Jul 3, 2025 69 min read Daily News Summaries

Mongolia News Summary for July 03, 2025

The following news articles are the opinions of their authors and publications. They are presented here as translations for informational purposes and do not necessarily represent the opinion of MongolBeat or its members.

Today's Stories

Politics

Draft Law Allegedly Aims to Enable 'Mega' Theft in the Energy Sector

Published: 2025-07-02 | Translated from: unuudur.mn

The draft law to amend the Energy Law was removed from the agenda of the Standing Committee on Economy due to non-compliance with initial requirements. Specifically, the draft law was not introduced to the public, and a broad discussion involving representatives from all sectors of society was not organized. Additionally, opinions were not sought from relevant stakeholders, including governmental agencies and enterprises whose interests are affected. As a result, the committee deemed it unsuitable and non-compliant for discussion in the committee and parliamentary sessions.

The draft law to amend the Energy Law was submitted by the Minister of Mongolia and Chief of the Cabinet Secretariat S. Byambatsogt on the 26th of last month. According to the authors, the draft includes regulations intended to liberalize the energy sector and urgently establish the legal framework needed to commence large-scale projects.

However, Member of Parliament S. Tsenguun has expressed suspicion that this draft law is covertly intended to create a favorable opportunity for 'mega' theft in the energy sector. He stated, “The introduction of new terms such as 'energy project' and 'energy project implementer' into the law, potentially to strengthen the Minister of Energy's powers, is suspicious. Introducing the draft law during the festive Naadam period, akin to the saying 'a wolf in a storm,' raises further concerns. Issues such as the breakdown at TPP-3 and other large sectoral problems could be resolved through parliamentary resolutions. Using a single project's name as a pretext for major changes in the entire sector's law is not a situation where urgent adoption is possible. The Ministry of Energy should focus on defining the sector's market model and limiting government involvement.”

Back to Table of Contents

Decisions Made at the Regular Meeting of the Government

Published: 2025-07-02 | Translated from: itoim.mn

The regular meeting of the Government was held during which the following issues were discussed and decided upon.

Nine Western Region Energy Companies Merged into Four
In line with the Government's objective to optimize the structure of state-owned companies and improve governance — to ensure continuous, safe, and reliable operation of the energy sector, reduce costs of state-owned energy companies, eliminate redundancy and gaps in roles, and increase efficiency — the Government has issued a resolution regarding measures to be taken for state-owned companies in the energy sector.

According to this resolution, the "Western Region Energy System" state-owned joint stock company and the "Altai-Uliastai Energy System" state-owned joint stock company were reorganized and merged into the "National Power Transmission Grid" state-owned joint stock company.

Furthermore, "Uvs Electric Distribution Network" LLC, "Khovd Electric Distribution Network" LLC, "Durgon Hydroelectric Power Plant" LLC, and the Myangat Solar Power Plant have been merged to form the "Western Region Electric Distribution Network" SOJSC. The distribution branches of the "Altai-Uliastai Energy System" have been merged to form the "Altai-Uliastai Electric Distribution Network" SOJSC. The "Taishir-Gooling Hydroelectric Power Plant" LLC, "Bogdiin Gol Hydroelectric Power Plant" LLC, "Tosontsengel Hydroelectric Power Plant" LLC, Serven Solar Power Plant, Murun Solar Power Plant, Borkhon Solar Power Plant, and Khungui-Galuutai Hydroelectric Power Plant have been merged to establish "Taishir Green Energy" SOJSC. As a result, nine independent companies and their eight branches have been consolidated into four companies.

The Functions, Structure, and Staffing of Government Agencies and State-Owned Enterprises to be Reduced
To eliminate overlapping and redundant functions in government organizations, reduce bureaucracy, streamline processes, and provide prompt and high-quality public services, the Government has ordered its members to take the following measures to optimize the functions, structure, and staffing of government agencies and state-owned enterprises and companies: - Conduct a detailed study of the services provided, their necessity and requirements, and work to improve quality and effectiveness, reduce layers, eliminate overlapping roles and gaps, and rationalize structure and staffing levels. - When developing strategy and structural reform programs for Government agencies, ensure that the roles, responsibilities, and tasks of organizational units and employees do not duplicate those of ministries, agencies, affiliated centers, local bodies, state-owned enterprises, companies, professional associations, or NGOs performing public functions under contract. - The designated names of structural units of Government agencies must not duplicate those of organizational units in ministries; unless otherwise provided by law, there should be no deputy or assistant heads, no divisions within units, no departments within sections, and staffing should be further reduced. - It was instructed to set the upper staffing limits for Government agencies in accordance with budget savings measures.

Brief News
The Government has decided to urgently submit a request to the State Great Khural (Parliament) to expedite the discussion of amendments and supplements to the law on reducing traffic congestion in the capital city Ulaanbaatar and converting ger districts into apartment zones, as well as related draft laws, in accordance with the Law on the Procedure of Parliamentary Sessions of Mongolia, which were submitted to Parliament on June 20, 2025.

Back to Table of Contents

While all levels of government institutions are set to operate under austerity measures, the budgets of Members of Parliament, standing committees, and party groups have not been reduced

Published: 2025-07-02 | Translated from: ikon.mn

During yesterday's meeting of the State Structure Standing Committee of the State Great Khural, the second discussion was held on the implementation of the unified budget of Mongolia for 2024, the Government's consolidated financial report for 2024, and the draft parliamentary resolution on the “Approval of the 2024 Budget Execution of Mongolia”. Deputy Prime Minister S. Amarsaikhan presented the draft resolution. He reported that in 2024, the balanced revenues and aid of Mongolia's unified budget amounted to 29 trillion 670.8 billion MNT, total expenditures and net loans were 30 trillion 591.1 billion MNT, and the overall budget balance improved by 2 trillion 451.0 billion MNT, resulting in a deficit of 920.2 billion MNT. Over the past three years, efforts have been made to gradually reduce the budget deficit.

The implementation of Mongolia's unified budget and the consolidated financial report of the Government summarized the budget performance and financial statements of the following 210 organizations under the committee's jurisdiction: the Office of the President, the Speaker of Parliament, the Prime Minister, the Chairman of the Constitutional Court, the Secretary of the National Security Council, the Chairman of the General Election Committee, the Chairman of the Civil Service Council, the First Deputy Prime Minister and Minister of Economy and Development, the Deputy Prime Minister, government ministries, the Head of the National Committee for the '20-Minute City,' the Head of the Office of Government, the Head of the National Committee for Monitoring and Evaluation, 196 budgetary organizations, 4 projects, 10 state-owned enterprises.

According to the state budget execution, the total expenditure and net loans by principal budget managers of this Standing Committee amounted to 1 trillion 327.8 billion MNT, of which 937.7 billion MNT was spent on current expenditures and 390.1 billion MNT on capital expenses. Under state budget investment in 2024, 300.6 billion MNT was allocated to 66 projects and measures overseen by five principal budget managers, achieving 66.5% completion.

State Auditor General S. Magnaiinsuren presented conclusions on the 2024 consolidated financial statements of institutions within the President's Office, the Speaker of Parliament, the Government of Mongolia, the Chairman of the Constitutional Court, the General Election Committee, the Civil Service Council, and the respective National Committees. The National Audit Office recommended synchronizing the monitoring and evaluation of programs implemented by principal budget managers with outcomes, quality, and quantitative results and verifying these against budget execution. It was also recommended to address issues such as the creation of receivables and payables due to inadequate budget management, resolving unverified, unsubstantiated, or overdue liabilities, and to take actions to recover potentially uncollectible receivables. The audit also urged reduction of risks in expenditure, procurement, and investment activities, the enforcement of internal audits, and ensuring that principal budget managers organize procurement in accordance with the law.

Members of Parliament asked questions and shared their views on the discussed matter, and the opinions and conclusions from the second discussion of the draft resolution were forwarded to the Subcommittee on Oversight of Budget Expenditure.

The meeting also reviewed the second discussion of draft laws amending the 2025 state budget law, the 2025 National Wealth Fund budget law, the 2025 Social Insurance Fund budget law, and the 2025 Health Insurance Fund budget law. Minister of Finance B. Javkhlan introduced the draft laws, emphasizing the importance of budget discipline and efficient expenditure in overcoming economic challenges and highlighted that the “Austerity Revision” principle was applied to save avoidable costs at all levels of government institutions, suspending all avoidable expenses and programs. To ensure a lean and productive public sector, staff numbers are planned to be reduced by 9% by 2026 in line with the development plan.

Budgetary institutions are also looking to save on transport, fuel, internal business trips, teaching and production costs, except for high-level and state visits, and expenses on furniture, fixtures, current repairs, equipment, and various subsidies, along with one-off and other incentives, program and event costs. Relevant amendments have been included in the revised draft.

The operating expenses of the President's Office budget are planned to be reduced by 4.2 billion MNT, capital expenses by 305.9 million MNT, totaling a reduction of 4.5 billion MNT. The headcount in the President's Office is set to decrease by 9% or 19 positions, leaving staff at 380. The Parliament Speaker’s budget will have current expenditure reduced by 8.2 billion MNT and staff cut by 126 to 934. However, the budgets for MPs, standing committees, and party group activities within the Parliament’s Secretariat have not been reduced.

The ministerial budget and government staff for 2025 are planned to be reduced by 41.9 billion MNT, with a staff cut of 50 down to 537. The Prime Minister aims to optimize state functions and move towards a lean, capable structure, transferring some functions overlapping with other ministries, and the corresponding budget has been revised. For instance, the development of transportation and logistics networks and border port policy have been assigned to the Ministry of Finance, oversight of policy implementation will be handled by the First Deputy Prime Minister and Minister of Economy and Development, and the development of the 20-Minute City assigned to the Minister of Urban Development, Construction, and Housing.

Due to these changes, the working offices for the National Committee for Oversight and Evaluation, the National Committee for Port Revival, and the National Committee for the 20-Minute City will be dissolved, and their costs reduced. There was also information provided about budget reductions for the Constitutional Court, the Deputy Prime Minister, the Civil Service Council, and the General Election Committee.

As a result, the overall balanced revenue of the 2025 budget will be reduced by 3 trillion 260 billion MNT to reach 30 trillion 209.9 billion MNT, while total expenditures will decrease by 1 trillion 856.5 billion MNT to 31 trillion 575.1 billion MNT, resulting in a balanced budget deficit of 1 trillion 365.2 billion MNT or 1.5% of GDP, as confirmed by the Finance Minister.

The National Audit Office recommended focusing on mobilizing all possible non-mining revenue sources, reducing tax arrears, and improving collection and services, given the uncertainties of mining sector revenues dependent on foreign markets.

The Auditor General noted that reducing government employee numbers uniformly by 9% without analyzing functional overlaps and workload may negatively affect the quality and accessibility of public services. Thus, it was advised that principal budget managers conduct functional and productivity assessments and then make adjustments to staffing based on workload.

The National Audit Office also confirmed that the amendment draft to the 2025 Budget Law meets the requirements stipulated by Article 23 of the Law on Parliamentary Oversight. During the presentation of the budget revision and audit conclusion, MPs asked questions and gave their positions.

For example, Committee Chair Ts. Sandag-Ochir asked whether the budget revision cut expenditures for the Emergency Services amid worsening summer droughts and increased wildfires across provinces, and whether conditions for their staff were being met. Major General G. Ariunbuyan, Chief of the Emergency Management Agency, stated that only one wildfire remains nationwide as of today; in 2025, there have been 144 forest and steppe fires, over 30% of them in Selenge province. Compared to last year, forest fires are up by 75% and steppe fires by about 17%. About 68,300 hectares of forest and 570,000 hectares of steppe have been affected causing estimated damage of about 6 billion MNT. More than 2,900 staff from the Emergency Agency, border troops, police, armed forces, local response teams, citizens totaling 7,700 personnel, with over 1,200 vehicles and 3 helicopters, have participated in firefighting. Currently, works continue to extinguish a fire in Khuder soum in Selenge; fires in Mandal, Khuder, and Altanbulag soums are under control. While Parliament and the Government have focused on increasing the Emergency Agency’s budget, further needs remain, especially as all resources are mobilized during dry weather. Increasing personnel and equipment is crucial, but due to austerity, staff cuts of 9% are targeted, with internal adjustments to avoid cuts for front-line firefighters, focusing instead on reductions among mid-level specialists.

