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Mongolia Daily: Central bank holds at 12%, veto blocks Gold‑3 mining, and odd–even ends

MongoliaDaily

Politics

2026 Budget Draft Pledges Higher Social Spending, VAT Refund Expansion, and Energy Investment as Parliament Opens Debate

Published: 2025-09-16

Parliament opened debate on the 2026 budget, which targets 5.7% GDP growth, inflation capped at 7%, exports of $16.7 billion, and a deficit of MNT 1.38 trillion with revenue at MNT 31.6 trillion and expenditure at MNT 33.0 trillion. The draft reallocates toward health and education—boosting health investment 5.5x and doubling education capital—while planning 117 schools, 73 kindergartens, and 32 dormitories in Ulaanbaatar. Average pensions would rise to MNT 901,000, indexed to inflation. VAT refunds for consumers increase from 2% to 5% in 2026, with full refunds on up to MNT 500,000 monthly spending in 2027, framed as progressive relief for lower incomes. Opposition sought a recess on the bill, and fiscal space remains tight as tax changes roll out in stages.

“There is no state money; there is only taxpayers’ money.” - Prime Minister G. Zandanshatar (gogo.mn)

“Raising pensions to MNT 1.5 million is not possible. We will only increase them in line with inflation.” - Finance Minister B. Javkhlan (itoim.mn)

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Audit Flags Planning Risks as Parliament Starts 2026 Budget Review; New Rules Allow Return to Cabinet

Published: 2025-09-16

Parliament has opened debate on the 2026 state budget alongside amendments to the medium-term fiscal framework (2027–2028). The State Auditor’s assessment warns that submitting framework changes with the budget weakens fiscal discipline and undermines medium-term planning. It also cites weak coordination among central agencies, misaligned sector data, and insufficient linkage between operating programs and national development policies—risks that could lower budget efficiency and hinder legal compliance. The audit notes no clear contingency for revenue shortfalls in 2026. While the proposal is said to meet Fiscal Stability Law requirements and align with Vision-2050 and the government program, a recent procedural change empowers lawmakers to return the budget to the Cabinet after second reading if it fails key conformity tests, with a three-day deadline to resubmit. Political tensions within the ruling party and the Speaker’s criticism raise the likelihood of a return, though the budget must be passed by November 15 to avoid parliamentary dissolution.

“If a majority finds the draft inconsistent with the Fiscal and related laws and annual development plan at second reading, it will be returned to the Government within three working days for resubmission in line with the law.” - Parliament’s session procedure, cited by itoim.mn

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Ruling Party Sets Leadership Meeting as Opposition Seeks Budget Clarifications

Published: 2025-09-16

The ruling MPP will convene its Executive Council this week to set dates for a party Congress after Speaker D. Amarbayasgalan declared his candidacy for party chair, positioning him against current chair and MP L. Oyun-Erdene. The party’s parliamentary caucus also reviewed amendments to the 2026 budget framework and 2027–2028 projections, with Finance Minister B. Javkhlan briefing members, and discussed the President’s partial veto on measures under the “Gold-3” initiative. Meanwhile, the Democratic Party caucus halted plenary deliberations to seek briefings from Finance Minister Javkhlan and Economy and Development Minister N. Uchral on the 2026 state budget and related funds, forming a working group led by MP B. Tuvshin.

“A one-year budget must align with medium-term planning. Discussing the budget without approving the 2026–2030 framework is procedurally wrong.” - O. Tsogtgerel, DP caucus leader (eagle.mn)

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Minister Criticizes Oyu Tolgoi Board Members, Orders Formal Reporting and Coordination Plan

Published: 2025-09-16

Industry and Minerals Minister G. Damdinyam met three board members of Oyu Tolgoi LLC representing Erdenes Oyu Tolgoi to review their performance in Mongolia’s largest mining project. He faulted the board members for operating non-transparently and in a disorganized manner, instructing them to submit an official activity report to the government and propose mechanisms to consolidate information and collaborate with state bodies. The ministry emphasized that Mongolia’s side must act as a unified team and improve flows between the board and the cabinet—an issue often cited in governance of strategic deposits. The three board members are former minister N. Tserenbat, E. Bayasgalan, and E. Mendsaikhan.

“Board members representing the public in our largest subsurface project are working closed, poorly organized, and inadequately; submit an official report and a plan to strengthen joint coordination and information-sharing with the government.” - Minister G. Damdinyam (gogo.mn)

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2026 Budget Plan Delays Public Buildings and Cuts Subsidies Outside Tourism and Agriculture

Published: 2025-09-16

Mongolia’s Finance Ministry signaled continued austerity in next year’s budget, delaying new construction for cultural centers, governor’s offices, intra-town roads, office buildings, resorts and complexes, senior/youth/children development centers, and cinemas, alongside other low-return projects. The consolidation aims to save MNT 615 billion. Subsidies and concessions will be withheld from all sectors except tourism and agriculture, reflecting a targeted support strategy for foreign currency earnings and rural livelihoods. The government will also scale back projects funded by external loans and grants, cancel one-off events, and reduce payments to international organizations. Fiscal parameters set total revenue at MNT 31.6 trillion and current expenditures plus net lending at MNT 24.1 trillion. The measures point to tighter capital spending, fewer new public facilities, and greater scrutiny of externally financed activities in 2026.

