Break out session on Project Financing, moderated by Mr. Otgochuluu.Ch, senior economist, Erdenes Mongol LLC, commences.
Mr. Javhlanbaatar.S, Chairman, Investment Mongolia Agency, addressed legal environment issues.
"Invest Mongolia Agency monitor all concession agreements and establish agreement with the company to implement the project. Due to uncertain legal environment, 5th Power Plant Project and Ulaanbaatar Wastewater Treatment Plants Project have stuck."
Participants of the break out session emphasized that Mongolia has no experience in implementation of mega project financing. For example, if decision to implement mega projects is made, experienced professionals to work as advisor would not be found.
Moreover additional agreements on water, energy supply and infrastructure are needed to be signed when implementing mega projects and it takes too much time.
Mr. Enhbold.N, executive director, Newcom LLC stated that all agreements established with the state are not fully implementing.
Investors carefully select the project to invest, slowing the new project financing.
Mr. Javhlanbaatar.S, Chairman, Investment Mongolia Agency reported that the world make USD 200 billion funding per year. Crisis occuring in Mongolia originated from selection of the wrong projects. Also mega project funding requires many years. But we approve the budget annually and which become the main reason for delay of work.
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