M. Sanjaadorj, Head of the Budget Policy and Planning Department at the Ministry of Finance, stated that the Emergency Agency budget will be reduced by 26.8 billion MNT in this revision, related to the 9% reduction in staff. The ministry understands well the Agency’s activities, strategies, and further measures.

There was no fundamental disagreement among MPs on the budget revision, and the opinions and conclusions of the Committee will be sent to the Budget Standing Committee for review.

Note: Media organizations (TV, radio, social and websites) are strictly prohibited from using this information in full or in part without agreement and must mention ikon.mn as the source if used after consent.

Back to Table of Contents

Amendment Approved to the Government Resolution of Mongolia

Published: 2025-07-02 | Translated from: montsame.mn

At today's meeting, the Government of Mongolia discussed and approved amendments to Government Resolution No. 182 of 2018.

According to Article 7, Section 2 of the Law on Land Fees, it stipulates: "The Government shall determine, within the limits set out in Section 1 of this Article, the land fee amount for each classification based on the land valuation and intended use, for each cadastral valuation circle for agricultural land, and the valuation grade for city, township, and other settlement lands."

In Government Resolution No. 182 of 2018, the specific land fee amount per hectare for city, township, and other settlement lands was not established within the legal limit; instead, it was set at 0.1-1.0 percent of the base valuation.

Thus, in accordance with Article 7, Section 2 of the Law on Land Fees, the Government has approved amendments to its 2018 Resolution No. 182. The approval of this resolution will not change the land fee amount set by the Citizens' Representative Khurals of aimags (provinces) and the capital city, nor will it increase the land fee for citizens or legal entities. There will also be no change in the revenue from land fees received by the state and local budgets.

Back to Table of Contents

Amendments to the Law on the State Great Khural of Mongolia Are Being Discussed

Published: 2025-07-02 | Translated from: ikon.mn

The regular spring session of the State Great Khural (Parliament) is being held at the State Palace. Today, the following issues are being discussed during the session:

The draft law on amendments to the Law on the Framework Statement of the 2025 Unified Budget of Mongolia and the 2026-2027 Budget Projections, and related draft laws submitted together
The draft law on amendments to the Law on Parliamentary Oversight of the State Great Khural of Mongolia
The draft law on amendments to the Law on the State Great Khural of Mongolia, and related draft laws submitted together
The draft law on amendments to the Law on the Procedure of Parliamentary Sessions of the State Great Khural of Mongolia, and related draft laws submitted together
The draft law on amendments to the Law on the National Holiday Naadam
The draft law on amendments to the Law on Public Holidays and Commemoration Days, and related draft laws submitted together
The fulfillment of the unified budget of Mongolia for 2024, the Government’s consolidated financial report for 2024, and the draft parliamentary resolution "On the Approval of the 2024 Budget Performance of Mongolia"
The draft parliamentary resolution "On the Establishment of a Temporary Investigative Commission"
The draft law on amendments to the Law on the 2025 Budget of Mongolia; on the 2025 Budget of the National Wealth Fund; on the 2025 Budget of the Social Insurance Fund; on the 2025 Budget of the Health Insurance Fund, and related draft laws
Other laws and resolutions submitted together with the draft law on amendments to the 2025 Budget Law of Mongolia

LIVE WATCH: https://www.facebook.com/100064382633728/videos/664546019964645

Warning: Media organizations (Television, Radio, Social and Web pages) are prohibited from using our information in whole or in part in any form, and may only use it with permission and with proper attribution to the source (ikon.mn).

Back to Table of Contents

B.Bat-Erdene: The Development of the Energy Sector Is More Strongly Affected by Political Instability and the Policies of Neighboring Countries Than Tariffs

Published: 2025-07-02 | Translated from: itoim.mn

We spoke with B.Bat-Erdene, professor at the School of Power Engineering of the Mongolian University of Science and Technology, about the current state of the energy sector and potential solutions.

—After the accident at the #3 Thermal Power Plant (TPP), there is a real risk that some places could be left without electricity and heating this winter. As an expert, how do you see this situation?

—Our energy system is essentially in a state of emergency. The installed energy capacity cannot meet total demand. Studies show that over the past few years, consumption has increased by 8–9% annually. So, losing even 50MW in a system already unable to cover domestic needs will be quite problematic. If we address this shortage using every possible measure, we shouldn’t see a scenario where the entire city freezes or is left without electricity. At certain times, there may be minor restrictions on usage, but we could still manage our electricity needs.

There are also issues in thermal energy. To resolve them, we must save energy. In winter, households consider it cold at 18–20 degrees Celsius, insisting on 22–24 degrees. But in China, Japan, and Europe, the average indoor temperature is 16–18 degrees in winter, indicating we need to learn energy-saving practices. Mongolians tend to overconsume thermal energy. Thus, if we adjust our lifestyle, we can overcome these difficulties as a nation.

—There has been talk of energy sector reform for years. The government only raised prices, while sector professionals claim there’s a crisis in governance. What’s your view?

—The government has portrayed reforms as merely a pricing issue, which is misleading. They also handled the discussion of prices poorly. Consumers never like price hikes, but this isn’t just an increase—it’s about reaching at least cost-recovery according to market principles. If we produce bread for 100 tugriks but sell it for 80, the bakery will go bankrupt. Similarly, if we provide electricity and heat below cost, the sector is headed for bankruptcy. But reform isn’t just about price. Systematic research is needed for growth. Without a systemic study, desired development won’t be achieved. Energy reform should mean assessing all factors influencing development and planning accordingly. If we talk only about prices, the reform won’t succeed. I’ve conducted research on Mongolia’s energy development for my doctoral dissertation.

—Could you share some findings from your research?

—The most influential internal factor in the development of Mongolia’s energy system is political conditions. For example, because the government is unstable, plans change depending on the party or politician in charge, preventing consistent long-term pathways. Energy systems aren’t reorganized in two years—they require long-term planning.

There are also strong external influences, mainly due to the geopolitical situation with our two neighbors. Other factors, like investment and tariffs, also play a role, but my research shows tariffs are less significant than political conditions. We’re trying to address less significant issues instead of focusing on those with the most impact.

It’s noteworthy that equipment at TPP III and IV has been running for 40–60 years. This alone deserves a place in the Guinness Book of Records. There are limits to everything. Energy sector engineers are truly getting exhausted.

—How can we offset the energy shortage? What are the solutions?

—Annual energy demand is rising, but production isn’t. Mongolia urgently needs combined heat and power plants. We need research to determine where to build thermal power plants and where to build renewable energy plants. Only then can we address the shortages.

The world is discussing renewables and distributed generation. According to my research, it’s better to have regional systems with distributed sources than a single large unified system. Accidents and emergencies can happen unexpectedly, so regional systems must be able to sustain themselves. The placement of generation sources must be carefully determined. For example, the Fifth Power Plant has been discussed for over 30 years, and I’m skeptical it will happen soon, as funding is uncertain. If built, it would be a major source for the sector, and I sincerely hope it is. The Eg River hydropower station was studied back in the 1960s—meaning 60 years of discussion, still unbuilt—mainly due to geopolitical issues. National independence and security are closely linked to energy security. At present, Mongolia’s security depends heavily on our two neighbors—a risk in itself. So we must plan and come to a clear understanding.

—The situation at TPP III and IV is severe. What steps must be taken?

—The crisis began long ago. TPP IV started operation in 1984—making it 41 years old. The technical equipment usually lasts 25–30 years. TPP III started in the 1960s. The energy sector started to face a major crisis from the 2000s. Experts have spoken about this, but to this day, no concrete action has been taken. That machinery is still running after 40–60 years is remarkable and due to the dedication of engineers and technical workers. Without their effort, the sector would have collapsed by 2000. Yet politicians take this for granted and simply expect staff to just keep working. Therefore, we cannot just consider today’s difficulties. Our engineers and technicians do not abandon their responsibilities, even under strain, so I believe the capital won’t freeze this winter, and the energy supply won’t be restricted nationwide. But there are limits. The fatigue of energy engineers is something the government can no longer ignore.

—Thank you for the interview.

Back to Table of Contents

Budget Standing Committee: Held Second Discussion on Amendments to the 2025 Budget Law

Published: 2025-07-02 | Translated from: isee.mn

At today's meeting of the Budget Standing Committee, the second discussion was held on the proposed amendments to the Law on the 2025 State Budget of Mongolia, the Law on the 2025 Budget of the National Wealth Fund, the Law on the 2025 Budget of the Social Insurance Fund, and the Law on the 2025 Budget of the Health Insurance Fund. Additionally, the first discussions were held on other draft laws and resolutions submitted together with the draft amendment to the Law on the 2025 State Budget of Mongolia.

During the discussion, Member of Parliament N. Naranbaatar raised a principled alternative proposal. Specifically, he proposed to remove the provision requiring certain revenues specified in the annual budget law to be withdrawn from local general accounts into the state budget. The majority of the members present supported this alternative proposal.

The conclusions and recommendations of the Budget Standing Committee on these draft laws and resolutions will be submitted for discussion at the plenary session of the State Great Khural (Parliament). Furthermore, the first discussion on the draft amendments to the law on the 2025 fiscal framework statement of Mongolia’s unified budget and projections for 2026-2027, as well as other related draft laws, was also held.

Back to Table of Contents

Will the Government Be Held Accountable for Inefficiently Spending 15.7 Trillion Tugriks?

Published: 2025-07-02 | Translated from: unuudur.mn

The National Audit Office and the Fiscal Stability Council have revealed that taxpayers' money has been spent inefficiently and without proper oversight. Specifically, last week, the National Audit Office presented to Parliament the audit report on the Government’s consolidated financial statement and the execution of the unified budget for 2024. The audit of the financial reports of the government and budget managers found errors and violations totaling 15 trillion 719.9 billion tugriks. This is an increase of 7 trillion 582.5 billion tugriks, or 93.2%, compared to the previous year. Of this amount, errors and violations found in the financial audit increased by 2 trillion 941.9 billion tugriks, or 48%, and those found in the compliance audit increased by 4 trillion 623 billion tugriks, or 229.9%. These identified errors and violations amount to about 50% of the total expenses in the state’s unified budget. This is a significant indicator that budget managers not only fail to comply with budget and financial laws but also that fiscal discipline has severely deteriorated. The Fiscal Stability Council has warned of the need to improve the legal environment for fiscal and financial oversight and audits, and to strengthen accountability for breaches of the law.

In other words, an analysis of the government’s consolidated financial statements, central state fund, Social Insurance Fund (SIF), Health Insurance Fund (HIF), and about 7,000 reports of 61 major budget managers at the national and local levels has uncovered violations of this scope. There is some good news, as government cash income in 2024 increased by 25 trillion 336 billion tugriks, or 46.27%, compared to the previous year. However, this increase was mainly extracted from citizens through higher taxes. According to the audit, personal income tax increased by 741.4 billion tugriks (39.3%), corporate income tax by 2 trillion 455.2 billion (59.8%), social insurance contributions by 64.6 billion (16.4%), value-added tax revenue by 1 trillion 83.9 billion (22.7%), excise taxes by 308.8 billion (39.1%), and non-tax revenues by 19 trillion 347 billion (62.05%). Auditors recommended focusing more on increasing non-tax revenues rather than just raising taxes.

Among the notable violations found in the government’s 2024 financial statements are unresolved risks associated with 256.9 billion tugriks held in accounts at banks like "Chinggis Khaan" Bank and the National Investment Bank, which do not meet the Central Bank’s prudential standards; 96.5 billion tugriks in non-performing loans from government special funds meant to support citizens’ education, employment, and business; and 212.4 billion tugriks in overdue, unpaid loans.

The Social Insurance Fund’s debt increases by 42.8 billion tugriks. The cash balance in the Social Insurance Fund reached 1 trillion 430.8 billion tugriks, up 182.4 billion from last year, mainly due to 215.3 billion added to pension reserve accounts in Khaan, Trade and Development, Golomt, and State Banks; 125.6 billion in the benefits insurance reserve; and 20.7 billion in centralized reserves. However, the total liabilities of the Social Insurance Fund climbed to 89.1 billion tugriks, up 42.8 billion compared to the previous year. Meanwhile, the balances of the Industrial Accident and Occupational Disease Insurance Fund, Pension Insurance Fund, and Unemployment Insurance Fund all decreased. For instance, "Chinggis Khaan" Bank was supposed to transfer 94.9 billion tugriks to the Social Insurance Fund but only repaid 1.5 billion, and the court order requiring extraction of these funds and the Central Bank’s decision to liquidate the bank have not yet been fully enforced, leaving the fund unable to legally recognize these receivables.

