March after operating in the country since 2011.
This week, Cummins Mongolia’s General Manager, Steve Rose, met with Ulaanbaatar Mayor Erdene
Bat-Uul to discuss partnership opportunities with the city. Ecobus LLC uses Cummins-brand engines
for the public transport vehicles it supplies the city, emitting less emissions than older models on
the road. “Ecobus is keen to push euro-3, euro-4 standards to reduce emissions, and our products
can support that,” said Rose following the meeting.
Source: Montsame, Cummins Mongolia Investment LLC
STATE BANK LAUNCHES 10% LENDING TO HERDERS
State Bank LLC has launched the government's subsidized lending program for agriculture this week,
giving herders access to loans 8 points below the lowest rate offered by competing banks. Mongolia
is seeking ways to assist the nomads who follow traditional herding practices in remote corners of
the country who are forced to take out loans with annual interest as high as 30 percent. State Bank
will subsidize loans for the 153,000 families who rely on herding that received the titles for their
income “Best Herders” to buy new equipment to grow their production.
Farmers too will have access to the loans, which can be used to buy machinery such as tractors. The
government has already tried to assist in the growth of farming by voiding customs tax on imported
farming machinery. The next lowest-interest lending comes from Khan Bank LLC, which was offering
the still-steep 18 percent interest.
Source: Mongolia. GoGo.mn
APIP AIMS TO BE WORLD'S TOP EMERGING-MARKET REAL ESTATE FIRM WITH MERGER
Asia Pacific Investment Partners (APIP) has merged with overseas investment agency, Property
Frontiers, with the aim of forming a world-leading emerging and frontier market real estate
company. APIP is a 14-year old company based in Hong Kong that has grown to become one of
Mongolia's largest integrated real estate companies, with interests in other emerging markets
including Myanmar, Kazakhstan, Cuba and China. The combined firms will continue to operate
under the APIP umbrella brand, with Property Frontiers becoming a wholly-owned subsidiary and
APIP’s flagship brand focusing on sales, research and selective co-developments in frontier markets
outside of Mongolia. APIP is planning to seek a listing on a major international exchange in the near
future.
“We are extremely pleased to welcome Property Frontiers to the APIP family,” said Lee Cashell,
chief executive officer of APIP. “With this merger, we see tremendous opportunity to build on the

deep research expertise and relationships Property Frontiers has built across the emerging markets
property space since their foundation in 2004.
Source: OPP.today
ARCHETYPE EXPANDS PRESENCE IN ASIA WITH MERGER
Asia-focused construction consultancy Archetype Group has acquired the Asia Pacific operations of
Tebodin, a consultancy and engineering company with offices across South East Asia. Archetype,
which has an office in Mongolia, said an agreement was signed on 4 March, strengthening
Archetype's Industrial division and providing a complementary extension to the company’s activities
in building, real estate, environment and Infrastructure.
"With the acquisition of Tebodin, we reinforce our expertise and market presence in Vietnam,
Thailand, India, Myanmar and Indonesia and it allows us to extend our reach to China, which is in
line with our development strategy,” said Archetype General Director Pierre-Jean Malgouyres.
Source: Archetype Group
AFTER SETTLING FOR $70MN, KHAN RESOURCES AND MONGOLIA DROP LEGAL PETITIONS
Mongolia will not pursue its appeal to overturn a ruling from a Paris court that ruled in favor of
Khan Resources Ltd. after negotiating down a settlement from about USD105million to USD70
million. Khan received a notice of discontinuance from the Paris Court of Appeal, the former
exploration miner said in a 16 March statement. It added that it, too, is no longer seeking legal
recourse from a U.S. District Court on retrieving the original USD105 million award.
"Khan and the Government of Mongolia are continuing to progress in good faith towards the receipt
of the settlement amount on May 15, 2016,” said Grant Edey, president and chief executive of
Khan.
Source: Khan Resources Inc.
JAPAN'S SYSMEX TO IMPROVE PUBLIC DIAGNOSTICS
The Japanese corporation, Sysmex, will work with the Health Ministry to improve diagnosis for
blood-borne diseases such as HIV/AIDS. Sysmex on 13 March signed a cooperation agreement with
the ministry to install new lab equipment and quality control measures at no cost to improve blood
analysis for diagnosing hepatitis B and C, and HIV/AIDS. The agreement comes after eight years of
prior cooperation.
Source: Unuudur
MONGOLIA, AZERBAIJAN EYEING BELARUSIAN UAV MANUFACTURING TECHNOLOGIES
Mongolia and Azerbaijan are interested in Belarusian technologies for manufacturing unmanned
aerial vehicles (UAV), Alexander Shchavlev, deputy director of the R&D Center for Multifunctional
Unmanned Complexes of the National Academy of Sciences of Belarus, said on 15 March. “The
demand for our products has turned out to be great,” said Shchavlev.
The National Academy of Sciences of Belarus has created three recognizable brands — Busel,
Burevestnik, and Dirizhabl. The product choices include proprietary autopilots that can steer flying
machines and systems that can automatically land flying machines on a runway. A number of
stationary devices have been developed as well.
Source: Belarusian Telegraph Agency
EBRD HELPS MONGOLIA’S MOLOR ZAM INCREASE TURNOVER
Good insulation is essential for windows in houses in Mongolia every day of the year. The country
registers some of the lowest and highest temperatures on the planet, from 40Celsius in the summer
to -40Celsius in the winter, as well as extreme temperature ranges between day and night.
Gerelmaa Enebish and her family seized this business opportunity when in 2003 they established
Molor Zam, a company that produces PVC windows on the outskirts of the Mongolian capital
Ulaanbaatar.
“The EBRD’s Advice for Small Businesses (ASB), which in Mongolia is funded by the EU, helps to

