BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org info@bcmongolia.org

Issue 419 – March 18, 2016

BCM NewsWire provides short summaries of news collected from around the world. Each article is

kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full

article.

NEWS HIGHLIGHTS:

Business:

Aspire Mining Ltd. looks to bridge Mongolian rail funding from China;

Cummins to open engine-rebuild center;

State Bank launches 10% lending to herders;

APIP aims to be world's top emerging-market real estate firm with merger;

Archetype expands presence in Asia with merger;

After settling for $70mn, Khan Resources and Mongolia drop legal petitions;

Japan's Sysmex to improve public diagnostics;

Mongolia, Azerbaijan eyeing Belarusian UAV manufacturing technologies;

EBRD helps Mongolia’s Molor Zam increase turnover;

Anviz Biometrics Tech protects Trade and Development Bank of Mongolia;

Erdene announces exploration plans;

Wolf Petroleum suspended from ASX;

Firefighters will receive Rosenbauer firetrucks;

BCM: Supporting sustainable business growth and development;

Areva Mongol launches charity, tourism promotions;

'Friendly Ulaanbaatar' presented at ITB Berlin;

Chinese gold-miner head flees from tax evasion case;

Sub-contractors demand back pay amid Samsung C&T railway scandal;

Tips for NGOs wanting to set up shop in Mongolia;

Sam Walsh to step down as Rio Tinto chief executive.

Economy:

Mongol Bank: currency auctions, swaps, 1-week bills, T-bills;

Mongolia eyes USD500 mn from syndicated loan debut;

Moody's: Outlook for Mongolia’s banks remains negative in challenging operating

environment;

FDI nearly halved in 2015;

Copper exports climb in volume but with lesser returns;

5% mortgage scheme launched for select borrowers;

Unqualified loans on the rise;

Saikhanbileg government employs MNT948.3 mn for measles vaccinations;

Mongolia-Canada developmental cooperation to expand;

Belarus views Mongolia as promising partner in Asia;

Mongolia’s clocks spring ahead on 26 March;

Temperatures dropped to -55 Celsius in February;

Governor orders new boundaries for Khushig airport;

Prague Zoo plans transport of Przewalski's horses to Mongolia;

UB to begin approval of construction permits in certain districts.

Politics:

President puts up 'Double Deel' bill for another vote;

Authorities checking up on foreign residents ahead of ASEM;

Enkhsaikhan courts minor party for merger with MNDP;

PM ignores Baasankhuu's TV challenge;

Foreign Affairs Ministry denies claims of smuggling by Pyongyang officials;

UAE Embassy opens in UB;

Mongolia cancels 2016 visa on arrival facilities for 42 countries;

East Kazakhstan region proposes close cooperation with Mongolia's western provinces;

Alaska Guardsmen participate in cold weather exchange with Mongolian Armed Forces;

Investigation opened into foreign religions;

Micro-bus drivers protest.

BCM Updates:

Announcements;

New Mongolian Laws;

Knowledge Sharing Sessions;

Advocacy Notes;

Working Groups News

BCM in the University Classroom Series;

Cooperation & Member discounts;

Websites Update - Presentations, Mongolia Reports, Interviews;

Social Networks;

Member Vacancies.

Economic Indicators:

Inflation;

Central Bank Policy Rate;

Currency Rates.

*Click on titles above to link to articles.

SPONSORS

Khan Bank Invest Mongolia Agency

Mongolian Business Database

BUSINESS

ASPIRE MINING LTD LOOKS TO BRIDGE MONGOLIAN RAIL FUNDING FROM CHINA

Aspire Mining Ltd. has announced it is working with China Railways Bureau 20 Group toward a debt

facility to fund pre-development of a railway between its Ovoot coal project and the city of

Erdenet. Aspire is actively developing projects in Mongolia with stakes in both coal mining and

railroad projects in the north of the country as its Mongolian rail infrastructure subsidiary, Northern

Railways LLC, works with consortium partner China Railways Construction Bureau 20 Group for

bridge funding from a Chinese bank.

The line of credit is intended to be supported by guarantees from construction contractors and

Aspire. “With the continued support of the Mongolian Government, CRCB20G and now with the

support of UBTZ, the Erdenet to Ovoot to Arts Suuri railway continues to progress as a viable

inclusion in Mongolia’s “Economic Corridor” between China and Russia,” said Aspire’s managing

director, David Paull.

Source: Proactive Investors

CUMMINS TO OPEN ENGINE-REBUILD CENTER

The Mongolia office of U.S. engine maker Cummins Inc. is launching a new workshop and office

facility for administration and engine rebuilds. Cummins Investment Mongolia LLC will hold an

opening ceremony for the new facility on 25 March after operating in the country since 2011.

This week, Cummins Mongolia’s General Manager, Steve Rose, met with Ulaanbaatar Mayor Erdene

Bat-Uul to discuss partnership opportunities with the city. Ecobus LLC uses Cummins-brand engines

for the public transport vehicles it supplies the city, emitting less emissions than older models on

the road. “Ecobus is keen to push euro-3, euro-4 standards to reduce emissions, and our products

can support that,” said Rose following the meeting.

Source: Montsame, Cummins Mongolia Investment LLC

STATE BANK LAUNCHES 10% LENDING TO HERDERS

State Bank LLC has launched the government's subsidized lending program for agriculture this week,

giving herders access to loans 8 points below the lowest rate offered by competing banks. Mongolia

is seeking ways to assist the nomads who follow traditional herding practices in remote corners of

the country who are forced to take out loans with annual interest as high as 30 percent. State Bank

will subsidize loans for the 153,000 families who rely on herding that received the titles for their

income “Best Herders” to buy new equipment to grow their production.

Farmers too will have access to the loans, which can be used to buy machinery such as tractors. The

government has already tried to assist in the growth of farming by voiding customs tax on imported

farming machinery. The next lowest-interest lending comes from Khan Bank LLC, which was offering

the still-steep 18 percent interest.

Source: Mongolia. GoGo.mn

APIP AIMS TO BE WORLD'S TOP EMERGING-MARKET REAL ESTATE FIRM WITH MERGER

Asia Pacific Investment Partners (APIP) has merged with overseas investment agency, Property

Frontiers, with the aim of forming a world-leading emerging and frontier market real estate

company. APIP is a 14-year old company based in Hong Kong that has grown to become one of

Mongolia's largest integrated real estate companies, with interests in other emerging markets

including Myanmar, Kazakhstan, Cuba and China. The combined firms will continue to operate

under the APIP umbrella brand, with Property Frontiers becoming a wholly-owned subsidiary and

APIP’s flagship brand focusing on sales, research and selective co-developments in frontier markets

outside of Mongolia. APIP is planning to seek a listing on a major international exchange in the near

future.

“We are extremely pleased to welcome Property Frontiers to the APIP family,” said Lee Cashell,

chief executive officer of APIP. “With this merger, we see tremendous opportunity to build on the

deep research expertise and relationships Property Frontiers has built across the emerging markets

property space since their foundation in 2004.

Source: OPP.today

ARCHETYPE EXPANDS PRESENCE IN ASIA WITH MERGER

Asia-focused construction consultancy Archetype Group has acquired the Asia Pacific operations of

Tebodin, a consultancy and engineering company with offices across South East Asia. Archetype,

which has an office in Mongolia, said an agreement was signed on 4 March, strengthening

Archetype's Industrial division and providing a complementary extension to the company’s activities

in building, real estate, environment and Infrastructure.

"With the acquisition of Tebodin, we reinforce our expertise and market presence in Vietnam,

Thailand, India, Myanmar and Indonesia and it allows us to extend our reach to China, which is in

line with our development strategy,” said Archetype General Director Pierre-Jean Malgouyres.

Source: Archetype Group

AFTER SETTLING FOR $70MN, KHAN RESOURCES AND MONGOLIA DROP LEGAL PETITIONS

Mongolia will not pursue its appeal to overturn a ruling from a Paris court that ruled in favor of

Khan Resources Ltd. after negotiating down a settlement from about USD105million to USD70

million. Khan received a notice of discontinuance from the Paris Court of Appeal, the former

exploration miner said in a 16 March statement. It added that it, too, is no longer seeking legal

recourse from a U.S. District Court on retrieving the original USD105 million award.

"Khan and the Government of Mongolia are continuing to progress in good faith towards the receipt

of the settlement amount on May 15, 2016,” said Grant Edey, president and chief executive of

Khan.

Source: Khan Resources Inc.

JAPAN'S SYSMEX TO IMPROVE PUBLIC DIAGNOSTICS

The Japanese corporation, Sysmex, will work with the Health Ministry to improve diagnosis for

blood-borne diseases such as HIV/AIDS. Sysmex on 13 March signed a cooperation agreement with

the ministry to install new lab equipment and quality control measures at no cost to improve blood

analysis for diagnosing hepatitis B and C, and HIV/AIDS. The agreement comes after eight years of

prior cooperation.

