B. Ooluun

On June 1, Parliament’s fourth regular session closed after lasting 62 days. In the last day of the spring session, they adopted many mining and economic related laws as planned with the purpose to intensify the economy. For example, a revised Bill on Oil, a Bill on Transparent Account, Bills to amend the laws on Mineral Resource, Customs Tariff and Customs Tax, and on Value-added Tax, and parliamentary resolutions on settling the participation of state ownership in the Tsagaan Suvarga Deposit and approving basic guidelines to develop Mongolia’s socio-economy in 2015, which will be reported in detail by the Mongol Messenger over the next few weeks.

During the spring session, a total of 79 Bills of laws and drafts

of parliamentary resolutions were discussed and passed, of which nine were independent laws, 43 were amended laws, 2 were laws on annulment, 4 laws on ratification of agreements and treaties as well as 21 parliamentary resolutions.

In his speech to close the parliament session, Parliament Speaker Z. Enkhbold stressed the necessity to toughen macro-economic policy and restrict credit issuance at this time when income from foreign currency has decreased, causing inflation to rise, and loan quality to worsen.

“When Parliament approved the basic guidelines on State monetary policy for 2014, it focused on maintaining the inflation rate at 8 percent by the end of this year and reducing it to 7 percent in 2015-2016 to create conditions for macro-economic stability in the mid-term.

But the inflation rate as of May of this year is at 13.7 percent; thus it shows little possibility for this objective to come true. Foreign currency income declined much more than predicted, causing the accumulation of State Budget revenues to be intermittent. The quality of the loans disbursed to real sectors tends to turn bad. The running balance declined by 56 percent or USD728.2 billion compared with the same period of the previous year, but it still has a deficit of USD580.5 million. Making attempts to maintain high growth of the economy stimulated by the mining sector at the present time when direct foreign investment abruptly decreased, was a root for the payment balance to be lost, the national currency rate to drop, and inflation to rise. Therefore, we need to realize a policy that toughens macro-economic policy and restrict demands.

“Despite the fact that a restriction of loan issuance will harshly affect the real economy, in particular citizens and businesses, we believe it is a quite better option, preventing the entire economy from crisis. I hope that citizens and economic entities will comprehend it and collaborate to overcome this short-term economic challenge, devoting hearts and efforts. Nevertheless it escalates the necessity to intensify a policy for protecting jobs and real income of low and middle-income citizens and building an environment that domestic production and national companies can sustainably develop.

“If tolerable expenditures of the government and refundable investments of the budget continue Inside

Bloomberg commodity price 2014/07/03

GOLD USD/t oz. 1,322.70

COPPER USD/lb. 325.75

SILVER USD/t oz 21.10

BRENT CRUDE USD/bbl. 111.05

SUGAR USd/lb. 16.44

WHEAT USd/bu 575.50

Continued on page 4

MONGOLMESSENGERth

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No. 26 (1199) MONGOLIA’S FIRST ENGLISH WEEKLY PUBLISHED BY MONTSAME NEWS AGENCY 700 tug. Friday, July 04, 2014

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PM held e-meeting ........................p3

Gov’t officials overspent budgets....p4

Environmental activist sentenced for

7-year imprisonment......................p5

Night of Modern Ballet...................p7

Amendment to Minerals law ends moratorium on new exploration licenses

Spring session closes by adopting economic related lawsZ. Enkhbold: “Macro-economic policy needs to be toughened”

B.Ooluun

On July 1, Parliament passed an amendment to the Minerals law, putting an end to a four year moratorium on new exploration licenses. The amended Minerals Law states that a license will be issued only on permitted areas by the State. The mining minister once explained this regulation as issuing exploration licenses orderly from the beginning for about 20 percent of the territory. “Exploration is the most important part of the geological and mining sector. There is no way to exploit a mineral deposit without conducting exploration and identifying the reserve of minerals. The geological work runs 15-20 years before the extractive work’ said Mining Minister D.Gankhuyag.

Complying with the law prohibiting mineral exploration and mining operations at head waters of rivers, protected zones of water reservoirs and forested areas (aka the law with a long name), as well as on special purpose territories which cover around 70-80 percent of the total territory, exploration and mining operations will not be permitted there. The exploration licenses will be issued by auction if a field with high potential is found as a result of geological research funded by the State Budget. To increase its value the license will be issued after exploration and evaluation work is done by a specialized private company with good experience in extractive industries.

Parliament passed a Law banning new exploration licenses for mineral resources on June 17, 2010 and the

Spring session ends, but irregular session may be called. Photo P.Tuguldur

Continued on page 3

B. Ooluun

On July 1, Parliament made a decision to have five days-off during the National Naadam Holiday. The government proposed to amend the Law on public holidays and remarkable days by adding two days off and extend the Naadam Holiday to July 11-15. The National Naadam Holiday is not only a symbol of Mongolia’s independence and sovereignty, but also a significant festival that disseminates traditional culture, sports and nationalism. At the present time

of globalization, it is our important duty to develop, maintain and inherit the features of the nation, lifestyles, invaluable heritage of art and culture, heroic history of ancestors, patriotism and efforts, along with strengthening friendly relations with world countries. The National Holiday is said to be a realization of this esteemed duty. The Bill to amend the Law on public holidays and remarkable days was worked-out with a purpose to create a possibility to disseminate and promote national culture and lifestyles that has been passed down for hundreds years

and assure that citizens can celebrate the national holiday pleasantly.

According to the Law on public holidays and remarkable days, the National Naadam Holiday and celebration of the People’s Revolution are legal to be celebrated publicly on July 11, 12 and 13 of every year. However, there was no legal regulation to have days off on working days in case the celebration days of the holiday fall on weekends as prescribed by the Labor Law. This year, July 12 and 13 fall on the weekend, which led to amend the law.

Making Naadam with five days off, the number of days for public rest throughout the nation reached 13 this year. When the Bill was considered at the meeting of Standing Committee on State Structure, MPs expressed support to have more days of celebration during national holidays such as Tsagaan Sar and Naadam and Parliament set up a working group responsible for working-out a revised Bill on public holidays and remarkable days with the purpose to set an appropriate ratio of public working days and day offs a year.

Five days off granted for the Naadam Holiday

Friday, July 04, 20142 THE MONGOL MESSENGER

N E W S-IN-B R I E F–From The MONTSAME AGENCY

Editor-in-Chief: Givaandondog PurEvsambuu

English Editor: DaviD brown

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n ulaanbaatar and Central aimags: night temps between 9oC and 15oC. Day time temps between 23o and 25oC. rain on July 10n Eastern aimags:night temps between 11oC and 16oC. Day time tempsbetween 26oC and 31oC. n western aimags:night temps between 8oC and 13oC. Day time tempsbetween 18oC and 23oC. n Gobi aimags:night temps between 14oC and 19oC. Day time tempsbetween 26oC and 31oC.