tackle these weaknesses by matching local SMEs with appropriate consultants who work with
business owners and their employees to solve both management and operational problems,” said
Baigalmaa Sanjjav, principal manager of the ASB team based in Mongolia. “For example, we
introduced Molor Zam to local consultants for process reengineering to help streamline production
as well as to improve the overall management of the company.”
Source: European Bank for Reconstruction and Development
ANVIZ BIOMETRICS TECH PROTECTS TRADE AND DEVELOPMENT BANK OF MONGOLIA
Trade and Development Bank (TDB) of Mongolia LLC has new biometric access control systems for
its rooms and elevators, as well as a time and attendance tracking system, via Anviz Global
technology. The technology was recently installed by subcontractor Topica. Floor access via
elevators is now controlled by fingerprint scan, which is synced with individuals’ security access
privileges; and fingerprint biometrics also control access to the building’s offices, and are used to
collect and track employee attendance. Administrators also have remote system access, and can set
the times at which staff are allowed access to certain facilities.
Source: Find Biometrics
ERDENE ANNOUNCES EXPLORATION PLANS
Erdene Resource Development Corp. has announced exploration plans for the year after raising
USD770,000 from the sale of warrants this month. Exploration work at the Bayan Khundii project
will launch in early April, said a 15 March statement, to determine specifics of the high-grade gold
mineralization there. Work will include additional geologic mapping, soil sampling, IP geophysical
surveys, trenching and 3,500 meters of diamond drilling.
Erdene also announced the appointment of Bilguun Ankhbayar as a strategic advisor, effective
immediately. Bilguun is the chief executive officer of Mongolian Investment Banking Group.
Source: Erdene Resource Development Corp.
WOLF PETROLEUM SUSPENDED FROM ASX
The Australian Securities Exchange has delisted petroleum explorer Wolf Petroleum Ltd. after Wolf
failed to lodge its half-year financial statement, according to a statement from the Australian
Securities Exchange. The company focused on its Sukhbaatar block in Dornogobi Aimag was included
on a list of 11 companies on suspension for the violation.
Source: ASX
FIREFIGHTERS WILL RECEIVE ROSENBAUER FIRETRUCKS
Firefighters throughout Mongolia will receive firetrucks from top-three producer Rosenbauer
International AG. The trucks are part of an agreement Mongolian has with the Austrian government
to supply 28 firefighting vehicles tough enough to withstand Mongolia's harsh winter and summer
climate and are supplied from Rosenbauer's branch in South Korea. Mongolia has paid MNT4.6 billion
for the trucks.
A fire at a building under development for the Shangri-La Hotel in Mongolia raised concerns about
the city's abilities to put out fires in high rise buildings. Last year, the National Emergency
Management Agency received MNT20 billion from the government to acquire modern firefighting
vehicles and technology.
Source: News.mn
BCM: SUPPORTING SUSTAINABLE BUSINESS GROWTH AND DEVELOPMENT
The Business Council of Mongolia (BCM) is launching its first annual BCM Summit on 21 April at the
Blue Sky Hotel and Tower to promote sustainable business growth and development in Mongolia.
The summit goes toward BCM's mission to enhance the business environment in Mongolia, promote
greater trade and investment in the country and meet the critical needs of its members.
Attendees will hear from professionals and business people speaking on various topics related to
development in Mongolia in the coming years. The summit is also a forum for members of the

business community to voice their opinions on common issues faced that need addressing by
government.
Source: News.mn
AREVA MONGOL LAUNCHES CHARITY, TOURISM PROMOTIONS
French uranium miner Areva SA is launching a new charity to help ease the financial burden of low-
income families with sick children. Areva's Mongolia unit plans to help lead development onto the
right track while engaging communities after 20 years of exploration in Mongolia. “Cases of severe
illnesses have increased among children of low-income families, so we plan to establish a charity
foundation called ‘Kindness’ to help these children,” said Areva Mongol LLC head Thierry Plaisant in
a meeting with Ulaanbaatar Mayor Erdene Bat-Uul.
Areva's currently has operations in Dornogobi and Sukhbaatar Aimags, as well as its home office in
Ulaanbaatar. In addition to the charity, Areva hopes to promote tourism in Mongolia by organizing
camel races on the frozen Tuul River. "People’s livelihoods have been difficult due to the
unemployment rate rise caused by slackening of mining investments in the last two years,” said Bat-
Uul.
Source: Montsame
'FRIENDLY ULAANBAATAR' PRESENTED AT ITB BERLIN
Ulaanbaatar touted the use of new technology to improve the safety of tourists at the 50th ITB
Berlin international tourism exhibition from 9 to 13 March. Over 10,000 companies from 186
countries attended the trade fair, where representatives of the Ministry of Environment, Green
Development and Tourism, Ulaanbaatar City Department of Tourism and other officials exhibited on
the ‘Friendly Ulaanbaatar’ initiative to make foreign guests more comfortable in the city.
Source: Montsame
CHINESE GOLD-MINER HEAD FLEES FROM TAX EVASION CASE
The Chinese head of a gold and silver mining operation in Dundgobi Aimag has fled the country after
authorities opened an investigation into the company for tax evasion. The State Department for
Supervision over Investigations suspects the Chinese company JPF LLC, which is operating the
Salkhit gold-silver mine, of misreporting the size of the deposit to avoid paying taxes. Suspicions
arose following claims of conflicting reports on the quality of the ore and how much it sold for from
the Central Geological Laboratory and General Department of Customs.
The resource size of the mine has reportedly fallen from between 1,400 and 1,500 grams of silver
per ton of ore to 428 grams since the change of leadership of the company last July. Last month,
three samples from the deposit sent to separate lab facilities revealed varying results between 441
and 1,706 grams silver per ton of ore. Authorities also claim that the reported price for ore sold to
China had fallen by 78.4 percent to USD54 a ton.
Source: Udriin Sonin
SUB-CONTRACTORS DEMAND BACKPAY AMID SAMSUNG C&T RAILWAY SCANDAL
Thirteen contractors are demanding back pay from work done to build a railway between coal
mines in the Gobi desert and the border point to China. Construction of a 267-kilometer railway
between Mongolian Mining Corp.'s Ukhaa Khudag mine and the Gashuun Sukhait border point to
China has been on suspension since funding fizzled out and is now at the center of an
embezzlement case that has former roads and transportation minister Khaltmaa Battulga under
investigation. The sub-contractors that conducted the preparatory work to get the ground ready for
laying track at a press conference demanded the USD13.8 million still owed by lead contractor
Samsung C&T. The sub-contractors said they had finished more than 85 percent of the ground work
before work was halted.
The original estimate for payment to contractors was USD70 million out of a total budget of USD118
million paid to Samsung by state-owned Mongolian Railways (MTZ).