Assets of the Health Insurance Fund decreased by 4.8 billion tugriks. The Health Insurance Fund faces insolvency, and healthcare services are already being affected. The Fund’s cash balance fell to 156.2 billion tugriks, down 4.8 billion from last year, with 54.7 billion held at commercial banks and 101.5 billion at the treasury. Of the 27.9 billion tugriks frozen at "Chinggis Khaan" Bank, the court has managed to recover only 0.3 billion, and in the intervening time, interest on the debt grew by three billion, increasing the at-risk amount to 30.6 billion. The Fund's total liabilities grew by 98.5 billion, reaching 316.8 billion tugriks.

Ministers’ and officials’ “pockets” have swelled. The total cash assets controlled by government ministers and officials—major budget managers—increased to 9 trillion 476.7 billion tugriks, up 1 trillion 825 billion from last year. However, auditors revealed that much of this money was mismanaged and spent inefficiently. For instance, 33.8 billion tugriks were used inappropriately or inefficiently, including 8 billion by the Foreign Affairs Minister, 6.4 billion by the Minister of Food, Agriculture and Light Industry, and 6 billion by the Minister of Industry and Minerals. Deputy Prime Minister and Minister of Education each wasted 2.8 billion, Minister of Road and Transport 2.4 billion, and other budget managers 5.4 billion. Members of Parliament called for these officials to be held accountable in the parliamentary session.

Audits should be given strong weight, but in practice, they are often ignored as audits do not result in immediate action or sanctions, but only provide assessments and recommendations. However, if the involved parties take corrective action before the next audit, violations could be eliminated. The government and budget managers must rectify previously identified errors and violations. Should the mistakes and violations identified in the 2024 financial report be repeated in the 2025 audit, strict accountability measures will have to be taken. Repeatedly making correctable mistakes may point to deeper issues.

Only 57.2% of past recommendations have been implemented. Despite repeated warnings and plenty of evidence presented by professional bodies on the government, ministries, and departments' lavish spending of taxpayers' money, little has changed. For example, following the 2023 audit, the government received ten recommendations to address detected errors—four to the Prime Minister, one to the Deputy Prime Minister and Minister of Economy and Development, and five to the Finance Minister. On average, only 57.2% of these recommendations were implemented. Particularly, the implementation of the four recommendations to the Prime Minister was unsatisfactory. This time, six recommendations were made to the Prime Minister and three each to the Deputy Prime Minister and Minister of Economy/Development, and to the Finance Minister.

An audit of the consolidated financial statements of 22 local general budget managers produced 12 unchanged and nine qualified opinions. Errors and violations were found in the reports from the governors of Bayan-Ulgii, Govi-Altai, Govisumber, Dundgovi, Umnugovi, Sukhbaatar, Selenge, Tuv, and Khovd provinces, while Bulgan province had significant issues. Formal demands for accountability were sent to authorized officials. Also, 2.2 billion tugriks were placed in the National Investment Bank, which did not meet prudential standards. Inefficient and improper expenditure of a total of 6.6 billion tugriks in approved budgets was found, including 1 billion in Dornod and 3.2 billion in the capital. Furthermore, last year, a total of 22 organizations and 594 civil servants were added to payroll, and an additional 20-40% bonus for local staff cost more than 308 billion tugriks for 105,200 state employees. This bloated the state apparatus and greatly contributed to wasteful spending.

The government paid 39.4 billion in loan interest. Even though Prime Minister L. Oyun-Erdene’s administration resigned after increasing debt and wasting assets, no one is immune from accountability under the law. For example, large amounts were spent on interest for unused foreign loans. According to the National Audit Office, the government signed contracts to receive 24.4 trillion tugriks in loans and assistance but used only 13.3 trillion, while paying 39.4 billion tugriks in commitment interest, placing a financial burden on the budget and depriving necessary projects and programs of funds. In addition, an audit of the 2024 financial statements of 138 government projects financed by foreign loans and assistance found 642.5 billion tugriks in errors and violations. All of the government's annual budget performances, by ministry, sector, and budget manager, have now been openly revealed with their violations and mistakes. Now, the authorities who implement the law must pay special attention and act immediately. The routine disregard for these accountability documents, which expose the irresponsibility of those in power, has become normal, and the Chief Auditor S. Magnai-Suren pointed out that Parliament should address this. He suggested that, to reduce the repeated mistakes and violations in annual reports, Parliament should issue resolutions. Also, if bodies refuse to implement corrective actions suggested in the audit, their officials will be held responsible. Violations potentially amounting to criminal offenses will be forwarded to the Prosecutor General’s Office for action.

Back to Table of Contents

"The Ministry of Finance Has Stubbornly Refused to Revise the Budget for Almost Half a Year"

Published: 2025-07-02 | Translated from: news.mn

A conversation with Dr. Professor A. Enkhbat, a member of the Fiscal Stability Council, about the current situation of the economy and the 2025 budget revision.

The government has submitted a revised draft for the 2025 budget to the Parliament. What is your assessment of this budget revision?
At this time, when global political and economic uncertainties continue, particularly the economic situation in neighboring countries, risks imposed by the US and Eurozone economic sanctions, and a downturn in the mining sector negatively impacting the domestic economy, the newly formed government submitted a draft law proposing changes to the 2025 budget to Parliament on June 25.

As of the first five months of 2025, Mongolia's total export revenue reached $5.4 billion, a 15% decline from the previous year, with coal export income falling by $1.6 billion compared to last year. Due to the fall in coal prices, state budget revenue has decreased, negatively affecting macroeconomic and fiscal stability. The current budget revision submitted by the government to the Parliament has several noteworthy points. First, along with the 2025 budget revision, amendments are being proposed to two other laws: the statement on the 2025 budget framework and the law regarding the 2026-2027 budget projections. This means that 36 main macroeconomic indicators for the four-year budget framework are set to change, directly negatively impacting fiscal stability. This has not been done by any previous government when revising a single year's budget.

Second, just a month ago, a statement on the 2026 budget framework and 2027-2028 projections was approved by Parliament, but it is now proposed to be changed, violating Article 7.5 of the Law on Fiscal Stability, which states that "at least three months must pass between adopting the medium-term budget framework, amendments, and passing the annual or revised budget."

Third, in less than a year, the newly formed 126-member Parliament is revising the 2024 and 2025 budgets, which is quite a challenge. Fourth, despite professional organizations and international institutions such as the Fiscal Stability Council warning as early as October 2024 about a likely downturn in coal prices and economic growth, the Parliament and government passed an overly optimistic 2025 budget and framework statement. Fifth, although the coal price decline at the start of 2025 was foreseeable, crucial time was lost before revising the budget. Sixth, due to the over-optimistic revenue projections, amendments must now be made to the medium-term budget frameworks.

NEED TO ASSESS THE OPPORTUNITY COST DUE TO MINISTRY OF FINANCE'S PLANNING ERRORS

For the past few years, the budget has been revised once or twice each year. What are the reasons for this?
The stated practical reason for this year's budget revision is "unexpected conditions leading to a decrease in revenue and increase in expenditures." However, these trends were already evident when passing the previous budget. Revenue forecasts were overly optimistic even though the Fiscal Stability Council repeatedly warned that there was limited room for increased expenditure. Ever since the Laws on Budget and Fiscal Stability came into force in 2013, almost every year has required a budget revision. This highlights both incomplete legal regulation in budgetary relations and weaknesses in professional capacity at institutions like the Ministry of Finance and Ministry of Economic Development. Sometimes, budget and development policies are more influenced by political agendas than by professional requirements. Furthermore, there is a lack of fiscal discipline and accountability at all stages of budget planning, implementation, execution, and reporting.
Before discussing the budget revision, let's recall the time when Parliament was debating the 2025 budget. Back then, many warned the budget was too optimistic. How do the forecasts from back then compare with the current reality?
The Fiscal Stability Council presented macroeconomic predictions to the Ministry of Economic Development and the Ministry of Finance in March 2024 and 2025. However, the government always projected higher real and nominal GDP growth than recommended by the Council. When the 2025 budget was discussed in Parliament, the government calculated coal at $105 per ton, claiming there would be sufficient revenue. However, the actual average price for the first five months is just $70—a decline of over 30%. As a result, budget revenue has fallen by 3.2 trillion MNT, necessitating a budget revision. The opportunity costs resulting from the Ministry of Finance's planning errors need to be assessed. Households and private businesses look to state budget guidance for their planning, and this misplaced optimism adversely affects family businesses and leads to inflation, currency depreciation, etc. The current and next two-year economic outlook is not favorable, and international financial institutions are constantly revising global growth forecasts downward. The global geopolitical situation remains tense, which is particularly troubling for small, commodity-based economies like Mongolia.
Did the change in government structure cause the need for a budget revision, or is that just an excuse? Even before this, the key macroeconomic indicators warranted a revision.
The newly formed government submitted a proposal to revise the 2025 budget under Article 34.1.2 of the Budget Law, which allows for a revision when "unexpected circumstances reduce revenue or increase expenditures, causing the budget deficit to rise by 3% of GDP," as well as Article 34.1.4, which allows for adjustments between main budget administrators. Despite regular warnings by some MPs and members of the Fiscal Stability Council about the need for a revision, the government and Ministry of Finance refused for nearly six months.

Had the revision been made in March, based on clear indicators, this large shortfall could have been prevented and legal complications avoided. Unless there is a firm legal framework for government structure, each new administration tends to prompt a budget revision, undermining fiscal stability and causing negative knock-on effects. For example, last time the legal basis for the 2024 budget revision was the change in government structure, but unrelated expenditures were added, increasing spending by 3 trillion MNT. Projects not specified in key development and investment plans for 2021-2025 were allocated 342.6 billion MNT for feasibility studies, consulting, preparation, and management consulting, of which 173.8 billion MNT was spent within just 3-4 months before year-end. The public, especially taxpayers, deserve transparency about the real impacts of such spending.

DO NOT OVER-RELY ON TAX REVENUE FROM THE MINING SECTOR

How well did the budget revision take the Council's recommendations? Did you recommend an even greater revision?
Budget policy direction is becoming more aligned with reality, focusing on limiting the previous trend of expanding expenditure. The revised forecast of 5.5% economic growth for 2025 is close to the Council's forecast from March. There are ample resources in the public sector budget if unnecessary and ineffective spending is strictly controlled. Now the government is starting to speak of structural reform. Had this been done earlier, there would have been opportunities to adopt long-term fiscal strategies and avoid the so-called resource curse. Over-reliance on mineral revenues and overly optimistic expenditure increases, as seen in salaries, pensions, welfare, etc., have historically led to debt and extreme inequality in countries like those in Africa and Latin America during the 1960s–1980s. We must avoid repeating that history.
At year-end, there is an expected 3.2 trillion MNT shortfall. Since coal prices collapsed, is there any guarantee they will not drop further?
As noted, it depends on global geopolitics, economics, and the domestic situation. The downtrend and shocks in commodity markets may persist, and new risks could emerge. The 2025 Global Risks report lists interstate war (23%), abrupt climate events (14%), geoeconomic and misinformation risks (8% and 7%), etc.
Is there still a risk of falling tax revenues from mining? Clearly, Mongolia should not over-rely on tax from the minerals sector. Now is the time for the government to prioritize efficiency, cut ineffective state and local spending, and develop non-mining sectors. It is possible that another revision to the budget may be necessary this year.

