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Action plan

Annex 2, Resolution of Parliament of Mongolia #106, 2021





Expected results


Objective 1.1. Develop the hard and soft infrastructure of ports, increase freight and passenger capacity, increase exports.
1.1.1 Bring the development of border ports to the same level as the ports of neighboring countries and bring the organization and operations of infrastructure and transportation in line with the international standards by way of adjusting or developing new general development plans and partial master plans of the ports development. The development plans of all ports will be adjusted or newly developed
1.1.2 Resolve the issue of importing all types of goods and products at the border through diplomatic channels with neighboring countries. Proposals shall be presented, discussed and resolved through diplomatic channels with neighboring countries.
1.1.3 Resolve the issue of extending the opening hours of ports through diplomatic channels with neighboring countries. Treaties and agreements shall be reached
1.1.4 Make and implement treaties and agreements for reducing the tariff- and non-tariff barriers to export goods. Treaties and agreements shall be reached
1.1.5 Expand and renovate the main port facilities (power, heating, water supply, sewerage, internet networks, customs laboratory, passenger and freight terminals) and create a comfortable travelling environment for passengers and working environment for the staff. Passenger and freight handling capacity shall increase 3-fold.
1.1.6 Construction of container transport terminals, loading and unloading terminals, and re-shipment terminals at major mining export ports. Terminals shall be constructed
1.1.7 Study and build additional facilities (aerial hanging transport, automatic control transport, etc.) for increasing the freight capacity of the border ports. The freight capacity of the ports shall be increased by 2-3 fold.
1.1.8 Establish smart exits, modern high-capacity X-ray machines and inspection equipment and laboratories in the customs control zones. Modern high-capacity X-ray and sampling equipment and customs laboratories shall be installed at the ports
1.1.9 Shift the customs control, clearance and laboratory works to e-forms and reduce the time spent for the border inspection. The time spent on border inspection shall be reduced by -no less than 26 percent.
1.1.10 Develop the planning and organization of mining products transportation and their border crossing for each border port. The time spent for exporting of mining products shall be decreased.
Objective 1.2. Connect border crossings with railways and paved roads, increase the competitiveness of transportation and logistics, improve freight traffic, and create the basic conditions for becoming a transit hub country in the near future
1.2.1 Improve road access to ports and increase their transporting capacity 2650 km of paved roads and 4600 km of railways will be built. 11 new ports will be connected through roads and 4 ports - through the railway.
1.2.2 Expand the national railway network and create the basic conditions for making it an international transit hub in the future. Intensify the realization of the western and eastern vertical railway projects.
1.2.3 Establish the regional logistics center connecting Asia and Europe and increase transit traffic The volume of transit freight shall be increased
Objective 1.3. Improve the air operations management and use of air routes in Mongolia, increase the number of transit flights, establish a freight hub center and support the tourism industry by way of ensuring the gradual air transport liberalization
1.3.1 Increase the number of continually-working international airports, develop freight forwarding transportation and tourism. The capacity of local airports shall be improved, and six airports will be turned into the international border ports available for passenger and freight traffic.
Objective 1.4. Increase trade turnover by gradually establishing free economic zones and inland “dry” ports pursuant to the Concept of Regional Development of Mongolia.
1.4.1 Research and have resolved the matter of turning some border ports to free zones A new free zone shall be established
1.4.2 Develop cross-border tourism around some border ports Six ports shall be developed and/or upgraded as tourism hub ports.
1.4.3 Establishment of inland "dry" ports in Altanbulag, Zamyn-Uud, Sainshand and Ulaanbaatar in stages in accordance with the 2013 Inter-governments Agreement of the Asia-Pacific Economic and Social Commission on Inland Ports. A logistics center connected to a seaport shall be established for one or more modes of transports, specializing in loading, storage and related inspections of goods and products transported as international trade.