Source: Unuudur

MONGOLIA, AZERBAIJAN EYEING BELARUSIAN UAV MANUFACTURING TECHNOLOGIES

Mongolia and Azerbaijan are interested in Belarusian technologies for manufacturing unmanned

aerial vehicles (UAV), Alexander Shchavlev, deputy director of the R&D Center for Multifunctional

Unmanned Complexes of the National Academy of Sciences of Belarus, said on 15 March. “The

demand for our products has turned out to be great,” said Shchavlev.

The National Academy of Sciences of Belarus has created three recognizable brands — Busel,

Burevestnik, and Dirizhabl. The product choices include proprietary autopilots that can steer flying

machines and systems that can automatically land flying machines on a runway. A number of

stationary devices have been developed as well.

Source: Belarusian Telegraph Agency

EBRD HELPS MONGOLIA’S MOLOR ZAM INCREASE TURNOVER

Good insulation is essential for windows in houses in Mongolia every day of the year. The country

registers some of the lowest and highest temperatures on the planet, from 40Celsius in the summer

to -40Celsius in the winter, as well as extreme temperature ranges between day and night.

Gerelmaa Enebish and her family seized this business opportunity when in 2003 they established

Molor Zam, a company that produces PVC windows on the outskirts of the Mongolian capital

Ulaanbaatar.

“The EBRD’s Advice for Small Businesses (ASB), which in Mongolia is funded by the EU, helps to

tackle these weaknesses by matching local SMEs with appropriate consultants who work with

business owners and their employees to solve both management and operational problems,” said

Baigalmaa Sanjjav, principal manager of the ASB team based in Mongolia. “For example, we

introduced Molor Zam to local consultants for process reengineering to help streamline production

as well as to improve the overall management of the company.”

Source: European Bank for Reconstruction and Development

ANVIZ BIOMETRICS TECH PROTECTS TRADE AND DEVELOPMENT BANK OF MONGOLIA

Trade and Development Bank (TDB) of Mongolia LLC has new biometric access control systems for

its rooms and elevators, as well as a time and attendance tracking system, via Anviz Global

technology. The technology was recently installed by subcontractor Topica. Floor access via

elevators is now controlled by fingerprint scan, which is synced with individuals’ security access

privileges; and fingerprint biometrics also control access to the building’s offices, and are used to

collect and track employee attendance. Administrators also have remote system access, and can set

the times at which staff are allowed access to certain facilities.

Source: Find Biometrics

ERDENE ANNOUNCES EXPLORATION PLANS

Erdene Resource Development Corp. has announced exploration plans for the year after raising

USD770,000 from the sale of warrants this month. Exploration work at the Bayan Khundii project

will launch in early April, said a 15 March statement, to determine specifics of the high-grade gold

mineralization there. Work will include additional geologic mapping, soil sampling, IP geophysical

surveys, trenching and 3,500 meters of diamond drilling.

Erdene also announced the appointment of Bilguun Ankhbayar as a strategic advisor, effective

immediately. Bilguun is the chief executive officer of Mongolian Investment Banking Group.

Source: Erdene Resource Development Corp.

WOLF PETROLEUM SUSPENDED FROM ASX

The Australian Securities Exchange has delisted petroleum explorer Wolf Petroleum Ltd. after Wolf

failed to lodge its half-year financial statement, according to a statement from the Australian

Securities Exchange. The company focused on its Sukhbaatar block in Dornogobi Aimag was included

on a list of 11 companies on suspension for the violation.

Source: ASX

FIREFIGHTERS WILL RECEIVE ROSENBAUER FIRETRUCKS

Firefighters throughout Mongolia will receive firetrucks from top-three producer Rosenbauer

International AG. The trucks are part of an agreement Mongolian has with the Austrian government

to supply 28 firefighting vehicles tough enough to withstand Mongolia's harsh winter and summer

climate and are supplied from Rosenbauer's branch in South Korea. Mongolia has paid MNT4.6 billion

for the trucks.

A fire at a building under development for the Shangri-La Hotel in Mongolia raised concerns about

the city's abilities to put out fires in high rise buildings. Last year, the National Emergency

Management Agency received MNT20 billion from the government to acquire modern firefighting

vehicles and technology.

Source: News.mn

BCM: SUPPORTING SUSTAINABLE BUSINESS GROWTH AND DEVELOPMENT

The Business Council of Mongolia (BCM) is launching its first annual BCM Summit on 21 April at the

Blue Sky Hotel and Tower to promote sustainable business growth and development in Mongolia.

The summit goes toward BCM's mission to enhance the business environment in Mongolia, promote

greater trade and investment in the country and meet the critical needs of its members.

Attendees will hear from professionals and business people speaking on various topics related to

development in Mongolia in the coming years. The summit is also a forum for members of the

business community to voice their opinions on common issues faced that need addressing by

government.

Source: News.mn

AREVA MONGOL LAUNCHES CHARITY, TOURISM PROMOTIONS

French uranium miner Areva SA is launching a new charity to help ease the financial burden of low-

income families with sick children. Areva's Mongolia unit plans to help lead development onto the

right track while engaging communities after 20 years of exploration in Mongolia. “Cases of severe

illnesses have increased among children of low-income families, so we plan to establish a charity

foundation called ‘Kindness’ to help these children,” said Areva Mongol LLC head Thierry Plaisant in

a meeting with Ulaanbaatar Mayor Erdene Bat-Uul.

Areva's currently has operations in Dornogobi and Sukhbaatar Aimags, as well as its home office in

Ulaanbaatar. In addition to the charity, Areva hopes to promote tourism in Mongolia by organizing

camel races on the frozen Tuul River. "People’s livelihoods have been difficult due to the

unemployment rate rise caused by slackening of mining investments in the last two years,” said Bat-

Uul.

Source: Montsame

'FRIENDLY ULAANBAATAR' PRESENTED AT ITB BERLIN

Ulaanbaatar touted the use of new technology to improve the safety of tourists at the 50th ITB

Berlin international tourism exhibition from 9 to 13 March. Over 10,000 companies from 186

countries attended the trade fair, where representatives of the Ministry of Environment, Green

Development and Tourism, Ulaanbaatar City Department of Tourism and other officials exhibited on

the ‘Friendly Ulaanbaatar’ initiative to make foreign guests more comfortable in the city.

Source: Montsame

CHINESE GOLD-MINER HEAD FLEES FROM TAX EVASION CASE

The Chinese head of a gold and silver mining operation in Dundgobi Aimag has fled the country after

authorities opened an investigation into the company for tax evasion. The State Department for

Supervision over Investigations suspects the Chinese company JPF LLC, which is operating the

Salkhit gold-silver mine, of misreporting the size of the deposit to avoid paying taxes. Suspicions

arose following claims of conflicting reports on the quality of the ore and how much it sold for from

the Central Geological Laboratory and General Department of Customs.

The resource size of the mine has reportedly fallen from between 1,400 and 1,500 grams of silver

per ton of ore to 428 grams since the change of leadership of the company last July. Last month,

three samples from the deposit sent to separate lab facilities revealed varying results between 441

and 1,706 grams silver per ton of ore. Authorities also claim that the reported price for ore sold to

China had fallen by 78.4 percent to USD54 a ton.

Source: Udriin Sonin

SUB-CONTRACTORS DEMAND BACKPAY AMID SAMSUNG C&T RAILWAY SCANDAL

Thirteen contractors are demanding back pay from work done to build a railway between coal

mines in the Gobi desert and the border point to China. Construction of a 267-kilometer railway

between Mongolian Mining Corp.'s Ukhaa Khudag mine and the Gashuun Sukhait border point to

China has been on suspension since funding fizzled out and is now at the center of an

embezzlement case that has former roads and transportation minister Khaltmaa Battulga under

investigation. The sub-contractors that conducted the preparatory work to get the ground ready for

laying track at a press conference demanded the USD13.8 million still owed by lead contractor

Samsung C&T. The sub-contractors said they had finished more than 85 percent of the ground work

before work was halted.

The original estimate for payment to contractors was USD70 million out of a total budget of USD118

million paid to Samsung by state-owned Mongolian Railways (MTZ).

Source: Udriin Sonin

TIPS FOR NGOS WANTING TO SET UP SHOP IN MONGOLIA

Setting up a local NGO in Mongolia has obvious hurdles. But what should international NGOs be

thinking about when they set out to open a branch there?

Respect the culture and traditions: International organizations need to understand that respect for

local culture and traditions is non-negotiable. A Red Cross official said organizations that choose to

ignore a nation’s or a community’s set of culture and tradition “probably won’t be able to expand

their activities” as it will be “unpopular among the local people.”

Coordination with local authorities: Working on the ground also requires coordination with formal

community authorities. International NGOs may turn to local partner groups that can help to

navigate the local systems of authority.