WEATHERsunrise: 05.07 sunset: 20.58

NEwS

lOn June 26, a resolution became valid on the list of the countries whose people can travel Mongolia without visas in the period 2014-2015. The governmental resolution was approved by the Cabinet in frames of works to intensify the national economy.Ordinary passport holders of 42 countries with the highest rates of GDP and human development index are allowed to visit Mongolia without visas. They are the United Kingdom, Luxembourg, Norway, Switzerland, Austria, the Netherlands, Ireland, Sweden, Iceland, Belgium, Denmark, Finland, France, Italy, Malt, Slovenia, the Czech Republic, Slovakia, Estonia, Greece, Spain, Portugal, Lithuania, Latvia, Poland, Hungary, Bulgaria, Romania, Lichtenstein, Monaco, Andorra, Gibraltar, Vatican, the Bahamas, Iceland, Trinidad and Tobago, Argentina, Uruguay, Panama, Chile, Grenada, Costa Rica and the Republic of Seychelles. (there are 44 countries listed here -- what about the USA?)lThe Government of Canada officially included Mongolia on the special list of official development assistance recipients. Twenty five countries were placed on the list which is updated every five years and will receive some 90 percent of the total ODA to be provided by the Government of Canada in the coming 5 years.Thereby the Government of Canada strives to provide consistent support to strengthen democracy in Mongolia. Stephen Harper, Prime Minister of Canada played a crucial role in making this decision, Gregory Goldhawk, Ambassador of Canada to Mongolia noted this at a meeting with L.Bold, Mongolia’s Minister of Foreign Affairs.Since 1997, Mongolia has received USD 5.1 million in assistance from the Government of Canada within frames of the ODA.lOn June 26, Dr. Marc Jacobs, representing the World Health Organization, presented a ‘certificate of verification’ to Prime Minister N.Altankhuyag for the total elimination of measles in Mongolia.Dr. Marc Jacobs, Director for Combating Communicable Diseases at the WHO Western Pacific Regional Office, noted the similar achievement in other three countries such as Australia, South Korea and Macau, showing that the elimination does not depend on the development level of countries, but rather on proper administration of vaccination and reasoned mechanisms. Mr. Altankhuyag attributed this success to the efforts of Mongolian doctors and nurses who have been making great efforts for proper vaccinations against measles here since 1973. Mongolia became the first Asian country to eradicate smallpox in 1940 and poliomyelitis or infantile paralysis in 2000.lFollowing its launch in September 2013, the UK Alumni in Mongolia (UKAiM) association continues to grow. The number of members is now 200, including 15 Chevening scholars. The association’s main aim is to promote UK education and culture in Mongolia through various events and social activities. A recent example of this was a breakfast reception during Hugo Swire’s official visit to Mongolia (this May 21-22). In his speech to the group, Mr. Swire noted the importance of the Chevening scholarship scheme. He said that all British alumni around the world are a part of the UK’s extended family and encouraged the gathered to maintain their links with the United Kingdom.Having graduated from Manchester, Leeds, Cardiff, Edinburgh, Birmingham and the University of London, the alumni have been working here in many spheres, including sciences, innovation, engineering, law and finance.lA delegation headed by General Iwata Kiyofumi, Chief of Staff Japan Ground Self Defense Force, is paying a working visit to Mongolia. On June 26, the delegation was received by Major-General Z.Boldbaatar, State Secretary of the Defense Ministry, and Lieutenant-General Ts.Byambajav, head of the General Headquarters of Mongolia’s Armed Forces (GHMAF). They discussed issues regarding ties and cooperation in defense between the two countries.On June 27, a military engineering training team at the Japan Ground Self Defense Force exchanged experiences with servicemen of the #014 military unit on road construction and took part in opening a joint training program. Moreover, the Japanese delegation will get au fait with the course at the ‘Khaan Quest’ international military field exercises for peacekeeping operations, and will meet with peacekeepers.The visit will last until Saturday.lOn June 27, Parliament Speaker Z.Enkhbold received Mr. Naoyuki Shinohara, Deputy Managing Director of the International Monetary Fund (IMF) and Mr. Markus Rodlauer, Deputy Director of the IMF for Asia-Pacific Affairs together with other officials.The Speaker thanked the guests for visiting

Mongolia and underlined that the legislative body is altering some laws on the national economy in frames of the ‘100 days for intensifying economic growth’, being implemented by the government.Mr. Shinohara said Mongolia should shrink its policy on stretching the budget and the fiscal policies being run to deal with temporary economical problems. He suggested that Mongolia minimize the fiscal supply and the size of loans by maximizing the policy rate, which was used during the 2009 economic crisis around the world and in Mongolia. But this fiscal policy cannot overcome the difficulties alone, so it should be supported by budget policy, he added. Non-budget investments especially cause an increase in the credit supply and stretches the budget, he said.IMF cannot deny the role of the Development Bank of Mongolia (DBM) in the development of the country, but it must work under control and calculate loans and fiscal supply from foreign countries together with the budget, Mr. Shinohara said. He also emphasized that Mongolia needs to urgently reduce budget expenditures to overcome temporary economic difficulties in a short time.The Speaker thanked the guests for concluding the current situation in our economy. “Maximizing the policy rate may cause people and enterprises some difficulties and reduce the granting of bank loans, but our parliament, government and related bodies are paying great attention to not putting the economy in crisis,” Mr. Enkhbold said.lOn July 1, deputy Minister of Foreign Affairs D.Gankhuyag met Ms. S.Oyun, Minister of Environment and Green Development in the State House.On behalf of the Minister of Foreign Affairs and all diplomats of Mongolia, the Vice Minister congratulated her on taking part as Chair of the first United Nations Environment Assembly (UNEA) on June 23-27 in Nairobi, Kenya, and gave her a Gerege (paiza).Ms. Oyun served as the Minister of Foreign Affairs in 2007-2008.lOn June 23-24, Mongolia was elected one of the member states of the Steering Council of the Climate Investment Funds (CIFs) during the CIFs Partnership Forum took place in Montego Bay, Jamaica. The forum was organized by the World Bank Group, and it covered areas like knowledge and learning on low carbon, climate resilient development and a key meeting place for climate change champions from around the world.Presently, the CIFs collected USD 8.8 billion and the capital is being spent for low-income and developing countries. The CIFs Partnership Forum decided to give non-refundable aid of USD 300 thousand to Mongolia to work out an investment plan for renewable energy after being involved in the list of countries to implement projects in frames of the Scaling-Up Renewable Energy Program (SREP).Approved in 2009, the SREP is aimed at demonstrating the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy.lOn June 30, a credit agreement for the project’s first phase was signed by N.Batbayar, Minister of Economic Development, by Robert Schoellhammer, Country Director of the ADB for Mongolia, and by S.Ochirbat, Deputy Mayor of Ulaanbaatar in charge of urban development and investment matters.With this three-year project, the sides will redevelop ger (national dwelling) areas, improve the water supply, sewage plants and heating services, upgrade social-economic infrastructure, support small-sized financing, and increase the potential of organizations that are to realize the project. The expected sum for the project is 104.5 million USD, of which 82.08 million is for soft loans, commercial loans and non-refundable aid from the ADB and the European Investment Bank (EIB), and 22.42 million will be given by the UB administration.The Ministry of Economic Development said the project is supposed to renew engineering infrastructure in ger areas, improve the adequacy of economic and state services for people and create 12,000-22,500 new jobs.lOn June 28, a national anti-cancer campaign successfully ended in its last destination in western Uvs Aimag. In February, the National Oncology Center, Khan Bank and Mongolian National Broadcaster signed a cooperation memorandum to launch the fourth edition of the ‘National Campaign against Cancer’. It started in Darkhan-Uul Aimag on May 11. Since then, a series of actions were carried out in provinces with the highest cancer rates such as Uvs, Khovd, Bayan-Olgii, Selenge, Dornod, Sukhbaatar, Zavkhan and Govi-Altai. The actions included check-up trips by specialists and doctors of the National Oncology Center.

Mongolia-Japan hold first strategic consultation in Tokyo

President delivers closing remarks at ‘Khaan Quest 2014’

Honorary Consulate operations open in Belgrade

Mongolia’s Ambassador presents credentials in Switzerland

On June 26, the Foreign Ministries of Mongolia and Japan held their first ever strategic consultation meeting in Tokyo.

Under the leadership of Deputy Foreign Ministers of the two countries–D.Gankhuyag and Shinsuke Sugiyama, the sides reviewed the current state of Mongolia-Japan strategic partnership and discussed their further goals in detail.

The Japanese side emphasized that a statement delivered by Mongolia’s President Ts.Elbegdorj at Japan’s Parliament during his visit to the country in 2010, as well as an agreement between the two parties on developing a strategic partnership, have given valuable impetus to stimulating bilateral ties.

Mr. Gankhuyag highlighted the expansion of the bilateral strategic partnership in all fields of development including politics, security, economy, culture, education, people exchange as well as with regional and international platforms.

The sides agreed on the effective

implementation of a mid-term program on the strategic partnership and the intensification of bilateral collaboration in the economic area. In this regard, the Government of Mongolia will organize a Mongolia-Japan business forum in cooperation with the Japan Business Federation and the Japan External Trade Organization in Tokyo in July.

On June 27, Honorary Consulate operations opened in Belgrade under the leadership of recently appointed Honorary Consul Dr. Marco Bumbasirevic, a Professor of Orthopedic Surgery and Traumatology and Chair of the Orthopedic Surgery Department.

Participating in the opening ceremony were Ambassador of Mongolia to Serbia T.Gandi, Serbian Deputy FM Dragan Momcilovic, Minister of Foreign Affairs Australia and Asia Pacific Director Milisav Paich, Honorary Consul Marco Bumbasirevic and Serbia’s political and economic organization officials, representatives of sports, tourism and business sector and representatives of the media.

