The ‘Undesnii Toim’ magazine invited Governor of the Capital City and Mayor of Ulaanbaatar city Mr. Sumiyabazar Dolgorsuren to its ‘Toim Interview’ section.
IT IS INDEED A DIFFICULT TIME. BUT WE DID NOT GIVE UP OR BECOME DISCOURAGED
-A year has past since you were appointed as the new Mayor of Ulaanbaatar. However, it seems that you have yet to properly report on your works to the public. In general, what would you say about your achievement during this period?
-The past year has had its challenges as we faced economic difficulties due to disruptions in business operations. I must also note that we were only able to overcome the past year by each of us carrying our own burdens and being able to have mutual understanding irrespective of whether it is a citizen, entity, or a government organization. Despite this, I have hopes that the situation will become better from now on. If 50 percent of the capital city’s population is involved in an additional dose of the COVID-19 vaccine next month, we will be able to urgently transition into the ‘Yellow’ level. The city administration is currently providing assistance and support for business activities being run by citizens and enterprises.
Ulaanbaatar city always had a lack of budget.
-Have you ever regretted being appointed as the Mayor of Ulaanbaatar city?
-No. I have never regretted my decision or become discouraged. We must not crumble under these difficult circumstances. In order to overcome this, we have to properly implement our policies and carry out measures. As the majority of Ulaanbaatar city residents have already given their votes to support us, we did our best to work as a team to not lose the peoples’ trust.
-Do you think that there were a certain number of policy errors such as how strict lockdowns were imposed back-to-back?
-It is true that the strict lockdowns created difficulties for the city’s residents to the point it caused the economic circulation to halt.
However, many countries around the world have gone through the same path. Of course, not everyone would like the decisions that were made as it has an impact on society. Some would oppose them while others would support it. All the decisions to impose a strict lockdown or lift it was merely a way of dealing with the situation at hand due to the lack of vaccines.
ISSUES NOT REGULATED BY LAW WILL BE REGULATED BY A SET OF RULES
-During the past year, what changes have taken place in the Ulaanbaatar city, and what policy did you implement as the Mayor?
-We implemented many works and measures in the framework of our plan that involved many issues, such as reducing bureaucracy, accelerating digital transition, and tackling bribery. In my opinion, the basic policy changes over the past year have been fairly good.
Ulaanbaatar city always had a lack of budget. There are financing issues that have yet to be resolved for works done in the previous year. As the capital city did not have a team of experts for social and economic reform and debt management, I am currently seeking to make fundamental reforms in phases, and for Ulaanbaatar city to have a set of rules reflected in the law. With this, the city will have a set of rules under the Law on the Legal Status of Ulaanbaatar City for the very first time. We are also working to come up with a standard that needs to be set out in the law.
- The Law on the Legal Status of Ulaanbaatar City was amended after 27 years. What are the key changes?
-Firstly, the major pressing issue for Ulaanbaatar is the lack of budget. Secondly, the legal environment of Ulaanbaatar is rather limited. The Law on Administrative and Territorial Units and their Governance was approved in December 2020. The law will enter into force on January 1, 2022.
On top of this, there are two laws: the Law on the Legal Status of Ulaanbaatar City and the Law on the Legal Status of Cities and Villages. As Ulaanbaatar city is the center of our country's development, it was considered that the city should be prioritized. We put forth our suggestion. And we were also able to have the law amended.
- I assume that parliament members elected from the city also had an influence in having the law approved?
-A temporary committee for the development of Ulaanbaatar was established with a total of 26 members, including 24 members elected from the capital city and two members elected from rural areas of the country. The Law on the Legal Status of Ulaanbaatar City was introduced at the spring session of the Parliament. It is a major law with 19 accompanying laws.
-Did the bill also involve having the Government allocate MNT 420 billion for reducing traffic congestion in the capital city?
-After thoroughly discussing this issue with the Ministry of Finance, we sent documents to the Ministry requesting the city to be in charge of MNT 420 billion that was contributed to the state budget from the capital city. In the city, there are 1.5 million residents - 50 percent of the country’s population. It makes up almost 67 percent of Mongolia's total economic circulation. There are 150,000 registered businesses in the capital city, and a wide range of services available. As Ulaanbaatar is a large social and economic complex, the issue was brought up to both the Ministry of Finance and the Prime Minister time and time again.
-Was that how the problem was resolved?