Coordination with traditional authorities: “It is very important actually to first visit or inform the

elders about any activities that you might have been planning, because Mongolians respect their

elders and listen to them intently,” said a Red Cross official.

Source: Devex

SAM WALSH TO STEP DOWN AS RIO TINTO CHIEF EXECUTIVE

Sam Walsh is to step down as Rio Tinto Group’s chief

executive and will be replaced by Jean-Sébastien

Jacques, an internal succession that paves the way for a

more growth-driven strategy at the Anglo-Australian

mining group. Walsh will retire in July and Jacques, head

of Rio’s copper and coal business, will become deputy

chief executive immediately ahead of the handover. The

handover comes at an inflexion point for Rio, which has

said it will abandon its long-standing policy of rewarding

investors by maintaining or increasing its dividend year

after year.

The decision is a reward for Jacques’ perseverance in

putting Rio on track to expand the next phase of its large

Oyu Tolgoi copper mine in Mongolia. The French

executive pursued a deal with the Mongolian government, which was agreed last year and ended

years of disputes over the project.

Source: Financial Times

SPONSORS

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Mongolian Economy Magazine

ECONOMY

MONGOL BANK: CURRENCY AUCTIONS, SWAPS, 1-WEEK BILLS, T-BILLS

The Bank of Mongolia on 17 March sold CNY39.6 million to commercial banks in currency auctions

for a closing exchange rate of MNT314.35, but passed on offers for USD3.5 million. Also that day, it

accepted tugrug swaps with commercial banks for an equivalent of USD13.6 million. It rejected U.S.

dollar swaps totaling USD20 million.

The Bank of Mongolia on 16 March issued 1-week bills worth MNT62 billion at a weighted interest

rate of 12 percent. Also that day, the central bank received MNT14.5 billion in bids for 12-week

treasury bills with a face value of MNT4.5 billion (originally announced at MNT20 billion) sold at a

discounted price and with a weighted average yield of 14.5%.

Source: Bank of Mongolia

MONGOLIA EYES USD500 MN FROM SYNDICATED LOAN DEBUT

Mongolia is looking for more cash after nabbing a loan of USD250 million with an undisclosed

greenshoe, according to a banker who received it. Sources reveal the country is now eyeing another

USD250 million of the total USD500 mn funded on 15 March. Although the five-year tranche was

closed earlier this week, lead Credit Suisse is flexible on expanding the syndicate and this part

remains open to those interested.

Mongolia is looking for the remaining USD250 mn via a three-year facility for which a full-fledged

syndication is ongoing. The sovereign turned to the loan market after receiving the cold shoulder

from bond investors for a proposed 144A/Reg S bond. Bond investors were said to have been

demanding a yield of 12 percent minimum for the five-year bond. In contrast, the country is paying

a margin of 625bp above LIBOR for the amortizing five-year tranche of its loan.

Source: Global Capital, Cover Mongolia

MOODY'S: OUTLOOK FOR MONGOLIA’S BANKS REMAINS NEGATIVE IN CHALLENGING OPERATING

ENVIRONMENT

Mongolia's banking system reflects the challenging operating environment, leading to continued

deterioration in asset quality and capital, while funding and liquidity will also remain tight, said

Moody's Investors Service in its outlook statement for Mongolia's banking system on 14 March.

Although Moody's has maintained a negative outlook in place since 2013, it said the pace of

deterioration will moderate compared to 2015. “Although we have seen a moderate pick-up in

economic growth in Mongolia, the operating environment remains challenging for banks, with risks

skewed to the downside," says Hyun Hee Park, a Moody's assistant vice president and analyst.

Reported capital metrics improved in 2015, and Mongolia's credit cycle will continue to deleverage

for a second consecutive year, with weak loan growth in all but some subsidized segments. Moody's

expectation for stable capital ratios suggests that banks will maintain their current capital metrics.

Funding and liquidity conditions will moderately improve with foreign investment into the Oyu

Tolgoi project, said Moody's.

Source: Moody's Investors Service

FDI NEARLY HALVED IN 2015

Foreign investment was down 48.9 percent at the end of December compared with the same period

in 2014, according to data from the National Statistical Office. Foreign investment stood at

USD195.1 million, down by USD186.8 million from the previous year.

Source: Montsame

COPPER EXPORTS CLIMB IN VOLUME BUT WITH LESSER RETURNS

The Oyu Tolgoi and Erdenet copper mines are acting as the biggest drivers of the economy, selling

more than half of all mining exports this year. Copper has topped all other exports in the first two

months of the year, raking in USD460 million—of which Oyu Tolgoi and Erdenet pulled in more than

USD340 million. Overall, however, revenues from copper exports were down 20 percent, despite the

uptick in volume of exports.

Source: Montsame

5% MORTGAGE SCHEME LAUNCHED FOR SELECT BORROWERS

The first 104 borrowers have received 5 percent mortgages with the revamped subsidized mortgage

program launched this week, slashing interest rates by 3 more points. The initial phase of lending

from State Bank LLC will see more restrictions than many expected at first. Only select housing

projects in ger districts are eligible, and banks will not refinance mortgages from 8 to 5 percent.

“If investment and income from the bonds grow, the mortgage interest rate will be lowered

gradually,” said the Democratic Party chairman [Source does not include the official's name -ed].

Source: News.mn, Mongolia.GoGo.mn

UNQUALIFIED LOANS ON THE RISE

The number of unqualified loans rose by nearly a third in February from the year before as the

country grapples with deteriorating economic conditions. The number of expired loans has more

than doubled since the start of 2015, bringing total bad debts to 11 percent of all loans. The total

value of unqualified loans tallied MNT889 billion in February, or 33.3 percent more than the same

period last year.

Analysts have pointed out that the 8 percent mortgage program did not factor into the debt

problem, however, as only 2.7 percent of the bad loans originated from the program.

Source: News.mn

SAIKHANBILEG GOVERNMENT EMPLOYS MNT948.3 MN TO FOR MEASLES VACCINATIONS

The Chimed Saikhanbileg government has dug up MNT948.3 million from the budget to employ

emergency measures against measles outbreaks among patients between 18 and 30 years old

nationwide, said the prime minister in a 16 March press conference. Mongolia had eliminated the

disease in 2011 after years of providing vaccinations to the population. However, new oubreaks

cropped up around the country beginning last year in March.

The Cabinet Secretariat approved the funding this week.

Source: Montsame

MONGOLIA-CANADA DEVELOPMENTAL COOPERATION TO EXPAND

Mongolia has asked Canada for its help in creating a wealth fund to bring today's savings to future

generations. Finance Minister B. Bolor in a meeting with Canadian MP Karina Gould said he would

like to see an intergovernmental agreement with Canada to bring its experience to Mongolia's

growing mining and agriculture sectors. Mongolia is included on a list of 25 countries of focus for

Canada's foreign aid.

Gould expressed readiness to collaborate with Mongolia in the matters discussed and underlined the

importance of empowering a state body on the fund’s management and separating it from political

influence.

Source: Montsame

BELARUS VIEWS MONGOLIA AS PROMISING PARTNER IN ASIA

Belarus views Mongolia as a promising partner in the Asian region, Belarusian Vice Premier Vladimir

Semashko said as he met with Minister of Construction and Urban Development of Mongolia Zangad

Bayanselenge on 11 March. “The mutual trade turnover is still insufficient. It is considerably lower

than the existing potential between the two countries,” noted Semashko. In 2015, the trade totaled

USD23.2 million.

According to Vladimir Semashko, intensification of contacts between the two countries at every

level will form a robust base for mutually beneficial cooperation. The vice premier said Belarus is

ready not only to sell its products to Mongolia and bring the bilateral relations onto a qualitatively

new level, but also can take part in Mongolia's vehicle park upgrading programs. That includes

setting up joint companies in automobile manufacturing, mining sector, and providing the

corresponding economic sectors of Mongolia with necessary types of vehicles.

Source: Belarusian Telegraph Agency

MONGOLIA’S CLOCKS SPRING AHEAD ON 26 MARCH

Mongolia will be moving clocks ahead by an hour after 25 March. The daylight savings time schedule

will run until 30 September.

Source: News.mn

TEMPERATURES DROPPED TO -55 CELSIUS IN FEBRUARY

Temperatures hit a national low of -55Celsius in Zavkhan Aimag in February. Mongolia is facing

severe winter conditions with low temperatures and heavy precipitation, threatening a natural

disaster when large numbers of livestock die in winter known as a dzud. The annual low was

measured at Tsetsen-Uul Soum, Zavkhan Aimag.

Air pollution is also a growing worry in Ulaanbaatar during winter, with the concentration of

nitrogen dioxide and sulfur dioxide exceeding recommendations by as much as 29 times. Matter

dangerous to lung health measured at 2.5 microns (PM2.5) was 28 times above the acceptable

content, while even finer matter known as PM10 was up to 29 times higher.

