11.16-17.2015, presentation, city of ulaanbaatar-2030, bat-uul erdene

CITY OF ULAANBAATAR - 2030

MONGOLIA INVESTMENT SUMMIT 2015 – HONG KONG

| 2 All Rights Reserved Copyright © 2014

UB CITY HIGHLIGHTS

Total population of Mongolia has reached to 3m, from that 1.372 m people

live in UB accounts for 45% of the country’s population

POPULATION

1.3 million

UB constituted 60% of GDP in 2014. If this trend continuous, GDP of UB city will

represent 80% of Mongolian economy by 2016.

ECONOMIC

$7.31 billion

Governed by an open, democratic government and free market economy. There is

wide spread access to the Internet and 98 per cent of the population is literate.

LITERACY RATE

98%

The capital constitutes 40% of the workforce and 50% of the total investment.

WORKFORCE

40%

UB contains 62% of total registered business entities. An economic and cultural

powerhouse.

BUSINESS REGISTER

62%

UB is the capital and the largest city of Mongolia. It is also the main ECONOMIC centre of the country.


ECONOMIC GROWTH

Make up the majority of the Mongolian Economic Growth.

If growth remains, GDP of UB city will represent 80% of Mongolian economy by 2016.

13,30%

8,40%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

2001 2004 2007 2010 2013 2016

улс нийслэл

2,21

2,73

3,38

4,05

4,71

5,48

3,16

4,50

5,12 5,35

6,10

6,96

2011 2012 2013 2014 2015 2016

Fo

reca

st

Fo

reca

st

National UB city National UB city

GDP per capita Real GDP growth USD (thousand)


THE ISSUE DERIVES FROM THE LACK OF INFRASTRUCTURE

2

3

Centralization

Soil pollution

1

Respiratory disease

Charcoal

Wood

Auto exhaust

Dust

280 thousand tons of waste

is absorbed into the soil

Contamination of drinking

water sources.

Traffic jams

240 thousand vehicle

Air pollution

City Issues

As population increases, the issues arise cause of lack of infrastructure.


UB HOUSEHOLDS

202,000 households are living in ger the district.

59% of the total population of UB city living in ger disctrict

Over the past 10 years, the number of households lives in ger area increased by 70 thousand, but

household living in apartment increased by 50 thousand.

120 127 135 142 155 167 177 184 190 197 202

85 89 92 92 97 106 117 123 128 136 147 205 216 227 235 252 273 294 307 317 333 349

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ger district Apartment


POPULATION GROWTH

402,2 586,2 642,0 794,7

1 016,0 1 244,4

1 372,0 1 534,00

1 763,0 1 595,0

2 153,5 2 243,0 2 403,1

2 551,1 2 761,0

2 930,2 3 162,0

3 501,0

1979 1990 1995 2000 2005 2010 2013 2020 2030

UB CITY NATIONAL

If growth remains (thousand)

Infrastructure investment is needed.

Ulaanbaatar's population is expected to reach 1.7 million in 2030.

The next 5 years, infrastructure development which planned for 200 thousand people is needed

Increase infrastructure development every year.


