G.Tuvdendorj, Deputy Minister of MET

Demand for public services and infrastructure is steadily increasing as the economy expands. It is considered that budget funding or sources of loans and grants are insufficient to meet this need. The key to addressing this issue is to bring in private sector funding through PPP. This opens up new markets and opportunities for the private sector by offering projects to the private sector rather than the government doing it all on its own. This is the main principle of PPP law.

In addition, the PPP addresses the issue of ministry capacity. Also, the previous experience has shown that there is a lack of involvement of line ministries. The Concession Law was first implemented in 2010, but since then the law has undergone significant changes. Under the Concession Law, most projects, or about 60% of all projects, have direct contracts without any detailed research or analysis. Only one project has been successfully implemented out of 60 signed concession agreements.

Within the framework of the implementation of this law,  a PPP center will be established under the Ministry of Economic Development. The center will be staffed by a professional team and consultants and will be responsible for developing projects in collaboration with all the ministries, openly proposing them domestically and internationally to attract funding.

Strengthening Fiscal and Financial Stability Project, Room 205 United Nations Street 8/2 4th khoroo Chingeltei district Ulaanbaatar-15160 Mongolia
+976-70120582
training@sffs.mn