TIPS FOR NGOS WANTING TO SET UP SHOP IN MONGOLIA
Setting up a local NGO in Mongolia has obvious hurdles. But what should international NGOs be
thinking about when they set out to open a branch there?
Respect the culture and traditions: International organizations need to understand that respect for
local culture and traditions is non-negotiable. A Red Cross official said organizations that choose to
ignore a nation’s or a community’s set of culture and tradition “probably won’t be able to expand
their activities” as it will be “unpopular among the local people.”
Coordination with local authorities: Working on the ground also requires coordination with formal
community authorities. International NGOs may turn to local partner groups that can help to
navigate the local systems of authority.
Coordination with traditional authorities: “It is very important actually to first visit or inform the
elders about any activities that you might have been planning, because Mongolians respect their
elders and listen to them intently,” said a Red Cross official.
Source: Devex
SAM WALSH TO STEP DOWN AS RIO TINTO CHIEF EXECUTIVE
Sam Walsh is to step down as Rio Tinto Group’s chief
executive and will be replaced by Jean-Sébastien
Jacques, an internal succession that paves the way for a
more growth-driven strategy at the Anglo-Australian
mining group. Walsh will retire in July and Jacques, head
of Rio’s copper and coal business, will become deputy
chief executive immediately ahead of the handover. The
handover comes at an inflexion point for Rio, which has
said it will abandon its long-standing policy of rewarding
investors by maintaining or increasing its dividend year
after year.
The decision is a reward for Jacques’ perseverance in
putting Rio on track to expand the next phase of its large
Oyu Tolgoi copper mine in Mongolia. The French
executive pursued a deal with the Mongolian government, which was agreed last year and ended
years of disputes over the project.
Source: Financial Times
SPONSORS
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Mongolian Economy Magazine

ECONOMY
MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, T-BILLS
The Bank of Mongolia on 17 March sold CNY39.6 million to commercial banks in currency auctions
for a closing exchange rate of MNT314.35, but passed on offers for USD3.5 million. Also that day, it
accepted tugrug swaps with commercial banks for an equivalent of USD13.6 million. It rejected U.S.
dollar swaps totaling USD20 million.
The Bank of Mongolia on 16 March issued 1-week bills worth MNT62 billion at a weighted interest
rate of 12 percent. Also that day, the central bank received MNT14.5 billion in bids for 12-week
treasury bills with a face value of MNT4.5 billion (originally announced at MNT20 billion) sold at a
discounted price and with a weighted average yield of 14.5%.
Source: Bank of Mongolia
MONGOLIA EYES USD500 MN FROM SYNDICATED LOAN DEBUT
Mongolia is looking for more cash after nabbing a loan of USD250 million with an undisclosed
greenshoe, according to a banker who received it. Sources reveal the country is now eyeing another
USD250 million of the total USD500 mn funded on 15 March. Although the five-year tranche was
closed earlier this week, lead Credit Suisse is flexible on expanding the syndicate and this part
remains open to those interested.
Mongolia is looking for the remaining USD250 mn via a three-year facility for which a full-fledged
syndication is ongoing. The sovereign turned to the loan market after receiving the cold shoulder
from bond investors for a proposed 144A/Reg S bond. Bond investors were said to have been
demanding a yield of 12 percent minimum for the five-year bond. In contrast, the country is paying
a margin of 625bp above LIBOR for the amortizing five-year tranche of its loan.
Source: Global Capital, Cover Mongolia
MOODY'S: OUTLOOK FOR MONGOLIA’S BANKS REMAINS NEGATIVE IN CHALLENGING OPERATING
ENVIRONMENT
Mongolia's banking system reflects the challenging operating environment, leading to continued
deterioration in asset quality and capital, while funding and liquidity will also remain tight, said
Moody's Investors Service in its outlook statement for Mongolia's banking system on 14 March.
Although Moody's has maintained a negative outlook in place since 2013, it said the pace of
deterioration will moderate compared to 2015. “Although we have seen a moderate pick-up in
economic growth in Mongolia, the operating environment remains challenging for banks, with risks
skewed to the downside," says Hyun Hee Park, a Moody's assistant vice president and analyst.
Reported capital metrics improved in 2015, and Mongolia's credit cycle will continue to deleverage
for a second consecutive year, with weak loan growth in all but some subsidized segments. Moody's
expectation for stable capital ratios suggests that banks will maintain their current capital metrics.
Funding and liquidity conditions will moderately improve with foreign investment into the Oyu
Tolgoi project, said Moody's.
Source: Moody's Investors Service
FDI NEARLY HALVED IN 2015
Foreign investment was down 48.9 percent at the end of December compared with the same period
in 2014, according to data from the National Statistical Office. Foreign investment stood at
USD195.1 million, down by USD186.8 million from the previous year.
Source: Montsame
COPPER EXPORTS CLIMB IN VOLUME BUT WITH LESSER RETURNS
The Oyu Tolgoi and Erdenet copper mines are acting as the biggest drivers of the economy, selling
more than half of all mining exports this year. Copper has topped all other exports in the first two
months of the year, raking in USD460 million—of which Oyu Tolgoi and Erdenet pulled in more than