Source: Montsame

GOVERNOR ORDERS NEW BOUNDARIES FOR KHUSHIG AIRPORT

The governor of Tuv Aimag has ordered a change to the perimeter for land where the airport at

Khushig Valley, Sergelen Soum, will be built. The airport is projected to cover 1,200 hectares of

land, with another 120,000 hectares taken aside to develop a new town surrounding the city where

employees can live. However land at the northern, mountainous end of the territory could come

under dispute for a project to build a railway along Bogd Khan mountain.

Northern parts of special-needs land covers the mountainous region which might comprise land

disputes.

Source: Montsame, Mongolia.GoGo.mn

PRAGUE ZOO PLANS TRANSPORT OF PRZEWALSKI'S HORSES TO MONGOLIA

The Prague Zoo is preparing to transport 4 Przewalski's horse mares to Mongolia in the middle of

July, zoo director Miroslav Bobek said on 14 March, adding that a military CASA plane will again be

used. "We are planning to take 4 mares from Prague to [the Mongolian national park] Gobi B," Bobek

said.

The CASA plane has room for just 4 horses, he said, and added that chief-of-staff Josef Becvar has

already agreed for the use of the military plane. Bobek said last autumn he agreed with the

Mongolian environment minister that Mongolia will invest in the building of enclosures and catching

of the horses. A total of 500 Przewalski's horses live in three localities in Mongolia, including 130 in

Gobi B, where the last four transports from Prague were headed. In the wild, the Przewalski's horse

became extinct more than 40 years ago.

Source: Prague Monitor

UB TO BEGIN APPROVAL OF CONSTRUCTION PERMITS IN CERTAIN DISTRICTS

Ulaanbaatar will begin approving construction permits for buildings in certain districts throughout

the city. Ulaanbaatar Mayor Erdene Bat-Uul agreed to permit the construction of buildings at least

three stories high in a meeting with district governors on 16 March. The buildings must be at least

3,600 cubic meters, according to the agreement, for providing housing and commercial space.

The Ulaanbaatar's Mayor's Office said it will hold regular press conferences on Wednesday to provide

updates on activities.

Source: Mongolia.GoGo.mn

POLITICS

PRESIDENT PUTS UP 'DOUBLE DEEL' BILL FOR ANOTHER VOTE

The Office of the President is trying a second attempt to get Parliament to pass a law that would

prohibit members of Parliament from taking office in ministries ahead of elections in July. The

president's advisor on human rights, Ch. Unurbayar, has submitted the so-called “double deel” law,

named after the multiple roles some elected officials have that the president says can result in

conflicts of interest. The bill allows MPs to only take office as the prime minister as well as the

ministers for justice and foreign affairs. The law would take effect this year, impacting any

appointments made after elections scheduled for 29 June.

Source: Unuudur

AUTHORITIES CHECKING UP ON FOREIGN RESIDENTS AHEAD OF ASEM

Authorities are visiting foreign residents in Mongolia ahead of the Asia-Europe Meeting (ASEM)

summit to verify their numbers and details on individuals. Mongolia has 19,000 foreigners from 118

countries living here, including 7,000 with work visas and 200 students. The directive follows

previous security measures to upgrade facilities at border-cross points and at airports.

Source: News.mn

ENKHSAIKHAN COURTS MINOR PARTIES FOR MERGER WITH MNDP

The Mongolian National Democratic Party (MNDP) may not collaborate with either the Mongolian

People's Revolutionary Party (MPRP) or Democrats in the next election, instead choosing a smaller

partner where it can likely dominate in influence. Parties are consolidating in the lead up to

elections scheduled for 29 June to improve their chances when voters hit the polls. On 11 March,

MNDP Chairman Mendsaikhan Enkhsaikhan and his counterpart from the Ekh Oron Democracy and

Justice Union, B. Erdenebat, met to discuss the possibility of a merger. “We are just negotiating

with some political parties how to attend the upcoming election,” said Enkhsaikhan. He added, “I

am planning to create a much bigger coalition.”

The MNDP has received an invite from Democrats to work directly with one another after four years

within the coalition government cooperating with the MPRP as the so-called Justice Coalition that

makes up the minority leg of the government. Its influence in affairs has been limited with only a

few seats in the legislature, however.

Source: News.mn, Udriin Sonin

PM IGNORES BAASANKHUU'S TV CHALLENGE

Prime Minister Chimed Saikhanbileg has not entertained MP O. Baasankhuu's challenge to a debate

over policy. Baasankhuu challenged the prime minister to a debate while putting his job on the line

last week after expressing frustration at the government's lack of attention to his proposed policies.

However, the prime minister has not responded to the challenge, he said.

Baasankhuu said he will postpone the proposed date for the debate until 23 March, and he will call

him out in front of Parliament once it reconvenes for the spring session if the challenge is ignored

once again.

Source: News.mn

FOREIGN AFFAIRS MINISTRY DENIES CLAIMS OF SMUGGLING BY PYONGYANG OFFICIALS

The Ministry of Foreign Affairs has rebuked a report from Radio Free Asia that North Korean

diplomats were smuggling luxury goods into their country through Mongolia. United Press

International last week reported that Pyongyang's diplomats were bringing jet skis, snow mobiles

and luxury watches into North Korea in a story quoting the news agency, Radio Free Asia. The claim

is unfounded, said a ministry official, about the reports claiming the smuggling and secret visits to

Ulaanbaatar by North Korea's foreign minister.

Radio Free Asia was quoted: “Pyongyang's diplomats are using their passports to carry the goods

across the border undetected. Electronic components that can be used in nuclear and missile

production are being transported across the route.”

Source: News.mn

UAE EMBASSY OPENS IN UB

The United Arab Emirates (UAE) opened its embassy in Ulaanbaatar, the Ministry of Foreign Affairs

of Mongolia reported on 15 March. Emirate Ambassador Abdullah Tunaj presented his credentials on

24 February and officially opened the embassy that same day.

Mongolia has had diplomatic relations with UAE since 1996.

Source: Montsame

MONGOLIA CANCELS 2016 VISA-ON-ARRIVAL FACILITIES FOR 42 COUNTRIES

The Mongolian government has canceled the visa-on-arrival program that was extended to 42

countries in mid-2014. This means there will be no such facility during 2016 and all travelers from

these nations now need to apply for a visa in advance from the Mongolian Ministry of Foreign

Affairs. The visa-free access for the 42 nations concerned was granted from June 2014 until 31st

December 2015, but the decision not to extend it and revert back to a strict pre-visit visa-issuance

program has taken many diplomats, businesspeople, tourists and travelers by surprise.

A MIAT official at Hong Kong International Airport described the situation as “a disaster,” explaining

that he had to refuse boarding for multiple passengers on every flight. The process to attain a pre-

visit visa takes a minimum of three days and must be accompanied by various documentation

concerning the visit.

The news, which has not been widely publicized by the Mongolian government, affects citizens of

the following nations:

Andorra

Argentina

Austria

Bahamas

Belgium

Brazil

Bulgaria

Chile

Costa Rica

Croatia

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Greece

Grenada

Hungary

Iceland

Ireland

Italy

Latvia

Liechtenstein

Lithuania

Luxembourg

Malta

Monaco

Netherlands

Norway

Spain

Panama

Poland

Portugal

Romania

Slovakia

Slovenia

Sweden

Switzerland

United Kingdom

Uruguay

Source: Asia Briefing

EAST KAZAKHSTAN REGION PROPOSES CLOSE COOPERATION WITH MONGOLIA'S WESTERN

PROVINCES

The governor of the East Kazakhstan region has opened the door to greater diplomatic and

commercial ties with Mongolia's western provinces. Bayan-Ulgii Aimag has the largest population of

Kazakhs, the Mongol ethnic minority separated by language and religion from the majority Khalakh

Mongols. In a meeting with Deputy Premier Ts. Oyunbaatar, East Kazakhstan Governor D.K.

Akhmetov asked for individual meetings to discuss cross-border cooperation with Bayan-Ulgii, Khovd

and Uvs Aimag officials.

Kazakhs speak a dialect different from the national Khalkh language and practice Islam, while the

majority of the country practices either Buddhism, Shamanism, a mix of the two, or are atheist.

Source: Montsame

ALASKA GUARDSMEN PARTICIPATE IN COLD WEATHER EXCHANGE WITH MONGOLIAN ARMED

FORCES

A five-man team from the Alaska Army National Guard’s 1-297th Reconnaissance and Surveillance

Squadron has returned from Mongolia after a cold weather subject-matter expert exchange with the

Mongolian Armed Forces (MAF) last month. The purpose of the exercise was to support the Alaska

National Guard’s state partnership with Mongolia, giving MAF soldiers the opportunity to learn about

cold weather and mountain tactics, techniques and procedures from AKARNG soldiers. “I think there

is a lot of value in this type of training where both AKARNG and MAF soldiers have the opportunity

to learn from each other, and it supports two of the adjutant general’s lines of effort – which are to

continue to support the defense professionalization of the MAF and development of Mongolia's

peace-keeping operations capability,” said Maj. Samuel Scott, 1-197th R&S executive officer.

