Daily Briefing |

Mongolia Daily: Oyu Tolgoi fee halved, Family Policy split, Baydrag hydropower PPP greenlit

MongoliaDaily

Politics

Family Policy Separated from Welfare in Draft Bills Sent to Parliament

Published: 2026-05-20

The Cabinet approved two bills to restructure social support and will submit them to Parliament: a new Family Support Law and revisions to the Welfare Law. Demographic incentives—child benefits, maternity and twin allowances, “Honored Mother” awards, and the paid‑mother stipend—would move out of welfare and into a dedicated family policy, while welfare programs tighten targeting for vulnerable groups. Housing measures would prioritize young families and those with three or more children for mortgages and rental housing, with state loan guarantees covering up to 60% of down payments. Employers would be required to adopt family‑friendly policies, including flexible hours, remote work for caregivers, and workplace childcare. The government cites high fiscal outlays (MNT 2.4 trillion for welfare; MNT 1.5 trillion for the universal child benefit) and mis‑targeting.

“We will separate demographic supports from welfare so assistance reaches the intended groups, like people with disabilities and seniors.” - Minister T. Aubakir (ikon.mn)

“The clause exempting one parent in 3+ child families from personal income tax is removed, as all income up to MNT 792,000 is now PIT‑exempt under broader tax changes.” - Minister T. Aubakir (isee.mn)

Coverage:

Housing fraud cases surge; Parliament panel reviews as police tally MNT 118.2 billion losses

Published: 2026-05-20

Parliament’s Petitions Standing Committee reviewed complaints from homebuyers allegedly defrauded by developers on May 20, as police reported an escalation in housing-related fraud over three years. Law enforcement recorded 1,167 cases since 2024 involving more than 3,000 victims and MNT 118.2 billion in losses. Annual breakdowns show 456 cases in 2024 (820 victims; MNT 32.5b), 512 in 2025 (1,145 victims; MNT 62.8b), and 199 cases in the first four months of 2026 (1,348 victims; MNT 22.9b). Ongoing investigations link 79 individuals and 22 legal entities to schemes totaling MNT 64.5b; victim counts reported vary between 905 and 995 across sources. Police say they resolved 325 cases in 2025 and 232 in the first four months of 2026. Authorities urge buyers to verify company licenses and contract terms before paying deposits.

Coverage:

Government Backs Overhaul of Social Welfare Law with Budget-Neutral Reallocation

Published: 2026-05-20

The Cabinet approved a revised Social Welfare Law and will submit it to Parliament, aiming to retarget assistance without sharply reducing total spending. Despite allocating over MNT 2.3 trillion annually to welfare programs, poverty remains at 27.1% as of 2022 (about 914,200 people), according to the National Statistics Office. The draft centers on tightening targeting to those most in need, supporting employment for able-bodied beneficiaries, reviewing households receiving multiple benefits and setting limits where necessary, and reducing disincentives to work. It also prioritizes equal access to education for children and seeks to prevent intergenerational poverty. The government plans to reallocate funds within the existing welfare budget rather than cut overall costs, signaling potential eligibility and program design changes pending parliamentary debate.

Coverage:

Cabinet Weighs Baydrag Hydropower PPP, Strategic Minerals Benefit‑Sharing Law, and New Industrial Parks

Published: 2026-05-20

The Cabinet is considering a broad agenda that signals potential shifts in energy, mining, and industrial policy. Items under review include a public–private partnership for the Baydrag hydropower plant; a draft Business Freedom law with related amendments; measures to regulate land use and enforce concession agreements in border zones; and revisions to the Social Welfare and Family Development laws. A headline proposal would allocate the majority of benefits from strategic mineral deposits and their derivatives to the public, indicating a possible recalibration of mining revenue distribution. The Cabinet is also examining proposals to establish an aluminum industrial park and a steel production complex, pointing to import substitution and value‑addition goals. No decisions have been announced; outcomes could shape investment conditions, PPP opportunities in power, and compliance requirements for mining and border‑area concessions.

Coverage:

Task Force Probes Ulaanbaatar’s 24 Mega Projects Over Procurement and Spending

Published: 2026-05-20

Mongolia’s Independent Authority Against Corruption (IAAC) has opened case No. 260200510 to investigate 24 large-scale projects funded by Ulaanbaatar’s budget after receiving allegations on May 18 that city spending surged from MNT 1.2 trillion to MNT 5.8 trillion with weak transparency and limited impact. On May 19, the Prosecutor General’s Office formed a joint task force with the IAAC, the General Intelligence Agency, and the National Police Agency to examine whether tenders were lawfully conducted and financing used as intended. Early probes target preliminary designs and feasibility studies for the Tuul Expressway, Selbe “20-Minute City,” New Ring Road, and the Ulaanbaatar Metro. The review signals potential delays or reshaping of the capital’s infrastructure pipeline, heightened scrutiny of procurement practices, and possible legal exposure for officials and contractors if irregularities are confirmed.