Objective 2.1. Construct new energy sources, transmission and distribution networks, expand and increase the existing capacities, and improve the reliability of energy production and supply.
2.1.1 Construction of Tavan Tolgoi thermal power plant with a capacity of 450 MW, and 220 kW aerial transmission line for supplying energy to the strategic mining deposits and industrial and technological parks in the southern region Generation of 3,150.0 million kWh of electricity per year will meet the growing demand for Oyu Tolgoi's consumption of 2,242.5 million kWh and of Tavan Tolgoi deposits and other strategically important mining projects in the southern region.
2.1.2 To meet the growing energy needs for mining and tourism projects in the eastern region, expand the capacity of the Choibalsan thermal power plant by 50 MW Provision of energy for the growing electricity consumption in the eastern region and uninterrupted and reliable power supply to soums and settlements of Dornod and Sukhbaatar aimags, processing plants, mining complexes and tourist centers.
2.1.3 Expand the Amgalan thermal power plant to boost the heat supply and consumption in the eastern part of Ulaanbaatar In the eastern part of Ulaanbaatar, heating will be provided to new apartment residential areas of Bayanzurkh district and around Uliastai as a redevelopment area.
2.1.4 Build a new energy supply source with a capacity of 400 MW based on the infrastructure of thermal power plant No III. The plant's capacity will be increased by 400 MW of electricity and 370 Gcal / h of heat that shall meet the growing demand for heat and electricity in central districts of Ulaanbaatar.
2.1.5 Build a 300 MW Bagakhangai power plant for meeting the energy needs of new eco- and green development projects in the capital city Ulaanbaatar Generation of 1,855.9 million kWh of electricity per year, and supplied to the central power grid will support the full technical capacity and supply of electricity to eco-green projects around Ulaanbaatar.
2.1.6 Construction of the Erdeneburen-Myangad-Uliastai 220 kV aerial transmission line and sub-station to supply electricity, generated by the Erdeneburen hydropower plant, to the regional network. The energy supply and accessibility of the western region and, particularly, in 5 provinces covered by the Altai-Uliastai energy system shall be improved.
2.1.7 Find solution for the heat and electricity need for the new satellite towns and free economic zones in Khushig valley of Tuv aimag through establishing a new supply source The new satellite towns will be commissioned in line with their urban planning stages.
Objective 2.2.Renewable energy facilities shall be developed in an appropriate ratio where the water and stored resource stations shall be built for ensuring the reliability and stability of the integrated energy system.
2.2.1 Build a 90 MW hydropower plant in Erdeneburen to fully meet the energy needs of the western region. A power plant with a capacity of 366 million kWh per year will be built to meet the energy needs of the western region.
2.2.2 Make it possible to adjust the supply during the peak loads of the central network using a 160 MW capacity accumulator in the central power grid. The accumulator will be put into operation to enable frequency and voltage adjusting in the central region's power system, to improve energy quality indicators, and to ensure electricity stability.
2.2.3 Complete a biodiversity impact study in the Egiin-gol hydropower plant area and present it to the World Heritage Committee. Upon presenting to the UNESCO World Heritage Committee, the Committee will issue its decision.
Objective 2.3. In certain phases, the energy sector shall be transferred into an independent financial and economic system
2.3.1 Energy prices and tariffs will be indexed and updated quarterly Prices and tariffs are indexed on quarterly basis
Objective 2.4. Ensure the preparation of the high voltage aerial transmission lines and substations for connecting to the renewable energy source and network within the Northeast Asian integrated energy grid
2.4.1 Conduct the study of production of renewable energy and supply to Northeast Asian integrated power grid through the South Gobi solar and wind power generation. The solutions for the renewable energy capacity to be built in the South Gobi, transboundary high-voltage power transmission lines connecting to the Northeast Asian power grid, substations’ technical and technological solutions, technology to produce green hydrogen using South Gobi solar and wind sources shall be studied.
Objective 2.5. The construction of a natural gas pipeline from the RF to the PRC through the territory of Mongolia shall be boosted.
2.5.1 Complete the feasibility study for construction of a natural gas pipeline from the Russian Federation to the People's Republic of China through the territory of Mongolia and prepare to launch the construction. A study of Mongolia's gas consumption, capacity, location, infrastructure, and logistics terminals of gas distribution facilities will be completed, and the preparations for construction will start.