-All problems being faced in Ulaanbaatar concerns the Government as well. Prime Minister L.Oyun-Erdene also decided that the capital city’s issues should be considered as issues that need to be solved by the state. Thus, MNT 420 billion will be left in charge of the city in the years of 2022, 2023, and 2024. This serves as an important boost for urban development.
-What if the capital city is not able to collect the finances of MNT 420 billion due to post-pandemic challenges?
-It is clear that next year will not be that easy on the economy. Real estate tax revenue and land tax revenue need to be further analyzed. Personally, I believe that we should first look over the matter concerning land tax.
-Does this mean that land tax will be increased?
-People often tend to not pay land taxes. Yet, they are still interested in acquiring land. To acquire something, it is necessary to pay the corresponding tax. Furthermore, we will carry out a study on the impact of our commodities in certain sectors and how the ratio of supply and demand should be set.
I HAVE NO INTEREST IN TRYING TO PROFIT OFF OF MY POSITION
-Would you agree that you will have the most “power” compared to previous mayors of Ulaanbaatar?
-In general, yes. According to the amendments to the law, the mayor will be considered on the same level as a Cabinet member.
The decision that was made regarding MNT 420 billion was good news for foreign investors. As it became possible to cooperate with the capital city through direct investment, international financial institutions have begun to provide support. Currently, the International Finance Corporation, World Bank, Asian Development Bank, and the European Bank for Reconstruction and Development have reached out to us. If agreements are established, of course, we must pay it back in a certain amount of time following the investment.
-Some people suspect that bonds and concessions will create a burden of debt for the capital city, and finances will be illegally allocated.
-I have no interest in trying to profit off of my position. Large-scale construction creates more job opportunities. An increased number of job opportunities at companies will improve the team management skills of companies in the industry, which in turn would build the capacity of our citizens. We have to cooperate and learn from other countries.
As I have my own view and plan regarding these matters, I would like our youth to assess and evaluate my works rather than simply criticizing them. There are certain things that needs to be done, which is why I dived into the capital city work with courage, ambition, and plans.
WE AIM TO REDUCE TRAFFIC CONGESTION BY 50 PERCENT
-One of the major problems in Ulaanbaatar is traffic congestion. What do you plan to do next year? What policy will be implemented?
-We will use a combination of “hard” and “soft” policies in this sector. Public interest must be prioritized. As of currently, the average speed during peak hours is 8 km/h in Ulaanbaatar. In other words, Ulaanbaatar has become one of the world’s cities that have the worst traffic congestion. A suitable policy is necessary to resolve the issue.
Also, there is a need for reforms in public transportation. The city residents need to be offered various options for transportation: public transport, taxi services, bicycles, and Light Rail Transit. It is with these many options for transport that we will be able to reduce the number of vehicles. In addition, the balance between urban and rural areas will be regulated by government policy. The main reason for why there are many people moving into the capital city is that the cost of living is lower than those in rural areas. How it should be regulated will be decided through policy by the government.
-What will be done in terms of construction?
-Construction is planned for vertically and horizontally aligned roads. 248 km of bicycle roads will be built by 2024. In the coming year, 37 km of bicycle roads will be built. The amount of pedestrian roads will also be increased. Many other works such as the construction of bridges and highways are planned as well.
To implement these projects, we will introduce the City Rules and Standards at the Citizens' Representative Khural of the Capital City. It is also necessary to increase green space in each district.
-Are the preparations for all these projects already completed?
-A preliminary feasibility study for the highway has been completed. Ulaanbaatar is a monocentric city, so people come to the central area which leads to traffic congestion on Baga Toiruu and Ikh Toiruu. Also, there is heavy traffic congestion in certain neighborhoods due to the traffic going out of the city center. Our city is going through the same path as cities of other countries. Thus, highways would serve as an important factor for reducing traffic congestion in the framework of becoming a polycentric city. We are currently cooperating with the Asian Development Bank on plans to develop our subcenters. We aim to reduce urban traffic congestion by 50 percent by 2024. There are 620,000 registered vehicles in Ulaanbaatar and some 450 thousand of them participate in traffic. Some people seem to have a misconception regarding the measures to reduce congestion by 50 percent, thinking that only 200 thousand vehicles would be permitted. In connection with the increasing number of vehicles, there is no other way but to regulate taxes and especially take some strict measures in cooperation with the Parliament and the Government.
-Will the measures include banning old vehicles and increasing taxes?
