Japan’s loan and non-refundable aid to Mongolia totals JPY 289.4 billion. Within the frames of the Official Development Assistance Program, which aims to assist developing countries, Gobi factory was established in 1977 and has been broadening its scope since 1990. In the last 40 years, Japan provided a total of JPY 125.9 billion worth soft loans and JPY 116.3 billion worth non-refundable aids. Several projects in the agriculture, health, communications, education sectors have been implemented and structural facilities have been established with Japan’s support.
Economic partnership agreement and JPY-denominated soft loan will be discussed during the official visit of Minister of Foreign Affairs Tsogtbaatar Damdin.
Last year, a project on 10 kindergartens capable of receiving 1100 children have been built in Ulaanbaatar city and seven other provinces through a total of MNT 1.2 billion financing of the Government of Japan. According to the Embassy of Japan in Mongolia, 55 high schools for 24 thousand students and 668 classroom have been created within the period of around 40 years. Also, a total of 504 projects on constructing and expanding high schools and hospitals have been implemented within the frames of “Uvsnii undes” (Grass root) program.
However, non-refundable aid of Japan have been drastically reduced in the recent years. While a total of JPY 8.5 billion worth aid have been provided in 2015, it was only JPY 73 million in 2016. Officials explain that it is because Mongolia’s economic situation has improved.
The Government of Japan follows the standards of International Development Association (IDA) of the World Bank Group when providing non-refundable aids, which states the required GDP per capita of the country of assistance. In other words, Mongolia’s GDP per capita exceeded IDA’s standard, causing Japan’s aid to shrink. However, Japan is filling its presence by providing long-term low interest rate soft loans. Khushig Valley Project loan of USD 560 million worth loan with a maturity of 40 years and 0.1 percent interest is an example. Additionally, Thermal Power Plant 4 is implementing an expansion project with JPY 4.2 billion financing.
According to an unofficial source, economic partnership agreement and JPY-denominated soft loan will be discussed during the official visit of Minister of Foreign Affairs Tsogtbaatar Damdin, which started on 21 February.
It is visible that Japan is seeking mutually beneficial cooperation options, rather than aid and support. Therefore, the sides are signifying the mutual partnership agreement, which was established in 2016.
Japan’s loan and non-refundable aid to Mongolia totals JPY 289.4 billion. Within the frames of the Official Development Assistance Program, which aims to assist developing countries, Gobi factory was established in 1977 and has been broadening its scope since 1990. In the last 40 years, Japan provided a total of JPY 125.9 billion worth soft loans and JPY 116.3 billion worth non-refundable aids. Several projects in the agriculture, health, communications, education sectors have been implemented and structural facilities have been established with Japan’s support.
Economic partnership agreement and JPY-denominated soft loan will be discussed during the official visit of Minister of Foreign Affairs Tsogtbaatar Damdin.
Last year, a project on 10 kindergartens capable of receiving 1100 children have been built in Ulaanbaatar city and seven other provinces through a total of MNT 1.2 billion financing of the Government of Japan. According to the Embassy of Japan in Mongolia, 55 high schools for 24 thousand students and 668 classroom have been created within the period of around 40 years. Also, a total of 504 projects on constructing and expanding high schools and hospitals have been implemented within the frames of “Uvsnii undes” (Grass root) program.
However, non-refundable aid of Japan have been drastically reduced in the recent years. While a total of JPY 8.5 billion worth aid have been provided in 2015, it was only JPY 73 million in 2016. Officials explain that it is because Mongolia’s economic situation has improved.
The Government of Japan follows the standards of International Development Association (IDA) of the World Bank Group when providing non-refundable aids, which states the required GDP per capita of the country of assistance. In other words, Mongolia’s GDP per capita exceeded IDA’s standard, causing Japan’s aid to shrink. However, Japan is filling its presence by providing long-term low interest rate soft loans. Khushig Valley Project loan of USD 560 million worth loan with a maturity of 40 years and 0.1 percent interest is an example. Additionally, Thermal Power Plant 4 is implementing an expansion project with JPY 4.2 billion financing.
According to an unofficial source, economic partnership agreement and JPY-denominated soft loan will be discussed during the official visit of Minister of Foreign Affairs Tsogtbaatar Damdin, which started on 21 February.
It is visible that Japan is seeking mutually beneficial cooperation options, rather than aid and support. Therefore, the sides are signifying the mutual partnership agreement, which was established in 2016.