Live broadcast from Ulaanbaatar Investment Forum 2015

Ulaanbaatar Investment 2015 Forum started with opening speech of Head of City Representative Council, D.Battulga. 

He expressed his grateful to guests and participants of Ulaanbaatar Investment 2015 Forum.

"I am satisfied to cooperate with private entities that became the main economic resource and development leverage of Ulaanbaatar city. Private entities have been implemented national creation of any countries.  Your ideas and initiatives are the most important for us than anything." he said.

Capital City Governor E.Bat-Uul is presenting on the Capital City Development with the support from the Private Entities.

He started that his presentation is more on his wish for the successful development of the city. City Governor has agreed that city budget is based on the taxes paid by the residents and that City Government should serve for the interests of its residents, rather than be the authoritative power and he called that city needs to shed its old socialist views.

President of the Ulaanbaatar Chamber of Commerce J.Od started his presentation on Partnership between the Capital City and the Private Entities.

He emphasized that residents are aware of the issues of the city and in this regard every one should be involved in the solution of those issues, as those are not the only responsibility of the City Mayor. Private entities are pro-profit organizations, while the City is the entity that works towards interests of society. Therefore, it is important that two sides make clear visions and cooperate for transparent development.

Finance and Economic Affairs Deputy of City Governor, N.Bataa  starts his presentation on Economic development strategy of Ulaanbaatar city.

He states that previous City Development plans were omitting on the public and private partnership and never seen the private entities as the source of the financing for the city development programs. Master Plan 2030 has provisioned only the structural development such as building of new schools and roads. Although Ulaanbaatar city rest on only 0.30 percent of the total Mongolian territory, it hosts over 60 percent of the total Mongolian population.

Deputy of Urban planning and Investment at City Government S.Оchirbat started his presentation on City Housing Program.

Since the Ulaanbaatar city started the development of the Master Plan in 1954 it has seen 6 master plans. First four of which were developed by the Russian Urban Planning engineers and technical workers. The 6^th Master Plan was developed in cooperation with JICA. We have the policy to implement this Master Plan further. Our Constitution states that Mongolian citizen has the right to safe and secure living environment; therefore city government is to focus on this matter. Moreover, city government will pay close attention to Good Governance practices at city level and promote the advanced legal environment.

As of the Housing the city has approved and started the implementation of the long-term strategic program based on the paying capacity. Mid-term housing program has been approved by the City Council. Private entities are in charge of the Ger Area Redevelopment program implementation 100 percent. Last year the city housing program started the redevelopment of the old housing areas as well.

City is now focusing on decentralizing the public and private services so that residents of the remote urban areas have access to those services at their convenience.

General Director of Ulaanbaatar Chamber, O.Amartuvshin is presenting on the Initiative of Private entities.

His presentation touches on the initiatives of the private entities in the development of the city and introduce on the opportunities to develop Ulaanbaatar city to the level of other metropolitan cities around the globe.

Few years ago many were talking that Ulaanbaatar is the next Dubai. From the scope of the tourism we have to look at Ulaanbaatar as the Khaan City. Ulaanbaatar is not safe for pedestrians and bikers. We need to build bike routes from east to west. Tuul River and Bogd Mountain areas need to be converted into tourist attraction areas, which can be resolved with the help of private entities. Ulaanbaatar city the potential to have the air passages as the estimates reveal that 18 km of air passages are required. This will significantly reduce air pollution and traffic jam issues.  

He emphasized that if the favorable investment and legal environment are secured all those projects can become a reality.

Head of Investment Department of the Ulaanbaatar city L.Narantuya is presenting on Investment projects.

Head of City Procurement Departmen, Yu.Idertsogt is presenting on Procurement and glass tender.

According to him the city of Ulaanbaatar is to conduct procurements worth of MNT 260 billion in the year of 2015, of which the rights for MNT 90 billion has been transferred to their department. The Procurement department is the Ulaanbaatar city is aiming to conduct all the procurement procedures as transparent as it can and established independent assessment committee in this regard.

Investors previously had to prove they have no issues with the taxation, but as some of those were counterfeit, these requirements have been dropped. Moreover, according to Y.Idertsogt all the city procurement process has been shifted to glass account, therefore eliminating the illegal actions.

Assessment Committee has been audited from the Ministry of Finance for several times in 2014.

Changes in the bidding requirements now provisions two additional articles. One on reducing the fatalities as it requires the insurance and the second one to support more on domestic companies.

Deputy Director of Social Development at City Governor Ts.Enkhtsengel is presenting on Friendly Ulaanbaatar program.

Advisor to “Smart Ulaanbaatar” program, N.Zorig is presenting on Smart Ulaanbaatar program.

