Ravjikh Erdeneburen, State Secretary, Ministry of Construction and Urban Development, discusses the government’s efforts to upgrade Mongolia’s infrastructure.
European Times: What are your ministry’s main goals?
Ravjikh Erdeneburen: The Ministry of Construction and Urban Development (MCUD) is working to achieve four major goals. First one is to reform the legal framework. We are dismantling old concept inherited from the former socialist system, which declared that the state shall ensure all safety and security of the construction sector. A new framework is to be based on an insurance system, where the safety and security shall be ensured by the private sector itself.
Second goal aims at developing mortgage system and to facilitate housing demand in order to keep a balance between the supply and demand sides.
Thirdly, we are working to develop, get approved, and implement plans, which are to be in terms of planning perspective modern and in compliance with international standard.
The fourth and last goal is to develop infrastructure suitable to the above plans.
European Times: Why should foreign investors and companies get involved in Mongolia’s construction and infrastructure development?
Ravjikh Erdeneburen: We welcome foreign companies that are specialised in advanced technologies, construction-materials supply and urban planning to partner with us in developing Mongolia’s infrastructure. We offer loans with favourable interest rates for companies which import construction materials, and we are also providing loans to property developers. We recently passed a law to offer mortgages at 8% for 20 years to encourage people to buy homes. We are also creating a government fund to finance 30% of a mortgage for young buyers. We are working day and night to eliminate air pollution in Ulan Bator and to develop high-quality residential properties in the suburbs by 2016.
European Times: What else is the government doing to attract international investors in Mongolia’s construction and infrastructure projects?
Ravjikh Erdeneburen: We are streamlining licensing procedures for investment projects and we are working intensively to fight corruption and cut down on bureaucracy. We hope that the business climate will continue to improve every day. We are already cooperating with foreign companies specialised in urban planning and we welcome property developers. Many of Mongolia’s private companies are growing rapidly and already partnering with strong foreign companies.
European Times: What is your personal message to investors?
Ravjikh Erdeneburen: Mongolia has prospered through the mining boom and offers a democratic government, skilled human resources, and a commitment to fighting corruption and ensuring sustainable growth. We have dynamic young leaders and we are eager to partner with investors and companies all over the world as we build our country’s future.
I wish all the best to European Times and its readers.