USD340 million. Overall, however, revenues from copper exports were down 20 percent, despite the
uptick in volume of exports.
Source: Montsame
5% MORTGAGE SCHEME LAUNCHED FOR SELECT BORROWERS
The first 104 borrowers have received 5 percent mortgages with the revamped subsidized mortgage
program launched this week, slashing interest rates by 3 more points. The initial phase of lending
from State Bank LLC will see more restrictions than many expected at first. Only select housing
projects in ger districts are eligible, and banks will not refinance mortgages from 8 to 5 percent.
“If investment and income from the bonds grow, the mortgage interest rate will be lowered
gradually,” said the Democratic Party chairman [Source does not include the official's name -ed].
Source: News.mn, Mongolia.GoGo.mn
UNQUALIFIED LOANS ON THE RISE
The number of unqualified loans rose by nearly a third in February from the year before as the
country grapples with deteriorating economic conditions. The number of expired loans has more
than doubled since the start of 2015, bringing total bad debts to 11 percent of all loans. The total
value of unqualified loans tallied MNT889 billion in February, or 33.3 percent more than the same
period last year.
Analysts have pointed out that the 8 percent mortgage program did not factor into the debt
problem, however, as only 2.7 percent of the bad loans originated from the program.
Source: News.mn
SAIKHANBILEG GOVERNMENT EMPLOYS MNT948.3 MN TO FOR MEASLES VACCINATIONS
The Chimed Saikhanbileg government has dug up MNT948.3 million from the budget to employ
emergency measures against measles outbreaks among patients between 18 and 30 years old
nationwide, said the prime minister in a 16 March press conference. Mongolia had eliminated the
disease in 2011 after years of providing vaccinations to the population. However, new oubreaks
cropped up around the country beginning last year in March.
The Cabinet Secretariat approved the funding this week.
Source: Montsame
MONGOLIA-CANADA DEVELOPMENTAL COOPERATION TO EXPAND
Mongolia has asked Canada for its help in creating a wealth fund to bring today's savings to future
generations. Finance Minister B. Bolor in a meeting with Canadian MP Karina Gould said he would
like to see an intergovernmental agreement with Canada to bring its experience to Mongolia's
growing mining and agriculture sectors. Mongolia is included on a list of 25 countries of focus for
Canada's foreign aid.
Gould expressed readiness to collaborate with Mongolia in the matters discussed and underlined the
importance of empowering a state body on the fund’s management and separating it from political
influence.
Source: Montsame
BELARUS VIEWS MONGOLIA AS PROMISING PARTNER IN ASIA
Belarus views Mongolia as a promising partner in the Asian region, Belarusian Vice Premier Vladimir
Semashko said as he met with Minister of Construction and Urban Development of Mongolia Zangad
Bayanselenge on 11 March. “The mutual trade turnover is still insufficient. It is considerably lower
than the existing potential between the two countries,” noted Semashko. In 2015, the trade totaled
USD23.2 million.
According to Vladimir Semashko, intensification of contacts between the two countries at every
level will form a robust base for mutually beneficial cooperation. The vice premier said Belarus is
ready not only to sell its products to Mongolia and bring the bilateral relations onto a qualitatively
new level, but also can take part in Mongolia's vehicle park upgrading programs. That includes

setting up joint companies in automobile manufacturing, mining sector, and providing the
corresponding economic sectors of Mongolia with necessary types of vehicles.
Source: Belarusian Telegraph Agency
MONGOLIA’S CLOCKS SPRING AHEAD ON 26 MARCH
Mongolia will be moving clocks ahead by an hour after 25 March. The daylight savings time schedule
will run until 30 September.
Source: News.mn
TEMPERATURES DROPPED TO -55 CELSIUS IN FEBRUARY
Temperatures hit a national low of -55Celsius in Zavkhan Aimag in February. Mongolia is facing
severe winter conditions with low temperatures and heavy precipitation, threatening a natural
disaster when large numbers of livestock die in winter known as a dzud. The annual low was
measured at Tsetsen-Uul Soum, Zavkhan Aimag.
Air pollution is also a growing worry in Ulaanbaatar during winter, with the concentration of
nitrogen dioxide and sulfur dioxide exceeding recommendations by as much as 29 times. Matter
dangerous to lung health measured at 2.5 microns (PM2.5) was 28 times above the acceptable
content, while even finer matter known as PM10 was up to 29 times higher.
Source: Montsame
GOVERNOR ORDERS NEW BOUNDARIES FOR KHUSHIG AIRPORT
The governor of Tuv Aimag has ordered a change to the perimeter for land where the airport at
Khushig Valley, Sergelen Soum, will be built. The airport is projected to cover 1,200 hectares of
land, with another 120,000 hectares taken aside to develop a new town surrounding the city where
employees can live. However land at the northern, mountainous end of the territory could come
under dispute for a project to build a railway along Bogd Khan mountain.
Northern parts of special-needs land covers the mountainous region which might comprise land
disputes.
Source: Montsame, Mongolia.GoGo.mn
PRAGUE ZOO PLANS TRANSPORT OF PRZEWALSKI'S HORSES TO MONGOLIA
The Prague Zoo is preparing to transport 4 Przewalski's horse mares to Mongolia in the middle of
July, zoo director Miroslav Bobek said on 14 March, adding that a military CASA plane will again be
used. "We are planning to take 4 mares from Prague to [the Mongolian national park] Gobi B," Bobek
said.
The CASA plane has room for just 4 horses, he said, and added that chief-of-staff Josef Becvar has
already agreed for the use of the military plane. Bobek said last autumn he agreed with the
Mongolian environment minister that Mongolia will invest in the building of enclosures and catching
of the horses. A total of 500 Przewalski's horses live in three localities in Mongolia, including 130 in
Gobi B, where the last four transports from Prague were headed. In the wild, the Przewalski's horse
became extinct more than 40 years ago.
Source: Prague Monitor
UB TO BEGIN APPROVAL OF CONSTRUCTION PERMITS IN CERTAIN DISTRICTS
Ulaanbaatar will begin approving construction permits for buildings in certain districts throughout
the city. Ulaanbaatar Mayor Erdene Bat-Uul agreed to permit the construction of buildings at least
three stories high in a meeting with district governors on 16 March. The buildings must be at least
3,600 cubic meters, according to the agreement, for providing housing and commercial space.
The Ulaanbaatar's Mayor's Office said it will hold regular press conferences on Wednesday to provide
updates on activities.
Source: Mongolia.GoGo.mn