Coverage:

Constitutional Court to Review Supreme Court Chief’s One-Term Limit as D. Ganzorig’s Tenure Ends

Published: 2026-05-20

Mongolia’s Constitutional Court will hold a Full Bench hearing on May 27 to assess whether the 2021 Judiciary Law’s clause limiting the Chief Justice of the Supreme Court to a single six-year term violates Article 51.2 of the Constitution. The Court struck down the same “only once” language in 2016, but Parliament reinstated it in 2021. The timing precedes Chief Justice D. Ganzorig’s term expiry on June 2, potentially enabling his reappointment if the clause is voided. Legal commentators suggest the case could reopen the path for Ganzorig, while criticism over judicial independence and disciplinary oversight continues to swirl around the courts. Former Ulaanbaatar mayor E. Bat-Uul alleged political interference by the Chief Justice:

“Chief Justice D. Ganzorig has undermined judicial independence and turned the courts into a venue for political orders; this ‘black scourge’ is now seeking to extend his term.” - E. Bat-Uul (urug.mn)

A ruling against the clause would take immediate effect, without needing parliamentary action.

Coverage:

Government Denies DP Coalition Talks as Commentary Floats Snap Parliamentary Election

Published: 2026-05-20

Speculation that Prime Minister N. Uchral is courting the Democratic Party (DP) to stabilize his Cabinet drew formal denials, while opinion pieces urged a snap parliamentary election to resolve governing deadlock. Media reports claimed multiple ministerial posts were floated to the DP and that some DP members are receptive, against a backdrop of internal rifts within the ruling Mongolian People’s Party (MPP). The DP’s chairman has previously opposed joining any coalition.

“It is wrong in principle for the DP to enter a coalition government.” - O. Tsogtgerel, DP chairman (news.mn)

“No. That was not discussed.” - Prime Minister N. Uchral (urug.mn)

“Claims that the Prime Minister is inviting the DP into the Cabinet are false.” - B. Enkhbayar, Chief of Cabinet Secretariat (urug.mn)

Commentary argues Uchral lacks parliamentary support and legitimacy within the MPP and contends early elections could reset mandates and test voter confidence in the ruling party.

Coverage:

Published: 2026-05-20

Parliament’s Petition Standing Committee reviewed complaints from homebuyers alleging off-plan fraud, including cases where the same unit was sold to multiple buyers. Chair O. Nominchimeg pressed prosecutors and courts to act swiftly, criticized years of weak oversight, and urged tighter controls on developers’ use of buyer funds and pre-sales. She also cited urban redevelopment failures dating to 2012–2013 that left residents waiting over a decade after surrendering land. The committee signaled potential amendments to the State Registration Law to prevent duplicate sales and stronger monitoring of construction firms—measures that could impose escrow-like controls and compliance costs on developers while improving buyer protection and dispute resolution timelines.

“Selling one apartment to several people is not only criminal fraud under the law, it is also morally wrong.” - O. Nominchimeg, Chair of Parliament’s Petition Standing Committee (urug.mn)

“We must urgently amend the State Registration Law to stop apartments being resold to two or three buyers.” - O. Nominchimeg (urug.mn)

Coverage:

Housing Pre‑Sale Scams Rise as Justice Ministry Drafts Registration Reforms

Published: 2026-05-20

A growing wave of apartment pre‑sale fraud is straining households, with projects stalled for years after buyers pay large deposits. From 2019–2025, authorities recorded 2,365 such crimes impacting 4,129 people and causing MNT 216 billion in losses; annual damage is up 46-fold since 2019 and 3.5 times in the last year, according to the Ministry of Justice and Home Affairs. Loopholes allow undercapitalized developers to collect deposits, double‑sell units, and pledge unfinished buildings for bank loans—such collateralized borrowing has reportedly risen 8.9 times in five years to MNT 5 trillion. In response, the ministry has drafted amendments to the Law on State Registration of Property Rights to curb duplicate sales and improve registration of pre‑sale contracts. A citizen petition on parliament.mn seeks criminal penalties of up to 10 years for firms failing to deliver; about 2,000 people have signed.

Coverage:

MPP Backs B. Purevdagva for Ulaanbaatar Mayor, City Committee Vote Set for May 25

Published: 2026-05-20

Ulaanbaatar’s ruling branch of the Mongolian People’s Party (MPP) has endorsed B. Purevdagva for city governor/mayor, following the recent dismissal of the incumbent. Party leaders introduced his candidacy to the city MPP executive and received backing; the city MPP committee will convene on May 25. Under procedure, the city council then nominates a candidate to the Prime Minister for final appointment within 14 days of the vacancy. Born in 1990, Purevdagva graduated in political science from National University of Mongolia and holds a master’s in sustainable development from the University of Newcastle, Australia. A former aide within MPP ranks, he has served as head of the Social Democracy Mongolian Youth Federation since September 2024 and as a Ulaanbaatar city councilor since 2020. Observers view him as a compromise figure between factions aligned with President U. Khurelsukh and Prime Minister L. Oyun-Erdene.

