Mongolia to get rid of economic difficulties to help Asian investment bank: want to repair the railway connecting Europe transit China
The recent economic crisis hit Mongolia, the Northeast Asia country has to giant tower temperature Tolgoi to restart the stalled (Tavan Tolgoi) coal mine, in addition, Mongolia also want to start some railway projects, the investment bank and intends to set up to help China initiative, in order to attract investment and promote trade, deal with the current economic difficulties the.
According to the Reuters reported on September 20th, Manlaibayar consultant Yondon Mongolia transportation construction and development of Mongolia city said, is to seek investment bank financing a number of railway projects, including the construction of 550 kilometers of new routes connecting Europe and China railway line.
Yondon Manlaibayar served as director of the Department responsible for the large road, transportation, construction and development of the city’s financial investment company, he said in an interview with the Reuters, Chinese “The Belt and Road” strategy, will help to establish a connection with Mongolia and Russia’s economic corridor, let Mongolia have the opportunity to promote new projects, including the expansion of Mongolia railway runs through the north and the south, and the establishment of new routes to the East development.
In June this year, Russia and Mongolia Yuan down in the Uzbek capital of Tashkent held the third summit of heads of state, witnessed the signing of “construction of Mongolia and Russia economic corridor plan”. This agreement is committed to promoting the interconnection of transportation infrastructure, port construction, production capacity, investment, economic and trade, environmental protection and other areas of cooperation, the three parties will work together to implement a number of key projects.
June 23, 2016, Chinese President Xi Jinping in Tashkent with Russian President Vladimir Putin, Mongolia President Elbegdorj held a third meeting between China and russia. Xi Jinping presided over the meeting. After the meeting, the three heads to witness the signing of “construction of Mongolia and Russia economic corridor plan”.
Manlaibayar said that Mongolia plans to strengthen rail transport capacity in the next four years, and build new routes, and ultimately it is connected to a trade route from China to Europe to go up.
Including Australia, Speyer Mining Company Limited (Aspire Mining) led the northern railway project, Chinese said the CDB has provided 3\/4 financing interest.
Connecting South Chinese border and Mongolia Gobi tahuin Tolgoi coal railway, Mongolia has invested $200 million, but Manlaibayar says it still need another $800 million to complete, the railway will use the same gauge and Chinese.
Coal conveyor belt of Mongolia Tavan (Tolgoi) coal mine, one open pit coal mine, September 11, 2011.
In 2014, the state great Hural of Mongolia (parliament) passed a resolution last year, tarvin Tolgoi – GA Mongolia border along Suhaitu, Holt from the new railway will use a lattice graph with the same standard Chinese track. Mongolia media estimates, although the use of standard track will lead to a substantial increase in short-term transport costs of enterprises in Mongolia, but in the long run, this interconnection will bring huge economic benefits to Mongolia.
In addition to the Asian investment bank, Manlaibayar also plans to meet with potential investors one by one, to negotiate financing plans.
Mongolia 5 years ago, the rate of economic growth was two digits, reaching a peak of 17.3% in 2011, but in recent years the debt crisis. Because of Mongolia’s most important export commodities, coal and copper and the slowdown in external demand, foreign investment plunged the country debt rose sharply, the currency depreciate rapidly falling prices, forced the Mongolia government to implement the interest rate hike and spending cuts, which Tolgoi railway project is one of the most important infrastructure projects, in order to get rid of economic difficulties.
Mongolia’s economic growth rate in recent years
However, Mongolia did not disclose the specific amount of financing, but said it had and the Asian investment bank has been a preliminary discussion. But the Asian investment bank declined to comment on the news.
Mongolia is seeking to strengthen cooperation with the Asian investment bank and even can be said to be a natural Weakness lends wings to rumours..
In 2013, Chinese President Xi Jinping proposed “grand vision The Belt and Road”; in 2014, Mongolia also proposed prairie road plan to revitalize the national economy through trade transportation.
Prairie road plan consists of 5 projects, a total investment of about $50 billion, the project includes: connecting Russia 997 km highway, 1100 km electrified railway, Mongolia railway and cross expansion of natural gas and oil pipelines etc..
Mongolia’s secretary of state, tarvin Tolgoi coal mine development special working group leader Khsaikhan said in Mongolia on the “China Belt and Road Initiative” initiative positive response, combined with their own conditions and put forward the “prairie road” initiative, the two national development strategy are closely linked to the economy of Mongolia development.
He said that Mongolia is located between the two big countries and Russia, big market, has an important geographical position, the prairie road initiative, Mongolia in development of highway and railway, natural gas pipelines, oil pipelines, can also provide transit to russia.
Enkhsaikhan believes that the building of the economic corridor between China and Russia need to work together to co-ordinate the three parties. He also said that Mongolia as a founding member of the intention of the sub investment bank, looking forward to the Asian investment bank as soon as possible to well run, Asian investment bank to provide financing for the development of important projects in the region to help”.