POLITICS
PRESIDENT PUTS UP 'DOUBLE DEEL' BILL FOR ANOTHER VOTE
The Office of the President is trying a second attempt to get Parliament to pass a law that would
prohibit members of Parliament from taking office in ministries ahead of elections in July. The
president's advisor on human rights, Ch. Unurbayar, has submitted the so-called “double deel” law,
named after the multiple roles some elected officials have that the president says can result in
conflicts of interest. The bill allows MPs to only take office as the prime minister as well as the
ministers for justice and foreign affairs. The law would take effect this year, impacting any
appointments made after elections scheduled for 29 June.
Source: Unuudur
AUTHORITIES CHECKING UP ON FOREIGN RESIDENTS AHEAD OF ASEM
Authorities are visiting foreign residents in Mongolia ahead of the Asia-Europe Meeting (ASEM)
summit to verify their numbers and details on individuals. Mongolia has 19,000 foreigners from 118
countries living here, including 7,000 with work visas and 200 students. The directive follows
previous security measures to upgrade facilities at border-cross points and at airports.
Source: News.mn
ENKHSAIKHAN COURTS MINOR PARTIES FOR MERGER WITH MNDP
The Mongolian National Democratic Party (MNDP) may not collaborate with either the Mongolian
People's Revolutionary Party (MPRP) or Democrats in the next election, instead choosing a smaller
partner where it can likely dominate in influence. Parties are consolidating in the lead up to
elections scheduled for 29 June to improve their chances when voters hit the polls. On 11 March,
MNDP Chairman Mendsaikhan Enkhsaikhan and his counterpart from the Ekh Oron Democracy and
Justice Union, B. Erdenebat, met to discuss the possibility of a merger. “We are just negotiating
with some political parties how to attend the upcoming election,” said Enkhsaikhan. He added, “I
am planning to create a much bigger coalition.”
The MNDP has received an invite from Democrats to work directly with one another after four years
within the coalition government cooperating with the MPRP as the so-called Justice Coalition that
makes up the minority leg of the government. Its influence in affairs has been limited with only a
few seats in the legislature, however.
Source: News.mn, Udriin Sonin
PM IGNORES BAASANKHUU'S TV CHALLENGE
Prime Minister Chimed Saikhanbileg has not entertained MP O. Baasankhuu's challenge to a debate
over policy. Baasankhuu challenged the prime minister to a debate while putting his job on the line
last week after expressing frustration at the government's lack of attention to his proposed policies.
However, the prime minister has not responded to the challenge, he said.
Baasankhuu said he will postpone the proposed date for the debate until 23 March, and he will call
him out in front of Parliament once it reconvenes for the spring session if the challenge is ignored
once again.
Source: News.mn
FOREIGN AFFAIRS MINISTRY DENIES CLAIMS OF SMUGGLING BY PYONGYANG OFFICIALS
The Ministry of Foreign Affairs has rebuked a report from Radio Free Asia that North Korean
diplomats were smuggling luxury goods into their country through Mongolia. United Press
International last week reported that Pyongyang's diplomats were bringing jet skis, snow mobiles
and luxury watches into North Korea in a story quoting the news agency, Radio Free Asia. The claim
is unfounded, said a ministry official, about the reports claiming the smuggling and secret visits to
Ulaanbaatar by North Korea's foreign minister.
Radio Free Asia was quoted: “Pyongyang's diplomats are using their passports to carry the goods
across the border undetected. Electronic components that can be used in nuclear and missile

production are being transported across the route.”
Source: News.mn
UAE EMBASSY OPENS IN UB
The United Arab Emirates (UAE) opened its embassy in Ulaanbaatar, the Ministry of Foreign Affairs
of Mongolia reported on 15 March. Emirate Ambassador Abdullah Tunaj presented his credentials on
24 February and officially opened the embassy that same day.
Mongolia has had diplomatic relations with UAE since 1996.
Source: Montsame
MONGOLIA CANCELS 2016 VISA-ON-ARRIVAL FACILITIES FOR 42 COUNTRIES
The Mongolian government has canceled the visa-on-arrival program that was extended to 42
countries in mid-2014. This means there will be no such facility during 2016 and all travelers from
these nations now need to apply for a visa in advance from the Mongolian Ministry of Foreign
Affairs. The visa-free access for the 42 nations concerned was granted from June 2014 until 31st
December 2015, but the decision not to extend it and revert back to a strict pre-visit visa-issuance
program has taken many diplomats, businesspeople, tourists and travelers by surprise.
A MIAT official at Hong Kong International Airport described the situation as “a disaster,” explaining
that he had to refuse boarding for multiple passengers on every flight. The process to attain a pre-
visit visa takes a minimum of three days and must be accompanied by various documentation
concerning the visit.
The news, which has not been widely publicized by the Mongolian government, affects citizens of
the following nations:
Andorra
Argentina
Austria
Bahamas
Belgium
Brazil
Bulgaria
Chile
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Greece
Grenada
Hungary
Iceland
Ireland
Italy
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Monaco
Netherlands
Norway

