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Invest Mongolia Agency
INVESTMENT OPPORTUNITIES OF
MONGOLIA
Presented by:
Mr. JAVKHLANBAATAR Sereeter,
Director General
Invest Mongolia Agency
Content
 Economic overview
 Foreign investment environment
 Projects are available for funding
 Bulgaria’s FDI to Mongolia
 Invest Mongolia Agency
Mongolia Overview
Mongolia has a leading land
per capita in the world
GDP 2013 in USD billions
Population 2013in millions
RUSSIA
US$ 2,014 143
Territory: 1.6 million sq. km
MONGOLIA
US$ 11,4
3
S.KOREA
Population: 3.00 million (2015)
US $1,129
50
CHINA
US$ 8,358 1,351
JAPAN
US$ 5,959 127
Source :World Bank, 2015
3
Key reasons to invest in Mongolia
 Neighboring with two of the largest global economies- China and
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Russia
Large mineral resource base that can be leveraged for valueadded processing for high capital returns
Huge potential in agriculture and husbandry (over 60 million
livestock)
A growing banking and financial services industry through
transparent and open policies
Great potential for the development of renewable energy sources
Promising foreign investment opportunities in tourism, leisure and
regional development
Vibrant and flourishing democratic Government and friendly FDI
environment
Developing industry and infrastructure
Young and well educated population
International Indexes
Mongolia is ranked in 63th from
146 world countries.
Mongolia is ranked in 72nd from
189 world countries.
GDP growth rate (%)
20
17.5
18
16
14
12.3
12
10
11.8
8.2
8
7.4
6
4
3.7
6.0
6.0
2008
2009
4.5
2
0
2006
Source: NSO bulletin
2007
2010
2011
2012
2013
2014
Trade is balanced
Foreign trade
Exports $M
Source: Bank of Mongolia, Customs general office
Imports $M
Trade balance $M
Foreign direct investment /in billion USD/
6.00
4.99
5.00
4.40
4.00
386.36%
3.00
2.29
2.00
0.80
1.00
0.32
-
1.03
0.71
0.50
0.37
36.23%41.80%
15.85%
13.01%28.06%
0.57
-11.82%
-47.95%
(1.00)
-75.20%
(2.00)
FDI
Percentage
Foreign direct investment /by sector/
Information and communications
technology
Hospitality and tourism
Livestock-derived raw materials
processing
Light industry
Construction
Transportation
Banking and financial services
Other
Trade and food
Geology, mining and exploration
0
Invest Mongolia Agency
20
40
60
80
Foreign invested companies
/by number of companies/
1800
1600
1609
1505
1400
1551
1200
1000
800
971
933
769
600
400
200
0
Source: Invest Mongolia Agency, 2015
774
613
390
335
80
TOP INVESTORS COUNTRIES /2014/
Top investor countries
1990-2014
№
%
/Billion USD/
Amount
/in billion USD/
1
Netherlands
29.96
4.2
2
China
26.65
3.75
3
Luxemburg
8.17
1.15
4
British Virgin Islands
7.87
1.10
5
Singapore
5.14
6
Canada
3.53
FDI inflow 0.72
FDI outflow
7
South Korea
2.69
0.38
8
USA
2.19
0.31
9
Russia
2.11
0.30
1.84
0.26
10 Australia
Source: Invest Mongolia Agency
0.49
Investment Incentives
Investment Law of Mongolia, 2013
provides:
Protection of investor`s interests and rights
Tax stabilization
Investment incentives
Stability guarantees
Investment Incentives
Tax incentives
Exemption from the payment of certain taxes,
including:
 Preferential tax treatment
 Accelerated depreciation and amortization that
is deductible from taxable income,
 Tax waiving
Investment Incentives
Non-tax incentives
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No import duty for machines and equipment of
manufacturing, processing and industrial facilities
Employee training costs are deducted from taxable
income
Investors are served through simplified registration
and immigration procedures
Land lease by foreign investors from 40 to 60 years
to development projects
Simplified procedures for permanent residence
permit and multiple entry visa for investors
Investor’s Protection in Mongolia
WTO
member
since 1997
Agreement on
Mutual
Protection and
Promotion of
Investment with
44 countries
JapanMongolia
Economic
Partnership
Agreement
(EPA) signed
/2015/
Agreement on
Avoidance of
Double
Taxation with
34 countries
Investors
in
Mongolia
Seoul
Convention on
Investment
Insurance,
1999
Member of
Multilateral
Investment
Guarantee
Agency (MIGA)
General
agreement on
trade and
economy with 24
countries
Washington
Convention on
Investment
Dispute
Settlement,
1996
Signed PPP projects
№ Project name
Total Cost
Concessionaire
1
“Telmen power plant” project
$183.0 MLN
“New Asia Group” LLC
2
“Altanbulag-UlaanbaatarZamyn-Uud highway” project
$5.0 BLN
“CHINGGIS LAND
DEVELOPMENT GROUP”
LLC
3
“Nariinsukhait – Shiveehuren”
road project
MNT 88.0
BLN
“RDCC” LLC
4
“Establishment of the mining and
metal processing complex”
project
USD 725.0
MLN
“QSC” LLC
5
“Tuul-Songino power plant”
project
CNY 1.0
BLN
“MORIT IMPEX” LLC