Coverage:

President Engages Banking Leaders on Stability, Sector Financing, and Central Bank Reform

Published: 2026-05-20

President U. Khurelsukh met banking sector representatives on May 20 to review economic stability, industry financing, and policy direction. Bank of Mongolia Governor S. Narantsogt reported that monetary policy is maintaining tugrug stability, keeping inflation near target, and preserving financial sector resilience despite external pressures. The central bank is advancing revisions to the Law on the Central Bank and the Banking Law to strengthen independence, widen policy space, and improve competition. Banks were credited with financing national programs, including concessional lending that boosted combed cashmere exports and new agrifood capacity under “Food Revolution,” while committing to plant 50 million trees by 2030. Khurelsukh underscored reducing import dependence in energy, petroleum products, food, building materials, and fertilizers as a strategic priority. Marking the sector’s 102nd anniversary, he presented state honors to banking professionals and handed a Chinggis Khaan portrait to the central bank as a national symbol.

Coverage:

Economy

Management Fee for Oyu Tolgoi Halved; Loan Interest Talks and Entrée Licenses Up Next

Published: 2026-05-20

The government reached an agreement with Rio Tinto to halve Oyu Tolgoi’s management fee and eliminate overlapping charges, cutting project costs by $2.2 billion and lifting Mongolia’s returns by $1.5 billion. Officials said two “additional services” fees will be fully terminated, with changes applied from January 1, 2026. Negotiations now shift to reducing shareholder loan interest—reported near 11%—to international norms, accelerating dividends by 2026, increasing state benefit above 60%, and resolving Entrée’s two licenses, potentially via royalties on gross concentrate sales rather than a 34% state stake.

“We halved the management fee and removed duplications, reducing costs by $2.2 billion and increasing Mongolia’s returns by $1.5 billion.” - Prime Minister N. Uchral (news.mn)

“Two additional management-service fees will be stopped entirely, and the revised terms will take effect from January 1, 2026.” - Minister of Industry and Minerals G. Damdinyam (ikon.mn)

Coverage:

Ulaanbaatar Expands Reserve-Meat Program, Sells 14.6 Tons on Day One with Fixed Prices at 85 Retail Points

Published: 2026-05-20

Ulaanbaatar launched an expanded sale of government reserve meat under anti-inflation measures, moving 14.66 tons on May 19 across six designated sites in the city’s central districts. Baganuur Max Market LLC and Choibalsan Group LLC sold 8.07 tons at Hanggai Residence, Baigal Ekh Complex, Altjin Bumbugur, and Zhukov Square, while Agro Negtsel Trade LLC sold 6.58 tons at the National Stadium and Tsambagarav Center. From May 20, sales continue 10:00–18:00 and through 85 retail branches, including Nomin, Minii, M Mart (81 total), plus two Sansar and two Carrefour outlets. Beef is fixed at MNT 15,000/kg and mutton at MNT 13,000/kg. Authorities cited sealed transport, storage standards, and fiscal receipts to enforce compliance.

“Sales at the contract price of MNT 13,000–15,000 per kilogram are being organized at 85 points this week.” - B. Enkhbayar, Head of the Cabinet Secretariat (ikon.mn)

Coverage:

Aluminum Park Planned in Erdenetsagaan as Darkhan Steel Project Targets 2024 Start; Cabinet Eases Explosives Imports

Published: 2026-05-20

The Cabinet reviewed progress on two large industrial initiatives and approved measures to streamline mining explosives imports. Industry and Mineral Resources Minister G. Damdinyam said preparatory work is underway to designate land for an Aluminum Industrial Park in Erdenetsagaan, Sukhbaatar Province, with investor talks ongoing. He characterized the project as larger than Oyu Tolgoi. Darkhan-Uul Province’s planned steel plant has closed its international tender (submissions ended on the 11th), with an evaluation committee formed and 650 hectares backed for state special use by the provincial assembly. Officials aim to conclude agreements and break ground this year, targeting domestic self-sufficiency and exports of high-quality steel.

“We will expand the number of border points for importing blasting agents and accelerate storage security and customs clearance,” - G. Damdinyam, Minister of Industry and Mineral Resources (eagle.mn)

“The Aluminum Industrial Park’s land will be taken under special state need; negotiations with investors are active,” - G. Damdinyam, Minister of Industry and Mineral Resources (isee.mn)

Coverage:

Q1 GDP Expands 7.9% on Mining Rally; Outlook Stays Solid

Published: 2026-05-20

Mongolia’s economy grew 7.9% year-on-year in Q1 2026, driven by a 33.6% surge in mining and quarrying value added and a 4.1% rise in services, according to the National Statistics Office. GDP at current prices reached MNT 22.9 trillion, up MNT 3.9 trillion from a year earlier. The demand-side breakdown shows household consumption at 51.2% of GDP, net exports 19.4%, gross capital formation 15.8%, and government consumption 13.6%. The momentum reflects strong commodity output and exports, with services gradually recovering. External forecasts remain supportive: the Asian Development Bank projects 5.7% growth in 2026 and 6.0% in 2027, while the World Bank expects average growth of 5.5% in 2027–2028. Sustained mining performance and domestic demand will be key to maintaining the trajectory, with commodity prices and logistics as principal risks.