Spain
Panama
Poland
Portugal
Romania
Slovakia
Slovenia
Sweden
Switzerland
United Kingdom
Uruguay
Source: Asia Briefing
EAST KAZAKHSTAN REGION PROPOSES CLOSE COOPERATION WITH MONGOLIA'S WESTERN
PROVINCES
The governor of the East Kazakhstan region has opened the door to greater diplomatic and
commercial ties with Mongolia's western provinces. Bayan-Ulgii Aimag has the largest population of
Kazakhs, the Mongol ethnic minority separated by language and religion from the majority Khalakh
Mongols. In a meeting with Deputy Premier Ts. Oyunbaatar, East Kazakhstan Governor D.K.
Akhmetov asked for individual meetings to discuss cross-border cooperation with Bayan-Ulgii, Khovd
and Uvs Aimag officials.
Kazakhs speak a dialect different from the national Khalkh language and practice Islam, while the
majority of the country practices either Buddhism, Shamanism, a mix of the two, or are atheist.
Source: Montsame
ALASKA GUARDSMEN PARTICIPATE IN COLD WEATHER EXCHANGE WITH MONGOLIAN ARMED
FORCES
A five-man team from the Alaska Army National Guard’s 1-297th Reconnaissance and Surveillance
Squadron has returned from Mongolia after a cold weather subject-matter expert exchange with the
Mongolian Armed Forces (MAF) last month. The purpose of the exercise was to support the Alaska
National Guard’s state partnership with Mongolia, giving MAF soldiers the opportunity to learn about
cold weather and mountain tactics, techniques and procedures from AKARNG soldiers. “I think there
is a lot of value in this type of training where both AKARNG and MAF soldiers have the opportunity
to learn from each other, and it supports two of the adjutant general’s lines of effort – which are to
continue to support the defense professionalization of the MAF and development of Mongolia's
peace-keeping operations capability,” said Maj. Samuel Scott, 1-197th R&S executive officer.
Training events included equipment briefs, cold weather injury classes, field demonstrations of the
effects of cold weather on equipment and operations, avalanche safety and skiing.
Source: Defense Video & Imagery Distribution System
INVESTIGATION OPENED INTO FOREIGN RELIGIONS
The Justice Ministry has ordered an investigation into the practices of religious faiths amid
accusations of corruption regarding the Korean Christian religion of Sun Myung Moon which is called
a cult by detractors [Source does not include specifics of accusations -ed]. Mongolia has 782
religious temples across the country, including 286 in Ulaanbaatar. The country holds 331 Buddhists
temples, 364 Christian churches, 46 Islamic mosques, 25 Shamanistic centers and 17 places of
worship for people of the Bachai, Catholic, Shinto and Hindu faiths. The first meeting of the
investigation team was held on 14 March, three days after the order was handed out by the Justice
Ministry.
Source: Zuunii Medee
MICRO-BUS DRIVERS PROTEST
The drivers of the so-called micro-bus vans that pick up commuters at various depots throughout

the city are on strike as up to 700 vehicles are set for the scrap heap this year. Mongolian law
requires that micro-buses be retired 12 years after their manufacturing. Drivers demonstrated on 15
March demanding a change to the law. “Our microbuses are tested and diagnosed every year,” said
trade union head Ts. Batchuluun.”
This year, only 37 micro-buses will be left because of the law, said demonstrators. “Behind the 600
microbuses we have 1,200 people's lives. If the state cannot do renovations, it should give
compensation to us,” said Batchuluun.
BCM UPDATES:
ANNOUNCEMENTS
BCM KNOWLEDGE SHARING SESSION, 21 MARCH, NATSAGDORJ LIBRARY
The BCM Knowledge Sharing Session will be held at 17:00 on Monday, 21 March, in the American
Corner of the Natsagdorj Library, organized in partnership with BCM member, the Corporate
Governance Development Center (CGDC), to present "Methods for analyzing current organizational
strategy and identifying strategic vision." The session will be led by Enkhbold Chuluunbaatar, Ph.D.,
a consultant 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 Corporate Governance Development Center is a non-governmental and non-profit organization,
providing teaching, consultancy, research and advocacy services to clients, members and partners
since 2009. The CGDC offers a 20 percent discount to BCM members for its training activities.
_________________________________________
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 forum will provide a venue for a wide spectrum of
informative, meaningful and innovative topics important to Mongolia's business community. The
focus will be on business strategies to cope with survival in an economic downturn, mining and
industrial supply, capital markets, innovative business trends, the elections and issues and
recommendations targeted to political parties, and more.
BCM launched a poll for members to provide feedback on common issues they would like to see
discussed at the event in June. Suggestions will be collected until 11 April. To submit feedback, log
on to BCMongolia.org and click here, or send your response directly by filling out this form. Your
feedback should include answers to (1) What are the top issues and challenges of your business and
sector in relation to the regulatory environment that needs to be addressed by the next
government? (please list a maximum three issues) and (2) What are your recommendations on those
issues?
Registration is MNT100,000 per head for members, compared with the regular fee of MNT120,000.
Save money with the early bird rate of MNT80,000 for members and MNT100,000 for non-members
by registering before 21 March. For more information, email Saruul at saruul@bcmongolia.org.

_________________________________________
MONGOLIA ECONOMIC FORUM 2016, 30-31 MARCH, GOVERNMENT PALACE
Over 1,000 guests are expected for the 2016 Mongolia Economic Forum to be held at the
Government Palace on 30-31 March.
This year's two-day event will be held under the theme “Lessons learned, Facing challenges and
Solutions pending,” where participants will seek to define the country’s current national and global
context, as well as outline alternatives for the promotion of future economic and social prosperity
in Mongolia.
BCM members will have a 30 percent discount on registration. Register here, and send an email to
info@meforum.mn mentioning your BCM membership to receive your discount. For more
information email the same address or call 11 321051.
_________________________________________
MONGOLIA MINING 2016, 6-8 APRIL, BUYANT UKHAA SPORT COMPLEX
The 2016 Mongolia Mining International Mining & Oil Expo will be held for the 6th consecutive year
from 6 to 8 April 2016 at the Buyant Ukhaa Sports Palace in Ulaanbaatar. This year's expo will
feature traditional mining and emerging oil industries of Mongolia with exhibitors and visitors
representing the industry's major companies. Guest speakers from the government, universities, and
companies will lead seminars of the government policy for mineral resources and new laws focused
on mining and infrastructure in Mongolia.
For more information, contact Munkh-Erdene via email at munkh@minex.mn or call at 344488.
_________________________________________
7TH ANNUAL NATIONAL FORUM FOR RENEWABLE ENERGY, 6 APRIL, CORPORATE HOTEL AND
CONVENTION CENTER
The National Renewable Energy Forum, Mongolia's premier conference on the renewable energy
sector since 2008, will open on 6 April at the Hotel and Convention Center in Ulaanbaatar. At the
forum, speakers will review the initiatives and activities that address key issues for the renewable
energy sector.
Registration is MNT35,000, and there is no limit to the number of registrations. For more
information, email Myagmardorj at e.myagmardorj@gmail.com.
_________________________________________
2016 COAL & METALS MONGOLIA, 6-7 MAY, UB
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.
NEW MONGOLIAN LAWS
Please click here to view the 228 laws, amendments, addenda and annulments to/of laws published
in the latest weekly Government Bulletin dated March 1, 2016. Unless otherwise decided by
Parliament, they will take effect ten (10) days after publication.
‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES
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. 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
_________________________________________
Guest Speakers: Anthony Willoughby and Josephine Stoker, Nomadic School of Business
Presentation topic: "Organizational Leadership"
Where & When: University of the Humanities, 25 February 2016
Anthony Willoughby and Josephine Stoker, Nomadic School of Business co-delivered a presentation
titled "Organizational Leadership" at the University of the Humanities (UH) on 25 February. The
lecture, which consisted of an individual exercise of mapping one's life journey, was attended by
138 students.
Both Anthony and Josie began the lecture by sharing their own life journeys, which fascinated many
students in the audience. Students were asked to share their life journey map with neighbors, as
said by many students was the highlight of the lecture.
For more information about the lecture, please contact Khulangoo P, Working Group Coordinator at
khulangoo@bcmongolia.org
_________________________________________
Guest Speaker: Gerelt-Od Ts, Ministry of Environment, Green Development and Tourism (MoEGDT)
Presentation topic: "Climate Change of Mongolia & COP21"
Where & When: National University of Mongolia, 23 February 2016
Mr. Gerelt-Od Ts, MoEGDT, delivered a presentation titled "Climate Change of Mongolia & COP21".
Over 50 students attended the lecture.
Mr. Gerelt-Od was one of the three representatives from Mongolia to enter into the negotiations at
the 2015 United Nations Climate Change Conference, COP 21 held in Paris, France, from 30