At the Opening ceremony, speeches were given by Ambassador T.Gandi, Deputy Minister Dragan Momcilovic, Honorary Consul Marco Bumbasirevic and required documents were granted to Mr. Marco Bumbasirevic, wishing

great success.Mr. Bumbasirevic, the first-ever honorary

consul of Mongolia to Serbia, expressed commitment to protect the legal rights of Mongolians residing in Serbia, to develop Mongolia-Serbia relations and cooperation in all fields, as well as to promote Mongolia in Serbia. He also noted the readiness of the Serbian governmental organizations to support his efforts.

Prior to the ceremony, Ms. Gandi met with the Consul to ask him to make it a priority to increase the number of Mongolian students seeking high education scholarships from the Serbian side, and grant two scholarships in the academic years 2014-2015. She also gave Mr. Bumbasirevic recommendations that Mongolia’s Embassy wants to reflect in the 2014 action plans of the Honorary Consul, and signed a memorandum of understanding with him.

On July 1, V.Purevdorj Mongolia’s Ambassador to Switzerland presented his credentials to Didier Burkhalter, President of Switzerland.

Following the official ceremony, the sides shared views on issues of bilateral relations and cooperation. Ambassador V.Purevdorj noted that Mongolia and Switzerland have developed closer ties over the last 50 years since the establishment of diplomatic relations, especially since the beginning of democratic transformations in Mongolia.

Mongolia is thankful to Switzerland for implementing projects and programs through the Swiss Agency for Development and Cooperation (SDC) which are conducive to

priority development guidelines of Mongolia’s advancing democracy, developing agricultural industry, promoting rural development, protecting the environment and developing vocational education.

Mentioning that the two countries maintain closer collaboration within UN and other international organizations, Ambassador Purevdorj congratulated Switzerland on chairing the OSCE this year.

President Burkhalter said that this year the sides are marking the 50th anniversary of diplomatic relations and the 10th anniversary of SDC in Mongolia. He then highlighted the great potential for deepening bilateral trade and economic cooperation.

On July 2, the Ministry of Foreign Affairs of Mongolia held a workshop in cooperation with the Asia Foundation titled, ‘Asian approaches to development cooperation: Strategies for Mongolia’s International Aid Fund’.

The workshop focused on objectives and guidelines of Mongolia’s International Aid Fund’s activities, features of development cooperation policies of Asian countries, targeted programs and initiatives, models of international development assistance of donor nations, education for democracy, regional cooperation, economic dialogues, capacity building, and knowledge dissemination.

The participants resolved to combine efforts to consolidate Mongolia’s International Aid

Fund’s activities and host such workshops and events in the future.

Asian approaches to development cooperation

On July 1, the annual ‘Khaan Quest 2014’ multinational peacekeeping exercise concluded successfully. Over 1200 military personnel from 23 countries participated in the command post exercise, field tactical exercise, joint medical exercise and joint construction exercise which took place from June 20 to July 1, 2014.

President and Commander in Chief of the Armed Forces of Mongolia Tsakhia Elbegdorj delivered remarks at the closing ceremony of ‘Khaan Quest 2014’. He said, “I am confident that you learned a lot by participating in the peacekeeping exercises and got acquainted with the unique nomadic culture of our beautiful Mongolian country and became close friends. I am sure that you bonded in Mongolia, inspired by your knowledge about Mongolia’s life, values and traditions; you will further seek to contribute to global friendship and mutual relations among nations, cherishing your most tender memories of Mongolia.”

“Mongolian peacekeepers are praised many times by the U.N., heads of state and government of the countries involved in international peacekeeping operations and military officials for their successful and honorable discharge

of our mission. All these achievements are brought by the ‘Khaan Quest 2014’ international peacekeeping exercise.”

Khaan Quest is a regularly scheduled, multinational exercise co-sponsored by the United States Marine Corps Forces Pacific and United States Army Pacific and hosted by the Mongolian Armed Forces. Khaan Quest 2014 is the latest in a continuing series of exercises designed to promote regional peace and security.

Ts.Elbegdorj at the closing ceremony

Workshop at the Foreign Ministry

Deputy Foreign Ministers meeting in Tokyo

THE MONGOL MESSENGER 3Friday, June 6, 2014 GOvERNMENt NEwS

On June 26, the Cabinet discussed following issues at an

irregular meeting

The Board of Directors of the Development Bank of Mongolia (DBM) was allowed to build a credit agreement of USD75 million with Russia’s Vnesheconom Bank for the purpose of financing the expansion and capacity of Thermal Power Plant #4 by purchasing a 100MW turbo generator to be newly installed.

Vnesheconom Bank proposed to coordinate the term of DBM’s financing with another term stated in the agreement ‘Project financing and repayment settlement’. In case of extending the term of credit repayment as stated in Government Rresolution #99 in 2012 and in the agreement, it is possible to render financing of 5-8 years consistent with the term.

So, the 3rd clause of Government Resolution #99 was annulled and the credit repayment term was extended to amend the agreement. It gives the possibility to receive long-term financing from the bank under refundable terms in 2022.

To finance required money to expand capacity of the Thermal Power Plant #4, the DBM has established a ‘Project financing and repayment settlement’ and will disburse the project financing according to relevant construction contracts and project performance. So far, it has disbursed financing of USD48.5 million for the project.

Development Bank of Mongolia to cooperate with foreign banks

At the Cabinet meeting, the DBM’s Board of Directors was allowed to open a loan issuance equal to 10 percent of its own equity and build relevant agreements with the purpose to find required financing

to fund projects within the ‘Export Promotion Program’.

According to the government ordinance, a total of 1151 projects were received within frames to select projects that can promote exports and substitute imports. Of them, 599 that require financing less than Tgs2 billion were transferred to the Labor Ministry’s Fund to Promote Small and Medium-sized Enterprises. Of 286 projects that require financing greater than Tgs2 billion remain at the DBM. Of them, 161 have a plan to import equipment worth Tgs2.43 trillion from foreign countries; therefore, the DBM plans to finance them with financial sources in collaboration with ExIm banks of the USA, South Korea, China, Turkey, Japan, Russia and Italy.

‘Soum center development’ project introduced

In collaboration with relevant professional organizations, the Ministry of Construction and Urban Development has worked out a general development plan and engineering line blueprints for 16 soums where the ‘Soum center development’ project will be implemented. They announced a tender under the law.

If the project is entirely implemented, over 65 thousand citizens of 16 soums will be provided with drinking water that meets hygienic requirements and be connected to a drainage system and central heating supply.

In brief

-At its irregular meeting, the Cabinet supported Bills to amend the laws on customs, customs tariff, customs tax and VAT. The Cabinet decided to submit them to Parliament.

On June 28, the Cabinet held its regular meeting and discussed the

following issues

Bill to amend the Law on Corporate Income Tax discussed

To run the second phase of tax reform that promotes business, the Cabinet made a decision to reimburse 90 percent of the income duties paid to the State by businesses that operate in sectors other than mining, mineral resources, oil products import, cell phone operation services, alcoholic drink production, tobacco and banking and finance, and that have annual sales income no higher than Tgs1.5 billion. Reimbursement of 90 percent of corporate income tax will ensure SMEs to accumulate capital, invest in equipment, and expand their activity. According to the Bill, the businesses will be given a tax reimbursement if they meet the following requirements:

1. They must operate in a sector which is not legally forbidden

2. Sales income of the company throughout the taxable year must be up to Tgs1.5 billion

3. Must submit a punctual financial report

4. Duties must be paid.If the Bill is approved, 45.3

percent or 40,232 entities are expected to be involved in the tax reimbursement.

Revised Bill on compulsory health insurance to be submitted to Parliament

Since 2013, 97 percent of Mongolia’s population has been

involved in health insurance. Since the civil health insurance law was first passed in 1993, the law has been amended nine times and revised in 2002. These amendments and revisions were directed to resolving pressing issues of the particular time, but there were no substantial changes to tackle challenges in the insurance system, including protecting rights of insured people, developing an insurance organization that can provide quality services and ascertain duties and rights of participant bodies in the system.

Thus, the Bill focused on issues regarding the rights of insured people, service quality, protecting insured people from financial risk and prevention.

In brief:

-The cabinet appraised results of the 6th meeting of the Mongolia-Kazakhstan intergovernmental commission on trade, economy, science, technique and cultural cooperation that was held on May 26-27, 2014 in Ulaanbaatar and assigned S.Erdene, head of the Mongolian side to the commission to control implementation of follow-up action plans.