-The number of vehicles purchased per year is around 80 thousand. 90 percent of the cargo to be delivered to Mongolia that is currently stuck at the Tianjin Port of China are old vehicles. Strict restrictions must be imposed on the import of old. On the other hand, we urgently need to renew and increase the number of buses being operated for public transportation, which requires proper regulation and financial resources. In addition, the number of bridges have to be increased. Road extensions, entrances, and intersections also need to be improved. As there is often heavy traffic congestion at intersections, a study for improving access to roads has been conducted by experts in the field.
-The construction projects require a large investment. Will bonds be issued to cover the rest of the finances?
-Currently, we are discussing with the Chairman of the State Great Khural about the necessary preparations to issue bonds. It should also be transformed into a repayable business model, which would be apartments and transportation logistics. Bonds should only be issued for issues concerning these two matters after thorough discussions. To have it resolved through concession agreements, the issue regarding how the city would increase its revenue and how cooperation should be carried out with entities in the private sector in order to expand the city’s economy must be resolved. This could involve long-term foreign investment. However, the city must be able to make its scheduled payments as planned.
-Would it be correct to assume that you are able to make such statements due to the increased legal and economic capacity compared to the previous mayors of the city?
-Yes, I am able to bravely make these statements due to the increased capacity.
Currently, it is possible for the city to issue a single bond domestically. If the corresponding assessments and evaluations are done for loans and investment in the city, it will be possible to issue a bond internationally. The matter concerning the renewal of infrastructure and engineering facilities in Ulaanbaatar could be discussed through a 30-year bond issued internationally. However, the requirements are high. The well-being of the country’s economy and a high rating are the core factors for developing the city. From real estate to sanitation facilities, all assets in Ulaanbaatar are to be assessed and graded by organizations acknowledged for its international standards.
-The General Development Plan of Ulaanbaatar until the year of 2040 is currently being developed. Some people are concerned about whether the plan will be properly implemented.
-The General Development Plan of Ulaanbaatar until the year of 2040 will soon be finalized and submitted to the Parliament. Previously, a development plan between 2000-2020 was approved. The plan’s implementation was assessed to be at 29.4 percent. In general, it was a policy error that brought to this result. I hope that the plan we are currently developing would have at least 60 percent for its rate of implementation as it is impossible to meet one’s goals by 100 percent.
If the rate of implementation is assessed to be at least 60 percent, we expect our city to have developed into a modern city that brings together traditions and innovation.
The ‘Undesnii Toim’ magazine invited Governor of the Capital City and Mayor of Ulaanbaatar city Mr. Sumiyabazar Dolgorsuren to its ‘Toim Interview’ section.
IT IS INDEED A DIFFICULT TIME. BUT WE DID NOT GIVE UP OR BECOME DISCOURAGED
-A year has past since you were appointed as the new Mayor of Ulaanbaatar. However, it seems that you have yet to properly report on your works to the public. In general, what would you say about your achievement during this period?
-The past year has had its challenges as we faced economic difficulties due to disruptions in business operations. I must also note that we were only able to overcome the past year by each of us carrying our own burdens and being able to have mutual understanding irrespective of whether it is a citizen, entity, or a government organization. Despite this, I have hopes that the situation will become better from now on. If 50 percent of the capital city’s population is involved in an additional dose of the COVID-19 vaccine next month, we will be able to urgently transition into the ‘Yellow’ level. The city administration is currently providing assistance and support for business activities being run by citizens and enterprises.
Ulaanbaatar city always had a lack of budget.
-Have you ever regretted being appointed as the Mayor of Ulaanbaatar city?
-No. I have never regretted my decision or become discouraged. We must not crumble under these difficult circumstances. In order to overcome this, we have to properly implement our policies and carry out measures. As the majority of Ulaanbaatar city residents have already given their votes to support us, we did our best to work as a team to not lose the peoples’ trust.
-Do you think that there were a certain number of policy errors such as how strict lockdowns were imposed back-to-back?
-It is true that the strict lockdowns created difficulties for the city’s residents to the point it caused the economic circulation to halt.
However, many countries around the world have gone through the same path. Of course, not everyone would like the decisions that were made as it has an impact on society. Some would oppose them while others would support it. All the decisions to impose a strict lockdown or lift it was merely a way of dealing with the situation at hand due to the lack of vaccines.
ISSUES NOT REGULATED BY LAW WILL BE REGULATED BY A SET OF RULES
-During the past year, what changes have taken place in the Ulaanbaatar city, and what policy did you implement as the Mayor?
-We implemented many works and measures in the framework of our plan that involved many issues, such as reducing bureaucracy, accelerating digital transition, and tackling bribery. In my opinion, the basic policy changes over the past year have been fairly good.
