Ulaanbaatar Investment 2015 Focuses on Partnership and Development of Ub

By Ch.KHALIUN

On Wednesday, the Ulaanbaatar Investment 2015 business forum took place under the slogan "Partnership for Development", focusing on state and private sector partnership and development of the capital city.

The forum was jointly organized by the Ulaanbaatar Chamber of Commerce (UCC) and City Governor's Office. State and business representatives discussed the city's tourism center, and cooperation in making UB more safe, healthy, and green. It was attended by parliament and government members, representatives from the City Council, international organizations, and entrepreneurs.

As of today, Ulaanbaatar generates 63 percent of the nation's GDP (13.3 billion MNT), and 1.3 million people live in the city. Estimates suggest that the population of UB will continue to grow, reaching 1.5 million by 2020, and 1.7 million by 2030.

With growth, the city's energy consumption will increase from nearly 1.5 million kWh to 5.8 million kWh by 2030. UB serves as the main business center of Mongolia, but there are many unresolved issues such as air pollution, poor infrastructure, traffic congestion, and population centralization.

The forum participants said that by improving cooperation between the state and private sector pleasant conditions for living, doing business, and drawing investment will be created in UB. In 2013, Parliament approved a general plan for UB development through 2020, and a document for development trends through 2030. Approximately 25.4 trillion MNT is necessary for developing the city in accordance with the plan.

UB Mayor E.Bat-Uul said, "If we don't cooperate with the private sector, we won't be able to implement objectives of the plan through 2030. Mutual trust is vital in cooperating with investors." During the forum, the Mayor proposed transferring urban development initiatives to the private sector.

Many forum attendees agreed that the problem with projects implemented by state and private sector partnership (SPSP) is that equality doesn't work. The state doesn't bear any monetary risk, while the private sector bears all the risk, including repayment of loan interest. From now on, the sides will have the same responsibilities in accordance with agreements.

An international court of arbitration will be established in UB to solve agreement disputes, and a corporation dedicated to Ulaanbaatar's development will be created to oversee SPSPs. Representatives from the private sector will have a dominant position on the...