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Mongolia Daily: IFC lends $160M to Golomt, UB pushes 300MW TPP-5 PPP, safe briquettes okayed, and Gazprom advances PS-2 via Mongolia

MongoliaDaily

Politics

Parliament Reviews Three Decades of External Borrowing as Utilization Lags on Ongoing Projects

Published: 2025-10-03

Parliament’s Security and Foreign Policy Standing Committee received a briefing from the Finance Minister on external loans and aid. Since 1991, the government has used $9.1 billion in loans to finance 348 projects and programs—$6.0 billion for 308 project loans and $3.1 billion for 40 budget-support programs. Borrowing evolved from post-transition support in the 1990s ($1.3b) to infrastructure financing in the 2000s ($1.5b), and, over the past 15 years, major projects such as the New Ulaanbaatar International Airport (Japan), central wastewater treatment plant and key bridges/roads (China), western corridor roads (ADB), and power sector upgrades (World Bank). As of today, 96 ongoing loan- and aid-backed projects totaling MNT 19.9 trillion are approved; only 31.6% has been utilized, leaving 68.4% unused. For 2025, Parliament approved MNT 1.9 trillion in utilization, with five large projects accounting for 57% of planned disbursements. The minister warned that without policy fixes, delays could extend project timelines by 5–10 years, raise costs, and postpone economic returns.

“Without policy changes, a single project could be delayed by 5–10 years, with rising costs, interest, and service charges, and deferred economic benefits.” - Finance Minister (ikon.mn)

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Economy

IFC Extends $160M Loan to Golomt Bank to Expand Blue and Green Financing, Support SMEs

Published: 2025-10-03

IFC has signed a $160 million loan with Golomt Bank to scale water-focused “blue” financing and broader green lending in Mongolia, while channeling funds to SMEs, particularly women-led and rural businesses. The package marks IFC’s first blue investment in Mongolia’s financial sector, with co-funding from France’s Proparco and BlueOrchard. Up to 60% will go to environmentally friendly projects, and within that, up to 25% will target water efficiency, purification, and supply. Eligible uses include wastewater treatment, greywater reuse, green buildings, energy-efficient housing, and renewables. Golomt’s green loan book reportedly exceeds MNT 350 billion in 2025.

“This long-term financing opens a new chapter for Golomt Bank and helps us introduce blue loans while prioritizing support for SMEs, especially women-led businesses.” - A. Odonbaatar, CEO, Golomt Bank (peak.mn)

“This partnership aligns with the World Bank Group’s strategy to make Mongolia’s economy more diversified and resilient, while boosting jobs, investment, efficiency, and gender equality.” - Mathieu Le Blan, IFC Resident Representative in Mongolia (news.mn)

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Half of Social Insurance Contributors Earn Under MNT 2.4 Million in Q2 2025 as Payrolls and Headcount Rise

Published: 2025-10-03

Mongolia’s Social Insurance General Office reports 830,800 employees across 54,400 enterprises paid social insurance in Q2 2025, up 5.5% and 3.2% year-on-year, respectively. Mining added 5,400 workers versus a year earlier, while construction and mining together drove a 9,100 quarter-on-quarter increase. The national average monthly nominal wage reached MNT 2.728 million, with a median of MNT 2.356 million and an average base wage of MNT 2.468 million; the nominal average rose MNT 105,900 (4.0%) from Q1. Half of contributors earn below MNT 2.4 million, and the largest group falls in the MNT 1.5–2.5 million band (26.3%); only 2.9% earn up to MNT 660,000. Real wage indices fell 1.9–14.8% in utilities, international organizations, finance/insurance, domestic employment, and water/waste sectors, while increasing 0.6–9.6% elsewhere.

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Parliamentary Hearing Backs Continued Exploration at Khovd’s Khalzan Buregtei Rare Earths Deposit

Published: 2025-10-03

Two parliamentary standing committees held an oversight hearing on the Khalzan Buregtei deposit on Sept. 23, concluding the site is a rare earths deposit—not uranium—and endorsing continued exploration to fully define reserves. The project targets dysprosium, terbium, neodymium, and praseodymium used in permanent magnets, with officials noting naturally occurring radioactivity is below harmful thresholds and uranium content is just 0.009%. Inspectors reported no confirmed radiation-related livestock health impacts, though independent, accredited testing is required for 2025 cases as national lab equipment is currently inoperable. Authorities urged finalizing water-use calculations and protection plans before any production phase, and called for a joint working group of project developers, local officials, citizens, and scientists. The government also highlighted the need to strengthen local radiation monitoring capacity and laboratory infrastructure.