November to 12 December 2015. Mr. Gerelt-Od's comprehensive presentation covered Mongolia's
historic engagement in the global movement against climate change to recent highlight of
Mongolia's pledge of 50'000 US dollar to the Green Climate Fund. The presentation is available here.
_________________________________________
Guest Speaker: Amartuvshin Sh, CEO-AFAcademy
Presentation topic: "Personal development: New season"
Where & When: The Institute of Finance and Economics, 18 February 2016
Amartuvshin Sh, CEO of AFAcademy, delivered a presentation titled "Personal Development: New
season" at the Institute of Finance and Economics (IFE) on 18 February. Over 60 senior students
attended the lecture.
Mr. Amartuvshin, an experienced motivational speaker and family counselor, shared a success
formula, which he has been using for his lectures to CEOs of key businesses in Mongolia. Students
expressed their gratitude to Mr. Amartuvshin and expressed their interest in various tools that can
be used for personal development.
For more information about the lectures, please contact Khulangoo, Working Group Coordinator at
khulangoo@bcmongolia.org
KNOWLEDGE SHARING SESSIONS
A BCM Knowledge Sharing Session was organized on 24 February in partnership with our member,
The Nomadic School of Business LLC, on the topic "Exploring your career, purpose, and the leader
within you". A total of 42 people attended the training session representing 26 member
organizations. The directors of The Nomadic School of Business - Anthony Willoughby, who first
visited Ulan Bator in 1975, has over 30 years of experience pioneering leadership development in
Asia, working with executives in Google, Coca Cola, Morgan Stanley and many other frontier
thinking companies – and Josephine Stoker, who has worked in one of the leading strategic
consultancy companies in Singapore, guided the participants through a unique process of
development. Included were a new way of looking at your career; exploring your life plan, purpose
and motivation; working out where you want to focus and the skills you need to develop; and
understanding a simple and creative tool, which you can use to gain insights into your priorities.
BCM ADVOCACY NOTES
Latest draft of Labor Law bill - Government working group
An open discussion was held between the Ministry of Labor and the private sector on the draft Labor
Law on 16 February. The December draft is reflective of many of the recommendations proposed by
the BCM's Legislative Working Group. Labor Minister G. Bayarsaikhan reported that the draft will be
submitted in April for the autumn Parliamentary session. New Working Group members assigned by
the Labor Minister to draft the bill were introduced and promised to review further comments from
the private sector.
For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.
Click here to read the latest draft of the bill.
BCM WORKING GROUP NEWS
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.

Agenda of the meeting:
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)
For more information about this meeting, please contact Khulangoo Purevjav, Working Group
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.
_________________________________________
Capital Markets Working Group
BCM’s Capital Markets Working Group’s meeting was held on Friday, 22 January at Suite 101, 12th
floor Express Tower, with 12 members in attendance, representing BDSec, ING Bank Mongolia, Khan
Bank, Golomt Bank, Oyu Tolgoi, Ernst & Young Mongolia Audit, Mahoney Liotta, Asian Real Estate
Capital Ltd and Mongolian Bankers’ Association.

Purpose of the meeting was to introduce the new meeting format, soft ideas on core themes
proposed by Co-Chairs, including ideas from members and brainstorm on Capital Markets WG
(CMWG) mission and objectives. It was agreed in the meeting on a common theme of ‘working
towards increased foreign investment in Mongolia’. It was suggested by members to include more
emerging players in the capital markets such as the insurance industry and most importantly engage
other stakeholders from government entities with the Working Group. Updates were given on the
development of ‘custodian banking’ and how the WG can leverage its efforts towards sound
regulations for custodian banks.
On the next scheduled Capital Markets Working Group meeting, Dorjpalam Kh, Office of the
Treasury, Oyu Tolgoi will deliver a presentation on project financing.
_________________________________________
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
COOPERATION & MEMBER DISCOUNTS:
- 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.
WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS
Presentations:
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”
_________________________________________