-A draft of the directive to be adhered by the Mongolian side during the official visit by Frank-Walter Steinmeier, Federal Minister for Foreign Affairs on July 6-7 and was decided to be approved by the Prime Minister.

- A draft concept for the Children’s protection Law and a draft of the concept for a revised Bill on Children’s rights was discussed.

C A B I N E T M E E T I N GPrime Minister holds e-meeting with aimag authorities

to be financed out of the budget with a source of the Development Bank of Mongolia, the running balance of the payment will probably create a real crisis if government does not implement some connected laws adopted by Parliament. The study indicates that the DBM disbursed out-of-budget financing equal to 5 percent of the Gross Domestic Product (GDP). If it continues further and projects and programs in anticipation at the DBM are financed with the USD1 billion in bond money, which is currently deposited in the DBM, the total budget loss is likely to reach 10 percent of GDP.

“Therefore, a State Budget adjustment needs to be worked-out under a policy to reflect all financing and the expenditure and budgetary activities of the Chinggis and Samurai bonds being made by the DBM in the

State Budget, and decrease the total budget loss to the level stipulated in the Budget Stability Law stage by stage.

The budget adjustment Bill has to be submitted to Parliament in August” he said.

Moreover, he said that the Bank of Mongolia needs to work initiatively to tighten inspections in the banking and financial sector, take prompt action to restrict loans whose loan quality worsens, change the inappropriate ratio of foreign currency loans, and improve the legal environment to coordinate entire currency loans.

During the spring session of Parliament, the DP Group in Parliament took breaks 3 times that took 15 days, MPP Group –9 times (37 days) and ‘Justice’ Coalition – 4 times (16 days), or 16 times for 68 days in total on 16 issues discussed at plenary meetings of Parliament and meetings of standing committees. It caused trouble to resolve some laws

and legislation on time. Moreover, due to some underworked Bills and a draft of resolutions submitted by the government and/or conflicts of ideology between groups of political parties and coalitions in Parliament, some Bills and draft resolutions namely on ‘Control,’ ‘Oil,’ ‘Ratifying a loan agreement on payment system reform project between the Government of Mongolia and the Asian Development Bank’ as well as ‘Instructions’ were rejected, taking much time”, stressed the Speaker.

On May 8, 2014 the Parliament passed Resolution #34 on some actions to intensify the economy. He appealed to the government to focus on satisfying implementation of the resolution and work actively without losing time because the term of the resolution’s realization is clear. If there is a matter that requires a Parliament resolution, an extraordinary session of Parliament will probably be called.

Spring session closes by adopting economic related lawsContinued from page 1

On July 2, 2014, Prime Minister N. Altankhuyag held an e-meeting with authorities of aimags. At the meeting, Mr. Altankhuyag said that the government submitted a Bill to

Parliament to amend the Law on Public Celebrations and Remarkable Days. The Bill reflects a clause on extending the Naadam Holidays from three to five days and Parliament

approved this law.“We plan to include a competition

‘Horseman’ in the Naadam Festival program. In order to promote tourism, we are intending to make Mongolia’s Naadam Holiday and ‘Horseman’ competition a world brand”, he noted.

On July 12, a concert ‘Let’s sing together about the homeland’ will be organized on Chinggis Khaan Square in Ulaanbaatar. Such cultural measures should be organized in rural areas, the prime minister said.

The Government launched a soum renovation program. This year, the ‘New Soum’ project will be implemented in 16 soums. A total of Tgs5 billion is budgeted for each soum within the project

This year, the centers of Dornod, Sukhbaatar, Umnugobi, and Khuvsgul aimags will be connected to Ulaanbaatar by paved asphalt roads. Local governments should pay special attention to the implementation of this project, Prime Minister Altankhuyag said. The government is making efforts to connect centers of all 21 aimags to Ulaanbaatar with paved roads by 2015.

At the ‘Hours of Construction’ meeting on June 30 2014, the National Committee to reduce air pollution reported on works done in the past six months.

J.Erdenetsogt, head of the working group of the National Committee, said “A new source to supply heat will be put into operation this year. This sub-station is being constructed relying on Thermoelectric Power Station No 4.

It is planned to provide 45,000 households in Ulaanbaatar with improved smokeless stoves at a discounted price. As of today, 29,000 families received the improved stoves. The remaining 16,000 households will be given the stoves before winter. By

doing so, about 170,000 households will be provided with smokeless stoves. A smart monitoring system on air quality will be introduced to provide people with information on air pollution. In the first stage, information on air quality will be delivered on LED screens at bus stations where traffic movement density is high.”

The National Committee is making an effort to increase the storage capacity of liquefied gas as part of the work to reduce air pollution. They commenced work to increase the capacity of reserve containers of gas distributing companies from 2,800m3 to 5,200m3. Moreover, they plan to provide 5,000 households

with gas stoves in order to increase the consumption of gas. Furthermore, they are negotiating with Kazakhstan to import liquefied gas at a low cost. The National Committee is supporting companies that produce biofuel.

T.Khasbaatar, an advisor to the Prime Minister, said “At the policy level, it was legalized to exempt energy saving products and improved smokeless stoves from customs and VAT taxes. A regulation on imposing payments to air polluters will be issued”.

This year, we will spend Tgs 20.2 billion on measures to reduce air pollution. As of today, Tgs 3.9 billion was spent to reduce air pollution.

Actions to reduce air pollution introduced

In Ulaanbaatar, air pollution is one of the most serious problems. Photo P.Tuguldur

Online meeting between the PM and aimag officials

Friday, July 04, 20144 THE MONGOL MESSENGER

law’s term was extended until now; so, no licenses have been issued in these four years. Due to the ban on exploration licenses, a great number of licenses that were improperly issued were arranged and the number of licenses was abruptly reduced. However, it is considered necessary to annul the ban which played its role because investment in the exploration sector drastically declined. It has become difficult to develop geology and exploration sectors and new exploration works have not been carried-out, which limits wealth resources, economic capability, and credit rating indicators to decrease. According to the minister, since license issuing was banned, many works were done to improve license registration and the control system. Prior to the ban or from 2005 to 2010, the licensed area of mineral resources covered up to 46 percent of Mongolia’s total territory.

Today, it has been reduced to 7.6 percent. In 2010, there were 4,137

licenses issued, but now there are 2,868.

Due to climatic features of Mongolia, the suitable period for conducting geological research and explorations is seven months. Parliament supported the government’s proposal to change the term of an exploration license that was nine years in total, to 12 years with the amended law.

The government developed the amendment to the law based on a minerals policy adopted by Mongolia’s Parliament that seeks to limit the state’s role in mining and create stability in the sector. However some clauses related to state participation in minerals deposits caused disputes among party groups and some MPP members during the discussion. MPs G.Uyanga, B.Bat-Erdene and Kh.Bolorchuluun expressed opposition that the amendment to the Bill significantly lowers the state’s share in mineral deposits, breaking people’s hope to benefit from mineral resources.

The ‘Justice’ coalition took a break and later the coalition and DP group

agreed to cancel new clauses related to the state’s participation in deposits. Therefore, the state’s participation and share in the deposits remain the same as stated in the current law. The percentage of the State share in a minerals deposit shall be established by an agreement on exploitation of the deposit where State funded exploration was used to determine reserves. The State may participate up to 50 percent jointly with a private legal person in the exploitation of a minerals deposit of strategic importance where State funded exploration was used to determine proven reserves. The percentage of the state’s share shall be determined by an agreement on exploitation of the deposit considering the amount of investment made by the State. The State may own up to 34 percent of the shares of the investment made by a license holder in a mineral deposit of strategic importance where proven reserves were determined through funding sources other than the State Budget.

Amendments to the 2006 Minerals law also include creating a national geological survey and forming a Policy

Council to oversee legal changes in the mining sector. With a purpose to encourage domestic companies, the law states that a taxpayer registered in Mongolia shall be privileged in the first turn when the exploration and mining license holder makes procurement and chooses a contractor. To ensure that the exploration license holder conducts complete prospecting research, the license transfer or sale is prohibited for three years after its issuance. Furthermore the exploration license holder should give back 10 percent of the licensed areas in the third year and 20 percent in the sixth year to the state.

According to the Mining Ministry, the amendment will improve mining rehabilitation and closing standards and regulations in harmony with international standards, promote efficient and leading techniques and technology which have minimal negative effects on human health and the environment, and support the export of value-added products by improving minerals processing rather than exporting raw minerals.