Objective 3.1. Through advanced technologies and upgrading the guaranteed mineral resources recorded in the government database, due actions shall be taken for digitalizing the process of issuing mineral licenses, reducing costs and increasing investment and the volume of value-added mining products.
3.1.1 Digitalize the process of issuing mineral licenses, increase the number of licenses and create opportunities to attract more investment. Electronic application and selection of mineral licenses shall be online, private investment in exploration works shall increase.
3.1.2 Using the government budget funding, conduct geological exploration works in the state special protected area and in the perspective area that fall within in the state border zones. Exploration works for economically important minerals (gold, copper, high-tech raw materials, etc.) shall be performed by state-owned companies and their deposits will be put into economic circulation.
3.1.3 Create conditions for full utilization of the Tavan Tolgoi coal deposit through putting the concentrator plant into operation. The first module will commission a 10 million tonne coal concentrator in 2023, this shall create 928 new jobs and strengthen export earnings.
3.1.4 For reducing the open pit mining costs and increasing the capacity of “Erdenes-Tavan Tolgoi” JSC, make made a comparative selection of the suitable technology (1. multi-bucket excavator-conveyor, or 2. electric excavator-conveyor, or 3. electric excavator-heavy trucks) for launching own mining operations. Mining capacity shall be gradually increased to 50 million tonnes. Costs of mining works will be reduced by 20-30 percent.
3.1.5 Increase the export volume of Erdenes-Tavan Tolgoi JSC by way of using underground mining options and which cannot be used through open pit mining method. Mining volume shall be increased by 10 million tonnes creating 1,500 to 1,800 new workplaces.
Objective 3.2. Value-adding heavy industry shall be developed for meeting the domestic development needs and increasing exports.
3.2.1 For boosting the efficiency of the Erdenet Mining Corporation’s production, construct a mining-metallurgical and chemical value-added production complex (producing copper concentrate processing plant, cathode copper production from oxidized ore) The industrial park's plants will produce 135,000 tons of pure cathode copper per year, increasing export earnings and creating 1,050 new jobs. A cluster of small and medium-sized enterprises for the production of various copper products will be established.
3.2.2 Develop the metallurgical industry together with auxiliary plants to meet the domestic demand for steel products. The project of “Mongol Steel Complex I” contemplating domestic processing of iron ore and production of value-added end products such as 350 thousand tons of steel products, the Altanshireet Industrial Park project aiming at production of 500 thousand tonnes of cast iron and 1 million tons of coke, and the Erdenet Metallurgical Plant project for production of 200 thousand tons of steel products will be completed. By the end of 2025, the country will have met 80 percent of its domestic demand for key steel products (such as rebars) and have increased its exports of such products.
3.2.3 Establish a copper concentrate processing plant based on the Oyu Tolgoi deposit and increase the production of value-added products such as cathode copper, gold and silver. The project's facilities will be put into operation, producing an average of 257,000 tons of pure cathode copper, 5.7 tonnes of gold and 57 tonnes of silver per year resulting in increase of export earnings.
Objective 3.3. Increase of the proven oil reserves shall ensure uninterrupted provision of raw materials to domestic refineries and production volume of the refineries
3.3.1 Reduce dependence on imports of petroleum products, build a refinery that would use the domestic raw materials, lay the foundation for the petrochemical industry When the plant is fully operational, it will reduce the dependence on fuel imports, launch a new petrochemical industry, contribute to the state budget, and provide 50-60 percent of domestic fuel needs, reducing the trade deficit by about $ 1 billion.
3.3.2 Increase the proven oil reserves and build a pipeline for supplying the refinery with domestic raw materials. Exploration and development of the Davst-31 area shall be intensified through attracting foreign investors. The construction and commissioning of a 530-km long oil pipeline shall be completed, the new fuel delivery technology will be adopted.
3.3.3 Upgrade the quality standards and control systems for petroleum products and stabilize their supply The capacity of testing laboratories will be improved, their equipment upgraded and laboratories will get international accreditation. For increasing the company's reserves, the importing companies shall cooperate with the Bank of Mongolia.
Objective 3.4. The volume of new products, services and production shall be increased through development of agricultural production based on advanced technologies and innovation.
3.4.1 Improve the level of primary processing of livestock raw materials and boost the production of value-added products. By raising the level of leather processing to 60 percent, the prices of livestock products will be stabilized, whereas the herders' real incomes will increase. Exports will be increased by USD 232.7 million, and about MNT 32.7 billion will be collected in the state budget. Annually, and 5 tanneries and 3 ancillary factories will be established with an annual capacity of 4.5 million skins creating over 2.4 thousand jobs.
3.4.2 Improve the level of primary processing of livestock raw materials in the western region and increase the value of value-added products. 19 factories with advanced equipment and technology will be built to support the economic and social development and competitiveness of the western region. Exports will total over USD$ 51.8 million. About MNT₮ 30 billion will be paid to the state budget in taxes and charges. Factories with a capacity of daily processing 200 large livestock, 500 small livestock, 5,000 liters of milk, and 600,000 pieces of leather, 3,000 tonnes of wool and 300 tonnes of cashmere per year shall be constructed and operating.
3.4.3 Construction of 4 industrial complexes with meat factory and quarantine zone, technological modernization of the existing facilities, processing of livestock products in accordance with the international standards. Over 640 thousand small and 101 thousand large livestock will be put into economic circulation annually leading to improvement of the economic situation of herders and increase of their incomes. Exports of meat and meat products will increase by 21,000 tonnes. Domestic tanneries will be supplied with raw skins and other materials that meet the international standard requirements.
3.4.4 Develop the production of various extruded panels and other wood products in Selenge, Khuvsgul, Darkhan-Uul aimags and the capital city Over 50,000 cubic meters of timber will be put into economic circulation annually, supplying 70% of the domestic market for extruded wood panels, creating 2,500 workplaces and supplying up to 37% of exports.
Objective 3.5. Reduction of the share of exports of semi-finished products and increase the export of value-added finished products by way of increasing the capacity of processing plants according to the availability of agricultural raw materials products and other resources.
3.5.1 Increase capacity of the processing industry, offer preferential financial support aimed at export trade turnover and investment. The production of raw materials and products at the domestic factories will be doubled, the utilization of installed capacity will be increased to at least 80 percent.
3.5.2 Access to the halal processed meat market, expand the export of such meat Export to secondary markets will be increased and the supply logistic shall be stabilized while the unit sale prices shall trend up. Meat exports will reach 10,000 tonnes in the first year, and increase by 5,000 tons per year thereafter.
3.5.3 Through making agreements with the People's Republic of China Port Authority negotiate the transportation exporting meat and meat products to by rail (special wagon cars). Export of 50,000 tons of meat annually to the People's Republic of China under the due standards and protocol will become possible. A reliable transportation network and transport of meat products to the People's Republic of China will reduce the transportation costs.
3.5.4 Establish a protocol with the People's Republic of China on quarantine, veterinary and sanitary requirements for the export and import of horse by-products. The varieties and quantity of export livestock products will be improved.
3.5.5 The government will implement a set of measures to improve the integrated warehouse and transportation and logistics infrastructures for export of wool, cashmere, leather, meat and other raw materials. Improved warehousing and transportation and logistics infrastructure for raw materials and products of export importance.
Objective 3.6. Introduction of the advanced technology, blockchain and artificial intelligence based on the science and innovation, industrial development in line with the latest digital economy trends.
3.6.1 Prepare human resources to develop science-based industries that would support innovation, the “fourth industrial revolution”, artificial intelligence, and blockchain Exports of information technology products will be increased.