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Court Finds 19 Defendants Guilty in Development Bank Case; 23 Acquitted, Asset Recoveries Ordered

Published: 2025-09-16

A district criminal court in Ulaanbaatar issued findings of guilt for 19 individuals and three companies tied to the Development Bank of Mongolia lending scandal, while acquitting 23 others, including former Prime Minister N. Altankhuyag and current central bank governor B. Lkhagvasuren. Former Economic Development Minister N. Batbayar, ex-DBM board chair B. Shinebaatar, and former CEO N. Munkhbat were deemed to have abused office to grant advantages to firms including Beren and Monroad. The court also found elements of money laundering and document forgery involving several company executives and entities such as NVTs, “Injir,” and “Ganhuder Ord.” Judges ordered significant recoveries: MNT 178 billion from Beren Group (per a civil ruling), MNT 74.8 billion from NVTs, and additional sums from multiple firms, with funds to be paid to DBM and Erdenet. Sentencing arguments propose 3–7 years’ imprisonment and 4–8-year bans from public service; the hearing was ongoing at press time.

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Published: 2025-09-16

“We should approach this issue seriously… A $7.5 billion discount on 250 million tonnes—about $30 per tonne—requires careful scrutiny.” - O. Tsogtgerel, Democratic Party chair and MP (urug.mn)

Democratic Party chair and MP O. Tsogtgerel called for rigorous review of the newly approved international agreement covering the Gants Mod–Gashuunsukhait rail border connection tied to the Tavantolgoi corridor. He said the deal envisages increasing annual rail capacity by 20 million tonnes for 12 years to move 250 million tonnes of coal, with significant price concessions reportedly totaling $7.5 billion. Tsogtgerel noted his party supports low-cost free trade with neighbors but stressed validation of the calculation methodology used for the concessions, referencing past fixed-price arrangements such as the 2011 Chalco deal and formulas discussed with China Energy across four border ports. He cautioned that the concession magnitude surpasses the initial $6 billion Oyu Tolgoi agreement, warranting diligence before implementation.

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Lawmaker Proposes Study to Reinstate Death Penalty for Heinous Crimes, Citing Public Safety and Judicial Reform Needs

Published: 2025-09-16

MP M. Narantuya (Nara) urged the Speaker to form a working group to examine conditions for reinstating the death penalty, specifically for child sexual abuse and particularly cruel murders. She criticized parliamentary delays tied to an opposition initiative and faulted leaders for not addressing a rise in severe crimes during budget debates, arguing public safety should take precedence. She also called for stronger judicial independence and anti-corruption safeguards to ensure fair adjudication. Her remarks reflect growing concern over repeat violent offenses in a country of 3.5 million and debate over punitive policy versus rehabilitation.

“We should consider restoring capital punishment for those who commit sexual violence against minors and for especially cruel murders.” - MP M. Narantuya (itoim.mn)

“Instead of taxpayers funding lifelong incarceration of heinous offenders, we must review imposing the death penalty to protect Mongolian lives.” - MP M. Narantuya (itoim.mn)

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Democrats Seek City Land-Grant Probe; Ruling Party Says No Coalition Talks

Published: 2025-09-16

The Democratic Party (DP) caucus in Parliament will propose a temporary committee to audit and enumerate land ownership and possession approvals in Ulaanbaatar since 1992, citing corruption-linked land allocations as core drivers of congestion and air pollution. With 37 DP MPs signing on, the move could trigger a parliamentary oversight hearing, which requires support from at least 32 lawmakers. The DP also formed a working group on the 2025 state budget and plans to table an Economic Freedom bill to support citizens and businesses. DP leader O. Tsogtgerel said the caucus will elect a new floor leader from among its members. He also dismissed reports of coalition talks with the ruling MPP:

“The MPP’s central body decided not to cooperate with the DP, and that decision remains in force. There have been no talks to join the government.” - O. Tsogtgerel (unuudur.mn)

Parliament’s first revamped “information hour” as an inquiry session is slated for September 26, with topics under discussion.