ECONOMy

economic news

Current deficit stands at USD 580.5 million

The current account deficit stands at USD580.5 million which is a decrease of 56 percent or USD728.2 million from the previous year, says the Central Bank of Mongolia.

This includes a 98 percent decrease of international trade in goods’ deficit for the first five months of 2014, thus showing a surplus of USD8.4 million. Meanwhile, the deficit in international trade in services’ decreased by 12 percent to USD561.3 million, the deficit on income account dropped by 57 percent to USD 101.9 million, and the surplus on current transfer increased by 42 percent to USD 91.1 million.

Capital and financial accounts showed a deficit of USD2.6 million, decreasing 100 percent or USD969.6 million from 2013. This is due to a 64 percent decline in direct foreign investment to Mongolia which equals USD708.0 million. There was an increase of USD611.3 million in other investment deficit.

Such increase in other investments was caused by a USD176.8 million increase in trade credit receivables, an increase of USD407.1 million in FX flow to the domestic market, a decrease of USD108.4 million of currency and deposits, and a USD111.3 million decline in the disbursement of loans.

Commercial banks fund 18,472 requests for loans

Commercial banks of Mongolia have received re-financing requests for low interest mortgage loans totaling Tgs850.6 billion. Since commencing the annual 8 percent mortgage program last June, the banks received requests to refund already-awarded housing loans of Tgs850.6 billion under the Government program to stabilize the nation’s mortgage system. Refunding requests for loans totaling Tgs534.2 billion from 18,472 people have been approved by commercial banks.

During the same period, commercial banks have received low interest mortgage loan applications totaling Tgs1.1 trillion. After careful consideration over the new requests, the banks decided to grant mortgages totaling Tgs1 trillion, 49.8 billion to 20,734 applicants.

Viking Mines signs 2nd MoU with Erdenet Power Plant

Viking Mines signed a second future coal supply agreement with the Mongolian Government for its Berkh Uul Bituminous Coal project. This further validates the rationale for Viking to takeover Auminco Mines and Berkh Uul’s potential to deliver high quality thermal coal, says news published on the Proactive Investors website.

The non-binding Memorandum of Understanding was signed with Erdenet Power Plant State-owned Stock Company (EPP), a major supplier of electricity to the Erdenet copper mine. “The fact that the Berkh Uul Project continues to be recognized by the Mongolian Government as a potential key supplier of coal to the EPP, is a further significant milestone in the development of the project”, said Managing Director Peter McMickan. “Auminco’s ongoing discussions with domestic end-users continue to confirm a local industrial demand in northern Mongolia for unwashed Berkh Uul coal, due to its low ash, low sulphur and relatively high calorific value. This second MoU provides more evidence of the potential customer base for Berkh Uul’s coal”, he noted.

BoM to cooperate with Japan’s FSA

The Bank of Mongolia (BoM) will cooperate with the Financial Services Agency of Japan (FSA). On June 30, a memorandum of the cooperation was inked by N.Zoljargal, BoM President, and by Ryutaro Hatanaka, Commissioner of the FSA.

Accordingly, the sides will upgrade the financial regulation system; develop the financial market, and share knowledge and experiences in the financial services.

B. Ooluun

The MPP Group in Parliament claimed that officials have overused their powers, spent budget money ineffectively, and is proven in a report of the National Audit Office given during the discussion of a parliamentary resolution on approving realization of the 2013 Master Budget of Mongolia.

At the July 1 plenary meeting of Parliament, a draft parliamentary resolution on approving realization of the 2013 Master Budget of Mongolia and the second discussion of Mongolia’s unified financial report for 2013 were conducted, resulting in approvals respectively supported by most MPs. Equilibrated revenue of the 2013 State Budget was approved to be Tgs4,010,398.6 million (four trillion, ten billion, three hundred ninety eight million, six hundred thousand) while expenditures of the budget realization (adjusted with the equilibrated revenue) totaled Tgs4,683,038.2 million (four trillion, six hundred ninety three billion, thirty eight million, two hundred thousand).

Prior to the approvals, MP Ch. Khurelbaatar introduced the MPP Group’s conclusion. The conclusion reads that 65 percent of budget managers exceeded their foreign visit expenses of Tgs2.2 million to Tgs558.3 million and 11 budget managers exceeded the planned budget for foreign guests by Tgs1 billion, breaking the Law on Budget. It was found that 222 officials, apart from those who are eligible to use official cars according to the government resolution #349 in 2007, are using official automobiles. The estimation said that Tgs3.3 million was spent per servant who overspent their authority. At a time when the country is suffering budgetary and financial difficulty, officials choose luxurious, not economical use for themselves, and spent Tgs20.5 billion on purchasing automobiles which each cost between Tgs52.1 million and Tgs354.5 million and consume 17 liters of fuel every 100kms. Over the past three years, a total of 61 automobiles, each costing over Tgs83 million, were purchased for state servants, of which 22 were

bought in 2012 and 29 in 2013.“- We think this is clear evidence

of how power holders enjoy luxury with State Budget money and spend taxpayers’ money ineffectively. Prime Minister N.Altankhuyag’s made a commitment saying “Expenses on high uses and feasts will be cut and officials will not be allowed to visit abroad more than two times a year and will even work on weekends” was forgotten and shows us how things are in reality. The MPP Group in Parliament strictly condemns that officials enjoy luxuries with taxpayers’ money while the people are living tight-belted, trying to overcome the crisis with little loss”.

In connection with the abovementioned issues, the MPP Group in Parliament sent the following demand with ten provisions to the government:

- Government shall move into a saving mode and liquidate ministries that have the same function and merge them to make the government composition be nine, as well as to work out and urgently submit Bills to Parliament to amend relevant laws;

- To take urgent action to include spending of ‘Chinggis’ and ‘Samurai’ bonds in the State Budget which are being spent uncontrollably from Mongolia’s State Budget consistent with the Laws on State Budget and Fiscal Stability;

- To satisfy fulfillment of the examination report on infringements made by the National Audit Office for realization of the 2013 State Budget of Mongolia, take legal action on guilty officials, and report the results to Parliament before October 15, 2014;

- To sell automobiles being used by 222 officials who are not eligible to

have automobiles and return income from the sales to the State Budget;

- To take legal action on over 100 officials who took budget discrepancy worth Tgs157 billion as stated in the auditing report and report to the relevant parliamentary standing committee about what measures have been taken;

- To issue an auditing conclusion on spending special funds of the government and report it to Parliament before October 15, 2014;

- To take legal action on budget managers who loosened financial control and raised groundless debits.

A parliamentary resolution on some actions to be taken in connection with approval of realizing the 2013 State Budget of Mongolia was adopted on July 1 and it contains some of the provisions in the abovementioned demand of MPP.

Government officials overspent budget money by great amounts

Despite MPP’s concerns, will the government make any corrections?

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Amendment to Minerals law ends moratorium on new exploration licensesContinued from page 1

About 90 percent of business entities in Mongolia are small and medium-sized enterprises and form over 10 percent of the country’s budget revenue. On June 27, 2014, a first ever consultation was organized among small and medium enterprises in Ulaanbaatar.

Nationwide, there are 66,500 small and medium-sized enterprises of which 93 percent have up to 30 employees. Moreover, 45 percent of the total SMEs are operating in the trade and service sectors. Over eight years has passed since the government started to grant loans for supporting small and medium-sized enterprises.

This loan is granted for a 5-year term with an interest rate of 7 percent per year. In order to grant loans to small and medium-sized enterprises, Tgs 1 billion was budgeted in the national budget in 2006, Tgs 3 billion in 2007 and 2008 and Tgs 30 billion in 2009 and 2010. In 2011, the government issued bonds worth Tgs 300 billion. In connection, Tgs 150 billion was loaned to support small and medium-sized production. Currently, circulating capital of the loan for supporting small and medium production amounts to Tgs322 billion of which, Tgs90 billion is being spent on developing soums.

Equipment for small and medium-

sized production was exempted from customs and VAT taxes. Last year, 936 different kinds of equipment were included in the tax exemption. Small and medium-sized enterprises saved Tgs 26 billion due to the tax exemption measure. Most of the SMEs operate in Ulaanbaatar in connection with the population density and Ulaanbaatar is home to about 26,000 SMEs.

At the opening of the consultation, T.Bat-Erdene, Deputy Mayor responsible for ecology and green development, said “Tgs 5 billion is budgeted for granting discounted loans to SMEs in Ulaanbaatar. High interest rates are the biggest problem

for SMEs. So, we plan to grant loans with an interest rate not more than 5 percent per year. This is the lowest interest rate in Mongolia.” He went on to say that we grant loan to SMEs which have the best projections.