Coverage:

Editorial Flags Oyu Tolgoi Risks: Cost Escalation, Water Uncertainty, and Delayed Dividends

Published: 2026-05-20

A 2013 editorial critiques Oyu Tolgoi’s trajectory, alleging investor heavy‑handedness, blurred staffing commitments, and rising capital costs that could delay Mongolia’s dividend timeline. The author questions claims that 90% of project jobs are held by Mongolians, arguing tallying includes indirect suppliers. Capital expenditure is said to have risen from $4.7 billion to over $6.1 billion, with potential to reach $7 billion, extending payback and pushing back dividends. The piece notes prospective multibank financing led by the World Bank hinges on public disclosure of environmental impact and rehabilitation plans. Water scarcity is flagged as the project’s central risk, with fears of shortened mine life if reserves prove inadequate.

“The timeline for distributing dividends is at the earliest 2021–2022.” - P. Tsagaan, Board representative for the Mongolian side (unuudur.mn)

“Oyu Tolgoi is a project with a 10-year water resource.” - Tom Albanese, then Rio Tinto CEO (unuudur.mn)

Coverage:

Food Prices Climb in Ulaanbaatar with Sharp Jump in Goat Meat

Published: 2026-05-20

Consumer prices for key goods in Ulaanbaatar rose by an average 4.5% month-on-month and 0.6% week-on-week as of May 18, 2026, led by a sharp increase in meat. Bone-in goat meat surged 23.3% to MNT 20,260/kg, while boneless beef rose 10.3%, bone-in beef 8.9%, and mutton 7.1%. Bread and flour-based items also increased: “Misheel” bread was up 8% to MNT 3,904 and “Atar” bread rose 4.6%; dark bread gained 3.6%. Among vegetables, beetroot climbed 5.7%, cabbage 5.4%, onions 2.7%, and carrots 1.7%. Sugar rose 2.3%. Offsetting factors included a 6.4% decline in AI-92 Euro gasoline to MNT 2,780/liter, and slight drops in potatoes (1.5%) and apples (1.1%). Prices for milk, eggs, and butter remained stable. The broad-based rise in meat and staples signals renewed pressure on household budgets and headline inflation.

Coverage:

Hunnu Air to Launch First Direct Japan–Umnugovi Flights in July

Published: 2026-05-20

Hunnu Air plans the first direct international flights from Japan’s Matsumoto Airport (Nagano Prefecture) to Umnugovi Province on July 18 and 22, using a 97-seat Embraer E190-100, according to Montsame via isee.mn. Authorities view the link as a catalyst for increasing Japanese tourist flows to the Gobi region and for deepening regional tourism and economic cooperation. Preparations are underway with special-purpose agencies, the National Civil Aviation Center, and Gurvansaikhan Airport management to ensure flight safety, passenger services, and border and customs readiness. The new route reduces travel time to key attractions in the Gobi and may support local businesses and hospitality operators during peak summer travel. Further schedule details, frequencies, and any seasonal continuation were not disclosed.

Coverage:

AmCham Mongolia Briefing Outlines Power-Sector Reforms and 2030 Stabilization Plan

Published: 2026-05-20

AmCham Mongolia convened a discussion with Energy Minister B. Naidalaa on a strategy to address capacity shortfalls and advance market reforms in the power sector. Mongolia’s installed capacity stands at 1,936 MW, with 82% coal (1,566 MW), 8.1% wind (155 MW), and 8.2% solar (156 MW). The government’s agenda includes overhauling the legal framework, implementing tariff reform to support a market-based system, expanding private participation, developing human capital, adopting advanced technologies, drafting a sector reform roadmap, upgrading infrastructure, attracting investment for potential exports, and scaling renewables and distributed generation. The plan will roll out in three stages, starting 2026–2030 to stabilize the core system and manage the transition. Looking to 2050, officials indicated renewables are expected to play a leading role in Mongolia’s energy mix. The session also reviewed policies of the new cabinet.

Coverage:

Key Food Prices Rise 4.5% Month-on-Month in Provincial Centers

Published: 2026-05-20

Average prices for key food staples sold in aimag (provincial) centers increased 4.5% from the previous month and 0.6% from the prior week as of May 18, 2026, according to eagle.mn. While the report does not detail specific items, the movement signals persistent inflationary pressure in regional markets outside Ulaanbaatar. For businesses operating nationwide, the uptick may affect procurement costs, retail pricing strategies, and transport-linked margins, given longer supply chains to provincial hubs. Households in the regions could face tighter budgets if the trend persists into summer, a period when seasonal factors can influence food pricing. Monitoring forthcoming official statistics and itemized breakdowns will be important to gauge whether increases are broad-based or concentrated in particular staples, and to assess implications for wages, social support, and local retail demand.