EXPENDITURE CAN STILL BE CUT BY ANOTHER 2 TRILLION MNT

If the deficit exceeds 3.2 trillion MNT, what economic scenario will Mongolia face?
There is still room to cut another 2 trillion MNT from the budget. The current cut is less than 0.1% of GDP; we should aim for 2–5% to match the current reality.
What is the current level of foreign debt? Is there room to borrow more?
As of the end of 2024, government debt stood at 33.4 trillion MNT, 41.8% of GDP. By the first quarter of 2025, it was 34.6 trillion MNT or 38.5% of projected GDP. For the 2025 budget, 1,959.4 billion MNT in project loans and aid are expected, but as of June 24, only 39% (767.8 billion MNT) had been utilized.
There is talk of reducing civil servants by 9% (about 14,400 people). Is it right to mass lay off civil servants in the name of saving the budget?
The government should always be lean and efficient, including all state and local agencies. Over the past 30 years, though, government size has only grown—with more ministries, new deputy ministers, more managers, etc. Under the current budget revision, 2,800 special service, 2,900 administrative, 8,400 service (excluding teachers and doctors), and 200 political positions will be cut. However, rushed, poorly planned layoffs are a mistake. These changes must be communicated early, debated, and carefully planned, considering how affected staff transition to the private sector, etc. The biggest risk is the social consequences for people who lose income and jobs, with dangers of increased poverty.
Will there be real savings? And will severance payments for laid-off employees be a burden?
Some budget impact is inevitable, which the Civil Service Council and Ministry of Finance have hopefully calculated. More importantly, there are many non-monetary negative effects. If costs are too high, it's better to cut senior positions, not ordinary workers, and avoid touching health, education, military, and emergency personnel.
The law states that projects for which procurement contracts were not signed by May 31 count as savings, but critical hospital equipment and basic school furniture are affected. Is this really proper savings?
As of June 24, only 12% of planned state investment had been implemented—a very poor result. Under the State Savings Law, projects without contracts by May 31 are being cut to save 535.9 billion MNT. This has raised doubts among the public, especially as key projects in health and education are affected due to leadership failings. This brings up accountability issues, as well as potential harm to citizens. Instead, just as compensation costs for power station accidents were added in the revised budget, Parliament could simply add funds for critical projects if needed.
The government announced only four out of the 14 mega-projects will continue, with five being postponed and five to be developed as public-private partnerships. Was this prioritization correct?
The government plans to continue four mega-projects, postpone five, and develop the other five via PPP. However, there is no clarity in the budget revision about whether all state investment projects were re-prioritized, costed properly, and whether unnecessary projects were removed from the list.

Back to Table of Contents

E. Batshugar: Although the Law to Remove 70,000 Citizens from the 'Blacklist' has been Passed, the Bank of Mongolia has not Issued or Implemented its Regulation

Published: 2025-07-02 | Translated from: isee.mn

Member of Parliament E. Batshugar submitted a draft law to amend and supplement the Law on Credit Information, along with an accompanying resolution draft. These were approved last May. With the adoption of this law, the expectation arose among the public that there would no longer be a 'blacklist.'

MP E. Batshugar stated, “On May 26th, the draft law to amend and supplement the Law on Credit Information was approved. However, many citizens are asking why the law is not being implemented adequately. The amendments to the law eliminated the 'blacklist.' Introducing a scoring system has renewed the banking and financial systems. Now, just like in countries such as South Korea and the United States, we have a points-based system. As a result, the outcome should be positive. Most importantly, the foundations for reducing loan interest rates have been established. Additionally, 70,000 citizens will be removed from the blacklist. However, the law is not being enforced. The Bank of Mongolia needs to issue the corresponding regulation. I would like to ask the Bank of Mongolia when they will pass this regulation.”

The Bank of Mongolia will decide on the relevant regulation by September 1

Deputy Governor of the Bank of Mongolia, G. Enkhtaivan, stated, “With the adoption of the Law on Credit Information, the central bank is working to issue the corresponding regulation. Of course, the regulation will be passed within the legal timeframe. We have asked for opinions from organizations such as commercial banks and the association of banks. Once we receive that feedback, the regulation will be passed. The Law on Credit Information has truly become citizen-friendly. We will fully resolve this issue by September 1.”

Back to Table of Contents

Economy

Khan Bank Presents Prospectus for Issuing First Gender Bond in Domestic Market

Published: 2025-07-02 | Translated from: ikon.mn

Khan Bank has officially launched its operations to issue the first public Gender Bond in the domestic market through the Mongolian Stock Exchange, unveiling its securities prospectus. As part of its commitment to sustainable development, Khan Bank aims to increase financing targeted at achieving the United Nations’ 17 Sustainable Development Goals (SDGs) in the medium term. The bank has successfully issued Mongolia’s first Green Bond domestically and internationally in 2023-2024, and its first Social Bond in the international market in 2024.

This time, Khan Bank is raising funds through a public Gender Bond specifically to finance projects and programs aimed at achieving SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth), by supporting gender equality, employment, and economic growth. In other words, the proceeds from this bond will be allocated to projects that increase women entrepreneurs’ access to finance, create quality jobs supporting gender equality, and encourage women’s entrepreneurship, economic participation, and leadership.

The Gender Bond aims to raise 30 billion MNT, with bonds having a three-year maturity, a 16% annual interest rate, interest paid semi-annually, and each bond priced at 100,000 MNT. A total of 300,000 bonds will be publicly offered.

The Gender Bond presentation event was held at Khan Theatre in Khan Bank’s Seoul Office and was open to the public. Interested investors attended the event, where they learned about the bank’s strategic plans, best practices in financing women entrepreneurs, its sustainable development initiatives, and details about the offered securities. Representatives from the issuing, auditing, valuation, and legal consulting institutions also attended and answered audience questions.

"Ulzii and Co Capital" Securities Company LLC is acting as the underwriter for the public launch and first-time trading of the Gender Bond on the Mongolian Stock Exchange. "KhaanLex Partners" LLP is the legal advisor, and "PricewaterhouseCoopers Audit" LLC is responsible for financial statement auditing.

Prospective investors interested in Khan Bank’s Gender Bond can obtain detailed information from the underwriter "Ulzii and Co Capital" or their other usual securities brokers. The bond’s prospectus is also available on the websites of Khan Bank and the Mongolian Stock Exchange. Click HERE for more information.

In addition to earning regular returns from the bonds of a market-leading, financially strong public company, investors are offered the opportunity to support projects and programs that empower women entrepreneurs and contribute to socially responsible investment.

About Khan Bank:
“Khan Bank” JSC, established in 1991, is a publicly listed company on the Mongolian Stock Exchange’s first tier (MSE: KHAN). Currently, Khan Bank delivers fast, smart, and comprehensive financial services to 82% of all Mongolian households (2.9 million clients) via its 548 branches nationwide and through advanced 24/7 digital channels and apps. To support business customers who are vital drivers of the economy, Khan Bank provides financial and non-financial services through its 42 Business Centers across Ulaanbaatar and all provinces.

Khan Bank is a leader in digital banking services in Mongolia, offering the most advanced products and services based on AI and data analytics to meet customer needs and lifestyles, enabling 99.4% of all financial transactions to be carried out digitally today.

Sustainable Growth Together – Khan Bank

Notice:
Media organizations (TV, Radio, Social and Web pages) are strictly prohibited from using this information in whole or in part in any form, except with permission and by citing the original source (ikon.mn).

Back to Table of Contents

Millennium Challenge Account Mongolia: Announcement on Consulting Services

Published: 2025-07-02 | Translated from: ikon.mn

Support for Organizing Public Relations Events - Consulting Services
Contract number: RQI # MCA-M/Proc/120
Ulaanbaatar, Mongolia

The Government of Mongolia (referred to as "the Government") and the Millennium Challenge Corporation of the USA (referred to as "MCC") signed the Millennium Challenge Compact Agreement on July 27, 2018, which provides a total of $350 million in grant aid to reduce poverty through economic growth. The Government, through the Millennium Challenge Account of Mongolia (referred to as "MCA-Mongolia"), will allocate a portion of the Compact Agreement’s investment funds to finance this independent consulting contract. MCA-Mongolia will apply restrictions and requirements for the use and expenditure of Compact funds as specified in the Compact Agreement and other related documents. Only the Government and MCA-Mongolia hold rights to expend and utilize the funds as specified, and others hold no such rights. The Compact Agreement and supporting documents are available on the MCC website (www.mcc.gov) and the MCA-Mongolia website (https://mca-mongolia.gov.mn/).

The investment from the Compact Agreement will finance the "Water Supply Expansion Program" aimed at meeting Ulaanbaatar city's growing water needs. Within this program, three interrelated projects and activities are being implemented:

Establishing new western groundwater sources, including associated infrastructure, reservoirs, and an Advanced Water Purification Plant.
Wastewater recycling activities, which include the construction of a new treatment plant and related infrastructure to recycle wastewater from the new Central Treatment Facility.
Activities to ensure sustainability in the water sector, supporting policy, legal, and regulatory reforms, and strengthening institutional capacity for the long-term stable water supply of Ulaanbaatar.

MCA-Mongolia invites eligible entities meeting the requirements outlined in the Qualification Information document to participate in the tender for Consulting Services to support public relations event management. Detailed information about the terms of reference for this consulting service is included in the Qualification Information documentation.

The Consultant shall be selected based on the Consultant’s Qualification Selection (CQS) method as detailed in the Procurement Policy & Guidelines on the MCC website (https://www.mcc.gov). This invitation is open to all eligible consultant firms as defined in the tender documents.

Interested parties wishing to participate in the tender must send an electronic message with the subject “Request for RQI for Event Management Service” to PA-Mongolia@charleskendall.com with a copy to procurement@mca-mongolia.gov.mn, providing contact details. This will register them and grant access to download the Qualification Information documents by electronic link. This request will also ensure they receive updates regarding the tender in a timely manner.

For any questions or clarifications regarding this tender, submit your inquiry by 2:00 pm local time on July 21, 2025, via email to PA-Mongolia@charleskendall.com, with a copy to procurement@mca-mongolia.gov.mn. All questions and responses will be consolidated and distributed to registered consultants by 5:00 pm local time on July 22, 2025.

Consultant Qualification Information must be submitted through the electronic submission link specified in the Qualification Information documentation by 3:00 pm local time in Ulaanbaatar on July 28, 2025. Only electronic submissions will be accepted; proposals sent by email or in printed form will not be considered. Late submissions will be rejected.

Millennium Challenge Account – Mongolia

Notice: Media outlets (Television, Radio, Social, and Web pages) are strictly prohibited from using our information in whole or in part in any form. Usage is only permitted if authorized and the source (ikon.mn) is credited.

Back to Table of Contents

Prices of Mongolian Coking Coal Slightly Increase at Chinese Border Ports

Published: 2025-07-02 | Translated from: itoim.mn

Last week, trade of Mongolian coking coal through China's main border ports showed a slight recovery, indicating increased market activity. This rebound was influenced by rising coal futures prices and a decrease in supply from Inner Mongolia.

Due to heightened environmental inspections and reduced production at domestic mines in some regions of China, coking plants began to purchase more Mongolian coal. Additionally, with border ports set to temporarily close during the National Naadam Festival from July 11–15, traders are inclined to slightly increase their price offers for coal.

Nevertheless, the market's upward trend remains unclear and relatively weak. Ongoing price negotiations between coking plants and steelmakers have caused major buyers to take a wait-and-see approach, restraining active purchases.

Gantsmod Port: Prices Slightly Up
At Gantsmod port, coal trading activity has increased slightly, and traders' confidence has begun to recover. The rise in futures prices positively impacted the price of Mongolian coal. As of June 27, the price of Mongolia's grade 5 raw coking coal was 735 yuan/ton (including VAT, warehouse price), up by 20 yuan from the previous week. The price of Jinquan Company's washed coal remained stable at 865 yuan/ton.

Between June 23–26, an average of 732 truckloads of coal crossed the border daily, a 4.4% increase from the previous week, though total volume remains comparatively low.

Coal stockpiles at the warehouse decreased by 3.8%, amounting to 3.84 million tons as of June 29, mainly due to relatively lower customs clearance and improved goods receipt.

Mandal Port: More Customs Clearance but Trade Still Weak
At Mandal port, traders increased supply and slightly boosted customs clearance to fulfill long-term contracts for the second quarter. As a result, customs clearance grew by 14.4%, with an average of 215 trucks crossing the border daily.

However, despite the increase in futures prices, demand remains weak. Buyers are taking a cautious approach as they monitor price trends, keeping trading activity subdued. As of June 27, the price of washed prime coking coal fell by 20 yuan to 720 yuan/ton compared to the previous week, while the price of raw 1/3 coking coal remained stable at 570 yuan/ton.