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Economy

Central Bank Holds Policy Rate at 12% as Inflation Risks Persist and Growth Eases Slightly

Published: 2025-09-16

Mongolbank’s Monetary Policy Committee kept the policy rate at 12% following its Sept. 15–16 meeting, balancing elevated inflation with a softening growth outlook. Annual inflation reached 8.8% in August (Ulaanbaatar: 9.8%), driven by higher prices for meat, vegetables, and flour, as well as earlier utility tariff adjustments. The bank trimmed its 2025 growth forecast to 5.8% from 6% amid weaker-than-expected mining output, though agriculture has underpinned first-half GDP growth of 5.6%. Officials flagged risks from funding large domestic projects, coal price volatility, exchange rate pressures, and weather-related food supply shocks. The banking system’s loan book stands at MNT 44 trillion, with consumer lending cooling and business credit expanding. Mortgage market reforms are planned, including a proposed mortgage bank and updated rules by 2026; about MNT 800 billion in 6% mortgages have been issued to 6,200 borrowers so far in 2025.

“The gap between the 12% policy rate and 8.8% inflation suggests room to cut if inflation stays stable.” - Governor B. Lkhagvasuren (ikon.mn)

“Government-led projects, their financing, export earnings and the exchange rate outlook could stoke inflation.” - Mongolbank statement (ikon.mn)

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Finance Minister Touts Mega Projects as Key to 2026 Deficit-Free Budget

Published: 2025-09-16

Finance Minister B. Javkhlan defended the inclusion of MNT 1.3 trillion in loan-financed spending in next year’s budget, saying it is tied to major infrastructure projects that will inject foreign-currency financing directly and avoid pressure on the state treasury or balance of payments. He listed priority projects: the oil refinery, Erdeneburen hydropower plant, Ulaanbaatar wastewater treatment plant, Millennium Challenge’s water supply initiative, 17 hospitals, and thermal power plants in 10 provinces. Javkhlan argued these projects underpin 5.7% of economic activity next year and enable a deficit-free 2026 budget.

“The biggest key to boosting the economy is mega projects… These loans come with their own external funding and won’t burden the treasury or balance of payments.” - Finance Minister B. Javkhlan (urug.mn)

He added that a surplus would be “easy” if projects were postponed but questioned rolling them back given their economic impact.

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Inbound Tourism Reaches 617,000 Year-to-Date with Calls to Upgrade Infrastructure and Winter Offerings

Published: 2025-09-16

Mongolia recorded 600,000 tourist arrivals in the first eight months of 2025, with an additional 16,000 visitors in early September bringing the total to 617,000, according to the National Statistics Office. The figure is approaching last year’s October tally of 667,000 and aligns with the government’s push to reach 1 million visitors. Authorities and private operators have intensified international promotions, cultural events, and influencer-led campaigns to raise visibility. Researchers and industry observers continue to stress that marketing alone is insufficient, urging investment in infrastructure and service quality to address gaps that deter travelers. They also recommend expanding winter tourism, increasing international flight frequencies and routes, and streamlining border and customs procedures to sustain growth and diversify seasonality.

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Impact Investment Fund ‘ReCycle’ Backs Mongolia’s Waste-to-Value Startups

Published: 2025-09-16

Rio Tinto Mongolia and Invescore Financial Group launched the ReCycle impact investment fund in 2023 to scale businesses that turn waste into economic value while delivering environmental benefits. The fund addresses rising waste volumes—3.5 million tons annually—with most landfilled or incinerated and only about 4% recycled despite 70+ facilities. ReCycle invests via bonds and equity and engages in management to help firms reach the next growth stage and attract additional capital, aligning with global impact investing trends tracked by GIIN. Current portfolio firms include Airee (eco air purifiers), Elektrokhem Mongol (lead-acid battery recycling), Monplast Industry (plastic recycling), and Bilguun Automart (hybrid battery recharging). The fund sets clear criteria: operate in waste management, show operational and financial track record, demonstrate collaborative intent, and specify use of proceeds.

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Government Team Reviews Meat Export Capacity and Irrigation Project in Bayan-Ölgii

Published: 2025-09-16

A Ministry of Food, Agriculture and Light Industry task force inspected meat processing operations and an ADB-financed irrigation build in Bayan-Ölgii, where drought has strained pastures and raised winter risk. Provincial authorities plan to channel over 800,000 head of livestock into market circulation to ease pressure on grazing and support supply. Seven plants with a combined daily capacity of 93.7 tons are operating; five have exported 381.6 tons to date, with contracts signed to ship sheep, goat, cattle, and horse meat to six countries. Azat LLC reported capacity to slaughter 200 large and 800 small ruminants daily and has agreed to export 1,300 tons of sheep and horse meat. The task force also reviewed the new 400-hectare “Ulaan Deliin” irrigation system in Sagsai, where sprinklers and pipelines are installed and pumps are ready, with commissioning planned this year.

