The financing issues for the oil refinery project built by India and the Erdenebulgan hydropower station project constructed by China have been resolved.
Mongolnews Agency, Ulaanbaatar, May 25 — According to information from the State Great Hural Press Office, the full session of the State Great Hural has adopted the initial draft of the "Law on Enhancing the Use and Efficiency of Foreign Loans," which was urgently submitted by the government. Following the adoption of the bill, Finance Minister Z. Mendsaikhan and Member of the State Great Hural N. Altanshagai provided updates.
Finance Minister emphasized that with the passage of this law, the financing challenges for strategically, economically, and socially significant projects—the oil refinery and the Erdenebulgan hydropower station—have now been resolved. He also noted that only through enhancing the utilization rate of foreign loans can these projects meet the conditions for timely commissioning.
Mongolia has long relied on electricity imports from Russia. If the Erdenebulgan hydropower station is operational on schedule, it will enable complete energy self-sufficiency for western provinces of Mongolia. Additionally, this law has created favorable financial conditions for the timely commissioning of the oil refinery. Minister Z. Mendsaikhan pointed out that once operational, the refinery will be capable of meeting approximately 50% of Mongolia’s domestic demand for petroleum products.
Member of the State Great Hural N. Altanshagai stated that under the 2025 budget law, the allocated foreign loan quota was originally set at 1.2 trillion tugriks. However, the required funding for the two aforementioned projects this year amounts to 1.8 trillion tugriks. Currently, Mongolia is implementing 74 projects under the foreign loan framework, which are not included in the budget ceiling. Moreover, apart from these two projects, the remaining 72 projects must also proceed on schedule and be brought into operation as planned.
Original source: toutiao.com/article/1866132448007305/
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