Objective 4.1 Programs shall be realizaed for improving the quality and standards of public transportation in the capital city Ulaanbaatar, introducing new types of high-capacity public transportation services, expanding and renovating the network of main and basic highways, streets and road facilities, establishing multi-level intersections, increasing accessibility and reducing the traffic congestion.
4.1.1 Develop, expand and upgrade the basic and main road networks to reduce traffic congestion in Ulaanbaatar. The traffic congestion index will decrease by 15-20 percent and roads’ capacity will improve by 35 percent.
4.1.2 Establish an integrated and smart traffic management and control system. A real-time traffic data system will be established for use by the city traffic policy and in planning, integrated monitoring and regulation.
4.1.3 Introduce the advanced high-capacity public transportation technologies to enhance the quality and standards of the public transport and improve its accessibility. The number of public transport passengers will increase by 30 percent compared to the number for 2020, this shall reduce the traffic congestion by the index of 50-60 thousand vehicles.
4.1.4 Improve the legal framework offering tax incentives for companies that have realized measures to reduce the city congestion. Legislation will be in place to provide tax breaks to companies that have taken steps to reduce road congestion.
4.1.5 Construction of the “New Ring Road” with multi-level intersections connecting the main hubs of the capital city Ulaanbaatar. The 71.5 km long “New Ring Road” network with 11 multi-level intersections will be established reducing the traffic congestion index by 15-20 percent.
Objective 4.2 Intensify the development of new residential areas, satellite cities and free economic zones, and mitigate the urban centralization by way of supporting citizens and businesses who have migrated from Ulaanbaatar to rural areas, through realization of a relevant comprehensive policy.
4.2.1 For decentralizing the capital city Ulaanbaatar, intensify the construction of main hubs and their basic infrastructure The construction of the hubs funded by foreign loans and grants will be completed, and additional sub-centers and community centers will be established.
4.2.2 Intensify the development of new residential areas, free economic zones and satellite towns. Preparations and planning will be made to intensify the development of new residential areas, free economic zones and satellite cities.
4.2.3 Boost the construction of new towns and free economic zones in the Khushig valley. General development plans, feasibility studies and working drawings for new satellite cities and free economic zones will be developed, and the first stage of engineering networks will be completed.
4.2.4 Provide financial support to individuals and businesses relocating from Ulaanbaatar to rural areas Migration to Ulaanbaatar will have slowed.
4.2.5 Create a supporting legal environment enabling to provide soft loans to small and medium enterprises that employ urban-to-rural migrants The new legal environment shall enable soft loans to small and medium enterprises that employ local migrants.
4.2.6 Build engineering infrastructure to support local manufacturing, services and population growth. Local production, workplaces and services will be created, and out-migration to the central areas will lessen.
4.2.7 Support the provision of housing with regular engineering infrastructure and utilities to relocated and resettled individuals, households and entrepreneurs pursuant to the local partial master development plan. Through enforcement of the regional development policy and the partial local master plans, the concentration and congestion in Ulaanbaatar will be reduced by way of developing rural settlements.
4.2.8 Enforce the government policy an environment supportive of the local businesses, provide urban-to-rural migrants with domestic livestock, and support small agricultural businesses. Resettled urban-to-rural migrants and other small agricultural businesses will be supported through the comprehensive government policy.