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Diplomacy

China Signals Deeper SCO Engagement and Trade Openings as Beijing Courts Ulaanbaatar

Published: 2025-09-16

China is scaling up its role in the Shanghai Cooperation Organization (SCO), pledging RMB 2 billion in grants this year, a development bank, and new security and economic cooperation centers following the Tianjin summit. Beijing’s envoy in Ulaanbaatar highlighted an agreed 10‑year SCO strategy, WTO-centered trade backing, and plans for cross-border infrastructure and energy projects involving China, Russia, and Mongolia. For Mongolia, five new accords with China target standards, quarantine, and conformity assessment—key to expanding food and agri exports such as honey, dairy, feed, and livestock. The ambassador urged rapid implementation, modernization of production, and resolution of animal-disease listings to unlock market access.

“Regardless of how the international situation changes, China will remain a reliable partner that Mongolia can trust and rely on.” - Xi Jinping, as conveyed by Ambassador Shen Minjuan (gogo.mn)

“We are open to expanding Mongolia’s agricultural exports to China; there are no policy barriers—three priorities are coordination, modernization, and lifting animal-disease status.” - Ambassador Shen Minjuan (ikon.mn)

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China Signals Willingness to Advance “Power of Siberia-2” with Mongolia and Russia; Backs SCO Development Bank and Ongoing Infrastructure Support

Published: 2025-09-16

China’s ambassador to Mongolia, Shen Minruan, said Beijing is ready to negotiate and implement the Power of Siberia‑2 gas pipeline with Mongolia and Russia based on mutual benefit and feasibility studies. She outlined China’s existing support: RMB 4 billion in aid and $1.8 billion in concessional loans focused on roads, bridges, energy, and schools, including the Erdeneburen hydropower plant. Beijing also backs the newly approved SCO Development Bank, first proposed by China in 2010, to provide regionally tailored financing. Progress under the renewed China‑Mongolia‑Russia Economic Corridor includes border ports, cross-border transport, and standards alignment, with calls to prioritize midline rail upgrades and energy links. On Gashuunsukhait–Gantsmod rail, she noted prior high‑level agreement and Mongolian parliamentary approval exceeding 90%.

“We are ready to advance the ‘Power of Siberia‑2’ project through mutual consultations with Mongolia and Russia, adhering to shared-benefit principles.” - Shen Minruan, Chinese Ambassador to Mongolia (itoim.mn)

“The SCO Development Bank’s establishment is a historic step that will create an independent, productive platform for economic cooperation among member states.” - Shen Minruan, Chinese Ambassador to Mongolia (itoim.mn)

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Infrastructure

Odd–Even Traffic Restriction Ends; Ulaanbaatar Reverts to Plate-Ending Limits from September 17

Published: 2025-09-16

Ulaanbaatar will lift the citywide odd–even vehicle restriction at 20:00 on September 16 and reinstate the long-standing weekday plate-ending limits from Wednesday, September 17. From 08:00–20:00, cars whose plates end in 1/6 (Mon), 2/7 (Tue), 3/8 (Wed), 4/9 (Thu), and 5/0 (Fri) are barred within the central corridors spanning 32yn Toirgo to 120 Myangat and Sapporo Junction to Chuluun Ovoo. The temporary odd–even scheme, in place since August 27 to ease back-to-school congestion, will not be extended, according to the city’s traffic center. Officials also flagged broader congestion measures under consideration, including restricting registration of cars older than 10 years, expanding road networks, and developing mass transit such as metro and tram lines.

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Ulaanbadrakh 300 MW Coal Power Plant Feasibility Approved, Environmental Review Ongoing

Published: 2025-09-16

Mongolia has approved the technical and economic feasibility study for a 300 MW coal-fired power plant at the Baruun Dalai brown coal deposit in Ulaanbadrakh, Dornogovi. The project aims to supply 1.46–1.89 billion kWh annually to the Central Energy System, strengthening energy security and reducing import dependence. Full project studies are 65% complete, while the detailed environmental impact assessment stands at 40%. “Khujirt Serten” LLC has been contracted for detailed hydrogeological exploration and sampling. A linked open-pit mine plan for the Baruun Dalai deposit has also completed feasibility, receiving support from Erdenes Mongol’s Technical Council, with preparation underway to present it to the “Mineral Resources Professional Council.” If advanced to construction, the plant would provide a stable baseload source for grid reliability and support industrial growth in the southeast corridor.

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Land Clearance Disputes Stall Two Ulaanbaatar Underpasses Serving Key Rail Crossings

Published: 2025-09-16

Construction of two major underpasses at the Hermes Center rail crossing and the Geological Central Laboratory junction has stalled over unresolved land acquisition. City Hall says one firm at the Geological Laboratory site has now agreed to valuation for fence removal, while negotiations with five businesses at the Hermes alignment remain unsettled. The Hermes underpass is designed at 3.5 meters with 800 meters of road to handle 31,000 vehicles daily; the Geological Laboratory underpass is planned at 4.5 meters, four lanes, and 1.4 km to carry 27,500 vehicles. Both are part of four rail-grade separation projects financed by a $30 million concessional EXIM Bank of China loan; Tavan Shar opened in September 2024, while Naran Tuul has not started.