Ulaanbaatar city always had a lack of budget. There are financing issues that have yet to be resolved for works done in the previous year. As the capital city did not have a team of experts for social and economic reform and debt management, I am currently seeking to make fundamental reforms in phases, and for Ulaanbaatar city to have a set of rules reflected in the law. With this, the city will have a set of rules under the Law on the Legal Status of Ulaanbaatar City for the very first time. We are also working to come up with a standard that needs to be set out in the law.
- The Law on the Legal Status of Ulaanbaatar City was amended after 27 years. What are the key changes?
-Firstly, the major pressing issue for Ulaanbaatar is the lack of budget. Secondly, the legal environment of Ulaanbaatar is rather limited. The Law on Administrative and Territorial Units and their Governance was approved in December 2020. The law will enter into force on January 1, 2022.
On top of this, there are two laws: the Law on the Legal Status of Ulaanbaatar City and the Law on the Legal Status of Cities and Villages. As Ulaanbaatar city is the center of our country's development, it was considered that the city should be prioritized. We put forth our suggestion. And we were also able to have the law amended.
- I assume that parliament members elected from the city also had an influence in having the law approved?
-A temporary committee for the development of Ulaanbaatar was established with a total of 26 members, including 24 members elected from the capital city and two members elected from rural areas of the country. The Law on the Legal Status of Ulaanbaatar City was introduced at the spring session of the Parliament. It is a major law with 19 accompanying laws.
-Did the bill also involve having the Government allocate MNT 420 billion for reducing traffic congestion in the capital city?
-After thoroughly discussing this issue with the Ministry of Finance, we sent documents to the Ministry requesting the city to be in charge of MNT 420 billion that was contributed to the state budget from the capital city. In the city, there are 1.5 million residents - 50 percent of the country’s population. It makes up almost 67 percent of Mongolia's total economic circulation. There are 150,000 registered businesses in the capital city, and a wide range of services available. As Ulaanbaatar is a large social and economic complex, the issue was brought up to both the Ministry of Finance and the Prime Minister time and time again.
-Was that how the problem was resolved?
-All problems being faced in Ulaanbaatar concerns the Government as well. Prime Minister L.Oyun-Erdene also decided that the capital city’s issues should be considered as issues that need to be solved by the state. Thus, MNT 420 billion will be left in charge of the city in the years of 2022, 2023, and 2024. This serves as an important boost for urban development.
-What if the capital city is not able to collect the finances of MNT 420 billion due to post-pandemic challenges?
-It is clear that next year will not be that easy on the economy. Real estate tax revenue and land tax revenue need to be further analyzed. Personally, I believe that we should first look over the matter concerning land tax.
-Does this mean that land tax will be increased?
-People often tend to not pay land taxes. Yet, they are still interested in acquiring land. To acquire something, it is necessary to pay the corresponding tax. Furthermore, we will carry out a study on the impact of our commodities in certain sectors and how the ratio of supply and demand should be set.
I HAVE NO INTEREST IN TRYING TO PROFIT OFF OF MY POSITION
-Would you agree that you will have the most “power” compared to previous mayors of Ulaanbaatar?
-In general, yes. According to the amendments to the law, the mayor will be considered on the same level as a Cabinet member.
The decision that was made regarding MNT 420 billion was good news for foreign investors. As it became possible to cooperate with the capital city through direct investment, international financial institutions have begun to provide support. Currently, the International Finance Corporation, World Bank, Asian Development Bank, and the European Bank for Reconstruction and Development have reached out to us. If agreements are established, of course, we must pay it back in a certain amount of time following the investment.
-Some people suspect that bonds and concessions will create a burden of debt for the capital city, and finances will be illegally allocated.
-I have no interest in trying to profit off of my position. Large-scale construction creates more job opportunities. An increased number of job opportunities at companies will improve the team management skills of companies in the industry, which in turn would build the capacity of our citizens. We have to cooperate and learn from other countries.
As I have my own view and plan regarding these matters, I would like our youth to assess and evaluate my works rather than simply criticizing them. There are certain things that needs to be done, which is why I dived into the capital city work with courage, ambition, and plans.
WE AIM TO REDUCE TRAFFIC CONGESTION BY 50 PERCENT
-One of the major problems in Ulaanbaatar is traffic congestion. What do you plan to do next year? What policy will be implemented?