Coverage:

Binance to Restrict MNT P2P Trading, Channeling Access Through Licensed Providers from June 2026

Published: 2026-05-20

Mongolia’s Financial Regulatory Commission (FRC) says 12 virtual asset service providers (VASPs) are registered under the Virtual Asset Service Provider Law, but unregulated peer‑to‑peer (P2P) trading via foreign platforms has surged. Citing rising MNT‑denominated P2P volumes on Binance and risks such as third‑party transactions and suspicious flows, the FRC pushed for tighter controls. Binance will limit person‑to‑person trades in Mongolian tugrik (MNT) from June 1, 2026. From that date, only FRC‑registered VASPs may offer P2P services on Binance through “Pro‑Merchant” accounts to their own clients, subject to verification. The move is intended to strengthen anti‑money laundering and fraud prevention, shift activity onto licensed intermediaries, and protect consumers. Retail users transacting in MNT on Binance will need to go through registered providers, potentially affecting informal OTC traders and liquidity while giving regulated firms a larger role.

Coverage:

Wave of Small Business Closures Follows Inflation, High Taxes, and Weak Demand

Published: 2026-05-20

Service and retail SMEs across Ulaanbaatar are closing after months of falling sales, rising costs, and intensifying competition from convenience chains. Operators report sharper price sensitivity, with consumers favoring either the cheapest or premium goods while mid-range items stall; arrears to neighborhood shops are mounting. Analysts cite persistent inflation, higher rents, utilities, inputs, and tight credit as key pressures, alongside a heavy payroll tax burden and crowding-out from state-owned enterprises. A restaurant, clothing stall, and a neighborhood grocer described shuttering or preparing to do so, while the “Iveel” apparel brand has already closed. Economist D. Jargalsaikhan warned that labor taxes and an expanding state sector deter job creation and keep firms small.

“Tax and social insurance burdens are very heavy, making job creation costly and pushing firms to stay small or go underground.” - D. Jargalsaikhan, economist (unuudur.mn)

“Customers’ incomes have dropped; debts to our shop surged in recent months, making the business unsustainable.” - T. Tungalag, small grocer (unuudur.mn)

Coverage:

Securities Turnover Climbs 300 Billion MNT in First Four Months with Corporate Bonds Leading

Published: 2026-05-20

Mongolia’s securities market recorded 563.7 billion MNT in turnover during the first four months of 2026, up 303.7 billion MNT year-on-year, according to the National Statistics Office. Primary offerings accounted for 65.5% of activity, underscoring ongoing reliance on new issuances, while 34.5% was on the secondary market. By instrument, corporate bonds dominated with 47.1% of total turnover, followed by asset‑backed securities at 20.2%, equities at 16.8%, government bonds at 15.8%, and investment fund units at 0.2%. The mix indicates corporate issuers are increasingly tapping the market for funding, while secondary liquidity remains comparatively shallow. The rise in asset‑backed securities suggests continued diversification of financing tools. For investors, the growing primary pipeline offers access to yields, but limited secondary depth may constrain exit options and price discovery.

Coverage:

Ulaanbaatar City Council Weighs 2027 Municipal Securities to Finance Priority Projects

Published: 2026-05-20

Ulaanbaatar’s City Council resumed deliberations on a broad agenda that includes supporting the issuance of domestic municipal securities in 2027 to fund priority projects. The session follows a one-day recess taken by the Democratic Party (DP) caucus on May 18 over attendance and agenda concerns. Council members are set to review roughly 20 items, among them a proposal to transfer vehicles from municipal ownership to state and local entities. Backing a 2027 issuance signals early planning for capital-market financing of urban infrastructure, a step that could diversify funding beyond the city budget and national transfers. Detailed terms—such as issuance size, project list, and repayment structure—have not yet been disclosed. The council’s decisions will shape the financing framework for Ulaanbaatar’s infrastructure pipeline ahead of 2027.

Coverage:

Diplomacy

Nationwide Consultations to Amplify Local Input for UNCCD COP17 Preparations

Published: 2026-05-20

Mongolia’s Environment and Climate Change Ministry will launch nationwide consultative meetings on May 25 to gather local perspectives for the UN Convention to Combat Desertification (UNCCD) COP17. The initiative divides the country’s 21 provinces into six regions and is supported by international organizations operating in Mongolia. The National Committee has convened a joint session of its 12 subcommittees to review plans, progress, and challenges, and has issued decisions now being implemented. Officials say the consultations aim to consolidate community voices and increase participation in shaping the country’s COP17 agenda, signaling a push to integrate local priorities—such as land degradation, water scarcity, and livelihoods—into national positions.