“We still need to reach agreement with five companies… From here, we will proceed under the General Administrative Law if necessary.” - Mayor Kh. Nyambaatar (gogo.mn)

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Ulaanbaatar Expands Briquette Supply and Digitizes Sales as Heating Season Begins

Published: 2025-09-16

Ulaanbaatar resumed sales of coal briquettes across 274 contracted points, distributing 1,370 tons citywide with a target of 400 outlets this winter. Prices are set at MNT 3,750 per sack for improved briquettes, with semi-coke briquettes to sell at MNT 5,000 per sack starting next month. Authorities plan to supply 43,000 tons of middlings briquettes and 306,000 tons of semi-coke to avoid shortages, with inventory held at 20 city warehouses. Sales are shifting to the HOTULA app for inventory visibility and purchase tracking; the legacy “Sain” card system will be phased out by December 15, while citizens can alternatively use their national ID QR.

“This year we plan to meet demand with 43,000 tons of middlings briquettes and 306,000 tons of semi-coke, and all sales points have sufficient stock.” - D. Munkhbaatar, Head of Ulaanbaatar Air and Environmental Pollution Reduction Agency (gogo.mn)

“Residents can download the HOTULA app to create a virtual card, view the 400 sales points’ locations, hours, and stock, and track their own usage and balance.” - Ts. Altan-Ochir, CEO, Digital Infosec LLC (unuudur.mn)

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Russia Advances ‘Power of Siberia‑2’ Pipeline MoU, Pushing China Route via Mongolia; Cities Could Gain Gas Access

Published: 2025-09-16

Russia’s ambassador to Mongolia, A.N. Evsikov, said Gazprom and China’s CNPC have signed a memorandum in Beijing to develop the Power of Siberia‑2 gas pipeline and its Mongolia segment, Soyuz‑Vostok. The route would run from Russia’s Yamal fields through Siberia and Buryatia to Mongolia, then onward to China, potentially using the Ulaanbaatar rail corridor. Evsikov underscored domestic benefits, noting it could address Ulaanbaatar’s severe air pollution and supply gas to major cities like Darkhan. Analysts cited by Moscow media say the project accelerates Russia’s pivot away from Europe while helping China diversify from LNG and maritime risk. Timelines remain uncertain, with first commercial flows possible around 2030 but slipping to mid‑2030s due to financing, sanctions‑hit equipment supply, environmental permitting, and Mongolia’s transit arrangements.

“Mongolia’s participation as a consumer could fundamentally resolve Ulaanbaatar’s ecological crisis and enable gas supply to major cities such as Darkhan.” - A.N. Evsikov, Russian Ambassador to Mongolia (gogo.mn)

“The first commercial gas could flow by 2030, but construction, infrastructure coordination—including transit via Mongolia—and permitting may delay it.” - Fyodor Sidorov, financial analyst (gogo.mn)

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Beijing Envoy Expects Gashuunsukhait–Gants Mod Cross-Border Railway to Stay on Schedule

Published: 2025-09-16

“Chinese companies have the capacity and experience to deliver this project successfully. We hope the Mongolian side will provide favorable policy conditions and necessary guarantees so the project is completed on time.” - Shen Minjuan, Chinese Ambassador to Mongolia (ikon.mn)

China’s ambassador to Mongolia said construction of the Gashuunsukhait–Gants Mod cross-border rail link is proceeding to plan after a June contract signing in Ulaanbaatar, following a 2023 intergovernmental agreement to jointly build the border bridge. The line will be the second rail crossing between the two countries after Zamiin-Uud–Ereen, coming roughly 70 years later. Shen framed the project as aligned with Mongolia’s national programs on port, energy, and industrial revitalization, as well as new regional development policies, and as part of a broader agenda to expand trade, boost coal export capacity, and deepen infrastructure connectivity. She emphasized mutual benefit and respect as the basis for completing this large-scale bilateral project.

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Ulaanbaatar to Complete Residential Heating Activation Today

Published: 2025-09-16

Ulaanbaatar’s district heating utility said citywide residential heating will be fully activated today, aligning with the annual September 15 start date. Supply is being fed from both western and eastern heat sources, with potential delays for some buildings due to ongoing pipeline maintenance. The move marks the formal start of the heating season, critical for households and businesses as temperatures fall. The company indicated staggered restoration by network segment and acknowledged localized disruptions where repairs continue. International residents and firms should anticipate uneven heat availability in pockets of the city until maintenance concludes, but broad coverage is expected by end of day.