Outlook: Mixed Positive and Negative Factors
In the near term, domestic coal production is gradually recovering, but steel demand is in its seasonal lull. As a result, demand in the Mongolian coking coal import market is expected to remain weak, with continued downward pressure.

However, the temporary closure of border ports during the National Naadam Festival will reduce customs clearance and supply to a certain extent, which could help limit the risk of further price declines.

Back to Table of Contents

There are 15 public companies with more than 10,000 investors

Published: 2025-07-02 | Translated from: unuudur.mn

The capital market in our country has been developing rapidly. According to the "Mongolian Stock Exchange," its valuation has increased 8.7 times over the past ten years and 4.7 times since 2020. As a result, the number of citizens interested in securities, buying, and investing has also increased significantly, as company reports show. Currently, there are 15 public companies in our country with more than 10,000 investors.

Specifically, "Jenko Tour Bureau" has the most with 51 thousand investors, "State Department Store" has 42 thousand, "Khan Bank" has 34 thousand, APU has 32 thousand, and "Gobi" has over 25 thousand investors. "Premium Nexus," known as the company managing the CU convenience store chain, and "State Bank" have just surpassed the threshold of 10 thousand investors. The number of shareholders or investors in "Khas Bank," "Suu," "Ard Credit NBFI," "Mandal Insurance," "Monos Foods," "Ard Financial Group," "Tumen Shuvuut," and "Golomt Bank" fluctuates between 11 and 21 thousand. Most of these companies in the highest investor category belong to the banking, finance, and food sectors.

Back to Table of Contents

Published: 2025-07-02 | Translated from: gogo.mn

A petition by Mongolian citizen B. Batbilig regarding the reduction of the percentage and amount of social insurance contributions was supported by more than 100,000 people through the public petition and complaint system.

As the requirements for discussion in the State Great Khural (Parliament) were met, the issue was discussed at the Standing Committee meeting. In his online petition, Batbilig suggested lowering the social insurance contribution rate to 12%, and proposed that contributors with 1,072 shares should be able to transfer their dividend to the social insurance fund at their discretion, resulting in the reduction of the following year's contribution rate to 12%.

The Ministry provided explanations regarding this issue, which were presented by Minister of Family, Labor, and Social Protection T. Aubakir.

Since 1995, employers have been paying a 29-31% social insurance contribution from the wage fund and equivalent income into five types of social insurance, with 13.5% for pension insurance. Employees have contributed 10% from wages and equivalent income, of which 5.5% went to pension insurance.

Since 2008, the pension insurance rate was reduced by 5.0% and the benefit insurance by 1.0%.

In 2017, the State Great Khural legislated a phased increase of the pension insurance rate, which was implemented from 2018 by increasing the contributions of both employers and employees by 1.5% each.

If, in line with the citizen's petition, social insurance contributions are reduced by 50%, the Social Insurance Fund and state budget would face a total burden of 3.2 trillion tugriks. Analysis showed that the total dividend from 1,072 Erdenes Tavantolgoi JSC shares would amount to only 2.4 trillion tugriks, meaning it's not enough to cover the reduction.

Reducing the Social Insurance Fund's income by 3.2 trillion tugriks would make it impossible to finance expenditures for pensions, allowances, and health insurance services.

Such a shortfall would require a similar-sized additional subsidy from the state budget, tax increases to boost budget revenues, or a halving of current expenditures for pensions, benefits, and health services.

Minister T. Aubakir noted the importance of maintaining a proper balance between the number of working individuals and pensioners.

There is ongoing research on introducing New Zealand's pension system, and MPs led by B. Tuvshin have suggested, in connection with a draft law: to exclude from social insurance-assessable income the income from contract and similar agreements for contract work; to require employers to retroactively pay social insurance for such contracts when salaries are paid; and to exclude food, fuel, housing utility payments, firewood, and coal allowances from income subject to insurance contributions. The goal is to develop a model for the Social Insurance Fund that requires as little subsidy as possible.

In connection with the discussion of citizen B. Batbilig's petition regarding the reduction of social insurance contribution rates, the Standing Committee decided to issue a resolution.

In the draft resolution "On giving guidance to the Government" by the Standing Committee on Social Policy, provisions include: to study and introduce flexible payment options for certain contributors without disrupting the balance of income and expenditure of the Social Insurance Fund, reflect this in relevant legislation, and submit to Parliament at the 2025 autumn session; to ensure proper management of assets of the Social Insurance Fund, to urgently take measures to recover receivables claimed by the fund from Chingis Khan Bank LLC as the successor of the bank license-holder Capital Bank LLC, and to bring the fund to non-deficit status; to study the possibility of setting an upper limit for the wage fund and equivalent income that employers must pay contributions for, matching that of insured persons, and to create the necessary legal framework.

The suggestion by MP S. Erdenebat to include content related to the citizen's petition in the draft resolution was put to vote and, being supported by the majority present, the resolution was considered confirmed.

Back to Table of Contents

Invescore Financial Institution Attracts Total of $16 Million Financing from EMF Fund

Published: 2025-07-02 | Translated from: ikon.mn

Invescore Financial Institution has successfully attracted additional financing equivalent to $3 million in MNT from the international development investment organization EMF Microfinance Fund, AgmvK (EMF). With this, the total financing provided by EMF Fund to Invescore Financial Institution has reached $16 million.

This financing demonstrates the high regard international investors have for Invescore Financial Institution’s stable growth, market expansion, financial reliability, sound governance, and transparent operations.

The investment provided by the EMF Fund is aimed at supporting micro, small, and medium enterprises, which are the main driving force of Mongolia's economy. The goal is to satisfy customers’ financial needs, support business growth, and increase employment, thereby having a positive impact on domestic economic growth.

Additionally, Invescore Financial Institution has successfully obtained financing from two other prestigious international development investment organizations. For example, it attracted $10 million from BlueOrchard Microfinance Fund (BOMF) and $4.5 million from the Global Gender-Smart Fund.

Invescore Financial Institution started operations in 2016 with the aim of being a "RESPONSIBLE SUPPORTER" for its clients by introducing advanced technology and innovative, swift services to the microfinance market, and became a public company in 2019. Currently, the company operates with a central office in Ulaanbaatar as well as 14 branches, one branch each in Darkhan City, Erdenet City, and Sainshand City in Mongolia, five branches in Kyrgyzstan, and one branch in Kazakhstan.

These achievements are a manifestation of Invescore Financial Institution’s effective cooperation with international financial organizations and its commitment to consistently contribute meaningfully to Mongolia’s financial market by expanding its operations.

Warning: Media organizations (Television, Radio, Social, and Websites) are prohibited from using all or part of our information in any form, except with prior agreement and with proper attribution to the source (ikon.mn).

Back to Table of Contents

Diplomacy

Ambassador Richard Buangan of the United States Meets with Minister of Defense Dambyn Batlut

Published: 2025-07-02 | Translated from: isee.mn

Member of Parliament and Minister of Defense Dambyn Batlut received Richard Buangan, the Ambassador Extraordinary and Plenipotentiary of the United States to Mongolia. Minister of Defense D. Batlut expressed his satisfaction with the growing relationship and cooperation between the two countries in the field of defense each year, stating, "The projects and programs implemented in cooperation with our country have made valuable contributions to improving the military professional skills of the personnel of the Mongolian Armed Forces and increasing their capacity to participate in peacekeeping operations, for which we are grateful." He further expressed his desire to expand bilateral cooperation in the field of defense.

Ambassador Richard Buangan thanked Minister of Defense D. Batlut for making time to meet and congratulated him on his appointment as Minister of Defense. He emphasized that he would work proactively to ensure the stable continuation of cooperation in the defense sector. At the conclusion of the meeting, the "Medal for Military Cooperation" was awarded and presented to the Defense Attaché of the US Embassy, Lieutenant Colonel Brian Hart, in recognition of his proactive efforts, valuable contributions, and dedication to deepening bilateral cooperation during his tenure.

Back to Table of Contents

Infrastructure

Four companies submit bids to partner for CHP-5 project

Published: 2025-07-02 | Translated from: ikon.mn

Four domestic and international companies have submitted proposals for the selection of a private sector partner for the CHP-5 project.

The CHP-5 thermal power plant, with an installed capacity of 340 Gcal of heat and 300 MW of electricity, is planned to be built on the site of the previous ash pond in front of CHP-2 in the 20th district of Bayangol. The total investment for the project is $658 million USD. The financing will be covered 80% by the private sector and 20% by the capital city. The preliminary selection for a private sector partner to enter into a partnership agreement for the CHP-5 project—using the design, build, operate, and transfer model—was announced. As of 10:00 today, proposals were accepted from companies, and eight domestic and foreign entities officially expressed an interest, with the following four companies submitting their bids:

Pan-China Construction Group JSC
Shunkhlai Holding LLC
Mitime International LLC
China Western Power Industrial LLC

Moving forward, the evaluation of qualified participants will be conducted by the selection working group in accordance with laws and procedures. Successful participants will be invited to the next stage of the competitive selection process, and the progress and results of the project and selection will be made public.

Once CHP-5 is completed, it is expected to supply heating to the western parts of the capital, including areas such as Tavan Shar, 21st district, Khilchin Town, Bayankhoshuu, 3rd and 4th districts, and the First district, covering both households and businesses.

Notice:
Media organizations (television, radio, social and web pages) are prohibited from fully or partially using our information in any form without permission and must cite (ikon.mn) as the source if agreed upon.

Back to Table of Contents

The Government to Discuss Suspending the 'Bogd Khan Tunnel' Project Currently Being Designed for 49.8 Billion by a Chinese Company, at the Request of B. Delgersaikhan

Published: 2025-07-02 | Translated from: isee.mn

Within the framework of the government's mega projects, the Bogd Khan mountain tunnel construction and the cable-stayed bridge projects, both highly ranked among 25 major initiatives planned for the capital, will be postponed according to the Minister of Economic Development N. Uchral.

Minister N. Uchral stated: "We have categorized the projects to be implemented in the capital into four groups and are ranking them according to 14 criteria. The Ministry of Economic Development is inclined to postpone the Bogd Khan mountain tunnel and the cable-stayed bridge projects. We will discuss and resolve this at a Cabinet meeting. In general, there is no other option but to halt unproductive and unnecessary financing. Instead, other projects like the Tuul Speed Road will be implemented in the capital."

The government will discuss which projects will continue and which will be halted. The Khushigiin Khundii tunnel is planned as a dual-lane tunnel spanning 15.2 km, running from the Ikh Tenger Valley through the Bogd Khan Mountains to the Nomt Hollow.

The tender to develop the feasibility study (FS) and project design for the Bogd Khan Tunnel was won by the Chinese company 'China Design Group Co Limited' with a bid of 49.8 billion MNT. Specifically, on November 11, 2024, a tender named "Preliminary Technical and Economic Feasibility Study and Design for Khushigiin Khundii Tunnel Project" with a budget of 55.3 billion MNT was announced, and the result was released on December 17 last year. Out of eight international companies from China, South Korea, Russia, and others, 'China Design Group Co Limited' was selected.

This company, established in 2005 in Nanjing and employing over 5,900 people, has conducted major strategic transport planning and preliminary studies in Jiangsu province over the past 20 years. They have designed more than 5,000 km of expressways, over 4,000 km of roads, over 1,000 km of urban highways, and have provided designs for more than 200 major bridges crossing the main rivers with a length of over 1,000 meters, such as the Jianyin Yangtze River Bridge, Runyang Yangtze River Bridge, and Sutong Yangtze River Bridge. Additionally, the company has designed almost all internal waterways, ship locks, terminals, road service areas, landscaping, and intelligent transportation facilities in Jiangsu province. China Design Group was ranked 62nd in the 2020 ENR's "Top 100 National Survey and Design Revenue Enterprises" and listed among the "World's Top 150 Engineering Design Firms."