The discounted loan aims at expanding small and medium-sized production, renovating equipment; increasing employment, promoting eco friendly manufacturing and introducing a loan guarantee service.

Relying upon conclusions made at the consultation, the ‘Ulaanbaatar Production’ project will be implemented.

D.Myagmarsuren

Ulaanbaatar offers 5 percent interest loans for SME development

THE MONGOL MESSENGER 5Friday, July 04, 2014

B.Ooluun

On 27 June, the Supreme Court confirmed the capital court’s decision to sentence Ts.Munkhbayar, an environmental activist and head of the Gal Undesten movement to 7 years. Ts.Monkhbayar and six others were charged for placing grenades in several places near the State House, opening fire on civil servants and attempting to threaten civilians. The sentences to other suspects also remained according to the capital court’s charges on April 6. Movement member G.Boldbaatar was sentenced to 6.11 years, D.Tumurbaatar to 10.6 years, and J.Ganbold to 1 year, and Dashtseren to 2 years. D.Tumurbaatar was sentenced to more years than others because he was previously involved in a crime. Two other suspects, O.Sambuuyondon and B.Gantulga were affirmed to be acquitted.

Although Ts.Munkhbayar and others requested to participate in the hearing, the court considered it unnecessary. MP G.Uyanga, Ts.Davaasuren and Kh.Bolorchuluun attended the Supreme Court’s hearing with their official requests and after the trial, they expressed their opposition against the Supreme Court’s decision, saying that they would appeal to the President of Mongolia. MP G.Uyanga said “Ts.Munkhbayar did not commit a crime. He fights for the motherland and nature. I do not see justice. Half of the territory is being destroyed. Due to an erroneous agreement for the Oyu Tolgoi project, Mongolia is

paying USD150 million annually. But officials who made the agreement have not borne any responsibility. I don’t imagine such a decision would be made when the Democratic Party is in power. I will do my best to free him”. MP Ts.Davaasuren said “Their form of fighting might have been wrong, but it was a political fight. Democrats also reached today’s position by making political fights. I expected them to see this case from another angle, but they made a far worse decision than those of the communist era”.

The incident occurred on September 16, 2013. Parliament was discussing an amendment to the law on banning mineral exploration and exploitation at river sources, water basins and forested areas at its irregular session when the demonstration by Gal Undesten movement was held. The group of people including Ts.Munkhbayar entered the State house garden, a specially protected zone with firearms, and when government special guards detained three protesters of the movement, they fired a shot. There were no human casualties or injuries. According to the investigation department of the Intelligence Service, an explosive device was discovered soon afterwards in the garden. Another call was registered by police later in the day and TNT explosives were discovered in a trash can outside Central Tower and in a flower-bed near the Ministry of Environment and Green Development. One firearm, one saiga gun, 46 bullets for a 7.62 mm rifle, and 9 hand grenades were confiscated from the three members of

the movement.Since then, they have been detained

in a detention center and at the primary criminal court Ts.Munkhbayar, G.Boldbaatar, D.Tumurbaatar, and J.Ganbold were each sentenced to a

21.6 year jail term. Afterwards, MP G.Uyanga unsuccessfully requested that the district court release Ts.Munkhbayar on bail in November 2013.

Ts. Munkhbayar began the Onggi

River Movement environmental group in 2001. He struggled for the protection of nature against mining activities and was awarded the 2007 Goldman Environmental prize for his environmental achievement in Asia.

SOCiEty

How can the citizens of Mongolia be protected from disasters? How can hospitals, school buildings and local communities be made safer and stronger, before earthquakes or floods happen?

How can government agencies

and the people work together to reduce the risks from natural hazards? The answers to these questions were discussed at a Disaster Risk Management (DRM) workshop in Ulaanbaatar.

On June 27, a workshop was hosted

jointly by the National Emergency Management Agency (NEMA) and the World Bank to bring together over 70 participants from the Office of the Deputy Prime Minister, UB Municipality, line ministries, aimag authorities and others.

This workshop was the first part of support for the Mongolia Disaster Risk Management Program being undertaken by World Bank in collaboration with NEMA. The program aims to enhance the capacity of the Government of Mongolia to

mitigate and manage the impacts of natural disasters with an emphasis on strengthening institutional coordination and increasing professional capacities among agencies.

Citizens made claims to parliment that the civil health insurance system is working so bad, citizens have little awareness of protecting their health and preventing illness, related law implementation is insufficient, hospitals operate with high loads and have red tape; thus it is necessary to improve the service quality and accessibility, privatize hospitals to a certain extent, control private hospital service, and render special assistance to those whose diseases have complicated.

On June 13, at the meeting of Parliament’s Standing Committee on Petitions members discussed reports given by Health Minister N.Udval in connection with petitions on health sector sent by citizens. MP D. Sarangerel introduced petitions related health sector, sent by citizens.

Petitions sent by citizens in 2013-2014, requesting financial assistance for treatment charges, were resolved by means of delivering to responsible officials and sending recommendations to the citizens.

According to the regulation on ‘Granting financial assistance to citizens who are essential to receive medical treatment abroad’ approved by the government resolution #226 in 2011 and Health Ministry’s resolution #313 in 2013, five percent of total expenditure to be spent on receiving medical treatment abroad is granted as financial assistance.

In their petitions, citizens also claimed that sickness in the rate of cancer, nervous system, blood, immunity, arthritis and bones increased.

Following the introduction of petitions, Health Minister N.Udval made her reports in five directions; the present situation of control in health sector, implementation of legislation on health service, results of inspections, actions taken, and

proposals for further action.Throughout the nation, there

are a total of 1736 hospitals and sanatoriums, of which 228 health centers are for family, 329 inter-soum hospitals, 26 central hospitals, five regional diagnostic and treatment centers, 16 clinics and professional centers, three maternity hospitals, 197 private inpatient hospitals, 822 outpatient hospitals, 71 spring sanatoriums and 31 affiliated hospitals such as railways, border military and an organization of court decision enforcement. According to the risk evaluation carried out in health organizations in 2013, 33.1 percent of all health organizations have been evaluated low, 55.1 percent medium and 11.6 percent qualified.

“Implementation of the Health Law was considered effective at 71.3 percent in 2012 and 65.3 percent in 2013. Observance of quality and safety standards in reception, emergency and pediatric health services and the implementation of standards of operations and structure of the hospitals runs at 74 percent.

“Total violations and infringements detected in health organizations generally connect with the insufficiency of the legal environment, budget and financing, management of health organization, human resource necessity, provision and capacity, ethics, responsibility and legal knowledge of physicians and health workers, as well as provision of diagnostic and treatment equipment. Health organizations receive financing from the health insurance fund with about 2500 diagnosis of 115 types; however, they follow just 435 standards and over 30 directives in health services. It means that there are not yet conditions to provide reliable health services. So far, standards of structure and actions of some kinds of hospitals have been approved,” the

Health Minister said.Insufficiency of human resources,

facilities, reform and provision influences on service quality. Therefore, a draft of the project for ‘Coordination center for provision, standards, verification, training and repairs of medical equipment and facilities’ was worked-out and discussed at the meeting of the Council of Health Minister, resulting in being

decided to set up under the structure of the Health Development Center.

It is planned to equip central hospitals and special health centers with high-quality digital X-ray apparatus, expert ultrasonic apparatus, X-ray computed tomography and MRI apparatus. Furthermore, specific laboratories are intended to establish inspection, adjust and verify medical diagnostic and treatment apparatus

and equipment.In connection with the report,

MPs O. Sodbileg, Ch. Khurelbaatar, D. Sarangerel, D. Sumyabazar, Z. Bayanselenge and J. Batzandan had some queries and suggestions. MP D. Sarangerel and J. Batzandan suggested employing experienced physicians in the primary hospitals and re-considering the status of Hospital II to make it available for citizens.

Health organizations in need of urgent upgradingCitizens petition to improve services and accessibility

Supreme Court upholds environmental activist’s 7 year prison term

MPs Ts.Davaasuren, G.Uyanga, and Kh.Bolorchuluun consult each other outside the Supreme Court building

In Mongolia, expensive high tech medical equipment is quite scarce

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NEMA and World Bank host Disaster Management Workshop

Friday, July 04, 20146 THE MONGOL MESSENGER CLaSSiFiEdS & advERtiSEMENt

C l A S S I f I E d S

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Two-room warm apartment (49 sq.m) in Sansar microdistrict for sale.