“We begin household heating every year on September 15, and this year is no exception. Citywide heating will be completed today, though some apartments may experience delays due to pipeline maintenance in their area.” - Ulaanbaatar District Heating Network (eagle.mn)

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New Turbine Planned at CHP-3 to Stabilize Ulaanbaatar Heating Supply This Winter

Published: 2025-09-16

Mongolia’s energy authorities outlined steps to reduce heating risk in Ulaanbaatar by repairing and replacing a failed 50 MW turbine-generator at Thermal Power Plant No. 3 (CHP-3). Acting State Secretary at the Ministry of Energy B. Eren-Ölzii said full financing has been secured in the 2025 budget revision to procure and install new equipment, with a government-appointed plenipotentiary overseeing contractor selection. The ministry is also adding auxiliary heating equipment to prevent shortages linked to the turbine failure, aiming to avoid last winter’s disruptions and maintain normal supply. He framed the moves within broader sector reforms, citing the need to update the 2001 Energy Law and create competition in electricity and heat sales to enable market-based pricing.

“We need to update our legal framework and move to the next level of market relations. Only with competition will prices be set correctly based on market principles.” - B. Eren-Ölzii, Acting State Secretary, Ministry of Energy (gogo.mn)

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Society

Senior Citizens’ Association Demands Pension Floor Raised to MNT 1.5 Million, Broader Elder Care Reforms

Published: 2025-09-16

Mongolia’s Senior Citizens’ Association has formally petitioned the President, Prime Minister, and Speaker to eliminate pension disparities and lift the minimum pension to MNT 1.5 million, citing rising living costs and inadequate social services. The group said a nationwide consultation found the Elderly Persons Law is not fully implemented, with insufficient funding for measures it mandates, while health, nursing, and care services remain limited and medicines costly and inconsistent in quality. The proposal seeks a guaranteed income baseline, recalculating pensions for mothers by crediting each child as 1.5 years of service on an equal basis, and accelerating a rental housing program from 2026 with quotas by province, the capital, and districts. The association wants Parliament to debate a dedicated policy document during the autumn session.

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Police Send Fraud Case to Court After Alleged 330 Million₮ Land Cruiser Scam

Published: 2025-09-16

Ulaanbaatar police have referred a major fraud case to prosecutors for court submission following an investigation in Khan-Uul District. Authorities allege a suspect identified as “M” posed as an employee of a state special agency and deceived a victim by offering decommissioned Toyota Land Cruiser 200 vehicles at discounted prices. Investigators say the scheme extracted 330 million MNT, constituting “large-scale” damage under Mongolia’s Criminal Code. The case has been advanced under Article 17.3, Part 2 (fraud causing significant loss), with police completing the inquiry and proposing indictment. No trial date or defense response was disclosed. The incident underscores recurring scams leveraging purported access to government assets, particularly involving vehicles thought to be written off by state bodies, and signals continued enforcement attention on white-collar fraud in Ulaanbaatar.

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Environment

Parliamentary Budget Committee Backs Presidential Veto to Shield Protected Areas from “Gold-3” Mining Plan

Published: 2025-09-16

Mongolia’s Parliamentary Budget Committee voted to accept President U. Khurelsukh’s partial veto of the “Gold‑3” program, curbing provisions that would have enabled mining in protected zones and river basins. The 2025 resolution aimed to lift gold output and bolster foreign reserves, including by revisiting 2020 decisions that expanded special protected areas. The President’s Office argued that altering those protections would undermine ecological security and potentially contravene constitutional procedures around presidential veto powers. Officials stressed existing capacity: over 80 primary gold deposits are identified, yet only 14 are being mined, with an estimated 230 tons in reserves that could be mobilized without entering protected lands.

“We must not allow gold extraction in special protected areas, strictly protected zones, river basins, or sacred state sites.” - Presidential Chief of Staff A. Uilstuguldur (gogo.mn)

Lawmakers requested environmental and economic impact assessments as the government pursues legal reforms to support responsible mining and strengthen customs controls on illegal gold exports.

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Frost Warnings Extend Across Crop Regions as Nighttime Lows Hit –5°C Near Ulaanbaatar

Published: 2025-09-16

Mongolia’s crop-growing zones face another frost night on Sept 16–17, with surface temperatures expected below 0°C, risking damage to exposed potatoes and vegetables. The alert follows a sharp cold snap the previous night when Bulgan, Selenge, Orkhon, Darkhan, Tuv, Khentii and areas around Ulaanbaatar recorded surface lows below –5°C—classified as a severe weather event—while Dornod and Sukhbaatar reached 0 to –4°C. Forecasts indicate clear, dry conditions and light winds, with Ulaanbaatar ranging from around 0°C overnight (–3 to –5°C in Yaargmach-Songino) to 15–17°C daytime. Broader national guidance signals a brief warm-up during the day, then rain and mountain wet snow from Sept 20–21 in western and central areas, alongside stronger winds in Altai. Agricultural operators should protect late-harvest crops and plan logistics around potential frost and upcoming precipitation shifts.