MINISTER OF ROAD AND TRANSPORT B. DELGERSAIKHAN HAD ATTACHED GREAT IMPORTANCE TO THIS PROJECT

For his part, Minister of Road and Transport B. Delgersaikhan had considered the project as effective, and previously stated that opponents were merely spreading propaganda that the protected area should not be disturbed. He said,

"You need to understand one thing. It is false PR to claim that building a tunnel and bridge through Bogd Khan mountain would cost 5.5 trillion. I have been researching this for over a year. Think about it. The valleys of Bogd Khan mountain are full of luxury houses that have already been built. Between Chinggis Circle and the Observatory, there are mansions owned by the rich. While the wealthy are living in luxury and exploiting the mountain, why can't a passageway be created for the public? I don’t own a house there. I am speaking so the public understands correctly. Now those who already live on the mountain, after building their homes, pay for PR calling it a protected mountain. They pretend to worship Bogd Khan mountain, but while they live in luxury and exploit it, why can't a project for the common people be done? The only reason for this PR campaign against the project is that their own interests are being touched. If a tunnel is built, it will benefit the masses and make it less exclusive. The actual construction would require 700-800 million USD, not 5.5 billion. But they are deliberately inflating the costs for negative PR. As someone trying to realize this development, I will not engage in false PR."

Now, the proposal to suspend this project—one that he valued highly and was supposed to be implemented in cooperation with China, possibly involving his business partners—will be discussed by the government today. He previously brought former Prime Minister L. Oyun-Erdene to Hangzhou to show him the bridges and tunnels there.

Within the framework of the "Aspiring Mongolia" cable-stayed bridge project, 28.6 billion MNT for the technical and economic study and design financing was included in the budget package for the Minister of Road and Transport. The bridge is planned as a 4.7 km six-lane road with a cable-stayed bridge, 900 meters of bridge structure, and an 80-meter underpass from the National Park to Khurkhreen Hollow of Bogd Khan Mountain.

Back to Table of Contents

Lee Jong Hak: If Mongolia Makes the Investment Decision Quickly, Our 'Soosung Engineering' Company Can Expedite Metro Construction

Published: 2025-07-02 | Translated from: isee.mn

An international open two-stage tender was organized to select a consultant for the "Ulaanbaatar Metro" project, with four companies competing. The consortium of South Korea's Dohwa Engineering Co. Ltd, Korea National Railway, Soosung Engineering, and Korea Railroad Corporation was selected. This consulting group provides comprehensive methodological and professional advice on feasibility studies, baseline research, design, and construction, as well as monitoring and oversight of the project implementation. They also updated the technical and economic feasibility study (TEFS) prepared by JICA in 2013, developed the prototype project design, and had it approved in March 2025. Regarding the ongoing preparation of the metro’s TEFS, we spoke with Mr. Lee Jong Hak, director of Soosung Engineering.

Four South Korean companies have been selected and are updating JICA's previously developed TEFS. What stage is this work at now?
Our "Soosung Engineering" company prepared the technical and economic indicators for the city’s order in 2011. It seems people have misunderstandings about this. When preparing the TEFS, of course we referenced JICA's earlier work. However, that did not harmonize with Ulaanbaatar’s current roads and infrastructure. Our company, Soosung Engineering, independently performed the TEFS in 2011.
Many things such as buildings and roads have changed since then, so is the whole process starting over?
At that time, we pointed out that, unless metro construction was advanced quickly, there would be significant issues such as increased traffic and more buildings ten years later. If we had started then, Ulaanbaatar could already have a metro system by now. Since years have passed, many things have changed. In 2011, it was discussed to dig from the surface and start constructing the metro. However, now this method is not possible, and we have opted for a technology with a tunneling machine. This technology involves making tunnels and all related works underground. We are planning to implement and design the metro with this approach.

Also, in 2011 it might have been possible to dig and block off some roads during construction. Now, if we dig and block roads, it would cause not just complete standstills but major traffic congestion; hence, this method is no longer applicable.

There is talk that by 2030 the metro will be in use and Ulaanbaatar citizens can travel by metro. Will it be ready in time?
As the person responsible for engineering, I can say we can design and prepare all documentation rapidly; that is our responsibility. After that, execution depends on the decision of the Mongolian Government. Whether to build several subway lines simultaneously or to pace construction according to funding is a decision for the government in the context of our cooperation. We have advised on the need for fast drilling. The geology under the metro route currently poses no issues. The most important concern is how the investment will be organized and how rapidly it will be made. I understand the Mongolian Government and the capital city are also discussing metro implementation with the UK.
You emphasize the importance of financial management. Has the financing proceeded smoothly so far?
According to the initial contract, we matched the work to the allocated budget, introduced our work consistently, and have been paid in phases accordingly.
There are sometimes power outages in Ulaanbaatar. The metro runs on electricity. Could energy supply become an issue?
There is technology for storing surplus energy. Since the metro doesn’t run at night, power can be stored overnight for use during the day. Therefore, the electricity supply is not likely to be a major issue.
Has your company previously prepared TEFS for metro projects? Are there challenges with soil and ground conditions for building a metro in Ulaanbaatar?
Our company has worked on metro engineering in more than 10 countries. Globally, ground conditions are more similar than people realize. With good engineering, anything can be built anywhere. Thus, there will be no major issues building a metro in Ulaanbaatar. The key is that, once work starts, it must not be stopped—a point I believe the Mongolian Government understands.

I first came to Mongolia in March 2006. After about 20 years, it’s wonderful to see positive development everywhere. The goal of my company and myself in Mongolia is very optimistic: we want to be part of creating a city where you can get anywhere in 20 minutes. I am always ready to contribute to this goal.

For every Mongolian to have a good quality of life in their homeland, engineering is at the heart of the effort. I devote my remaining working life to this cause.

Having worked as an engineer for many years, I have created designs to enable all tasks to be accomplished within 20 minutes. Let me show you our work. Our company is working to make Ulaanbaatar a city with well-organized traffic. Such plans are not created in a day. Without a comprehensive engineering approach accounting for building distribution and more, the city cannot develop. As you may have heard, the Mongolian Government is implementing 14 mega projects. For such projects, engineering designs are absolutely necessary. We want to help develop a city that will surprise even foreign visitors.

Back to Table of Contents

Chinggis Khaan International Airport Becomes One of the Top 10 Most Improved Airports in the World

Published: 2025-07-02 | Translated from: montsame.mn

Chinggis Khaan International Airport has been included for the first time in the list of the world's most improved airports this year. This ranking is issued by the prestigious Skytrax organization in the aviation sector, which evaluates airports by various criteria such as passenger services, safety, and technological solutions. Mongolia's airport was ranked alongside major regional hubs such as Almaty in Kazakhstan, Bangkok in Thailand, London Gatwick in the UK, and Taoyuan in Taiwan.

Since opening in 2021, Chinggis Khaan Airport has continuously improved its services. From 2024, it has introduced advanced technologies such as automated check-in, passenger flow management systems, and smart information boards, and has started to receive positive assessments from international evaluation organizations. The phased implementation of the "One ID" system has also simplified passenger processing and created conditions for a higher level of safety. Going forward, the airport aims to further enhance its services to compete with other regional hubs as a key international passenger gateway.

The Ministry of Road and Transport stated that this achievement demonstrates not only infrastructural development but also a convergence with international standards in management and customer experience. This year's list is topped by Berlin Brandenburg, Almaty, Bangkok Suvarnabhumi, and London Gatwick airports. Other notable airports included are Cebu in the Philippines, Punta Cana in the Dominican Republic, and Mumbai in India from the Asian and oceanic regions.

Back to Table of Contents

Eight Domestic and Foreign Companies Participate in Pre-qualification for TPP-5 Project Private Partner Selection

Published: 2025-07-02 | Translated from: itoim.mn

Within the framework of Ulaanbaatar city's 24 mega projects, a TPP-5 thermal power plant with an installed capacity of 340 Gcal of heat and 300 MW of electricity will be built in Bayangol district, 20th khoroo. In this regard, the capital city announced the pre-qualification for selecting a private sector partner to enter into a partnership agreement to design, budget, construct, operate, and transfer the TPP-5 project.

Bids were accepted until 10:00 am, and 8 domestic and foreign companies officially expressed their interest to participate, with the following 4 bidders submitting their proposals: - Pan-China Construction Group JSC - Shunkhlai Holding LLC - Mitime International LLC - China Western Power Industrial LLC

The selection committee will continue to evaluate qualified participants according to the law and procedures, and those who pass will be invited to the next round of the competitive selection. The project process and results of the selection will be made publicly available.

Back to Table of Contents

Oyu Tolgoi Company Builds and Opens 12.5 km Paved Road

Published: 2025-07-02 | Translated from: ikon.mn

Umnugovi Province, Khanbogd District – In response to the increased transport flow for goods and products arriving from Ulaanbaatar and the growing movement of workers, Oyu Tolgoi Company has constructed and put into operation a 12.5-kilometer paved road from the Oyu Tolgoi mining complex to the Tavan Tolgoi coal transport road. This initiative is aimed at improving traffic safety and reducing environmental impact. The road was officially handed over to the State Commission at an opening ceremony attended by members of the State Great Khural, R. Seddorj and N. Naranbaatar, Deputy Governor of Umnugovi Province J. Zanabazar, Governor of Khanbogd District M. Tseveenravdan, and Chairman of the Citizen's Representative Khural of Khanbogd District, Ts. Iderzorig.

At the ceremony, Andrew Lay, Director of Operations at Oyu Tolgoi, remarked: “We are delighted to celebrate this important event for both Oyu Tolgoi and Khanbogd District. Since the project started, we have collaborated and consulted closely with the local community and authorities to ensure the road meets their needs. This paved road will not only improve the efficiency of our logistics and supply chain but will also enhance safety for all road users.”

Now that Khanbogd District is fully connected to Ulaanbaatar via paved road, local residents can travel comfortably and more quickly. Additionally, with reduced dust along the route, the environment will be friendlier for both people and livestock, and the increased accessibility is expected to attract more domestic and foreign tourists to the historical and scenic sites of Khanbogd District.

Previously, during floods in the Undai River, traffic was often delayed for extended periods, requiring frequent grading and watering of the dirt road, which resulted in high maintenance costs, significant dust, and an increased risk of accidents. The new road includes a 220-meter-long, 24-centimeter-thick, and 12-meter-wide concrete passage over the Undai River, with 27 artificial drainage structures built. The road fully complies with Mongolian standards for roads and road structures, and its design was developed through multiple consultations with local herders and municipal and provincial leaders, taking their feedback into account. The structure includes a 20-centimeter cement-stabilized layer, with a two-layer asphalt surface: 5 centimeters for the base asphalt and 3 centimeters for the top layer. The width of the road's driving surface is 11 meters.

Previously, Oyu Tolgoi built and put into operation a 35.1 km paved road from Khanbogd District to the mining zone, and a 19.1 km heavy-duty special-purpose road from Tsagaan Khad to the Gashuunsukhait border post.

About Oyu Tolgoi (www.ot.mn)
Oyu Tolgoi is Mongolia's largest copper and gold company, based on a strategic partnership between the Government of Mongolia and Rio Tinto. Operating in the South Gobi region, Oyu Tolgoi began exporting its first copper concentrate in July 2013. Managed by Rio Tinto, the company is committed to making Oyu Tolgoi one of the world’s most modern mines through international best practices and advanced technology.

Ensuring safety is Oyu Tolgoi Company's top priority, and any hazardous work is halted immediately.

You can reach us for more information through Oyu Tolgoi's Facebook and Twitter accounts.

Notice:
Media organizations (TV, radio, social, and web platforms) are prohibited from using our information in whole or in part in any form unless otherwise agreed, and may only use it with the source (ikon.mn) clearly indicated.

Back to Table of Contents

New Ring Road Project Approved

Published: 2025-07-02 | Translated from: montsame.mn

In Ulaanbaatar, significant road construction projects are being phased in by the city government to reduce traffic congestion. One such project is the New Ring Road, planned to be built with both first and second ring routes. The feasibility study was undertaken by the company “CSCEC AECOM Consultants.” The technical and economic justification for the "First Ring Road" project in Ulaanbaatar was supported and approved yesterday by the Scientific and Technological Council of the Ministry of Road and Transport.

The First Ring Road project will run for 22-26 km as a six-lane road, passing through the TETs-4 road, Enkhtaivan Avenue, Tolgoit, Ard Ayush Road, Bayankhoshuu Junction, the areas of 10 khoroos of Songinokhairkhan district, Denjiin Myanga Road, Khailaast Street, Doloon Buudal Road, Baruun Altan-Ulgii Street, Da Khuree Street, Hilchnii Street, Police Academy Avenue, and Dunjingarav Street. Experts estimate that this project will reduce road traffic load and congestion by about 30%.