In recent years, Mongolia and Russia the rapid growth of investment and trade cooperation. In 2015, Mongolia and Russia bilateral trade volume reached $7 billion 300 million, $64 billion 200 million, Chinese enterprises accumulated on the Mongolia’s and Russia investment reached $4 billion, $33 billion, a number of major projects related to cooperation is actively promoting. Russia, China Mongolia Economic and trade cooperation between the increasingly close, Chinese for many years to maintain to Mongolia’s largest trade partner status, is Russia’s fifth largest export market and the largest source of imports, the economic and trade cooperation has become a bilateral relationship between “ballast” and “propeller”.
Mongolia coking coal exports to China
Russia and Mongolia have proposed the strategy of regional development, the three strategic docking is put on the agenda, such as “Mongolia and Russia economic corridor” will be across the Eurasian continent, the Chinese initiative “The Belt and Road” with Mongolia prairie road initiative, Russia across the Eurasian channel construction organically.
By 2015, China and Russia have been negotiating the three party railway sector, has reached a broad consensus on the future refinement of cooperation. Three confirmation: rail transit transport cooperation and upgrade the existing railway traffic; study the establishment of three party logistics company; development and promotion of Urand Naushki – sukhbaatar – uud – two – even the direction of Jining to take measures to balance each section of the railway transport capacity; mechanism of development of railway cooperation in education and personnel training and scientific research cooperation support.
With the formal establishment of Sino Russian and Asian investment bank Mongolia Yuan first bilateral and three sides met frequently, “Mongolia and Russia economic corridor construction into the fast lane.
In April 6, 2015, Mongolia’s prime minister and President Jin Liqun Enkhsaikhan Bilege Asian investment bank in Hongkong to attend the nineteenth session held in Asia Investment Forum, held its first contact on Asian investment bank to implement projects in Mongolia of china. To this end, Mongolia and Asia Investment Bank also launched a new road and has been laying the road into the capital of the negotiations.
In June 8th this year, President Elbegdorj of Mongolia met with Mongolia to attend the eleventh Asia Europe high-level meeting of the sub – Asia and Europe finance ministers met Jin Liqun. Mongolia state senator and great Hural finance minister Barrell, assistant to the president for economic policy Dashdorj, Mongolia’s foreign policy adviser Batut Sunday and investment bank representatives.
During the meeting, the two sides on the development of infrastructure in Asia, to build the economic corridor linking Asia and Europe, and other issues in the field of investment in the field of investment and other issues. Elbegdorj stressed that in recent years, Mongolia has developed rapidly in the field of infrastructure, the expansion of the road network, the future will focus on the development of the field.
A day later, Prime Minister of Mongolia Bilege Khan also met with Jin Liqun, to discuss the state of Mongolia and the Asian investment bank cooperation opportunities and other issues. Khan Bilege pointed out that, as a founding member of the Asian investment bank in Mongolia, China hopes to get investment bank financial support in infrastructure construction projects, and hope to have the Asian investment banking infrastructure projects and Tolgoi – gaxun Su Hai special railway construction project, the Mongolia railway construction project in Russian Federation and China connection the Chinese and other large projects to invest again.
Jin Liqun expressed the hope that the detailed content of the above projects, the two sides hope that the two sides can jointly carry out research and development of personnel, develop the direction of cooperation. He also said that the Mongolia talented professionals a chance to work for the development of investment bank. Asia investment bank legal capital is $100 billion, the focus of support for the construction of infrastructure.
A week ago, until September 13th, Chinese national development and Reform Commission issued a formal “construction plan” Mongolia and Russia economic corridor.
This document explains the construction of a beginning, “Mongolia Russia’s economic corridor” basis: Chinese “Silk Road Economic Belt”, Russia’s “Eurasian Economic Union” and Mongolia prairie road”.
The “plan” to achieve “The Belt and Road” construction and channel construction, across the Eurasian prairie road initiative docking as the goal, equality, mutual benefit and win-win principle, to expand cooperation in space, potential advantages, and promote common prosperity, enhance the competitive force for joint vision, clear the specific content, the three party cooperation funding and implementation mechanism, agreed on a number of key cooperation projects, including infrastructure interoperability, industrial cooperation, port modernization, energy cooperation, and the customs inspection and quarantine cooperation, environmental cooperation, science and technology and education cooperation, cultural cooperation, cooperation in agriculture and health 10 key areas and give full play to the comparative advantages, give priority to the three countries to promote regional cooperation in adjacent areas.
It is reported that, in promoting the development of transport infrastructure and interconnection, Mongolia and Russia will focus on strengthening the three party in the international transport corridors, border infrastructure and cross-border transportation organization cooperation, the formation of long-term mechanism of communication, to promote interoperability, promote the development between China and Russia, Asia and Europe transit.
The national development and Reform Commission official said, Mongolia and Russia economic corridor is to promote “The Belt and Road” construction of six major international economic cooperation of the corridor.
Observer network integrated Reuters, Xinhua, the Ministry of commerce website, Mongolia, the Financial Times reported