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Uvs Prepares for Harsh Winter After Drought Wipes Out Most Crops

Published: 2025-09-16

A government task team from the Ministry of Food, Agriculture and Light Industry reviewed Uvs Province’s winter-readiness as local authorities warned of difficult conditions following a severe summer drought. The province expects 2.7 million head of livestock to winter and spring in the area, but low rainfall and poor pasture growth heighten risk for herders. Although 23,100 hectares were sown, most of the crop was lost to drought, tightening feed supplies. Under national directives, Uvs must stockpile 655 tons of hay, 66 tons of concentrate, and 0.95 tons of mineral feed; current reserves stand at 160 tons of hay and 50 tons of feed. Provincial officials requested permission to use protected areas and the border strip for wintering and called for support to establish flour and feed mills to secure western region food supply and stabilize livestock production.

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Irrigation Systems Upgraded in Five Provinces as Meat Exports Expand from Bayan-Ölgii

Published: 2025-09-16

Mongolia’s “Vegetable Production and Irrigated Agriculture” project (2020–2026) has refurbished 11 irrigation systems across Khovd, Govi-Altai, Zavkhan, Bayan-Ölgii, and Tuv, enabling irrigated cultivation on more than 3,000 hectares for vegetables, fruits, grains, and fodder. Over 3,500 households have received technical support. In Bayan-Ölgii’s Sagsai soum, a new Ulaan Deli irrigation setup—featuring a 450-meter sprinkler and pipelines—awaits pump installation, with commissioning due this year. An agriculture ministry delegation reviewed livestock, feed, and irrigation facilities as the drought-hit province anticipates a hard winter and plans to channel over 800,000 head of livestock into markets. Seven meat plants can process 93.7 tons daily, with contracts to export beef, mutton, goat, and horsemeat to six countries. Five plants have already shipped 381.6 tons.

“Our plant has contracted to export 1,300 tons of sheep and horsemeat, with capacity to slaughter 200 cattle and 800 small stock daily and process multiple product lines.” - Kh. Berdimurat, Director, Azat LLC (montsame.mn)

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Semi‑coke Fuel Packs to Carry Ignition Instructions as Distribution Scales Up in Ulaanbaatar

Published: 2025-09-16

Mongolia’s National Committee for Air Pollution Reduction visited Tavan Tolgoi Tulsh’s eastern plant to review preparations for the heating season, with plans to package and distribute 300,000 tons of imported semi‑coke fuel alongside domestically produced “middling” briquettes. The plant, located in Sergelen, is producing 600–700 tons daily and has built a 38,000‑ton stockpile, while expanding packaging lines to handle semi‑coke fuel in 25‑kg, combustible paper bags. Authorities will use the HOTULA app to monitor supply and simplify consumer access, and are urging tighter coordination with customer service centers and wider use of carbon monoxide detectors. In a bid to improve safe usage, officials want lighting instructions printed directly on the bags, not just in brochures or TV spots.

“Printing ignition instructions on the fuel bags will reach every user more effectively than brochures or TV advisories.” - S. Davaasuren, Head of the Working Office, National Committee for Air Pollution Reduction (gogo.mn)

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Innovation

Energy Reform Study Flags Data Gaps as ADB Prepares Technical Assistance

Published: 2025-09-16

Asian Development Bank-backed consultants presented midterm findings on Mongolia’s power sector reform, highlighting fragmented planning, unreliable data, and lack of data-driven decision-making. The review covers market strengths and weaknesses, international benchmarks, tariff methodology, and transmission/distribution operations. Lawmaker M. Enkhtsetseg urged a phased shift to a competitive electricity market—starting with generation competition, then retail market entry, and eventually full competition—alongside consolidation of Mongolia’s roughly 20 distribution firms, removal of duplicative dispatch centers, and partial privatization of state-owned enterprises. ADB plans technical assistance from March 2025, including cost-reflective tariff and production modeling, and a strategic and operational roadmap through November 25, 2025. The reform agenda prioritizes legal changes, incentive-based, cost-reflective tariffs, better renewable grid access, and stronger regulatory capacity.

“The biggest challenge is the lack of data-driven decision-making, fragmented system planning, and unreliable data; legal reforms are essential to address this.” - Serik Zharkynbayev, ADB Energy Specialist and Project Lead (gogo.mn)

“We need to transition in phases to a competitive electricity market, consolidate distribution companies, eliminate duplicative dispatching, and consider partial privatization of state-owned firms.” - MP M. Enkhtsetseg (gogo.mn)

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Hipay Users Can Pay Across Mainland China by Scanning WeChat Pay QR Codes

Published: 2025-09-16

Hipay has become Tencent’s first official WeChat Pay partner in Mongolia, enabling Hipay app users to scan WeChat Pay (Weixin Pay) QR codes to settle payments across mainland China. The integration covers hotels, restaurants, retail, taxis, and hospitals, allowing transactions either from Hipay e-wallet balances or bank cards linked in the app. WeChat Pay is ubiquitous in China, where QR-based payments dominate everyday commerce. The move builds on Hipay’s 2023 inclusion in Ant Group’s Alipay+ network, which opened instant payments for Mongolian users in China through participating wallets. With WeChat Pay now added, Hipay users should face fewer acceptance gaps while traveling or doing business in China, improving cross-border payment convenience and reducing reliance on cash or card-based point-of-sale systems.

