J.Odjargal: We have opportunity to finance critical infrastructure projects by improving our exportsBack
Odjargal J. Chairman of the Board of Directors at MCS Group have attended the Investment Forum held at Governments Palace, and expressed his opinions.
He stated that “Many of us here have been in the business sector for over 20 years. National enterprises aim to operate by maintaining companies in multiple sectors, contributing to their national economy. I would like to take this opportunity given to express our opinions on strengthening, and growing our national economy, to state that our economy is heavily reliant on copper, gold, coal, as well as iron ore, zinc exports. I am pleased to hear that the Prime Minister would be focusing on promoting export, and facilitating investments as he stated earlier. I would like to add that the copper and gold contribute to over two billion in exports, and their exports can be increased only by advancing Oyu Tolgoi, Gachuurt, and Tsagaan Suvarga projects. As for iron ore, their exports are frequently interrupted due to Ulaanbaatar Railway, or due to Zamiin-Uud port, which subsequently became the main culprit of its exports. Therefore, iron ore exports can be improved by commissioning the Zuunbayan-Khangi railroad”.
He further added that, “We all know that export of coal is a major issue. Coal exports have potential to be improved by 3 to 4 billion USD annualy, by urgently resolving the logistics of Gashuun Sukhait – Shivee Khuren port. Coal export currently constitutes of little over 2 billion USD in exports, while the price of coal is currently at its peak. By using the current prices as an estimate, export of coal has a potential to expand by over 3 to 4 billion USD in 2023 or in 2024, if we manage to sort out the issues with the Gashuun Sukhait railway project.
As the export expands rapidly, we can also increase our debt ceiling. If we can boost exports by 3 to 4 billion USD by 2023, the debt ceiling capped at 60 percent will be increased proportionally. Subsequently, I want to government to note that we will have increased potential to issue a bond, and to finance critical infrastructure projects”
“Tourism and Agriculture are one of the leading sectors for exports. I understand that the government will be promoting these sectors with structural reforms. Ironing out the financing of commerce and exports is essential, as I understand that the Development Bank of Mongolia is going to be revamped into an EXIM bank. Guarantee from the government is critical in regards to the mega projects. Guarantee is a complicated matter for the private sector, as it is highly politicized. Nevertheless, please note that the guarantee from the government and the Development bank is essential, requiring unique solutions when discussing about public-private partnership. I am glad to hear that the private sector and the heads of state will be collaborating, with the state providing one-stop solutions for economic growth,” he noted.
Flags of the top enterprises of 2021 raised in front of the MNCCI building.
Two subsidiaries of MCS Group were awarded as the “Best entities and entrepreneurs of 2021”, with two subsidiaries receiving the best entrepreneurs of their sectors of operation