“We will organize consultative meetings starting on the 25th, with support from international organizations, to unify local voices and enhance participation by dividing the 21 provinces into six regions.” - Minister of Environment and Climate Change Ts. Sandag-Ochir (urug.mn)

Coverage:

Ulaanbaatar to Host Asian Tourism Forum 2026 on June 11–13, Gathering Experts from 22 Countries

Published: 2026-05-20

Ulaanbaatar will host the 15th Asian Tourism Forum (ATF-2026) on June 11–13, focusing on “Development and Trends in Asian Tourism and Hospitality.” Organizers expect more than 100 scholars and researchers from 22 countries, including South Korea, the United States, and Germany, to present on policy development, service management, marketing, and sustainability. Holding the region’s flagship academic forum in Mongolia is positioned to elevate the country’s international profile in tourism, strengthen links between research and practice, and broaden international collaboration. The event is also framed as a platform to attract investment, advance joint projects, expand professional training, and pilot new marketing opportunities. For businesses and institutions active in the sector, the forum offers concentrated networking with regional experts and potential partners while spotlighting sustainability and service quality as strategic priorities.

Coverage:

Infrastructure

Government Greenlights Baydrag Hydropower as PPP with 2026–2030 Build, 25-Year Concession

Published: 2026-05-20

The Cabinet approved implementing the Baydrag Hydropower Plant through a public–private partnership using a design–environmental assessment–build–operate–transfer model. The project’s technical and economic assessment schedules construction for 2026–2030, followed by operation and maintenance through 2055 under a 25-year term. The First Deputy Prime Minister and Minister of Economy and Development J. Enkhbayar and Energy Minister B. Naidalaa were tasked to run the competitive selection of a private partner in line with applicable laws. Officials say the plant will raise installed capacity and generation in the central power system and contribute to lower greenhouse-gas emissions. Prime Minister N. Uchral emphasized anticipated system and environmental benefits and the creation of a large reservoir potential in the Gobi region.

“We are moving to implement the Baydrag hydropower project as a PPP, with no adverse social or public health impacts, increasing system capacity and enabling a major reservoir in the Gobi.” - Prime Minister N. Uchral (eagle.mn)

Coverage:

Cabinet Declassifies Bogdkhan Railway Records as Wider Infrastructure and Mining Measures Move Forward

Published: 2026-05-20

The Cabinet declassified National Security Council guidance and “top secret” government resolutions and minutes tied to the Bogdkhan Railway project, opening documents from 2021 for public access. Officials said the files cover a direct state-secrets contract and coal offtake deal with Bodi International.

“We have removed the 2021 MN04 classified recommendation on the Bogdkhan Railway and related ‘top secret’ cabinet acts from the state secrets list and will make them public.” - Cabinet Secretariat Chief B. Enkhbayar (ikon.mn)

The meeting also advanced multiple initiatives: launching the Baidrag hydropower plant via PPP (construction 2026–2030, operation to 2055), easing explosives imports for mining, and pushing major metals projects including an aluminum park in Erdenetsagaan and a steel plant in Darkhan-Uul. Negotiations with Rio Tinto will cut Oyu Tolgoi’s management service fee to 3.95% from up to 9% starting January 1, 2026, raising Mongolia’s share by $1.5 billion and trimming $2.2 billion in costs.

Coverage:

TPP-5 Advances as Geotechnical Works Finish and Core Equipment Orders Placed

Published: 2026-05-20

Ulaanbaatar’s Thermal Power Plant No. 5 (TPP-5) is moving into procurement after completing on-site geotechnical drilling at a 26.4-hectare plot in Bayangol District, repurposed from the TPP-2 ash pond. Officials said land clearance, utility connections, permitting, and detailed design are progressing in phases, and orders for core plant equipment have been placed. The project is Mongolia’s first energy public–private partnership, with Cambodia’s Mitaim International as the private partner. Total cost is $658.5 million, with the city covering 20% ($131.7 million), including MNT 200 billion in bond financing planned for 2026. Construction is slated for 30 months, targeting commissioning by Q3 2028. TPP-5 is designed for 300 MW of power and 340 Gcal of heat—enough for about 100,000 households with electricity and 40,000–50,000 with heat—serving areas including Tavan Shar, the 21st microdistrict, Hilchin town, Bayankhoshuu, and surrounding microdistricts. The city also budgeted MNT 7.8 billion to upgrade ash-disposal lines for TPP-2 and Thermal Power Plant No. 4.

Coverage:

DBM Asset Management, Arig and Capitron to co-finance 4,200-unit green housing phase in Ulaanbaatar

Published: 2026-05-20

DBM Asset Management LLC, a subsidiary of the Development Bank of Mongolia, signed cooperation agreements with Arig Bank and Capitron Bank to co-finance Phase II of the Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Sector Project. Backed by the Asian Development Bank and the Green Climate Fund and implemented by the Ulaanbaatar City Administration, the program will support mid-term financing to real estate developers building green housing and mixed-use facilities. The second phase targets construction of 4,200 units across 34 hectares in the Bayankhoshuu and Sharkhad sub-centers, to be delivered in stages from 2026 to 2030. The financing structure is designed to extend concessional long-term green mortgages to low- and middle-income households, including families relocated through ger district redevelopment. DBM Asset Management previously signed an MoU in March with seven commercial banks to broaden participation.