6
“Tavantolgoi-Khanbogd-Hangi”
road project
MNT 440.0
BLN
“MCCC” LLC
7
“POWER PLANT #5” (CHP5)
project
$1.2 BLN
“GDF SUEZ, SOJITZ, POSCO,
NEWCOM” LLC
List of Concession projects
№
1
2
3
4
Project Name
The Center for Elder Care and Advanced Illness
Improve morgue service
Tsogt ovoo- Tsogttsets paved road
Тype of PPP
Design-Build-Own-Operate
Design-Build-Own-Operate
Build-Transfer
Ulaanbaatar city Conference and convention center
Design-Build-Own-Operate
5
Center for Transportation and logistics in western part of
Ulaanbaatar city
Center for Transportation and logistics in eastern part of
Ulaanbaatar city
Renovation of soum center infrastructure
Nalaikh Civilian and Special purpose airport
Design-Build-Own-Operate
6
7
8
Design-Build-Own-Operate
Build-Own-Operate
Renovate/Equip-Lease-Operate Transfer
Design-Build-Operate-Transfer
9
Renovation and Retrofitting of Dalanzadgad airport into
International airport
10
Hazardous waste disposal processing plant
Design-Build-Operate-Transfer
11
Tuul river cascade reservoirs
Design-Build-Transfer, DesignBuild-Operate-Transfer
12
13
14
Waste to electricity plant
Build-Own-Operate
Kidney hemodialysis services
Buy-Own-Operate
Improve morgue service /Government Resolution N.313/ Build-Own-Operate
15
Medical oxygen production plant
Build-Own-Operate
PROJECTS ARE AVAILABLE
FOR FUNDING :
Shibu lijack
Construction sector
Eco- Yarmag 1
Redevelopment of ger area
Requested amount: 100 million USD
Buyant Ukhaa-2, Phase -2
Requested amount:116.6 million USD
Industrial and technology park of construction materials in Nalaikh
district
Requested amount: 47.8 million USD
Building information modelling
Requested amount:1.6 million USD
Mining and heavy industries sector
New cleaner fuel comprehensive utilization project
Requested amount:6 million USD
Nanometal steel plant
Requested amount: 129.7 million USD
Tanil lime project
Requested amount: 12.8 million USD
Chandmani Uul Copper, Gold and Iron mine
Requested amount: 30 million USD
Dorniin Gan project
Requested amount: 40.5 million USD
Mining and heavy industries sector
Project to expand the concentrators
Requested amount: 11.4 million USD
Tumurtein Gol Project
Requested amount: 21.2 million USD
Glass factory of Dundgobi province
Requested amount: 119 million USD
Wood based panel by processing secondary raw materials
Requested amount: 20.3 million USD
Light Industry sector
Emeelt light industry and technology park
Requested amount: 262 million USD
Road sector
New railroad project
Requested amount: 8,575 million USD
Food and Agriculture sector
Seaberry bio-farm
Requested amount: 21 millions of USD
Mutton export project
Requested amount: 105 million USD
Energy sector
Tavan Tolgoi power plant project
Requested amount: 933.8 million USD
Logistic & Freight sector
Zamyn Uud Free Economic Zone
Requested amount: 300 million USD
Altanbulag free trade zone
Requested amount: 193 million USD
Republic of Bulgaria’s FDI to Mongolia
Since 1990:
• 21 companies from Bulgaria
• Total investment - 31.1 million USD
•Totally, FDI from 112 countries have been registered.
• Bulgaria is on the 20th place
FDI by sectors
Mining & geology
exploration
98.1%
Service & trade
1.27%
Enjineering constuction
Food production
0.56%
0.13%
Information and 00.2%
communication technology
Source: Invest Mongolia Agency
IMA’s structure
Director
General
Project
Assessing
Council
Promotion and
Consulting
Division
Investment Policy,
Assessment
Division
Administration,
Human
Resources
Division
Concession, PublicPrivate Partnership
Division
Mission
1. Promotion of investment
2. Protection of investors
3. Update the domestic
market to foreign investors
4. Consulting support in
planning their investments
5. E-consulting services
6. Issuing tax stabilization
certificate
7. Review the implementation
of invested projects
8. To support in continuing
the investment
9. One-Stop Shop services
10. Organize field trips /
Project site visit
27
Services to Investors
1. Provide
integrated
information
2. Guide
Investors to
business
and public
procedures
3. Organize
Field Tours
1. Legal
Consultancy
2. Project
Management
Consultancy
3. Aftercare
assistance
1. Investment
Research
2. Investment
& Investors
Database
3. Targeted
Promotion &
AD Campaign
1. To establish and
develop the national
systems of
innovation policy
and regulations
2. To improve the
business
environment for
policy and strategy
formulation and
implementation of
coordination
3. Industrial cluster
development policy
and strategy
formulation and
implementation
“Create a value in Mongolia”
Address: Invest Mongolia Agency
Sambuu Str.11, Government Bld.11,
Ulaanbaatar 211238, Mongolia
Email: [email protected]
Website: www.investmongolia.com
Shibu lijack