-We will use a combination of “hard” and “soft” policies in this sector. Public interest must be prioritized. As of currently, the average speed during peak hours is 8 km/h in Ulaanbaatar. In other words, Ulaanbaatar has become one of the world’s cities that have the worst traffic congestion. A suitable policy is necessary to resolve the issue.
Also, there is a need for reforms in public transportation. The city residents need to be offered various options for transportation: public transport, taxi services, bicycles, and Light Rail Transit. It is with these many options for transport that we will be able to reduce the number of vehicles. In addition, the balance between urban and rural areas will be regulated by government policy. The main reason for why there are many people moving into the capital city is that the cost of living is lower than those in rural areas. How it should be regulated will be decided through policy by the government.
-What will be done in terms of construction?
-Construction is planned for vertically and horizontally aligned roads. 248 km of bicycle roads will be built by 2024. In the coming year, 37 km of bicycle roads will be built. The amount of pedestrian roads will also be increased. Many other works such as the construction of bridges and highways are planned as well.
To implement these projects, we will introduce the City Rules and Standards at the Citizens' Representative Khural of the Capital City. It is also necessary to increase green space in each district.
-Are the preparations for all these projects already completed?
-A preliminary feasibility study for the highway has been completed. Ulaanbaatar is a monocentric city, so people come to the central area which leads to traffic congestion on Baga Toiruu and Ikh Toiruu. Also, there is heavy traffic congestion in certain neighborhoods due to the traffic going out of the city center. Our city is going through the same path as cities of other countries. Thus, highways would serve as an important factor for reducing traffic congestion in the framework of becoming a polycentric city. We are currently cooperating with the Asian Development Bank on plans to develop our subcenters. We aim to reduce urban traffic congestion by 50 percent by 2024. There are 620,000 registered vehicles in Ulaanbaatar and some 450 thousand of them participate in traffic. Some people seem to have a misconception regarding the measures to reduce congestion by 50 percent, thinking that only 200 thousand vehicles would be permitted. In connection with the increasing number of vehicles, there is no other way but to regulate taxes and especially take some strict measures in cooperation with the Parliament and the Government.
-Will the measures include banning old vehicles and increasing taxes?
-The number of vehicles purchased per year is around 80 thousand. 90 percent of the cargo to be delivered to Mongolia that is currently stuck at the Tianjin Port of China are old vehicles. Strict restrictions must be imposed on the import of old. On the other hand, we urgently need to renew and increase the number of buses being operated for public transportation, which requires proper regulation and financial resources. In addition, the number of bridges have to be increased. Road extensions, entrances, and intersections also need to be improved. As there is often heavy traffic congestion at intersections, a study for improving access to roads has been conducted by experts in the field.
-The construction projects require a large investment. Will bonds be issued to cover the rest of the finances?
-Currently, we are discussing with the Chairman of the State Great Khural about the necessary preparations to issue bonds. It should also be transformed into a repayable business model, which would be apartments and transportation logistics. Bonds should only be issued for issues concerning these two matters after thorough discussions. To have it resolved through concession agreements, the issue regarding how the city would increase its revenue and how cooperation should be carried out with entities in the private sector in order to expand the city’s economy must be resolved. This could involve long-term foreign investment. However, the city must be able to make its scheduled payments as planned.
-Would it be correct to assume that you are able to make such statements due to the increased legal and economic capacity compared to the previous mayors of the city?
-Yes, I am able to bravely make these statements due to the increased capacity.
Currently, it is possible for the city to issue a single bond domestically. If the corresponding assessments and evaluations are done for loans and investment in the city, it will be possible to issue a bond internationally. The matter concerning the renewal of infrastructure and engineering facilities in Ulaanbaatar could be discussed through a 30-year bond issued internationally. However, the requirements are high. The well-being of the country’s economy and a high rating are the core factors for developing the city. From real estate to sanitation facilities, all assets in Ulaanbaatar are to be assessed and graded by organizations acknowledged for its international standards.
-The General Development Plan of Ulaanbaatar until the year of 2040 is currently being developed. Some people are concerned about whether the plan will be properly implemented.
-The General Development Plan of Ulaanbaatar until the year of 2040 will soon be finalized and submitted to the Parliament. Previously, a development plan between 2000-2020 was approved. The plan’s implementation was assessed to be at 29.4 percent. In general, it was a policy error that brought to this result. I hope that the plan we are currently developing would have at least 60 percent for its rate of implementation as it is impossible to meet one’s goals by 100 percent.
If the rate of implementation is assessed to be at least 60 percent, we expect our city to have developed into a modern city that brings together traditions and innovation.