Coverage:

TMK Energy and Dashvaanjil Group to Develop CBM-Fueled Modular Power Plant by 2026

Published: 2026-05-20

TMK Energy signed a cooperation agreement with Dashvaanjil Group LLC to develop power generation using coal seam methane from the Gurvantes XXXV project, marking its first step toward commercial gas monetization. The initial phase foresees a modular power plant of up to 1 MW that blends gas from TMK Energy’s pilot wells with imported LPG supplied by Dashvaanjil Group. Engineering and design are targeted for completion by end-Q2 2026, with commissioning by end-Q3 2026. The arrangement also secures a long-term on-site power source for project operations, with surplus electricity potentially sold to local consumers such as nearby coal mines. Under the agreement, Dashvaanjil Group will fund processing and supply-side engineering studies, while TMK Energy manages gas extraction and field operations.

Coverage:

City Launches Shuttle Tours to Selbe Sub-Center Construction Site from Sukhbaatar Square

Published: 2026-05-20

Ulaanbaatar has introduced a dedicated public bus to brief residents on progress at the “Selbe Sub-Center Housing” project. For six months, a single bus will run daily from the central stop at Sukhbaatar Square to the project area spanning Chingeltei District’s 14th and 18th khoroos and Sukhbaatar District’s 14th khoroo. The SÉ:1 route (“Sukhbaatar Square central stop–Sub-center”) departs at 11:00 and 14:00, requires no pre-registration, and is intended to showcase the construction site and provide updates. The Public Transport Policy Department said the service aims to inform the public and promote the project. The initiative signals increased transparency and community engagement around a major residential development that could reshape parts of Ulaanbaatar’s central districts by adding new housing and related infrastructure while allowing residents to track progress and raise practical questions on-site.

Coverage:

Society

Public Warning Issued on Facebook Phishing Lures Using Cash Giveaways

Published: 2026-05-20

Multiple outlets report a surge in Facebook posts promising rewards for surveys or lottery entries that redirect users to spoofed banking pages. These pages mimic bank names and logos to solicit internet banking credentials and one-time passwords (OTP), leading to account compromise. Guidance emphasizes not clicking suspicious links or entering data on unofficial pages, enabling two-factor authentication, regularly reviewing registered devices, and never sharing OTP codes. Banks state they do not request login details or OTPs via email, chat, unofficial websites, posts, or links. Individuals who disclosed information are urged to immediately contact their bank’s hotline (e.g., 1800-1646 or [email protected]) and the National Police Agency’s Cyber Crime Unit at 102 or 5126-5666. The trend underscores growing cyber-fraud risks for consumers and businesses in Mongolia’s digital banking ecosystem.

Coverage:

Disability Employment Stagnates at 18% as Agency Trains Accessibility Assessors

Published: 2026-05-20

Mongolia’s General Authority for Development of Persons with Disabilities reported that only 18.1% of the country’s 89,594 working-age persons with disabilities are employed, based on last year’s registry of 107,904 people. The agency cited persistent gaps in inclusive education, independent living support, and access to infrastructure, housing, public services, and information, despite Mongolia’s 2009 accession to the UN Convention on the Rights of Persons with Disabilities and a 2016 national law. Thirty-two percent of registered persons with disabilities live in the capital. Agency head D. Gerel said specialists have been trained to evaluate accessibility and prioritize fixes.

“We must support independent social participation. Inclusive education is ineffective without appropriate accommodations, and failing to ensure equal opportunity is discrimination.” - D. Gerel, head of the General Authority for Development of Persons with Disabilities (unuudur.mn)

Coverage:

Environment

Wet Snow and Hazardous Winds Hit Western Provinces as Ulaanbaatar Stays Mild at 23–25C

Published: 2026-05-20

Mongolia’s western provinces are experiencing hazardous weather on May 20, with strong winds, dust storms, squalls, and wet snow reported around 11:00 in Bayan-Ulgii, Uvs, Zavkhan, and Bayankhongor. The national forecast calls for widespread cloud cover and precipitation: rain, wet snow, and light snow today in most western areas, parts of central and Gobi regions, and the south of the east. Winds shift and strengthen to 13–15 m/s across Altai ranges and Gobi-steppe zones, with 15–17 m/s possible in places. Ulaanbaatar remains dry at 23–25C, while southern Gobi valleys reach 23–28C; mountain basins stay much cooler (1–11C). The outlook signals expanded precipitation on May 21–24 and overnight frosts in high basins, raising risks for travel, herding, and logistics. Transport Police urge caution and vehicle checks for long-distance trips.