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Diplomacy

Gazprom Advances ‘Power of Siberia-2’ Pipeline via Mongolia to Supply China

Published: 2025-10-03

Gazprom is moving forward with the Power of Siberia-2 natural gas pipeline, designed to transit Mongolia en route to China. The line is projected at roughly 6,700 km with an annual capacity of 50 billion cubic meters. Preliminary cost estimates range from USD 10–13.6 billion. For Mongolia, the transit route positions the country as a strategic energy corridor between Russia and China, with potential economic benefits from construction activity, ancillary services, and future transit fees. For China, the project diversifies gas supplies and strengthens overland energy security, while Russia seeks to reorient exports toward Asia. Key outstanding factors include final investment decisions, financing structure, and route-specific permitting and environmental approvals within Mongolia.

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Infrastructure

Ulaanbaatar Advances TPP-5 PPP Deal to Add 300 MW Power and District Heating

Published: 2025-10-03

Ulaanbaatar finalized contract negotiations for the TPP-5 combined heat and power plant under a public–private partnership with Mitime International LLC, moving the 24-megaproject agenda forward. The facility, planned in Bayangol District’s 20th khoroo, is designed to supply 300 MW of electricity and 340 Gcal of heat, serving western districts including Tavan Shar, 21st Microdistrict, Khilchin, Bayankhoshuu, and the I–IV Microdistricts. Authorities say the project will stabilize tariffs, bolster domestic manufacturing, create jobs, and modernize power transmission and distribution with smart-grid technologies. The city’s demand currently peaks at 1,636 MW against 1,549 MW of installed thermal capacity, forcing costly imports. TPP-5 aims to close part of that shortfall while improving reliability and grid capacity, aligning with efforts to accelerate sectoral modernization and support cleaner energy transitions.

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Draft Law Sets Rules for E‑Scooters and E‑Bikes: Sidewalk Speed Capped at 10 km/h, No Passengers or Cargo

Published: 2025-10-03

Parliament’s Legal Affairs Committee moved to form a working group to prepare amendments to the Law on Road Traffic Safety regulating electric scooters and e‑bikes. The draft, initiated by eight MPs led by P. Batchimeg, would allow riders aged 16+ to use bike lanes; where unavailable, they may ride on the road’s right edge, bus lanes, or sidewalks at up to 10 km/h without endangering pedestrians. Operators must register vehicles, meet safety standards, provide maintenance facilities, and restrict speed to 5 km/h in designated parks. Helmets are mandatory; passengers, cargo, handheld phone use, and riding through pedestrian crossings are banned. Shared-fleet providers must insure or create risk funds and prevent under‑16 use. Vehicles are limited to 0.25 kW power, 25 km/h max speed, dual brakes, reflectors, and labeling.

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Environment

Semi‑coke briquettes certified for compliant and safe winter use in Ulaanbaatar’s ger districts

Published: 2025-10-03

Ulaanbaatar’s ger-area households will heat with semi‑coke briquettes this winter, following issuance of a Conformity Certificate confirming the fuel meets both Mongolian and international standards. The certificate is based on test results from accredited domestic laboratories and attests to product safety and environmental compliance. Local outlets report the certification was granted by relevant authorities, positioning semi‑coke as the officially approved alternative to raw coal in the capital’s most pollution‑affected neighborhoods. While technical details of emissions thresholds were not disclosed, the certification signals regulatory confidence ahead of the heating season and may shape procurement decisions for district distributors and stove users. Authorities emphasize that the certificate validates safety for consumers and minimal environmental risk, aligning with ongoing air‑quality measures in the city.

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Climate-Driven Disasters Intensify, Economic Losses Up 47% as New Adaptation Campaign Launches

Published: 2025-10-03

Mongolia has seen a 26% rise in natural disasters over 2015-2024 compared with the previous decade, with related economic losses up 47%, according to a report highlighted by local authorities and humanitarian groups. In response, the International Organization for Migration is implementing a 2024-2026 project on managing climate-induced mobility in Zavkhan, Sukhbaatar, Tuv, and Khuvsgul, and—together with the National Emergency Management Agency and the Mongolian Red Cross—has launched a nationwide “Adapt and Overcome” information campaign. Research cited by organizers links more frequent and severe events to internal migration, with women and children disproportionately affected. Field visits last week to Sukhbaatar and Tuv found herder households displaced by dzud forming cooperatives to process dairy products, creating new income streams as part of localized resilience strategies.

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Health

Safety Advisory Issued as Heating Season Raises Carbon Monoxide Risks

Published: 2025-10-03

Mongolia’s emergency and public safety authorities advised households on six measures to prevent carbon monoxide poisoning as heating season begins: avoid removing chimneys or covering stoves before fuel has fully burned; regularly check chimney and stove seals; correctly use CO sensors; ventilate rooms; use certified electrical appliances with fire-safety features; and properly insulate homes. Officials warned that compressed briquettes can continue smoldering internally without visible embers, releasing CO. Reported symptoms include headaches, tinnitus, facial flushing or bluish tint, nausea and vomiting, coughing, loss of consciousness, and staggering. Authorities urged immediate calls to emergency number 103 if symptoms appear. The alert follows data showing 152 poisoning cases and three deaths in September, underscoring ongoing winter-season hazards in ger districts and older housing lacking modern ventilation and detectors. No individual official was quoted in the report.

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