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Representation of AeroflotUlaanbaatar, Seoul street 15Tel.976-11-320720, Fax 323321e-mail: ulntosu@aeroflot.ru

Flight № Days Aircraft Destination Departure time

Arrival time Validity

SU-330 2,5,6,7 А-320 MOW-ULN 20:00 06:10+1 01APR-30MAY

SU-331 1,3,6,7 A-320 ULN-MOW 07:10 09:50 01APR-31MAY

SU-330 Every day А- 320 MOW-ULN 20:00 06:10+1 31MAY-21SEP

SU-331 Every day A-320 ULN-MOW 07:10 09:50 01JUN-22SEP

SU-3850* 4,7 B-767 MOW-ULN 21:10 07:15+1 01APR-25OCT

SU-3851* 4,7 B-767 ULN-MOW 09:20 11:55 01APR-25OCT

You can check yourself in for any Aeroflot* flight out of Moscow (Sheremetyevo) оr from the airports where is Online system for Check-In.Online Check-In starts 24 hours before departure http://www.aeroflot.ru/cms/en/online_services

Before the flight, you can check the departure time on our website www.aeroflot.ruor by calling the airport reference 1980,also on sites www.airport.mn,www.miat.com

All flights on the route Ulaanbaatar Moscow is codeshare flights *–operated by MIAT–Mongolian airlines

aeroflot time schedulefor summer 2014

in front of Bayangol Hotel is for rent. USD400 per month.

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THE MONGOL MESSENGER 7Friday, July 04, 2014

The lawyer’s advice

Address : Sukhbaatar District, Khoroo 6, Sukhbaatar Street 11-2,

Office of the Legal Education Academy (inside the court of the Children’s Art Center, in the right side) Tel : 321294

-What documents are necessary for the registration of the non-banking financial organization?

-Law on non-banking financial activities (Article 7) provides that non-banking financial activities cover the following activities:

•loan;•factoring service;•issuance of payment guarantee;•issuance of payment means;•electronic payment and money

transfer service;•foreign currency exchange/trade;•trust services;•investment to short term financial

means;•consultancy to and information

on investment and finance;•financial mediation with regard

to immovable (real estate) property pledge.

Legal entities of Mongolia as well as legal entities of foreign countries may undertake non-banking financial activity in conformity with the license issued by the Financial Regulatory Committee. Entities seeking for the permission to undertake such activities complete the following documents and submit them to theFinancial Regulatory Committee:

•a request application for the license (with specification regarding the type and term of the activity);

•State registration certificate of the legal entity;

•bill of the stamp fee;•charter and founding document

of the entity to undertake Financial Regulatory Committee.

•business plan;•document evidencing the

accomplishment of the lowest level of the capital set by the Financial Regulatory Committee;

•financial report confirmed by the auditing agency;

•information on staff, techniques, equipment and work place;

•registration of shareholders and number of shares owned;

•necessary information on income statement of the shareholders owning solely not less than 10% of total shares of the named non-banking financial organization and the origin of the money they invested to the capital

•charter, registration of shareholders, financial report and conclusion of auditing agency (Article 8 of the law) of the legal entity owning solely not less than 10% of total shares of the named non-banking financial organization.

If the documents submitted are considered incomplete or unclear, the Financial Regulatory Committee maydo inquiry regarding the founders, shareholders and administration of the non-banking financial organization.

Financial Regulatory Committee receives the delivered application documents to undertake non-banking financial activity and reviews them within 30 business days (the period is extended for 14 days in case if the documents are need to be investigated and accredited), and issued a license provided the following requirements have been accomplished (Article 9 of the law):

•capital of the non-banking financial organization has reached the amount set by the Financial Regulatory Committee;

•strategy and factors that influence to the successful undertaking of the non-banking financial activity have accurately been specified in the business plan;

•the management of the non-banking financial organization meets the particular requirements (no overdue obligations under a loan or guarantee contract, no criminal records, ethical and business reputation that do not adversely affect management of the non-banking financial organization, having banking or financial degree and work experience in the field) set specified in the Law on non-banking financial activities;

•technique and equipment necessary to undertake non-banking financial activity satisfies appropriate safety operation requirements.

The license specifies the type and term of non-banking financial activity.

CuLtuRE & aRtS

In cooperation with Hanns -Seidel-Foundation Project Mongolia and its

“Legal Education” Academy

HannsSeidelFoundation

On July 5, a ‘Japanese pop cultural day’ event is being organizing by the Ministry of Japan at the ASA circus between 11:00-19:00 hours.

This event will be co-organized by the Union of Japanese culture amateurs

consisting of amateurs of Japanese Anime, Manga and Cosplay which are currently very famous in Mongolia. There will be many performances such as a Maid-butler dance performance, Anima song competition, Cosplay

competition, Tata-tunga competition, a Drawing competition, and corners namely Music corner, Maid Cafe, Pop corner and Photo corner in this event. Moreover, the special guests of the event are Japanese singer and

composer Kio Sakai and guitarist Katsuhiko Sato.

The Government agency of Japan and Tourism is planning to open the first ‘Visit Japan Fair’ event corner for traveling in Japan.

D.Suren

On July 19-20, the 375th anniversary of the founding of Ulaanbaatar, ‘Playtime-2014’ Mongolian live music festival will take place under the theme of ‘We are starting friendly Ulaanbaatar’.

The ‘Playtime-2014’ Mongolian live music festival is an annual event which spans two days during the summer. This year, the outdoor live music festival will be held just outside the capital city of Ulaanbaatar. The number of spectators and the participating artists and bands increases year by year. This year’s festival lineup includes 35-40 bands performing on two separate stages, consisting of new and upcoming artists and already established artists, delivering a range of genres to suit the tastes of all music loving festival-goers. This year, foreign music guests world

famous Russian rock band ‘Mumiy Troll’, Great Britain rock band “The Wombats” and ‘Envy’ hardcore band from Japan are expected to entertain Mongolian live music enthusiasts with their songs.

Mumiy Troll is a Russian rock group, founded in 1983 in Vladivostok by vocalist and songwriter Ilya Lagutenko. The literal name of the band, ‘The mummies’ troll’, is a pun on Moomin Troll, the series of Finnish children’s books by Tove Jansson. Mumiy Troll is well known in Japan, China and Europe.

Envy is a rock band formed in Tokyo in 1992. They are signed with Rock Action Records in Europe and Temporary Residence Limited in North America, though originally they worked with Level Plane Records. Initially influential in the post-hardcore scene, Envy more recently has grown to include elements of post-rock in their career.

This festival includes contemporary art performances, exhibitions, workshops, and fireworks, and many other interesting activities. In addition, a tent district and all types of food and beverages will be served. WiFi buses, car parking, sanitation and security services can be accessed free of charge.

The festival is being held for the 13th year this year and is exclusive because it allows live music lovers to spend two nights watching performances of artists and bands in the open air. The groups can pitch a tent in the camp area and stay there in comfort. Hi-Fi Records, the organizer of the event, feels that this is a huge achievement as the festival itself comes from humble beginnings growing from only 5 bands at the first Playtime music festival in 2002 to being recognized as ‘the’ live music event of the year. The festival itself has been a major force in introducing widely recognized and

prominent artists to the masses, acting as a musical springboard boosting their audience range and helping the cultural and musical development of the country as a whole. At last year’s Playtime festival, we were proud to have the acclaimed Japanese band Mono in our line-up, further enhancing the name of our festival on an international scale.

The playtime music festival has seen exponential growth and success over the years. When it started out it had a turnout of around 600 festival goers; but in recent years, it attracted an attendance of over 5000 music lovers. Playtime has been held at Hotel Mongolia in Gachuurt village since 2009 allowing the festival to set up the Playtime camp allowing attendees to set up their tents for the two-day event.

Tickets will be available from the Hi-Fi store.

D.Myagmarsuren

On July 4 the ‘Night of Modern’ ballet show of the ‘Boston ballet’ theatre from the USA will be staged at the State Academic Drama Theatre. The ‘Night of Modern’ ballet is being performed with support of the ‘Mongolian Ballet Development Fund’ and City Administration Office.