Coverage:

Innovation

ADB Confirms $130m Concessional Loan to Expand Education Infrastructure as Minister Meets IFFEd in London

Published: 2026-05-20

Education Minister L. Enkh-Amgalan attended the World Education Forum in London and met Krishnan Kartik, Executive Director of the International Finance Facility for Education (IFFEd). During the event, the Ministry of Education reported confirmation of a $130 million concessional loan from the Asian Development Bank for the “Second Financing Project to Improve Education Quality and Access,” an agreement initially reached in November 2023. According to the ministry, 98% of the financing will target improved accessibility of education-sector buildings and facilities. IFFEd, which channels concessional resources through ADB and other multilateral development banks to low- and lower-middle-income countries, will also provide a grant component of up to 10% of the total loan value. IFFEd typically supports early childhood development, nutrition, education, green technologies, and skills development, aligning with Mongolia’s sector priorities.

Coverage:

Health

Police Destroy 10.5 Tons of Suspected Counterfeit Alcohol as Emergency Calls Over Poisoning Top 15,800

Published: 2026-05-20

Mongolian police report rising sales of counterfeit alcohol through street vendors and online channels, prompting the destruction of 10.5 tons (over 8,000 bottles) of untraceable spirits this year. Authorities warn many seized products contain methanol—a solvent and antifreeze component—posing risks of blindness, central nervous system damage, and death. Border enforcement recorded 96 violations for attempting to bring alcohol across the frontier in excess of legal limits, a pipeline that can supply untaxed or fake products to the domestic market. Public health pressures remain high: Ulaanbaatar’s emergency service logged more than 15,800 alcohol poisoning calls last year. Consumers are urged to verify origin by scanning the excise-stamp QR code via the e-barimt app. The measures underscore tighter policing and compliance expectations for importers, retailers, and hospitality operators.

Coverage:

Health Minister Seeks Ban on Online Advertising of Medicines and Vitamins

Published: 2026-05-20

Health Minister E. Batshugar said he is moving to restrict the online promotion and sale of medicines and vitamins, citing rising risks from individuals marketing both over-the-counter and prescription drugs on social media and e-commerce channels. He noted that only licensed entities are permitted to promote and sell non-prescription medicines, but individuals have increasingly advertised and sold even prescription drugs online. Batshugar said he is formally contacting the Communications Regulatory Commission (CRC) to halt these practices, signalling tighter oversight of digital platforms and informal sellers. The measure would likely require platforms and sellers to strengthen compliance, while reducing consumer exposure to unverified medical claims and unauthorized drug sales.

“I am sending an official letter to the Communications Regulatory Commission to stop this practice.” - Health Minister E. Batshugar (elch.mn)

Coverage:

Child Obesity Hits 24.5% in Ages 6–9 as Festive Gift Bags Pack Excess Sugar

Published: 2026-05-20

A new review of children’s diets highlights rising obesity in Mongolia’s youngest students, with excess sugar intake a key driver. Typical holiday gift bags for children contain about 5–6 items—juice, biscuits, candies, and chocolate—totaling roughly 412 grams of sugar, far above the Ministry of Health’s 25-gram daily guideline and exceeding WHO’s recommendation that added sugars remain under 5% of daily calories. Laboratory tests found some drinks in these bags surpass standards, with total sugars reaching 145.8–361.5 grams (equivalent to 36–72 sugar cubes) and average energy at 591 kcal. Preliminary findings from the 6th National Nutrition Survey report that 19.6% of schoolchildren are overweight and 6.2% obese, with higher rates among urban and male students. Overweight prevalence is 24.5% at ages 6–9, 22.4% at 10–12, 13.6% at 13–15, and 15.7% at 16–19.

Coverage:

Sports

Ulaanbaatar Marathon Sets May 23 Start Times; Central Roads to Close 06:00–18:00

Published: 2026-05-20

Ulaanbaatar Marathon 2026 will be held on Saturday, May 23, with 46,000 participants registered—about double last year. The full marathon (42.195 km) starts 07:00 from the west side of the Cultural Palace; the half marathon (21.095 km) and 10 km begin 08:30. The 5 km Health Run starts 13:00 from the front of the National University of Mongolia, the 1.5 km family race at 15:00, and the 1.5 km race for wheelchair and visually impaired participants at 15:30, also from the university. Special Olympics events: 800 m at 16:00 near the Sports Palace and 500 m at 16:10 near Ulaanbaatar Hotel. To manage the event, major central corridors will be closed 06:00–18:00, including areas around Tsetseg Center, Sansar Tunnel, East Four-Way, Naran Tuul Market, and Shangri-La Center. Roads reopen after racers finish. Organizers urge runners to arrive 30–60 minutes early and verify bibs and chips.

Coverage:

Continue reading with a subscription

Get full access to MongolBeat daily newsletters and support independent journalism on Mongolia.

Subscribe Now

Already a subscriber? Sign in