Concession agreement on sewage facility to be introduced

Ulaanbaatar /MONTSAME/ During the Cabinet’s regular meeting on March 20, Monday, Head of Cabinet Secretariat J.Munkhbat reported on the conclusion of a working group which was designated to implement Ulaanbaatar Sewage Facility Construction project and discuss the conditions of concession contract with proposed entities.

The working group suggests the partnership of Bogda JSC and Jinhua LLC which has made a proposal inclusive of technical and economic assessment and technological solution recommended by the Ministry of Construction and Urban Development and a corresponding Parliamentary Standing Committee.

The partnership offers to fund 30 percent of the project with its own investment, and the remaining 70 percent with a 10-year loan which has 4-year grace period and 5 percent annual interest.

National Development Agency was tasked to reach consensus on a build-operate-transfer type of concession contract to realize the Ulaanbaatar Sewage Facility Construction project, and report to the Cabinet.