UB CITY DEVELOPMENT

2030

1

7

The Master Plan was approved by the National

Parliament of Mongolia in May 2013

Ulaanbaatar city development policy document

UB CITY MASTER PLAN 2030


INVESTMENTS NEEDED

LONG TERM GOALS

MEDIUM-TERM GOALS

SHORT-TERM GOAL

2015

2017

2020

2030

16.81 billion

USD

28 billion USD +

+


$ 1.5 billion

soft loan

agreement

$ 70 million

soft loan

agreement

$ 1 billion

soft loan

agreement

Soft loans designed for finance the infrastructure

COOPERATION

$ 1.1 billion

loan

agreement


ONGOING PROJECTS

UB New Airport

Required investment -USD700 million

Ger area Re-Development

Tuul-Songino water reserve complex

CHP-5

Required investment - USD240 million

Required investment - USD320 million Required investment -USD1.2 billion

GDF suez, Sojitz ,Posco Energy, Newcom

450 MW capacity

Capacity of 100 MW hydro power plant

Housing ger area with affordable apartment


PROJECTS TO BE IMPLEMENTED

Central water treatment plant

UB logistic center

UB metro

• 365 million USD

• 147 million USD for phase 1

• 1.5 billion USD

BRT

• 280 million USD


Авто худалдааны төв

орчим

10376

households

2837

households

8656

households

6800

households

4051

households

959

households

ОРОН СУУЦНЫ ХОРООЛЛУУДЫН БАЙРШИЛ


№ FS Investment

USDMil Type of PPP

1 Automobiles sales complex No 87 BOO

2 Construction Materials Park Mongolian 92 DBOO

3 Logictics Terminal Center Deutche Bahn 147 DBOO

4 Hydro Dam Korean 300 DBOO

5 Insulation for apartment buildings GIZ 300 DBOT

6 Tannery Park Mongolian 350 DRLT

7 UB Metro JICA 1500 DBOT

8 Central Waste Water Project French 365 DBT/DBOT/DBOO

9 BRT ADB 270 DBOOT

10 Cable Cr French

13 School, Hospital No DBT

14 Eco Park No 137 DBT

Нийт USD4,206Bn

Ongoing Projects


Chinese-Mongolian

trade turnover $ 20

billion in 2020

$ 1 billion

discounted loan

agreement

Yuan MNT 15 billion

swap arrangement

1 billion tons of

coking coal supply

contract

Russian-Mongolian

foreign trade

turnover of $ 10

billion in 2020

Mongolian exports

increase

Meat and

agricultural

products

Seeking the most effective forms of

cooperation with our neighbors

ECONOMIC CORRIDOR: MONGOLIA-CHINA- RUSSIA :

Natural gas

pipeline

Energy

Oil pipeline

Auto road

Railroad Opportunity to become regional business and financial hub


GEOGRAPHY ADVANTAGE

Rely upon Khushigt valley International airport, UB become regional business financial hub and create new

flight directions.

60 million people

1 2

4

5

6

7

8 9

10

11 12

13

3

7

8

9

10

11

1

2

3

4

5

6

Ulan-Ude-400 thousand

Irkutsk-2.400 thousand

Chita-1.100 thousand

Kyzyl-300 thousand

Krasnoyarsk -2.800 thousand

Novosibirsk -1.400 thousand

Örömch -3.100 thousand

Hohhot-1.400 thousand

Ordos-1.900 thousand

Manchuria-0.300 thousand

Changchun -7.600 thousand

12 Shyenian, Dalian-14.700 thousand

13 Harbin-6.600 thousand

Cities population

North-East Asian Mayors Forum for Sustainable and Inclusive Cities

is initiated by Mayor of Ulaanbaatar city for 2014-2015.

UB


МОНГОЛ УЛСЫН ГАЗАРЗҮЙН БОЛОМЖ

Prairie road

Silk road

UB

MOSCOW

Istanbul

PROSPECTS OF REGIONAL DEVELOPMENT

Strategic

Location

Stable

democracy

Mineral

resource

Gov’t

willingness

Economic

Trend

Ulaanbaatar endured a peaceful

and ultimately successful translation

since 1990 to become a mature

democracy over the last 20 years

,

Situated between two massive

economies, China to the south

and Russia to the north, Mongolia

promises abundant opportunity

for growth

Mongolia has substantial natural

resources and minerals, which

promise an unprecedented

growth potential

Municipal Government would

provide long term stability for

foreign and domestic private

sector investors

Attractive climate for foreign

private investors

In Central Asia, AIIB expected to be made huge investment in major infrastructure

construction.

Agreements were signed by the three countries' relevant ministries

including a memorandum on compiling and building a planning

outline of a China-Russia-Mongolia economic corridor, a framework

agreement on creating favorable conditions to boost China-Russia-

Mongolia trade cooperation

Advantage


2015

MARKET OPPORTUNITY

Economic Partnership Agreement

with Japan.

Oyu Tolgoi underground financing agreement signed.

Construction will begin the 2nd quarter of 2016.

1

2

3

9700 product are tax free

4.2 billion USD

$ 220 million trade agreement signed

China - Mongolia Expo 2015


MONGOLIA COMPETIVENESS

1.Doing business rank

3.Democracy Index

2014

4. Global Competitive-

ness

5. Corruption

Rank

2013 2014

2. HDI

107 104

61 63

76 56

108 103

83 80

Change

20

5

2

3

3


UB CITY ECONOMIC DEVELOPMENT STRATEGY GOALS

TOURISM

REGIONAL

BUSINESS

FINANCIAL HUB

KNOWLEDGE BASED

ECONOMY

ECONOMIC DEVELOPMENT STRATEGY

Private Public Partnership


UB CITY DEVELOPMENT CORPORATION

UB city Private sector UBDC

• Permissions, right

• Subsidies, Tax incentives

• Equity

• Experteaze

• Efficient management

• Competition

• Private Capital

IMPLEMENT PPP PROJECTS

• Prepare projects

• PPP implementation

• Fundraising


UB CITY CHAMBER OF COMMERCE

GOAL

Support UB city development, protect interest of private sector, initiate development and

deliver optimum ideas to competent authorities for policy making.

UB City Chamber of Commerce is non-

governmental organization co-founded by 66 of

Mongolia's large private sector companies in

March in 2015.

Areas of work

1. Business development 2. PPP 3.Investment


PUBLIC

ADMINISTRATION

PRIVATE SECTOR

INVESTOR

INTERNATIONAL ARBITRATION IS FOUNDED AT UBCC

BASIC PRINCIPLES: EQUALITYFOR ALL

• privacy, equality • dispute resolution • must be implemented,

• instant bureaucracy

The advantages

1 2 3


THANK YOU FOR YOUR ATTENTION