Additionally, the New Ring Road project stands out because its baseline mapping, engineering geological surveys, current traffic flow analysis, general urban development plan, unified environmental assessment, and studies of engineering networks are all conducted more thoroughly and from multiple perspectives than in prior city projects.

Back to Table of Contents

Today, roads from Tavan Bogd Group intersection to Khan-Uul District and from Sharga Morito to Gunt will be closed this evening

Published: 2025-07-02 | Translated from: ikon.mn

Currently, traffic has been closed for repairs and renovations on the following roads in the capital city, as reported by the City Road Development Department: from the intersection southeast of "TPS-4" (Thermal Power Station No. 4) to the intersection connecting Naadamchdyn Avenue with Energy Street, and from the 100 Ail intersection to the Dari-Ekh intersection. However, it has been decided that two more roads will be closed for repairs this evening.

Specifically, within the scope of partial repairs and renovation work of Chingis Avenue in the territories of Khan-Uul District, baghs 1, 2, and 20, the road from Tavan Bogd Group's intersection to Khan-Uul District's intersection will be closed from 23:00 on July 2nd until 06:00 on July 5th, during which asphalt concrete pavement and road marking works will be performed.

2.5 km of road north from Sharga Morito to be closed tonight for renovation

Within the summer camp area, as part of repairs and renovations of the 4.45 km road from Sharga Morito intersection to Gunt Pass, a 2.5 km section north from Sharga Morito will be closed tonight for renovation.

Road closure: From 00:00 on July 3rd
Road opening: Until 06:00 on July 9th. The repair work will last for six days.

Warning:
Media organizations (Television, Radio, Social media, and Web pages) are strictly prohibited from fully or partially using our information in any form, and may only use it with agreement and by citing the source (ikon.mn).

Back to Table of Contents

Society

Tickets for Naadam: Only 2,000 of 10,000 foreign tourists will receive tickets

Published: 2025-07-02 | Translated from: news.mn

The peak period for the tourism sector is beginning. According to industry insiders, the influx of foreign tourists coming to explore and travel in Mongolia is unceasing. Most foreign tourists wish to watch the national Naadam festival, and as of now, among the 10,000 tourists who have confirmed their bookings to come to Mongolia, only 2,000 will be given tickets this year. This quota is 200 less than last year's. While foreign tourists do have an opportunity to attend the opening and closing ceremonies of Naadam in the evening, when making their bookings they express a desire in the official program to witness state ceremonies and the elevation of the Nine White Banners.

Tourists from European countries tend to confirm their reservations one to two years in advance to watch the festival, while tourists from Asian countries usually confirm their bookings two to three months ahead, according to the Professional Association of Tourism. Most tourists come aiming to see national and local festivals and ceremonies, but each year, tickets to Naadam’s opening event are limited for travel companies, leading to many tourists who come specifically for the festival being unable to fulfill their purpose and leaving disappointed. During last year's 2024 festival, 2,200 foreign tourists were given the opportunity to attend the opening event. Previously, out of the 12,000 seats at the Central Stadium, 5,000 seats were allocated for foreign tourists, but last year, although the total seat count remained 12,000, the seats for tourists decreased to 2,200, which has caused dissatisfaction among those in the tourism sector.

RISING NUMBER OF KOREAN TOURISTS VISITING MONGOLIA

As of today, 329,042 foreign tourists have visited Mongolia. The industry reports that this figure is a 24% increase compared to the same period last year. M. Narangerel, executive director of the Professional Association of Tourism, commented, “For the first time, last June we welcomed 87,000 tourists. On average, 2,700-3,500 foreign tourists enter Mongolia’s borders daily. We receive these statistics daily from the General Authority for Border Protection. The agency categorizes the purpose of foreign visitors' entry and considers all visitors except those holding permanent residence, business, or student visas as tourists. This is because even those attending business meetings stay in hotels and use services, so the figures are reliably included in tourist numbers. Additionally, we receive very detailed data from border checkpoints. Previously, we received 12 flights per week, but starting from 2024, we handle 12-15 flights per day, which is another indicator of the rising number of foreign tourists.

For example, more than 1,000 tourists from South Korea arrive daily. Since Mongolia borders Russia and China, tourists also come in by road, but Korean tourists enter only through the Chinggis Khaan International Airport. Approximately five full flights of South Korean tourists arrive in Mongolia each day. Following Korea, the largest groups of tourists come from China and Russia, and after that from Japan, the USA, Germany, France, Australia, the UK, Belarus, and Turkey. Looking at this year's composition, it shows that Mongolia's marketing activities have been successful and active not only in Asian countries but also in Europe.”

Back to Table of Contents

Double standard: Let's keep politicians away from the honored seats at Naadam!

Published: 2025-07-02 | Translated from: news.mn

Citizens complained on social media that all the tickets for the National Great Holiday Naadam festival sold out in just one hour. Every year, such disputes occur, and unfortunately, it seems our city officials have no real intention or ability to change or fix this situation, which is shameful. Tickets for the Naadam festival's opening ceremony and the wrestling matches were sold at 100, 130, or 150 thousand tugriks, depending on the seat. It is said that each person could only buy two tickets. However, it's a mystery how so many tickets end up in the hands of scalpers, tickets that ordinary citizens can't buy. The culprits are not far from the capital's Governor's Office. Every year there are a thousand arguments about Naadam tickets, but nothing ever changes. The real issue is who enables these tickets to end up with scalpers.

This year's organizing committee for the Naadam festival will be chaired, as usual, by Deputy Prime Minister S. Amarsaikhan. The committee includes Minister Ch. Undram from the Ministry of Culture, Sports, and Tourism, and Mayor of the capital city H. Nyambaatar. So, I appeal to them: Stop the practice of inviting Members of Parliament (MPs) to sit in the honored seats at Naadam.

Members of Parliament represent the people. Simply put, they should not have more privileges than the ordinary people. Yet, every year, MPs and their spouses are specially invited to the honored seats at Naadam. We should end this ugly tradition that started in the socialist era, starting this year. Being an MP does not mean you deserve more rights than the public. MPs are just lawmakers. The law may protect them, but it does not give them the right to break it.

Most of all, our representatives — MPs, ministers, and officials — should have the ethics to buy their own tickets to the festival, just like ordinary citizens. Sitting in separate, invited seats as officials is a classic double standard. Pigs should not be more equal than others.

There are quite a few people among the 126 MPs who mistakenly believe that being elected makes them some kind of big shot who can insult, belittle, and humiliate their own people. The number of MPs was increased to make our parliament more "classic," yet there are many who do not understand their duties or rights, making the parliament look incompetent and even akin to Shar Khad mental hospital. Through all eras, there have always been quarrelsome, sycophantic, and argumentative people in our parliament. But some of the representatives in Amarbayasgalan's parliament have really gone too far. There are more than a few MPs who insult and curse the voters who elected them, day and night.

The more extra privileges such people receive, the more they see themselves not as representatives, but as rulers of the people. Therefore, to show that politicians are not above the people, we must start with simple things. Politicians should be kept away from the honored seats at Naadam. Let the President, Speaker of Parliament, and Prime Minister sit in these seats as the heads of the main three state institutions. But let's start inviting people who have made great achievements for their country to sit in these honored seats instead.

If we truly are a democratic country, MPs, ministers, and officials should not distinguish themselves from the people!

Back to Table of Contents

National Grand Festival Program

Published: 2025-07-02 | Translated from: ikon.mn

The program for the National Grand Festival commemorating the 2234th anniversary of the founding of the first state, the 819th anniversary of the Great Mongol Empire, the 114th anniversary of the restoration of national independence and sovereignty, and the 104th anniversary of the People's Revolution has been released.

Additionally, during the festival days, various cultural and artistic events will be organized. For example, the "Ulaanbaatar Night 2025" National Grand Festival show will be held at D. Sukhbaatar Square on July 11th from 21:00 to 00:00, featuring performances by more than 70 artists.

Here is the consolidated program for the National Grand Festival as well as other cultural and art events.

Attention:
Media organizations (Television, Radio, Social Media and Websites) are strictly prohibited from using our information, in whole or in part, in any form unless agreed upon, and must mention the source (ikon.mn) if permitted.

Back to Table of Contents

Applications for Permits for Trade and Service During the National Naadam Festival Have Begun to Be Accepted Online

Published: 2025-07-02 | Translated from: isee.mn

During the National Naadam Festival, a total of 576 permits will be issued for trade, food production, and service to festival attendees—206 spots at the Central Stadium and 370 at Khui Doloon Khudag. Organizers will ensure and monitor compliance with food quality, safety, and hygiene standards.

Applications for trading and service activities can be submitted online at https://service.ulaanbaatar.mn/home via the “Service Operation Registration System” from 16:00 on July 1, 2025, to 16:00 on July 3, 2025.

I. Requirements:
1.1. To apply for food production and service (excluding khuushuur and other types of food), the applicant must be a legal entity (restaurant, café, food chain, fast food establishment, tea house) with a stable operation, meeting standard kitchen, equipment, tools, and professional staff requirements. Individual applicants are allowed only for mobile fast food stalls.
1.2. For trade activities, both individuals and legal entities engaged in related activities can apply.
1.3. To sell handicrafts, souvenirs, and national clothing, individuals and legal entities operating in the relevant field may apply.
1.4. Each applicant (individual or legal entity) may only apply at one location, and all stalls must use standardized white tents of 5x5m or 3x3m.
1.5. In Khui Doloon Khudag, only individuals and legal entities from Bayanzurkh, Songinokhairkhan, and Chingeltei districts may apply. At the Central Stadium, only those operating in Sukhbaatar, Bayangol, and Khan-Uul districts may apply. All applications will be accepted by the respective district offices, Mongol Naadam Complex, and Ulaanbaatar City’s Small and Medium Enterprise Support Center and will be reviewed and approved by July 4-5, 2025.

II. Required Documents for Food Production and Services:
2.1. "Registered Page" with approved status from the Online Business Center;
2.2. Chef's professional certificate and menu;
2.3. Health check book for the chef and staff (must have undergone check-up in the last 6 months).

III. Required Documents for Trade Activities:
3.1. "Registered Page" with approved status from the Online Business Center;
3.2. For food trade, health check book for employees (must have undergone check-up in the last 6 months);
3.3. List and photos of products to be sold.

IV. Required Documents for Small and Medium Enterprise Products:
4.1. Individual or legal entity producing handicrafts, souvenirs, or national clothing;
4.2. Description and photos of products.

V. Required Documents for Mobile Game Services at Khui Doloon Khudag:
5.1. Introduction and images of the products and games, safety instructions, and recommendations.

VI. Prohibited Activities:
6.1. Sale or provision of unauthorized open-air trade or services at festival sites;
6.2. Sale of all types of alcoholic beverages and tobacco is prohibited;
6.3. Selling or serving products that contain mayonnaise, eggs, cream, sausage, or other highly perishable food items requiring special storage conditions is prohibited;
6.4. Setting up yurts, tents, or shades, and conducting sales, food production, or services outside designated permitted locations is prohibited;
6.5. Littering or disposing of waste (solid or liquid) outside designated collection points is prohibited;
6.6. Packing and selling fermented mare's milk, milk, dairy products in non-food, unlabeled plastic containers or storing drinking water in such containers, and serving khuushuur in single-use plastic bags is prohibited.

Back to Table of Contents

Environment

Project to Improve Management of Electrical and Electronic Waste to be Implemented

Published: 2025-07-02 | Translated from: montsame.mn

The technical launch meeting of the project “Supporting the Circular Economy by Strengthening E-waste Management” was held yesterday. Representatives from the Ministry of Environment and Tourism, the Communications Regulatory Commission, the International Telecommunication Union, the private sector, and professional associations participated in the meeting, discussing the goals of the project, its action plan, and opportunities for cooperation.

Supported by the Government of Australia, the project will be jointly implemented by the Ministry of Environment and Tourism and the Communications Regulatory Commission, with the support of the International Telecommunication Union (ITU), until February 2026. Within the framework of the project, an assessment of the current state of electrical and electronic waste will be conducted, policy support on proper management will be provided, a mapping of stakeholders will be carried out, and policy and legal recommendations will be developed.

It is worth mentioning that this project will also be implemented in Thailand in addition to Mongolia.