Training events included equipment briefs, cold weather injury classes, field demonstrations of the

effects of cold weather on equipment and operations, avalanche safety and skiing.

Source: Defense Video & Imagery Distribution System

INVESTIGATION OPENED INTO FOREIGN RELIGIONS

The Justice Ministry has ordered an investigation into the practices of religious faiths amid

accusations of corruption regarding the Korean Christian religion of Sun Myung Moon which is called

a cult by detractors [Source does not include specifics of accusations -ed]. Mongolia has 782

religious temples across the country, including 286 in Ulaanbaatar. The country holds 331 Buddhists

temples, 364 Christian churches, 46 Islamic mosques, 25 Shamanistic centers and 17 places of

worship for people of the Bachai, Catholic, Shinto and Hindu faiths. The first meeting of the

investigation team was held on 14 March, three days after the order was handed out by the Justice

Ministry.

Source: Zuunii Medee

MICRO-BUS DRIVERS PROTEST

The drivers of the so-called micro-bus vans that pick up commuters at various depots throughout

the city are on strike as up to 700 vehicles are set for the scrap heap this year. Mongolian law

requires that micro-buses be retired 12 years after their manufacturing. Drivers demonstrated on 15

March demanding a change to the law. “Our microbuses are tested and diagnosed every year,” said

trade union head Ts. Batchuluun.”

This year, only 37 micro-buses will be left because of the law, said demonstrators. “Behind the 600

microbuses we have 1,200 people's lives. If the state cannot do renovations, it should give

compensation to us,” said Batchuluun.

Source: Udriin Sonin

BCM UPDATES:

ANNOUNCEMENTS

BCM KNOWLEDGE SHARING SESSION, 21 MARCH, NATSAGDORJ LIBRARY

The BCM Knowledge Sharing Session will be held at 17:00 on Monday, 21 March, in the American

Corner of the Natsagdorj Library, organized in partnership with BCM member, the Corporate

Governance Development Center (CGDC), to present "Methods for analyzing current organizational

strategy and identifying strategic vision." The session will be led by Enkhbold Chuluunbaatar, Ph.D.,

a consultant at CGDC and a senior lecturer in the Department of Business Administration at the

Institute of Finance and Economics. His research interests include entrepreneurship, culture and

creativity, and strategy management.

The Corporate Governance Development Center is a non-governmental and non-profit organization,

providing teaching, consultancy, research and advocacy services to clients, members and partners

since 2009. The CGDC offers a 20 percent discount to BCM members for its training activities.

_________________________________________

1ST ANNUAL BCM SUMMIT, 21 APRIL, BLUE SKY HOTEL

The Business Council of Mongolia (BCM) will host its 1st Annual BCM Summit on 21 April at Blue Sky

Hotel and Tower in Ulaanbaatar. The forum will provide a venue for a wide spectrum of

informative, meaningful and innovative topics important to Mongolia's business community. The

focus will be on business strategies to cope with survival in an economic downturn, mining and

industrial supply, capital markets, innovative business trends, the elections and issues and

recommendations targeted to political parties, and more.

BCM launched a poll for members to provide feedback on common issues they would like to see

discussed at the event in June. Suggestions will be collected until 11 April. To submit feedback, log

on to BCMongolia.org and click here, or send your response directly by filling out this form. Your

feedback should include answers to (1) What are the top issues and challenges of your business and

sector in relation to the regulatory environment that needs to be addressed by the next

government? (please list a maximum three issues) and (2) What are your recommendations on those

issues?

Registration is MNT100,000 per head for members, compared with the regular fee of MNT120,000.

Save money with the early bird rate of MNT80,000 for members and MNT100,000 for non-members

by registering before 21 March. For more information, email Saruul at saruul@bcmongolia.org.

_________________________________________

MONGOLIA ECONOMIC FORUM 2016, 30-31 MARCH, GOVERNMENT PALACE

Over 1,000 guests are expected for the 2016 Mongolia Economic Forum to be held at the

Government Palace on 30-31 March.

This year's two-day event will be held under the theme “Lessons learned, Facing challenges and

Solutions pending,” where participants will seek to define the country’s current national and global

context, as well as outline alternatives for the promotion of future economic and social prosperity

in Mongolia.

BCM members will have a 30 percent discount on registration. Register here, and send an email to

info@meforum.mn mentioning your BCM membership to receive your discount. For more

information email the same address or call 11 321051.

_________________________________________

MONGOLIA MINING 2016, 6-8 APRIL, BUYANT UKHAA SPORT COMPLEX

The 2016 Mongolia Mining International Mining & Oil Expo will be held for the 6th consecutive year

from 6 to 8 April 2016 at the Buyant Ukhaa Sports Palace in Ulaanbaatar. This year's expo will

feature traditional mining and emerging oil industries of Mongolia with exhibitors and visitors

representing the industry's major companies. Guest speakers from the government, universities, and

companies will lead seminars of the government policy for mineral resources and new laws focused

on mining and infrastructure in Mongolia.

For more information, contact Munkh-Erdene via email at munkh@minex.mn or call at 344488.

_________________________________________

7TH ANNUAL NATIONAL FORUM FOR RENEWABLE ENERGY, 6 APRIL, CORPORATE HOTEL AND

CONVENTION CENTER

The National Renewable Energy Forum, Mongolia's premier conference on the renewable energy

sector since 2008, will open on 6 April at the Hotel and Convention Center in Ulaanbaatar. At the

forum, speakers will review the initiatives and activities that address key issues for the renewable

energy sector.

Registration is MNT35,000, and there is no limit to the number of registrations. For more

information, email Myagmardorj at e.myagmardorj@gmail.com.

_________________________________________

2016 COAL & METALS MONGOLIA, 6-7 MAY, UB

Join to learn about Mongolia's major infrastructure and coal assets at Coal & Metal Mongolia

conferences—now an annual event. Hear from Mongolian government officials and expand your

business contacts while learning about infrastructure in Mongolia and how to the capital investment

environment can become more competitive. Over 500 guests are expected and 80 companies

exhibiting their services.

For more information, call 9911-6135, 7011-5590. BCM members can receive a 10 percent discount

at registration by emailing saruul@bcmongolia.org for a special discount code.

NEW MONGOLIAN LAWS

Please click here to view the 228 laws, amendments, addenda and annulments to/of laws published

in the latest weekly Government Bulletin dated March 1, 2016. Unless otherwise decided by

Parliament, they will take effect ten (10) days after publication.

‘BCM IN THE UNIVERSITY CLASSROOM’ SERIES

Guest Speaker: Narantuya Dangaasuren

Presentation topic: "Editorial policy-Print Media"

Where & When: University of the Humanities, 15 March 2016

Narantuya.D, Vice Director of News Agency, was BCM’s third speaker at the University of the

Humanities. Her presentation titled "Editorial policy-Print Media" was attended by 90 students from

the Journalism and ICT Faculty of the University of the Humanities.

Ms. Narantuya’s presentation began with current assessment of journalism in general and focused

on the print media and how it is evolving in a digital era. Her 20 some years of journalistic

background coupled with experience in managing Mongolia’s top-rated news website

(www.news.mn) gave Ms. Narantuya’s presentation more unique and a true voice of Mongolian

media. Students did not shy away from raising controversial questions such as the issue of biased

editorial contents and the rise of unethical journalism in Mongolia. Ms. Narantuya did acknowledge

the existence of such unfortunate situation; however she gave hope to soon-to-be journalists by

informing them of the active and budding enthusiasm of the newly formed Media Council of

Mongolia. The presentation is available here

_________________________________________

Guest Speakers: Anthony Willoughby and Josephine Stoker, Nomadic School of Business

Presentation topic: "Organizational Leadership"

Where & When: University of the Humanities, 25 February 2016

Anthony Willoughby and Josephine Stoker, Nomadic School of Business co-delivered a presentation

titled "Organizational Leadership" at the University of the Humanities (UH) on 25 February. The

lecture, which consisted of an individual exercise of mapping one's life journey, was attended by

138 students.

Both Anthony and Josie began the lecture by sharing their own life journeys, which fascinated many

students in the audience. Students were asked to share their life journey map with neighbors, as

said by many students was the highlight of the lecture.

For more information about the lecture, please contact Khulangoo P, Working Group Coordinator at

khulangoo@bcmongolia.org

_________________________________________

Guest Speaker: Gerelt-Od Ts, Ministry of Environment, Green Development and Tourism (MoEGDT)

Presentation topic: "Climate Change of Mongolia & COP21"

Where & When: National University of Mongolia, 23 February 2016

Mr. Gerelt-Od Ts, MoEGDT, delivered a presentation titled "Climate Change of Mongolia & COP21".

Over 50 students attended the lecture.