BCM Monthly meeting on December 7:
- Mergen Chuluun, Managing Director, Nomadic Expeditions - “YPO Mongolia: Building Better
Leaders Through Education & Idea Exchange”
- Meloney C Lindberg, Country Representative, The Asia Foundation and L. Sumati, Director, Sant
Maral Foundation - “Introduction and Key Findings of Private Sector Corruption Perception Survey –
STOPP”
- S. Galbadrakh, Specialist at Prevention and Education Department, Independent Authority Against
Corruption (IAAC) of Mongolia - “Introduction of IAAC”
- Terrence Edwards, Editor-in-Chief, BCM NewsWire - “Overview of the BCM NewsWire”
_________________________________________
Mongolia Projects & Investment Summit Hong Kong, 16-17 November:
- Zoljargal Naidansuren, Governor, Bank of Mongolia, “The new equilibrium: reforms to sustainable
growth and savings"
- Narantuya Zagdkhuu, Chair, Financial Regulatory Commission of Mongolia, "Making Mongolia a
frontier again: financial market developments"
- Norihiko Kato, CEO, Khan Bank, "Where does the banking sector fit it?"
- Munkhsukh Sukhbaatar, Rio Tinto, "The way forward for Oyu Tolgoi underground"
- Bat-Uul Erdene, Mayor of Ulaanbaatar city, "City of Ulaanbaatar-2030"
- Matthieu Le Blan, EBRD Head office in Mongolia, "The importance of economic diversification and
import replacement opportunities EBRD's role in enabling progress"
- Tuvshintugs Batdelger, Economic Research Institute, "Transaction Cost of Conducting Business in
Mongolia: SME perspective"
- Oliver Thirlwall, Asian Real Estate Capital, "Distressed opportunities-banking and real estate"
- Kevin Trzcinski, Vice President Corporate Development at Worldwide Power & Technology (HK)
Ltd., "Mongolia as a destination for Scientific Research & Development"
- Randolph Koppa, President, Trade and Development Bank, "Challenges and Opportunities for
Growth"
_________________________________________
Mongolian Annual Risk Management Forum, 11 November:
- “A Practical Case Of Implementing A Risk Management Strategy In Corporate Governance” -
Garrett Wilson Director, Risk Management, Compliance & Outsourced Services Wagner Asia Group
- “Public Buildings And Disaster Risk Management” - Sam Sallam, President, Best Western
International Mongolia
- "Organization Psychological Management" - Delgermend.Ts, Organizational Psychologist,
NPC&Mandal LLC
- "New macroeconomic balance A shift from consumption to saving" - Munkhbayar Tedevsuren, Head
Of The Coordination And Analytic Unit Under Financial Stability Council Advisor To The Governor
- "Macro-Economic Outlook 2016" - Ankhbayar Chuluunbat, Senior economist, Mandal General
Insurance
- "Global Perspective On Risk Management During Economic Slowdown" - Matthew Pottle, PwC
Mongolia
- "Corporate Crises Management" - G.Odbayar, Mining National Operator
_________________________________________
BCM Monthly Meeting on 2 November:
- Andrew Woodley, CEO, Oyu Tolgoi LLC -“Oyu Tolgoi: Delivering globally competitive copper
business”
- Susan Cote-Freeman, Program Manager Private Sector Team, Transparency International -
“Introduction to Transparency International’s Business Principles for Countering Bribery”
- Elisabeth Ellis, Partner, Minter Ellison LLP - “Impact on your business of the proposed new Labor
Law”

_________________________________________
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)
- Hogan Lovells, "Legislative update: 2015 Spring session of the Parliament of Mongolia"
- Oyu Tolgoi, "Scorecard July 2015 - Monitoring Our Performance"
- Sant Maral Foundation, "Survey on Perceptions and Knowledge of Corruption"
- Jim Dwyer, Executive Director, BCM, Rumsfeld Foundation’s, CAMCA Regional Forum, UB, June 20,
2015, “FDI Environment in Mongolia”
- Hogan Lovells, “Law on State Registration of Legal Entities”
_________________________________________
Interviews:
- Mongolian Economy Magazine, November 2015 issue - "In Order to Make the Labor Law More
Effective"
- Mongolia President Ts. Elbegdorj: Charlie Rose Show (PBS/Bloomberg TV-New York)
- BCM Monthly Meeting news coverage on Bloomberg TV, August 24, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Star TV News,
August 20, 2015;
- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Bloomberg TV
News, August 20, 2015;
- B.Byambasaikhan, CEO, Erdenes Mongol and Chairman, Business Council of Mongolia, INS interview
_________________________________________
Website:
According to Google Analytics report, as of 14 March, the daily web traffic to BCM website was 73
visitors with 115 sessions. 90% were from Mongolia, 2% from United States and 2% from Sweden.
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 11,668 fans on our Facebook fans page, 1,983 connections on
LinkedIn network, and 2,007 followers on Twitter.
According to Google Analytics report, as of 14 March, the daily web traffic to BCM website was 73
visitors with 115 sessions. 90% were from Mongolia, 2% from United States and 2% from Sweden.
_________________________________________
MEMBERS’ VACANCIES

- Mercy Corps Mongolia is hiring a Finance officer: Deadline for application is 22 March 2016. For
more information, contact: jobs@mercycorps.org
- World Vision is hiring an Advocacy Officer: Deadline for application is 5:00pm, 23 March 2016.
For more information, contact70155323 (Ext: 124, 125 & 128)
- 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
- World Vision is hiring an Advocacy Officer: Deadline for application is 5:00pm, 23 March 2016.
For more information, contact70155323 (Ext: 124, 125 & 128)
For more information about vacancies, click here. To post your vacancy on BCM website, contact
Dolgorsuren at dolgorsuren@bcmongolia.org.
_________________________________________
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 February 2016 we posted a total of 110 news items related to BCM activities,
economic and business related updates.
_________________________________________
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.
ECONOMIC INDICATORS
INFLATION
Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]
Year 2007 *15.1% [source: NSOM]
February 29, 2016 *2.0% [source: NSOM]
*Year-over-year (y-o-y), nationwide
Note: 1.6% y-o-y, 3.5% Core - Ulaanbaatar City, February 29, 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 – 17 March 2016
Currency
US dollar USD 2,046.21
Euro EUR 2,303.11
Japanese yen JPY 18.31
British pound GBP 2,916.87
Hong Kong dollar HKD 263.75
Chinese Yuan CNY 314.98
Russian Ruble RUB 29.80
South Korean won KRW 1.75

Bcm news wire issue 419

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Bcm news wire issue 419