Establish local logistics centers based on local production of food, raw materials, agricultural and construction materials.


Local logistics centers will be established based on local production of food, raw materials, crops, agricultural and construction materials, and the “cold transportation chain” system will be created.
4.2.10 Decentralize some universities through diversifying them with more specialized curriculum, relocate them to satellite towns and rural areas for stimulating the capital city de-concentration. Some universities will be relocated to satellite towns and rural areas.
Objective 4.3. Aimag centers shall be developed as independent cities and financial and economic opportunities for local governments shall be supported to generate their budget revenues independently
4.3.1 Aiming at balancing the urban and rural development, the cities and settlements in the Gobi region centered around large mining areas as well as the main administrative center of the Khangai region shall be developed. The Khangai Regional Center, the General Development Plan of Erdenet city, the capital of Orkhon aimag, and the General Development Plan of Khanbogd, Tsogttsetsii and Gurvantes soums of Umnugovi aimag will be developed and implemented.
4.3.2 Organize the operation and maintenance of soum engineering infrastructure facilities in an integrated manner and provide comprehensive and hassle-free services to customers. Consumers are provided with a full range of public services.
4.3.3 Ensure reliable and normal operation of engineering networks The use of engineering infrastructure supply networks shall improve and operating costs will fall.
Objective 4.4. Through realization of the regional economic development policies, the sustainable growth of livestock and agricultural production shall be supported, domestic food demand shall be met and the share of food products in total exports shall be increased
4.4.1 Policy support for cultivating forage and medicinal plants, greenhouse farming and fish farming The berry and fruits cultivation areas will be enlarged by 3,500 hectares, agro and forestry companies will operate in 450 locations, and the footage of crop protection lines will reach 120 hectares. Interest in environmentally friendly businesses such as fodder crops medicinal plants cultivation, greenhouses, and fish farming will be supported.


Objective 5.1.For making a significant contribution to mitigating the climate change, the “Billion Trees” national movement will be effectively launched under the enabling legal environment that supports initiatives of citizens, businesses and organizations
5.1.1 Effectively implement tree planting and care under the detailed strategies and plans within the framework of the “Billion Trees” national movement. The area newly planted with trees and re-forested shall be increased.
Objective 5.2. Protecting water resources, providing the population with safe drinking water, irrigating pastures, increasing water supply in the Gobi region, reusing “gray” water, building artificial lakes and ponds, and rehabilitating exhausted rivers and springs.
5.2.1 Enforce a policy of protection and efficient use of water resources, provide people with safe drinking water, improve industrial and agricultural water supply, and create the saved water resource. The number of protected riverbeds, water supply sources and reservoirs built on major rivers will be increased, and the share of the population provided with drinking water that meets the sanitary standards will be increased.
5.2.2 The technological requirements for energy-efficiency and gray water reuse for the construction of public service facilities must be met. Public service facilities will be built in compliance with the green technology requirements leading to reduction of their operational costs.
Objective 5.3. Environmentally friendly waste recycling plants with advanced technologies shall be established, considering regional perspective, in aimags and the capital city