Back to Table of Contents

Case of Illegally Storing Hazardous Chemical Substances in Factory Referred to Court

Published: 2025-07-02 | Translated from: isee.mn

The Capital City Prosecutor's Office has prepared an indictment and referred the case concerning "O" LLC to the District Criminal and Civil Summary Court. Specifically, the Capital City Prosecutor's Office alleges that "O" LLC, which operates in the fields of mineral exploration, mineral exploitation, and foreign trade, illegally stored in its factory a total of 4 liters of hazardous chemical substances classified as "Potassium dichromate," "Sodium carbonate," and "Hypochlorite solution," all of which fall within the "Classification of Hazardous and Toxic Chemicals."

Based on Article 24.3.3 of the Criminal Code, which pertains to the illegal circulation of hazardous chemicals, an indictment was prepared and the case was transferred to the First Instance Inter-Soum Court in Dornogovi province.

Back to Table of Contents

Orkhon, Govisumber, and Sukhbaatar provinces face high flood risk; 19 soums at very high risk

Published: 2025-07-02 | Translated from: unuudur.mn

The National Emergency Management Agency (NEMA) has released the current general flood risk outlook. According to an assessment conducted by NEMA’s Risk Management Department, out of 21 provinces, Orkhon, Govisumber, and Sukhbaatar are classified as high risk, placed at the orange level. Meanwhile, Bayan-Ulgii, Uvs, Khovd, Zavkhan, Govi-Altai, Bayankhongor, Khuvsgul, Bulgan, Tuv, Uvurkhangai, Umnugovi, Dundgovi, Darkhan, Selenge, Dornogovi, and Khentii provinces are assessed as medium risk, and Dornod and Arkhangai provinces as low risk. Specifically, among the 330 soums (districts) in the 21 provinces, 19 are rated as very high risk, 30 as high risk, 159 as medium risk, 94 as low risk, and 28 as very low risk. Emergency management officials warn that in the 49 soums at very high and high risk levels, 137,740 households are in danger of being affected by floods.

Nationwide, over the past 10 years, there have been 1,212 recorded incidents of hazardous events caused by water and meteorological phenomena, with 41.3% of those being due to heavy rains and flooding. As a result, the number of incidents involving water-related accidents, damage to health, property, and even loss of life has increased. Authorities advise the public to closely follow weather reports and be cautious of sudden dangers and accidents.

Additionally, the water levels of rivers originating in the Khuvsgul mountains such as Eg, Uur, Delgermurun, and in the northern flank of Khangai's Chuluut, Tuin on its southern side, Buyant, and Terelj and Tuul on the western flank of the Khentii mountains, have increased by 5-60 cm compared to the previous day, with the Chuluut river exceeding the long-term average by 10 cm. Also, the Beltes and Khovd rivers remain 10-20 cm above flood threshold levels.

Back to Table of Contents

Health

Number of Laboratory-Confirmed Measles Cases Reaches 11,179

Published: 2025-07-02 | Translated from: unuudur.mn

The National Center for Communicable Diseases has provided information regarding the current situation of measles. As of today, there have been a total of 11,179 laboratory-confirmed cases of measles, with 610 people hospitalized, 964 receiving home care, 9,598 recovered, 75,657 contacts, and 7 deaths. Of those 610 hospitalized, 66 are mild cases, 506 are moderate, 36 are severe, and 2 are critical.

Measles is a highly contagious disease that can nevertheless be prevented by vaccination. The majority of measles cases are occurring in clusters at general education schools, so children and citizens studying or working together are encouraged to get vaccinated against measles to protect themselves and others from infection.

Every citizen should take responsibility for their own health and prevent the spread of infection.

Back to Table of Contents

Dornod: Children Not Immunized Are Getting Measles

Published: 2025-07-02 | Translated from: montsame.mn

A total of 23 cases of measles have been registered in Dornod Province. According to the Central Hospital, 71.5 percent of these are children who have not been vaccinated, 4.9 percent are below the eligible age for vaccination, and 7.8 percent have received only one dose of the vaccine. Immunization of contacts for these cases has been carried out at an 86 percent rate. Therefore, a campaign to intensify supplementary immunization against measles was organized.

During this campaign, children between the ages of 0-15 who had missed scheduled vaccinations were given the measles vaccine, and public awareness efforts were made to highlight the importance of immunization. Furthermore, family clinics in the provincial center and health centers in 13 soums took part in the campaign and conducted vaccinations.

As a side note, the contact immunization rate for measles cases registered in the province has reached 86 percent. Nationwide, the number of measles cases is rapidly increasing, with a total of 10,542 cases registered as of June 29.

Back to Table of Contents

50,000 Children Have Not Received the Measles Vaccine

Published: 2025-07-02 | Translated from: news.mn

The National Center for Communicable Diseases (NCCD) has provided information regarding measles immunization. O. Dashpagma, head of the Immunization Department of the NCCD, explained: "According to Mongolia’s Immunization Law, nine types of vaccines are administered to children under the age of 15 for protection against 13 diseases. For measles, the first dose of the vaccine is given at nine months and the second dose at a later interval. By 2024, coverage for the first dose is 95.3%, while coverage for the second dose is 95.1%. This means that around five percent of children do not get vaccinated for various reasons. Considering that 60,000 to 70,000 children are born each year, 3,000 to 4,000 children per year are at risk of missing their scheduled vaccine. Adding up these numbers from recent years, over 50,000 children could currently be unvaccinated. Nationwide catch-up vaccination campaigns are underway for these children. If your child is missing a scheduled dose of the measles, mumps, or other routine vaccines, or if they have not been vaccinated for any reason, catch-up vaccination is now available at local clinics nationwide.

Countries around the world have made the measles vaccine part of their national immunization schedules due to its high transmissibility, making vaccination the most effective prevention. Since 1974, when the National Immunization Program began and vaccines for measles, mumps, rubella, diphtheria, pertussis, and tetanus were included in immunization schedules worldwide, researchers have calculated the results after 50 years in 2024. It is estimated that 154 million lives have been saved as a result of vaccines, with about 90 million, or 60%, saved due to the measles vaccine preventing measles-related deaths. There have been no reports of serious adverse reactions after administration of the measles, rubella, and mumps vaccines. While some children might experience fever, malaise, or localized swelling and pain at the site of injection, these reactions typically resolve within two to three days and can be managed with symptomatic treatment or medical care if necessary.

People who have not been vaccinated or have not received the full course of the vaccine, and who have not had the measles disease, are at high risk of infection. Children who have died from measles were either unvaccinated or not yet of age to be vaccinated. In other words, children who die before the age of nine months—before receiving the first vaccine—were supposed to be protected indirectly by those around them who have been vaccinated. When people do not get vaccinated, it increases the risk of outbreaks and death. To address this, children as young as six, seven, or eight months are now being immunized with the measles vaccine. This approach provides protection before the routine age for vaccination. Furthermore, if parents and family members are fully vaccinated, they help protect infants not yet eligible for vaccination. The spread of infection is more likely in populations with low vaccination coverage or if people do not complete the full vaccine schedule. If you have not received the scheduled measles, mumps, or rubella vaccine, you should take advantage of the current catch-up immunization campaign to reduce the risk of further spread. Presently, 70-80% of measles cases are among unvaccinated or incompletely vaccinated individuals. To prevent future outbreaks, every citizen should ensure their children receive routine vaccinations and check if they are up to date. Those not yet vaccinated should take the opportunity during this campaign to get immunized.

Back to Table of Contents

Arts

Workshop to Be Held on the Issues of Protecting Mongolia's Architectural Heritage

Published: 2025-07-02 | Translated from: news.mn

The Arts Council of Mongolia, in collaboration with the World Monuments Fund, is organizing a workshop on "Issues in Protecting Mongolia's Architectural Heritage" as part of UNESCO's Modern Heritage Programme. The event will take place at the "Ulaan Ger" gallery on July 3, 2025, from 10:00 AM to 5:00 PM.

Mongolian architecture is notable for its rich history, combining nomadic traditions, Buddhist influences, Socialist-era constructions, and modern design experiments. In today's context of rapid urbanization, both tangible and intangible forms of architectural heritage face a range of challenges. By highlighting the importance of protecting modern architectural heritage, the workshop aims to support more inclusive, sustainable, and locally-focused development strategies.

In early 2001, the UNESCO World Heritage Centre, ICOMOS (International Council on Monuments and Sites), and DOCOMOMO (International Committee for Documentation and Conservation of Buildings, Sites, and Neighborhoods of the Modern Movement) launched the "Modern Heritage Programme" with the goal of identifying, documenting, and promoting 19th-20th century architectural heritage. This upcoming workshop is part of UNESCO’s Modern Heritage Programme and is designed to enhance the capacity of Mongolian architects, engineers, and heritage specialists in the protection and restoration of architectural heritage. The program will introduce modern methodologies, international standards, and present solutions for climate-resilient, long-term preservation.

Back to Table of Contents

Today's Stories

Politics

Economy

Diplomacy

Infrastructure

Society

Environment

Health

Arts

Politics

Draft Law Allegedly Aims to Enable 'Mega' Theft in the Energy Sector

Decisions Made at the Regular Meeting of the Government

While all levels of government institutions are set to operate under austerity measures, the budgets of Members of Parliament, standing committees, and party groups have not been reduced

Amendment Approved to the Government Resolution of Mongolia

Amendments to the Law on the State Great Khural of Mongolia Are Being Discussed

B.Bat-Erdene: The Development of the Energy Sector Is More Strongly Affected by Political Instability and the Policies of Neighboring Countries Than Tariffs

Budget Standing Committee: Held Second Discussion on Amendments to the 2025 Budget Law

Will the Government Be Held Accountable for Inefficiently Spending 15.7 Trillion Tugriks?

"The Ministry of Finance Has Stubbornly Refused to Revise the Budget for Almost Half a Year"

E. Batshugar: Although the Law to Remove 70,000 Citizens from the 'Blacklist' has been Passed, the Bank of Mongolia has not Issued or Implemented its Regulation

Economy

Khan Bank Presents Prospectus for Issuing First Gender Bond in Domestic Market

Millennium Challenge Account Mongolia: Announcement on Consulting Services

Prices of Mongolian Coking Coal Slightly Increase at Chinese Border Ports

There are 15 public companies with more than 10,000 investors

Reducing Social Insurance Contributions by 50% Would Burden the Budget by 3.2 Trillion Tugriks

Invescore Financial Institution Attracts Total of $16 Million Financing from EMF Fund

Diplomacy

Ambassador Richard Buangan of the United States Meets with Minister of Defense Dambyn Batlut

Infrastructure

Four companies submit bids to partner for CHP-5 project

The Government to Discuss Suspending the 'Bogd Khan Tunnel' Project Currently Being Designed for 49.8 Billion by a Chinese Company, at the Request of B. Delgersaikhan

Lee Jong Hak: If Mongolia Makes the Investment Decision Quickly, Our 'Soosung Engineering' Company Can Expedite Metro Construction

Chinggis Khaan International Airport Becomes One of the Top 10 Most Improved Airports in the World

Eight Domestic and Foreign Companies Participate in Pre-qualification for TPP-5 Project Private Partner Selection

Oyu Tolgoi Company Builds and Opens 12.5 km Paved Road

New Ring Road Project Approved

Today, roads from Tavan Bogd Group intersection to Khan-Uul District and from Sharga Morito to Gunt will be closed this evening

Society

Tickets for Naadam: Only 2,000 of 10,000 foreign tourists will receive tickets

Double standard: Let's keep politicians away from the honored seats at Naadam!

National Grand Festival Program

Applications for Permits for Trade and Service During the National Naadam Festival Have Begun to Be Accepted Online

Environment

Project to Improve Management of Electrical and Electronic Waste to be Implemented

Case of Illegally Storing Hazardous Chemical Substances in Factory Referred to Court

Orkhon, Govisumber, and Sukhbaatar provinces face high flood risk; 19 soums at very high risk

Health

Number of Laboratory-Confirmed Measles Cases Reaches 11,179

Dornod: Children Not Immunized Are Getting Measles

50,000 Children Have Not Received the Measles Vaccine

Arts

Workshop to Be Held on the Issues of Protecting Mongolia's Architectural Heritage

You might also like...

Mongolia News Summary for July 02, 2025

Mongolia News Summary for July 01, 2025

Mongolia News Summary for June 30, 2025

Mongolia News Summary for June 29, 2025

Mongolia News Summary for June 28, 2025