During his speech he emphasized that the city employees need to report on a daily basis to improve their performance and increase the effectiveness and that city is now working on delivering the services to its residents with more proactive approach.

The open discussion on the City Development Policy and Planning started. Participants of the panel are R.Erdeneburen, Secretary of State at Ministry of Urban Development and Construction, B.Battulga, Head of the City Council, J.Od, President of UB Chamber of Commerce and O.Amartuvshin, Director of Chamber of Commerce.

B.Battulga emphasized the need to circulate the city land into economic circulation as it is seen as the most important wealth of the city. Moreover, he criticized that some of the law are getting worse.

Some of the issues the city officials are facing are direct result of the poor legal environment. For instance, the implementation of the Ger Area Redevelopment program needs the legal regulation on forced relocation of the residents.

City Mayor E.Bat-Uul said that it will be more credible if the private entities will introduce their projects to potential investors such as WB and ADB hand in hand with city officials.

Robert Schoellhammer, Country Director of Asian Development Bank, emphasized on importance of using the location advantage. Ulaanbaatar is located at the central spot of the North East Asia. ADB is implementing several projects on the City Development. Compared to 20 years ago many representative offices of the international organizations have opened in Ulaanbaatar, meaning that the number of partners has increased. And those are interested in investing in Mongolia.

Director of UB Chamber of Commerce O.Amartuvshin suggested that City Government should take active part in the discussions of draft law on Casino.

The discussion is going on and the City Mayor has reported that Master Plan 2030 for Ulaanbaatar development is very general. Detailed plan is to be developed in close cooperation with private sector. Sub center is to be established covering 65 hectares of land at Morin Davaa, as investors are more interested in bigger projects. City has required that some part of city residents to be relocated there.  

ADB is implementing the USD 320 billion project on improving the infrastructure in Bayankhoshuu Ger Area.

Representative from the construction company Mr Batsukh raised two suggestions. Firstly, the negative light is shed on construction companies such as cases raised in courts and wanted the elimination of the requirements to have approval from nearby residents in order to construct building within the radius of 45 meters. Secondly, he mentioned that the approvals for construction are being issued now with more speed than before and compared to 2012 the number of constructions increased three times.

Main issue developers face in Ger Area Redevelopment program is that landowners are assessing their land too high. In this regard, city needs to have assessment unit as well. While there is no need to interfere from the City in between the deals, which Mayor and City Council Head agreed as well.

Another issue raised was the problems related to water use and land deficit in Ulaanbaatar city.

Organizers of the Ulaanbaatar Investment Forum 2015 and City Government has signed the Declaration on Ulaanbaatar City Development.

Conference on "Ger Area Construction" has started.

Sh.Gankhuyag made persentation on "Ger Area Redevelopment and Investment Issues".

"Healthy and safe environment have not provided in current Ger Area`s structure. The project which is to redevelop ger area in short term, is being implemented in 1.5 hectares of areas in nine districts. Partnership between residents, project implementor company and state is important for the project." he said.

Head of Ger Area Redevelopment Department M.Nyambayr said: "According to Redevelopment Program, reorganizing and re-planning the six areas of nine districts. Moreover, plans for creating new settlements are ready to implement. Old 150 buildings were prohibited for use and decided to construct again."

Conference on International Financial Center and Arbiter has started.

"Ulaanbaatar city`s goal is to make international level within last two years. The biggest work that have been implementing for accomplishing the goal is to establish regional International Arbitration Center in Ulaanbaatar city." said Finance and Economic Affairs Deputy of City Governor, N.Bataa

Ts.Erdembayar made presentation on "Investment of Redevelopment Program".

"Ger Area Redevelopment featured by its pollution in soil, water and environment. PPP Project will be implemented, after submitting Ger Area Redevelopment Regulation and Law on land ownership and urban development. The main issue is infrastructure supply. Infrastructure issue is not clear for investors. If city can be solved this issue, investment will be attracted. Three certifications are not guarantee for loans and investment. Everybody have to win from project.

Open discussion on Ger Area Construction has started.

Panelists:

S.Ochirbat - Deputy Mayor of the City

S.Tsedensodnom - Deputy Head of Investment Office

M.Nyambayar - Head of City Redevelopment Department

G.Zagdsambar - Head of Cadastre Department

B.Nemekhbayar - CEO of Zag company

B.Naranzul - NAZU Group LLC

S.Ochirbat, Deputy Mayor of the City said: "The main issue of redevelopment is land. After the first approval of law on land, it has not changed until today. It has not decided by three State Great Khural. Thus, we submitted clear rule and licence are issued within one quarter. Previously, license was issued within a year."