Waste sorting and recycling at its source, waste reduction, and economic re-use shall be supported, and waste processing plants are to be built in the capital city and aimag centers. Waste recycling shall reach 27 percent of the total waste.
Objective 5.4. When implementing the policy of economic and industrial recovery, the national traditions of environmental protection shall be preserved and ensured. A national model of green development shall be defined in accordance with the global development trends
5.4.1 Enhance the environmental monitoring and evaluation for ensuring the environmental safety and creating healthy and safe living conditions for people. The environmental monitoring and evaluation mechanism shall be enhanced.
5.4.2 Realize the national objectives to mitigate the climate change and reduce desertification and land degradation. Areas affected by severe or strong desertification will be maintained without increasing the size of the affected areas.
5.4.3 Realize environmentally friendly, low greenhouse gas, energy and water efficient green projects, and provide soft loans and incentives for purchasing goods under these projects. Buildings, industries and technologies that satisfy the international standards and conventions such as the Paris Climate Accord and the Sustainable Development Goals, shall multiply and have a positive impact on the environment.
5.4.4 Introduce a system of financing and rational incentives for loans that prefer the green growth. Adopt new clean technologies. The efficiency of green projects and loans for individuals, businesses and organizations shall be boosted.


Objective 6.1. The government services shall be digitalized leading to reduction of the government bureaucracy
6.1.1 Strengthen the efforts to become a “digital nation'', improve the public information infrastructure, reduce paper-based public work, move to e- communication, ensure that citizens and legal bodies would not need to seek information that can be obtained or exchanged from public information systems, improve the access to e-public services, increase the number individuals with e-signatures. Launched on October 1, 2020, the “E-Mongolia” integrated public service system with 563 different services from 57 government organizations shall have over 1,000 services available. Making e-contracts shall become available, the public must be able to promptly access the government services regardless of time and distance.
6.1.2 Transform the spatial databases of various bodies to a single-standard database. Through this geoportal, launch the “One map” database for government policy planning and decision making, and “Open map” electronic services for individuals, public and business nationwide. An open, unified digital system of spatial data will be developed and maintained.
6.1.3 Launch an integrated address system, for widespread use. Nationwide, the addressing will be transformed into a unified system.
6.1.4 Pursuant to the artificial intelligence, blockchain and geographic information systems, develop an integrated system of 3D and 4D land and property registration, valuation, tax and payment system in compliance with the international standards More than 500,000 drawings of buildings and registration information recorded in the land cadastre database shall be updated and corrected. A unified 3D and 4D database of land and property registration, appraisal, taxes and payments, shall be established and connected to similar systems of other public and private bodies where the inter-sectoral coherence shall be ensured.
6.1.5 Organize the transforming of 1: 1000 scale nationwide topographic maps and underground maps of urban areas to the ITRF2020 coordinates system. In the ITRF2020 era, 2,400 Class B networks will be established and AA Class networks will be transformed. New 1: 1000 digital topographic maps will be ready for territory of 21 aimags, 330 soums, and Ulaanbaatar.
6.1.6 Within the jurisdiction of the state administrative body in charge of land, establish an electronic land exchange, found the land development fund by using a certain percentage of revenue of the land exchange, put land into economic circulation. The integrted e-land exchange will be established under the jurisdiction of the state administrative body in charge of land. The national land fund will be established to revive the land and property market.
Objective 6.2. A comprehensive analysis and assessment of the structure and organization of the Government shall be conducted for identifying its optimal structure. Some government functions shall be delegated to the private businesses and professional associations.
6.2.1 Conduct an assessment study and delegate, in phases, some of government functions that can be delegated to professional associations in each industry. Some government functions shall be transferred to the private sector and professional associations, giving more opportunities to the public-private partnerships and making the civil service smaller and more efficient.
Objective 6.3. Duplications in the state inspection system shall be addressed and the scheduled inspections shall be temporarily suspended. The number of licenses and technical conditions that the state bodies require, shall be shortened
6.3.1 Make government work more transparent and efficient, eliminate government bureaucracy, reduce the number of licenses and permits in half, and create the online application, issuance and renewal of licenses. Individuals and legal bodies will be free to engage in activities other than those prohibited by law or require a permit or license as set forth in the law.
6.3.2 Conditions shall be created for prompt issuance of licenses other than those specified in the law for issuing on the basis of auctions, tenders, professional inspections as well as the licenses concerning land, minerals, oil, explosives, blasting operations, banking, finance, customs, national payment system, media, nuclear energy, telecommunications, tobacco and alcohol production, bookmaking, gambling games and lotteries. If the license holder has not previously violated the terms and conditions of the license, the term of the license shall be promptly renewed at the request of its holder on the terms and conditions originally issued by the competent authority. A business favorable environment shall be maintained.
6.3.3 Establish and maintain a publicly open online database of licenses. A favorable business environment will be created with ensured transparency and openness.
6.3.4 Reduce the scheduled inspections in areas other than taxes, customs, social insurance and health insurance an other conducted by the Bank of Mongolia and Financial Regulatory Commission, carry the government inspections according to the risk assessment, make the government supervision of advisory and supporting nature. For reducing the negative impact of the Covid-19 pandemic and increasing the economic efficiency, the inspections scheduled as specified in the Law on State Inspection, shall not be performed for a certain period of time. Unscheduled inspections shall be carried out only at the request, complaint or petition of citizens, businesses and organizations, and in case of direct or indirect damage to human life, health or the environment This will reduce government bureaucracy and save businesses time and resources.
6.3.5 No restrictions on the number of foreign workers hired by private businesses. The foreign hiring fees imposed by law shall be reduced 50 percent. Import of foreign labor, that cannot be supplied domestically, shall be made easier.
Objective 6.4. The efficiency, management and governance of state-owned enterprises shall be improved through shifting them under the direct public control



