The Prime Minister of Mongolia recently visited the EBRD’s headquarters in London to address the EBRD Board of Directors, representing the Bank’s shareholder countries and institutions, and to hold a meeting with First Vice President Phil Bennett.  Prime Minister Saikhanbileg Chimed informed the EBRD Board of the important  steps the government has recently taken to improve investment climate and unlock landmark joint projects in the natural resources sector.

He stressed that Mongolia is open for business and that big investment is already coming back to the country.

In his comments for the EBRD’s video channel, he said: “We want to express that we are open for business. Lately we had some challenges, and foreign investors did not feel the way we felt. Of course there were mistakes, and that’s why … the government needed to solve these problems.  And now we are ready to move on.

“And that is why we are trying to convince potential investors that Mongolia is back in business. We are not just saying that, but we are also acting. That’s why we just unlocked a big OT (Oyu Tolgoi copper mine) project very recently: $6 billion is going to come to the Mongolian market during the next five years. 14 different international banks and institutions [are involved]. It is also a very good sign that OT is unlocked, because it was stalling during two years. And next thing we will make a financial decision on the TT (Tavan Tolgoi coking coal mine) project: it is also a worldclass coking coal project, and some more investors will be involved in this project.

“That’s why I am urging any investors interested in Mongolia and telling them that it is high time (to act) right now. I know that commodity prices are declining but … during this time we need to prepare, to build these factories, projects, and when commodity prices go up we will be ready.

“Many projects are going to come to Mongolia now. I have just had many meetings and business forums in Washington, New York, London. There is a clear indication that the private sector and investment funds are very interested, and it is a very good sign.

He stressed that although there are many different opinions heard in Mongolia on foreign companies’ involvement in the natural resources sector, the majority of the population recognises the significant benefits from these partnerships and supports them.

“This July we are going to celebrate the 25th anniversary of our democracy. And what does democracy mean? It is the rule of the majority. And the majority of people in Mongolia now understand that the only way to properly explore our national wealth and to properly distribute it between citizens is to get good technology, good knowhow and good human resources from western countries. That’s why, in the government, we are trying to establish good partnerships with potential investors. And the majority understand this kind of necessity.

The EBRD is the largest foreign institutional investor in Mongolia, with $1.4 billion invested since 2006 in various sectors of the country’s economy, with the majority of projects being in the non-mining sector.