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AI-Driven Public Investment Planning Targeted for 2028 Following Expanded Digital Reforms

Published: 2025-09-16

Mongolia is preparing to automate public investment planning by 2028, using big data and AI to reduce human intervention in budget allocation. The initiative follows rapid digitalization across government services and aims to streamline the Ministry of Finance’s annual vetting of line-ministry project submissions—currently filtered against national programs, regional development plans, and legal requirements. Authorities project a sharp rise in funding for digital transformation and science, from MNT 56 billion in 2024 to MNT 168 billion next year, as endorsed by the Ministry of Finance. The AI-based system is intended to monitor financing flows and could curb political lobbying for constituency funds by standardizing decisions. Implementation will require advanced IT talent and high-performance computing infrastructure to ensure data quality and decision integrity.

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First ISO 37001:2025 Anti-Bribery Training Launched in Ulaanbaatar with APAC Support

Published: 2025-09-16

Ulaanbaatar opened a three-day international training on the updated ISO 37001:2025 Anti-Bribery Management Systems standard on Sept. 16–18, organized by the National Accreditation Center and the Independent Authority Against Corruption with backing from the Asia Pacific Accreditation Cooperation. Delegates from more than 10 countries, including Singapore, the U.S., China, Vietnam, Morocco, Kazakhstan, Malaysia, Nigeria, and Uganda, are attending. The program aims to build organizational controls to detect, prevent, and manage bribery risks and to promote a compliance culture across public and private sectors. Organizers frame the initiative as a regional leadership move that deepens international cooperation and standardization in anti-corruption practices.

“This training is a key step under the ‘One Country–Unified Standard’ program to foster integrity, transparency, and accountable governance. Fighting corruption is not only for law enforcement; it is a management system issue for every organization.” - Deputy Prime Minister S. Amarsaikhan (urug.mn)

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Health

Global ‘Yersinia’ Symposium Convenes in Ulaanbaatar as Plague Risk Spurs Public Health Warnings

Published: 2025-09-16

“Do not hide exposure to plague; failing to report endangers family, friends, and health workers.” - B. Amgalanbayar, Director, National Center for Zoonotic Diseases (ikon.mn)

An international “Yersinia” symposium opened in Ulaanbaatar, bringing researchers from 11–13 countries to review 25 studies on plague and other zoonoses, as Mongolia manages a recent plague cluster in Khuvsgul. Authorities isolated over 100 primary contacts and briefly imposed local restrictions; two patients remain under treatment and one death was reported, with one probable human-to-human transmission. Health officials note 17 provinces (137 districts) comprise natural plague foci—28.3% of the territory—underscoring routine surveillance under a “One Health” approach. This year’s vaccination was not conducted due to producer issues, placing greater emphasis on behavior-based prevention and rapid response. WHO’s updated list of high-risk emerging pathogens highlights plague among 20+ zoonotic threats, reinforcing the need for coordinated monitoring, diagnostics, and cross-border cooperation.

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Pediatric Cases Dominate Mongolia’s Infectious Disease ER as Measles Strain Health System; Companies Donate Critical Equipment

Published: 2025-09-16

Mongolia’s National Center for Communicable Diseases (NCCD) warns of heightened outbreak risks in October as school resumes, with its Emergency Department already seeing more than 90% pediatric patients (ages 0–16). From Jan 1–Sept 1, 43,556 people sought emergency care; peaks reached 600 daily during surges. Following the first imported measles case on Feb 18, 4,966 were hospitalized and 142 children required intensive care by Sept 5—signaling sustained pressure on pediatric capacity. Private firms “Bichil Globus Finance” and “Ashid Buyan” donated vital pediatric monitors, pulse oximeters, neonatal scales, warmers, and infusion chairs to bolster triage and continuity of care. NCCD’s ER chief underscored equipment reliability as pivotal for rapid surge intake and safe dosing. The donation reflects ongoing corporate support for health responses, including prior pandemic contributions and child-focused initiatives, as facilities prepare for seasonal respiratory infections.

“The ER becomes the ‘front line’ during outbreaks, forced to absorb large patient flows in a short time; equipment availability and reliability directly affect care quality.” - B. Batsukh, Head of NCCD Emergency Department (ikon.mn)

“We place children’s health first and will continue partnering to protect more children.” - N. Gantulga, CEO, Bichil Globus Finance (ikon.mn)

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