Within the journey of ‘Hospitable Ulaanbaatar-375’ the dance show Mongolian ballet dancer D.Altankhuyag is participating with soloists Sabi Varga, Whitney Jensen, John Lam and principle dancers Jeffrey Cirio and Lia Cirio from the Boston Ballet, an American professional classical ballet company based in Boston. Famous ballet dancer D.Altankhuyag talked about the show saying “more than a year ago, we began organizing this show. Now, highly skilled, amazing dancers have come to our country. I admire and study their dancing skills. Ballet shows the expression of the mind and intellectual universe. Dancers can render all the cells of their body and exert enormous, passionate energy located within human compassion and forgiveness”, he said.

Jeffrey Sirio, a U.S. citizen and dancer of the ‘Boston Ballet said that

this is his first time to visit Mongolia and said everyone has been very nice to him. I know that ballet art in Mongolia has been developing for 50 years. “D.Altankhuyag and I are solo dancers of the ‘Boston Ballet’ company. In this sense, I am happy to support and participate in the innovative work of my friend”, he said.

The Mongolian Ballet Foundation

organized similar event under the name ‘Night of Modern’ international ballet in 2011 to promote classical art, especially ballet the ‘Night of Modern’ ballet has been performed at world renowned venues such as the White House in the U.S, Royal Ballet of London, Bolshoi Ballet of Russia and La Scala of Italy. Over the last three years, this Foundation performed five

international ballets for Mongolian audiences. In December of this year we will perform ‘The Nutcracker’ ballet organized by the ‘Mongolian Ballet Development Fund’. Dancers of the ‘Boston Ballet’ will participate in the ballet.

The ‘Night of Modern’ ballet will continue from July 4 to 6.

World-famous ‘Night of Modern’ ballet staged in Mongolia

Ballet artist D.Altankhuyag is talks to media about this weekend’s performance

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‘Playtime-2014’ expected to attract 5000 music lovers

From June 29 to July 3, a Seminar on Cooperation towards Strengthening Networking and Information Sharing of Intangible Cultural Heritage (ICH) in North-East Asia was held in Ulaanbaatar under the theme ‘Facilitating Documentation of Living Heritage and Information Exchange for ICH Safeguarding in North-East Asia’.

Jointly organized by the Ministry of Culture, Sports and Tourism of Mongolia, the Mongolian National Commission for UNESCO, the International Information and Networking Centre for Intangible Cultural Heritage in the Asia-Pacific Region (ICHCAP), and UNESCO Beijing Office, this Seminar specifically involves

five North-East Asian countries (Democratic People’s Republic of Korea, Japan, Mongolia, People’s Republic of China and Republic of Korea), and aims to foster regional cooperation in ICH safeguarding to enhance documentation practices of intangible cultural heritage in North-East Asia, while strengthening information exchange for regional ICH safeguarding.

The seminar presents relevant stakeholders with the opportunity to be sensitive to recent developments in documentation and information sharing practices of ICH in the international and regional context; to explore current challenges and practices in the documentation and information sharing of ICH in North-East Asia; and to discuss future cooperation in ICH information sharing in North-East Asia and beyond.

On the first day of the seminar, participants took a tour to the Nalaikh District in Ulaanbaatar to document Intangible Cultural Heritage. The knowledge and experience obtained during this tour was discussed at the next day’s seminar.

During the seminar, G. Jargalsaikhan, Secretary General of the Mongolian National Commission for UNESCO, said “Documentation

is defined as the process of recording Intangible Cultural Heritage in its current state and variety, through transcription and/or audio-visual, and collecting related documents – is a key example of safeguarding measures aiming to ensure the continued viability of an ICH element. Involving members of communities and groups concerned with government ministries, local authorities, NGOs or academia, documentation in the field of ICH contributes to encouraging enactment and transmission of the element as far as possible within the original context of the community concerned.

Mongolian Government delegates attended the 5th session of the General Assembly of the States Parties to the Convention for Safeguarding Intangible Cultural Heritage which was held in Paris, France on June 2-5, 2014. At the session, Mongolia was elected one of the 24 members of the Intergovernmental Committee for Safeguarding Intangible Cultural Heritage.

The Convention for Safeguarding Intangible Cultural Heritage is a UNESCO treaty adopted by the UNESCO General Conference in 2003.

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Five North-East Asian countries cooperate in safeguarding ICH

Japanese ‘pop cultural day’ hosted this weekend

Representatives unite to protect ICH in the region

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Friday, July 04, 20148 THE MONGOL MESSENGER

On July 11 and 12, the University of Culture and Arts and the Arts Council of Mongolia are organizing the ‘Awakening Steppe’ Culture Naadam at Hui Doloon Hudag to showcase traditional Mongolian nomadic arts and culture for Mongolian and international visitors. Culture Naadam has been organized since 2008 with over 200 workers from the University of Culture and Arts and the Arts Council of Mongolia.

The 2014 Culture Naadam will focus on the UNESCO Intangible Heritage elements of Mongolia, including such traditional cultural elements as long song, throat-singing, and folk music performances. Mongolian painters and designers will be on-site to discuss and showcase their interesting works. Mongolian nomadic culture, lifestyle, and ceremonies will be exhibited through ‘A day in Mongolia’, with activity stations to explore arts and culture crafts, Mongolia’s different ethnic groups, ‘Giant Mongolia’ sculptures, traditional writing, felt, archery, Mongol costumes and face painting.

Culture Naadam 2014 is being supported by the Ministry of Culture, Sports, and Tourism, the Arts and Culture

Development Foundation, Khan Bank, and the National Naadam Festival Organizing Committee.

aRt & CuLtuRE

The Mongol Messenger is operated by the government news agency MONTSAME and is printed by the MONTSAME.Home Page: www.mongolmessenger.mn; E-mail: mongolmessenger@yahoo.com (ISSN 1684-1883)

Arts Council of Mongolia, Delta Foundation Center, IV floor, Tourists Street-38, Chingeltei District Tel/Fax: 976-11-319015 E-mail: education@artscouncil.mn Web: www.artscouncil.mn

ARTS COUNCIL OF MONGOLIA

The Red Ger Art Gallery was established in 2003 to promote Mongolian fine arts domestically and internationally and to support the long-term sustainability of the culture sector by providing a market for artists. Over its eleven years of operation, the Red Ger Art Gallery has showcased the work of several famous and young emerging artists and is an invaluable resource for trainings and public lectures. The ACM also organizes building the capacity of Mongolian arts and culture professionals. The Red Ger Art Gallery is located on the first floor of the main Khan Bank building on Seoul Street.

The Red Ger Art Gallery is open Monday through Saturday from 9 a.m. to 6 p.m. and entrance is free. This month, we are proud to feature two international collaborations. From June 26 through July 7, the ‘Scarlet’ young artists will hold a joint exhibition. Afterwards a ‘Collection of Art’ exhibition will be on display at the Red Ger Gallery to sell artworks during July and August.

For more information, please call 88708969, 319017 or contact us online at

redger@artscouncil.mn or www.facebook.com/redger.artgallery.75

Visit the Red Ger Art Gallery!

The UB City Mayor’s Office and City General Plan Place are organizing ‘Ulaanbaatar sculpture’ festival for the first time with professional agencies. This festival is going to be held every year and will contribute to professional organizations improving partnerships, create a favorable legal environment, statue monuments, and outreach by establishing physical access to social advertising, public art and education. All citizens of the city are invited to participate in the Sculpture festival.

This first space arts festival is being held for the 375th anniversary of Ulaanbaatar. The

purpose of the festival is to promote artists, creative thinking, the city, and increase public satisfaction, comfort. The lack of capital allows develop various types of small decorative sculptures.

A design reflecting the image of the city is one of the most important elements of the statue. The image is to become a celebrated monument along with 90 percent of the monuments situated in the territory of Ulaanbaatar. Monuments of the country’s cultural values that work, as well as arts education is an important factor for city residents. Also, the monument will be publically

accessed as a physical social marketing promotion image.

Today, we need to build new monuments, sculpture, history and custom revolution of the time and educate citizens on aesthetic and social advertising physical artwork. Therefore, young artists are most welcome to participate in the festival and invest in the city’s colors and image.

For detailed information please contact 315320, 315335 or visit our website at www.

ulaanbaatar.mn, www.mpa.ub.gov.mn

‘Awakening Steppe’: 2014 Culture Naadam

‘Ulaanbaatar Sculpture’ competition announcedTraditional folk performances include Mongolian dance, music, attire and cultural activities of nomadic people

The Red Ger Art Gallery is located in Khan Bank’s main office on Seoul Street