Mr. Gerelt-Od was one of the three representatives from Mongolia to enter into the negotiations at

the 2015 United Nations Climate Change Conference, COP 21 held in Paris, France, from 30

November to 12 December 2015. Mr. Gerelt-Od's comprehensive presentation covered Mongolia's

historic engagement in the global movement against climate change to recent highlight of

Mongolia's pledge of 50'000 US dollar to the Green Climate Fund. The presentation is available here.

_________________________________________

Guest Speaker: Amartuvshin Sh, CEO-AFAcademy

Presentation topic: "Personal development: New season"

Where & When: The Institute of Finance and Economics, 18 February 2016

Amartuvshin Sh, CEO of AFAcademy, delivered a presentation titled "Personal Development: New

season" at the Institute of Finance and Economics (IFE) on 18 February. Over 60 senior students

attended the lecture.

Mr. Amartuvshin, an experienced motivational speaker and family counselor, shared a success

formula, which he has been using for his lectures to CEOs of key businesses in Mongolia. Students

expressed their gratitude to Mr. Amartuvshin and expressed their interest in various tools that can

be used for personal development.

For more information about the lectures, please contact Khulangoo, Working Group Coordinator at

khulangoo@bcmongolia.org

KNOWLEDGE SHARING SESSIONS

A BCM Knowledge Sharing Session was organized on 24 February in partnership with our member,

The Nomadic School of Business LLC, on the topic "Exploring your career, purpose, and the leader

within you". A total of 42 people attended the training session representing 26 member

organizations. The directors of The Nomadic School of Business - Anthony Willoughby, who first

visited Ulan Bator in 1975, has over 30 years of experience pioneering leadership development in

Asia, working with executives in Google, Coca Cola, Morgan Stanley and many other frontier

thinking companies – and Josephine Stoker, who has worked in one of the leading strategic

consultancy companies in Singapore, guided the participants through a unique process of

development. Included were a new way of looking at your career; exploring your life plan, purpose

and motivation; working out where you want to focus and the skills you need to develop; and

understanding a simple and creative tool, which you can use to gain insights into your priorities.

BCM ADVOCACY NOTES

Latest draft of Labor Law bill - Government working group

An open discussion was held between the Ministry of Labor and the private sector on the draft Labor

Law on 16 February. The December draft is reflective of many of the recommendations proposed by

the BCM's Legislative Working Group. Labor Minister G. Bayarsaikhan reported that the draft will be

submitted in April for the autumn Parliamentary session. New Working Group members assigned by

the Labor Minister to draft the bill were introduced and promised to review further comments from

the private sector.

For more information, please contact Working Group Coordinator at khulangoo@bcmongolia.org.

Click here to read the latest draft of the bill.

BCM WORKING GROUP NEWS

Risk Working Group

BCM’s Risk Working Group’s meeting was held on Wednesday, 9 March at Suite 101, 12th floor

Express Tower, with 9 members in attendance, representing Mandal General Insurance, MIG

Insurance, XacBank, Wagner Asia, Bagatumurch LLC, State-owned Agricultural Reinsurance JSC and

National Emergency Management Agency.

Agenda of the meeting:

16:00-16:10 Introduction and Opening remarks by Risk WG Co-Chairs

16:10-16:50 Status Report on dzud condition in the countryside, Tuya Ch., Specialist, National

Emergency Management Authority of Mongolia/NEMA/

16:50-17:20 "Index-based livestock insurance scheme and Introduction of state-owned Agricultural

Reinsurance JSC", Enkhtaivan G., CEO of Agricultural Reinsurance JSC

Captain Tuya Ch., NEMA, gave the members a comprehensive overview of the dzud and dzud-like

situation in 18 aimags and 98 soums of Mongolia. As of 9 March 2016, the total tally of perished

livestock is 360,000. While this number is incomparable to the 2010’s record high loss of 6,310,800

livestock, Captain Tuya emphasized that at any dzud situation, it is the herders that are afflicted

the most as they are faced with enduring long cold days without basic medical assistance and the

ever-increasing need to tend after their cattle, their main source of income. Captain Tuya’s

presentation was complimented with a weather assessment presentation, which can be found here.

Specialist Oyunbat N., Agricultural Reinsurance JSC, presented the index-based livestock insurance

scheme and how it evolved into laying the very foundation of the state-owned Agricultural

Reinsurance JSC. Members were interested in knowing the reason behind the decline in the number

of policyholders, if the Agricultural Reinsurance JSC is exploring the bloodline insurance and the

JCS’s global reinsurers. Members in attendance were distributed “Mongolia: Dzud Emergency

Response Preparedness” snapshot by OCHA (Office for the Coordination of Humanitarian Affairs)

For more information about this meeting, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

Tax Working Group

BCM’s Tax Working Group’s 2016 kick-off meeting was held on Wednesday, 2 March at Suite 101,

12th floor Express Tower, with 16 members in attendance, representing Oyu Tolgoi, PwC, Deloitte

Onch Audit, Sumitomo Corporation Mongolia office, International SOS, WCS, MahoneyLiotta, Lehman

Lee & Xu and PATC.

Agenda of the meeting: 16:00 - 16:10 Opening remarks (Chair, Tsendmaa Choijamts, PwC) 16:10 -

17:00 Introducing new VAT law (Altankhorol O, Senior state tax inspector, Revenue department of

the General Department of Customs and Taxation) 17:00-17:30 Q&A session and discussion on TWG

plans for 2016 (Members, state tax inspector)

Ms. Altankhorol, General Department of Customs and Taxation of Mongolia, reviewed the newly

adopted Value-Added Tax (VAT) law of Mongolia, which took effect on 1 January 2016. The

presentation covered key policy changes, changes in the other related regulations and frequently

asked questions from businesses. Members in attendance were interested in the procedural changes

in the new VAT law, such as the registration and de-registration as a VAT payer, VAT-exempt goods

and services and VAT zero-rated goods and services.

Ms. Tsendmaa Ch, Tax Executive Director of PwC Mongolia, shared with the members Tax Working

Group’s draft plan for 2016. As Chair of Tax Working Group, MS Tsendmaa, informed the members

of the intent of engaging representatives from the government entities to the WG meetings in order

to learn more about legal and procedural changes and to exchange expert views with

representatives from government bodies.

Next meeting is scheduled for May. For more information about this meeting, please contact

Khulangoo Purevjav, Working Group Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

Business Ethics Working Group

Business Ethics Working Group meeting was held on 1 March at Express Tower from 16:00 to 17:30

with 12 members in attendance representing Atlas Copco, Transparency International, Mandal

General Insurance, US Embassy, Wagner Asia, Deloitte Onch Audit, Asia Foundation, Valliant Art and

Interiors, World Vision and the Institute of Finance and Economics.

Agenda of the meeting: - Introduction of members and guests (Anders Berglund, Atlas Copco) -

Recap from the last meeting (Christine Hudetz, TI Mongolia) - Insurance sector transparency (Zaya

Bolorbold, Mandal Insurance) - Discussion on topics and plan for 2016 (Christine Hudetz, TI

Mongolia).

The meeting begun with recap of the last meeting: development of the draft plan for 2016 and

collective agreement on the need to reach-out for more local companies as members of the

Working Group. Given the delicacy of the issues the WG intends to cover at its meetings and the

subsequent low interest from BCM members to sign-up for this WG, nonetheless members have

agreed to continue with its meetings and aim to draw more attention from local companies.

Ms. Zaya, Mandal Insurance, presented an overview of the insurance industry and Mandal fight

against kickbacks and the adverse effects of kick-back culture within the industry. Attendees were

highly impressed with Mandal’s meticulous top-down approach against kick-backs, from its

philosophy to its hiring procedure. During the discussion time on plan for 2016, Wagner Asia has

volunteered for a presentation in November and Asia Foundation offered to share its study findings

on corruption in Mongolia.

Co-Chair reminded the members of the next meeting topic item: Gift giving policy on Tuesday, first

week of May. For more information about this event, please contact Khulangoo Purevjav, Working

Group Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

Energy & Environment Working Group

BCM’s Energy and Environment Working Group’s 2016 kick-off meeting was held on Thursday, 25

February at the Open Society Forum’s meeting room with 17 members in attendance. Represented

were GGGI, US Embassy, XacBank, Mongolian Bankers’ Association, Arig Bank, Invest Mongolia,

Wildlife Conservation Society, Techenomics, Mongolian National Mining Association, Mongolian Wind

Association, Newcom Group, Economic Development Center and the newest addition to the Working

Group, the Institute of Energy Economics.

The meeting was organized under the theme of: "Green credit - private and public initiatives".

Agenda of the meeting:

- Sustainable Finance Initiative: Latest developments, progress towards private fund establishment,

Mr. Tumurkhuu, Head of Sustainable Finance Initiative Steering Committee and CEO of Arig Bank

- National concessions list: Latest developments, quick look at near-term projects, Mr. Ts.