Early promotion of civil servants working in areas other than Ulaanbaatar if they meet at least 50% of the special requirements set in the Civil Service Law Decentralization of urban areas shall be ensured, and labor demand will be met.
6.4.2 Complete the transition to a three-year contracting mode with suppliers and service providers specifying prices and other terms for purchase of goods, works and services with state and local funds. Remove unnecessary restrictions on bidders in public tenders, and make the bidding process transparent, open and expeditious. If unnecessary restrictions imposed on bidders are removed and some types of public contracts are concluded directly for the term of 3 years, the bidding process will become easier and more accessible.
6.4.3 Participants in the procurement of goods and services of a state or locally owned company that are local businesses that do not operate in the capital city or district, or pay taxes locally as group companies, shall be given preference to the tender evaluation. Small and medium enterprises, services and start-ups shall be supported, and local employment shall be increased
6.4.4 Improve the effectiveness of the pre-trial settlement mechanism, improve non-judicial debt settlement mechanisms, and ease the process of resolving cases and disputes of citizens and traders in court. Citizens and businesses will be better able to resolve their debts and receivables without the involvement of courts and court decisions enforcement agencies.
6.4.5 The state shall not compete with the private sector, but operate, through setting up a company, only in strategically important sectors for the implementation of major projects of economic and social significance, and in the areas where the state regulates prices and tariffs, and in the sectors of notable public interest where the private sector can not operate alone. Limit interference in the management of business operations, ensure that business decisions are free from political interference, improve the governance of state-owned bodies, and take phased measures to transform them into open joint stock companies. The governance, transparency and profitability of state-owned and partly state-owned companies will be improved.
Objective 6.5. The punishment policy against corruption and office crimes shall be made stricter.
6.5.1 The punishment policy against corruption and office crimes shall be made stricter Tougher clauses in the Chapter 22 of the Criminal Code (specifies punishment for corruption).
Objective 6.6. Preventive measures against inclusion of the country in the list of countries with strategic deficiencies in combating money laundering and terrorism financing of the Financial Action Task Force (FATF) and in the “List of non-cooperative jurisdictions for tax purposes” of the European Union and against downgrading Mongolia’s credit rating.
6.6.1 Preventive measures against inclusion of the country in the list of countries with strategic deficiencies in combating money laundering and terrorism financing (“gray list”, “black list”) of the Financial Action Task Force (FATF) and in the “List of non-cooperative jurisdictions for tax purposes” of the European Union Ensuring Mongolia's economic stability, increasing foreign and domestic investment, and avoiding the inclusion in the Financial Action Task Force (FATF)’s list of countries that lack strategic strategies to combat money laundering and terrorist financing.

Measures to support the Mongolia’s credit rating.


Mongolia's credit rating shall not be downgraded from current rating of the Moody's (B3, stable) and Fitch and S&P (B, stable).