Ulaanbaatar /MONTSAME/ During the Cabinet’s regular meeting on March 20, Monday, Head of Cabinet Secretariat J.Munkhbat reported on the progress of 126.7 km Bayankhongor-Altai road project which is listed among state-owned concession items approved by the 2013 Cabinet resolution No 317.
The concession agreement to build the road, worth USD 76.9 million, was signed with Energy Construction Company LLC on June 5, 2015. Sides agreed that repayment must be made from 2017 to 2019, and the road must be operational before September 1, 2017. But another company, Erdene Zam LLC established a duplicate concession contract because of which a legal case has been created.
Therefore, the Cabinet resolved to nullify the contract of Erdene Zam LLC, and ordered Minister for Road and Transport Development D.Ganbat to settle the case in compliance with the concerning laws and regulations.
Moreover, the Cabinet also decided to nullify the original concession contract with Energy Construction Company LLC, and assigned National Development Agency to select a new entity to establish a direct contract on construction of the 126.7 km road project and introduce its report.