Batbayar, Head of Concessions Division, Invest Mongolia

- Facilitated discussion on business implications of green finance and concessions opportunities in

Mongolia, Mr. Tumurkhuu, CEO of Arig Bank.

Mr. Tumurkhuu emphasized that the Sustainable Finance Initiative is in full swing with initial loans

being issued at 14 commercial banks of Mongolia since 2015. Mr. Batbayar, Division Head at Invest

Mongolia, shared latest developments on concession and the Agency’s efforts in improving the legal

environment for regulating concession issues in Mongolia. Mr. Jon Lyons, co-chair of the Energy &

Environment WG (EEWG,) facilitated the discussion on green finance and concessions opportunities

in Mongolia. Working Group members were mostly interest in the government’s guarantee to the

concessionaire and the updates of the Water Treatment Facility and CHP-ͷ concessions. As part of

BCM’s effort in increasing stakeholders from the government entities, Mr. Amarsanaa, Head of the

Institute of Energy Economics (IEE), an institute under the Ministry of Energy, attended the meeting

and agreed to introduce the IEE at the next Working Group meeting. For more information about

this meeting, please contact Khulangoo Purevjav, Working Group Coordinator of BCM at

khulangoo@bcmongolia.org.

_________________________________________

Capital Markets Working Group

BCM’s Capital Markets Working Group’s meeting was held on Friday, 22 January at Suite 101, 12th

floor Express Tower, with 12 members in attendance, representing BDSec, ING Bank Mongolia, Khan

Bank, Golomt Bank, Oyu Tolgoi, Ernst & Young Mongolia Audit, Mahoney Liotta, Asian Real Estate

Capital Ltd and Mongolian Bankers’ Association.

Purpose of the meeting was to introduce the new meeting format, soft ideas on core themes

proposed by Co-Chairs, including ideas from members and brainstorm on Capital Markets WG

(CMWG) mission and objectives. It was agreed in the meeting on a common theme of ‘working

towards increased foreign investment in Mongolia’. It was suggested by members to include more

emerging players in the capital markets such as the insurance industry and most importantly engage

other stakeholders from government entities with the Working Group. Updates were given on the

development of ‘custodian banking’ and how the WG can leverage its efforts towards sound

regulations for custodian banks.

On the next scheduled Capital Markets Working Group meeting, Dorjpalam Kh, Office of the

Treasury, Oyu Tolgoi will deliver a presentation on project financing.

For more information about this meeting, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM at khulangoo@bcmongolia.org.

_________________________________________

BCM’s Logistics Working Group

BCM’s Logistics Working Group (LoWG) met on Tuesday, 8 December at MonEx office, 6F Vista Office

Building with 7 people in attendance representing Monex, Representative Office of Mitsui & Co.,

Ltd. in Ulaanbaatar, Khaan Shorgoolj LLC and KGB TEGBE-Dolgoon Delgerekh LLC.

Agenda of the meeting:

• Featured guest speaker: Bayarbat – “From Hand to Hand; Challenges Faced”

• Discuss and plan WG’s 2016 activities

Upon introducing new members, Enkhbat D.-Logistics WG Chair, invited the featured speaker, Mr.

Bayarbat, to deliver a presentation about KGB TEGBE-delivery services. Other than introducing the

company, Bayarbat’s presentation touched on wider aspects such as the culture of delivery service

in Mongolia at large, challenges his new up-and-coming company is facing and possible solutions in

the delivery logistics within Ulaanbaatar.

Meeting participants were interested in the expansion plans of the company, such as delivery

services within Mongolia, cargo service between USA and Mongolia, to which Bayarbat gave

comprehensive answers about the company’s plan for establishing cargo service between South

Korea and Mongolia initially and delving into other markets.

Enkhbat D., Chair of the Logistics WG (LoWG), presented his plan for reviving WG activities in 2016.

He again encouraged our members to read through the soft ideas laid out and provide comments.

Since logistics fosters many elements, it was decided to focus on a certain theme for each meeting,

so that members interested or operating in that topic area can actively participate and bring in

more insight.

The meeting was concluded with an action item for the BCM WG Coordinator to follow-up the

questionnaire and request customers to provide comments on the 2016 plan by COB 28 December.

For more information about this meeting, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM, at khulangoo@bcmongolia.org.

_________________________________________

BCM Education Working Group

BCM’s Education Working Group was held on 26 November at the Executive Excellence International

Business Center, 10F Galaxy Tower from 16:00 to 18:00. Fifteen people attended the event

representing foreign mission in Mongolia, private sector, universities and consultants of donor

funded projects:

Foreign Mission: Canadian Embassy;

Universities: National University of Mongolia, Mongolian University of Science and Technology

Private sector: PwC, Minter Ellison

Donor organizations: Save the Children, Support to Mongolia’s Technical and Vocational Education

and Training Sector-EU, Cooperative Vocational Training in the Mineral Resource Sector-GIZ, The

Global Fund;

Meeting minutes summary:

Opening remarks by Education Working Group Chair - Saha Meyanathan. Saha related information

about being selected as the best Working Group of the year 2015.

Status update by Manlaibaatar Z., Deputy Director of IRIM on the pilot project results of the ADB

funded Higher Education Reform Project (HERP). The dissemination workshop for the Universities

will be organized first week of December.

During the Q&A session, Professor Purevdorj of MUST highly emphasized on the importance of

building the capacity of the professors, as they are the ultimate knowledge givers to the students.

The WG members were given a matrix developed by Dr. Saha, on three draft laws: TVET, Higher

education and Labor law. During a Q&A session, participants made remarks related to the Matrix, to

highlight a few:

For more information about this event, please contact Khulangoo Purevjav, Working Group

Coordinator of BCM at khulangoo@bcmongolia.org.

COOPERATION & MEMBER DISCOUNTS:

- Corporate Governance Development Center (CGDC) offers 20% discount on all of its trainings to

BCM members

- News.mn offers 20% discount of its products and services for BCM members

- Mongolian Economy offers 50% discount for its advertisements & paid articles on website and 55%

subscription discount on its online magazine for BCM members

- NPC&Mandal offers 20% discount to BCM members

- Birches Group offers 10% discount on Mongolia Compensation and Benefits Survey for BCM

members

- New Media offers 25-50% discounts to BCM members on its online accounting software, E-

commerce platform, web & mobile application development and job searching software.

For more information about announcements and discounts, click here or contact Otgongerel,

Partnership Manager at otgongerel@bcmongolia.org.

WEBSITE UPDATES: PRESENTATIONS, MONGOLIA REPORTS, INTERVIEWS

Presentations:

BCM Monthly Meeting, 22 February:

- A. Baatarpurev, Director of Markets Development Department, Financial Regulatory Commission -

"Financial Market Developments in Mongolia"

- Jennifer Bielman, Country Director, MercyCorps Mongolia - "Mercy Corps: Building Resilience in

Mongolia"

- D. Uuriintuya, Chairman, Mineral Resources Authority of Mongolia - "Mongolian Events during PDAC

2016 in Toronto"

- N. Munkhnasan, General Director, Monpolyment - "Overview of Monpolyment"

_________________________________________

BCM Monthly Meeting, 25 January:

- Sodontogos Erdenetsogt , Chief/National Coordinator of National Secretariat for Development of

the Second Compact agreement between Government of Mongolia and the USA Millennium

Challenge Corporation -

“Development process of the second compact agreement between government of Mongolia and USA

Millennium Challenge Corporation”

- Gantugs D, CEO, Mongolian Mortgage Corporation - “MIK Holding IPO and RMBS Issuance”

_________________________________________

BCM Monthly meeting on December 7:

- Mergen Chuluun, Managing Director, Nomadic Expeditions - “YPO Mongolia: Building Better

Leaders Through Education & Idea Exchange”

- Meloney C Lindberg, Country Representative, The Asia Foundation and L. Sumati, Director, Sant

Maral Foundation - “Introduction and Key Findings of Private Sector Corruption Perception Survey –

STOPP”

- S. Galbadrakh, Specialist at Prevention and Education Department, Independent Authority Against

Corruption (IAAC) of Mongolia - “Introduction of IAAC”

- Terrence Edwards, Editor-in-Chief, BCM NewsWire - “Overview of the BCM NewsWire”

_________________________________________

Mongolia Projects & Investment Summit Hong Kong, 16-17 November:

- Zoljargal Naidansuren, Governor, Bank of Mongolia, “The new equilibrium: reforms to sustainable

growth and savings"

- Narantuya Zagdkhuu, Chair, Financial Regulatory Commission of Mongolia, "Making Mongolia a

frontier again: financial market developments"

- Norihiko Kato, CEO, Khan Bank, "Where does the banking sector fit it?"

- Munkhsukh Sukhbaatar, Rio Tinto, "The way forward for Oyu Tolgoi underground"

- Bat-Uul Erdene, Mayor of Ulaanbaatar city, "City of Ulaanbaatar-2030"

- Matthieu Le Blan, EBRD Head office in Mongolia, "The importance of economic diversification and

import replacement opportunities EBRD's role in enabling progress"

- Tuvshintugs Batdelger, Economic Research Institute, "Transaction Cost of Conducting Business in

Mongolia: SME perspective"

- Oliver Thirlwall, Asian Real Estate Capital, "Distressed opportunities-banking and real estate"

- Kevin Trzcinski, Vice President Corporate Development at Worldwide Power & Technology (HK)

Ltd., "Mongolia as a destination for Scientific Research & Development"

- Randolph Koppa, President, Trade and Development Bank, "Challenges and Opportunities for

Growth"

_________________________________________

Mongolian Annual Risk Management Forum, 11 November:

- “A Practical Case Of Implementing A Risk Management Strategy In Corporate Governance” -

Garrett Wilson Director, Risk Management, Compliance & Outsourced Services Wagner Asia Group

- “Public Buildings And Disaster Risk Management” - Sam Sallam, President, Best Western

International Mongolia

- "Organization Psychological Management" - Delgermend.Ts, Organizational Psychologist,

NPC&Mandal LLC

- "New macroeconomic balance A shift from consumption to saving" - Munkhbayar Tedevsuren, Head

Of The Coordination And Analytic Unit Under Financial Stability Council Advisor To The Governor

- "Macro-Economic Outlook 2016" - Ankhbayar Chuluunbat, Senior economist, Mandal General

Insurance

- "Global Perspective On Risk Management During Economic Slowdown" - Matthew Pottle, PwC

Mongolia

- "Corporate Crises Management" - G.Odbayar, Mining National Operator

_________________________________________

BCM Monthly Meeting on 2 November:

- Andrew Woodley, CEO, Oyu Tolgoi LLC -“Oyu Tolgoi: Delivering globally competitive copper

business”

- Susan Cote-Freeman, Program Manager Private Sector Team, Transparency International -

“Introduction to Transparency International’s Business Principles for Countering Bribery”

- Elisabeth Ellis, Partner, Minter Ellison LLP - “Impact on your business of the proposed new Labor

Law”

_________________________________________

Mongolia Reports:

- IMF, “World Economic Outlook, October 2015: Adjusting to Lower Commodity Prices”

- ADB, Financial Systems of Financially Less Developed Asian Economies: Key Features and Reform

Priorities (Sep 2015)

- Hogan Lovells, "Legislative update: 2015 Spring session of the Parliament of Mongolia"

- Oyu Tolgoi, "Scorecard July 2015 - Monitoring Our Performance"

- Sant Maral Foundation, "Survey on Perceptions and Knowledge of Corruption"

- Jim Dwyer, Executive Director, BCM, Rumsfeld Foundation’s, CAMCA Regional Forum, UB, June 20,

2015, “FDI Environment in Mongolia”

- Hogan Lovells, “Law on State Registration of Legal Entities”

_________________________________________

Interviews:

- Mongolian Economy Magazine, November 2015 issue - "In Order to Make the Labor Law More

Effective"

- Mongolia President Ts. Elbegdorj: Charlie Rose Show (PBS/Bloomberg TV-New York)

- BCM Monthly Meeting news coverage on Bloomberg TV, August 24, 2015;

- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Star TV News,

August 20, 2015;

- Jim Dwyer, Executive Director, BCM, Interview re BCM Business Growth Index, on Bloomberg TV

News, August 20, 2015;

- B.Byambasaikhan, CEO, Erdenes Mongol and Chairman, Business Council of Mongolia, INS interview

_________________________________________

Website:

According to Google Analytics report, as of 14 March, the daily web traffic to BCM website was 73

visitors with 115 sessions. 90% were from Mongolia, 2% from United States and 2% from Sweden.

SOCIAL NETWORKS

The Business Council of Mongolia (BCM) has expanded its reach to your favorite social networks.

Keep up to date on the latest business deals in Mongolia and how the climate for investment is

improving each day with BCM.

Add BCM on Facebook at https://www.facebook.com/TheBusinessCouncilOfMongolia to read the

latest announcements and comment on events carried in the BCM NewsWire with the community.

Hear breaking news and announcements as they happen when you follow BCM on Twitter at

https://twitter.com/bcmongolia.

The bulk of the content on BCM’s new LinkedIn page is Mongolian language to better cater to BCM's

Mongolian-speaking audience and members. Please click on the below link to follow us on our new

LinkedIn page.

http://www.linkedin.com/company/business-council-of-mongolia?trk=company_logo.

Social stats: BCM now has 11,668 fans on our Facebook fans page, 1,983 connections on

LinkedIn network, and 2,007 followers on Twitter.

According to Google Analytics report, as of 14 March, the daily web traffic to BCM website was 73

visitors with 115 sessions. 90% were from Mongolia, 2% from United States and 2% from Sweden.

_________________________________________

MEMBERS’ VACANCIES

- Mercy Corps Mongolia is hiring a Finance officer: Deadline for application is 22 March 2016. For

more information, contact: jobs@mercycorps.org

- World Vision is hiring an Advocacy Officer: Deadline for application is 5:00pm, 23 March 2016.

For more information, contact70155323 (Ext: 124, 125 & 128)

- Atlas Copco Mongolia LLC is hiring a Sales Engineer. For more information: contact at +976

70129294 or send your CV to e-mail address anders.berglund@mn.atlascopco.com

- World Vision is hiring an Advocacy Officer: Deadline for application is 5:00pm, 23 March 2016.

For more information, contact70155323 (Ext: 124, 125 & 128)

For more information about vacancies, click here. To post your vacancy on BCM website, contact

Dolgorsuren at dolgorsuren@bcmongolia.org.

_________________________________________

BCM’s column in the Mongolian Economy Magazine began in Edition 12, May 2015. The first column

featured an interview with Mr. I. Ser-Od: "Times like these demand that we be more creative and

proactive." The second column was published in Edition 15, July 2015: “Entrepreneurs Set Up Study

Tours of Businesses.” The third column was in the edition, September 2015: "Wagner Asia

Technology Innovations."

Elisabeth Ellis, a partner at Minter Ellison LLP was featured in November 2015 edition in the article

titled "In Order to Make the Labor Law More Effective."

_________________________________________

BCM now has a profile page at VIP76, one of the major online information networks in Mongolia.

From January 2013 to February 2016 we posted a total of 110 news items related to BCM activities,

economic and business related updates.

_________________________________________

The "Photo Gallery" in Knowledge Hub section of the new BCM website has the most recent photos

from BCM events.

As a BCM member you can now visit the official BCM website at http://bcmongolia.org to enjoy

newly introduced interactive features such as: edit your organization's profile information; post

vacancy notices from your organization; post cooperation proposals with other members or deals

you would like to offer to other BCM members; and start a forum and ask questions directly on the

web platform. Of course you can also visit our website for news information, interviews, event

photos, videos and announcements regarding BCM.

ECONOMIC INDICATORS

INFLATION

Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]

Year 2007 *15.1% [source: NSOM]

Year 2008 *22.1% [source: NSOM]

Year 2009 *4.2% [source: NSOM]

Year 2010 *13.0% [source: NSOM]

Year 2011 *10.2% [source: NSOM]

Year 2012 *14.0% [source: NSOM]

Year 2013 *12.5% [source: NSOM]

Year 2014 *11.0% [source: NSOM]

February 29, 2016 *2.0% [source: NSOM]

*Year-over-year (y-o-y), nationwide

Note: 1.6% y-o-y, 3.5% Core - Ulaanbaatar City, February 29, 2016

CENTRAL BANK POLICY LOAN RATE

December 31, 2008 9.75% [source: IMF]

March 11, 2009 14.00% [source: IMF]

May 12, 2009 12.75% [source: IMF]

June 12, 2009 11.50% [source: IMF]

September 30, 2009 10.00% [source: IMF]

May 12, 2010 11.00% [source: IMF]

April 28, 2011 11.50% [source: IMF]

August 25, 2011 11.75% [source: IMF]

October 25, 2011 12.25% [source: IMF]

March 19, 2012 12.75% [source: Mongol Bank]

April 18, 2012 13.25% [source: Mongol Bank]

January 25, 2013 12.50% [source: Mongol Bank]

April 8, 2013 11.50% [source: Mongol Bank]

June 25, 2013 10.50% [source: Mongol Bank]

July 30, 2014 12.00% {source: Mongol Bank}

January 14, 2015 13.00% {source: Mongol Bank}

January 14, 2016 12.00% [source: Mongol Bank]

CURRENCY RATES – 17 March 2016

Currency

US dollar USD 2,046.21

Euro EUR 2,303.11

Japanese yen JPY 18.31

British pound GBP 2,916.87

Hong Kong dollar HKD 263.75

Chinese Yuan CNY 314.98

Russian Ruble RUB 29.80

South Korean won KRW 1.75