INVESTMENT OPPORTUNITIES OF MONGOLIA

Invest Mongolia Agency

Presented by: Mr. JAVKHLANBAATAR Sereeter,

Director GeneralInvest Mongolia Agency

Content

Economic overview Foreign investment environment Projects are available for funding Bulgaria’s FDI to Mongolia Invest Mongolia Agency

3Source :World Bank, 2015

RUSSIAUS$ 2,014 143

CHINAUS$ 8,358 1,351

S.KOREAUS $1,129 50

JAPANUS$ 5,959 127

MONGOLIAUS$ 11,4 3

GDP 2013 in USD billions

Population 2013in millionsMongolia has a leading land per capita in the world

Territory: 1.6 million sq. km

Population: 3.00 million (2015)

Mongolia Overview

Neighboring with two of the largest global economies- China and Russia

Large mineral resource base that can be leveraged for value- added processing for high capital returns

Huge potential in agriculture and husbandry (over 60 million livestock)

A growing banking and financial services industry through transparent and open policies

Great potential for the development of renewable energy sources Promising foreign investment opportunities in tourism, leisure and

regional development Vibrant and flourishing democratic Government and friendly FDI

environment Developing industry and infrastructure Young and well educated population

Key reasons to invest in Mongolia

FORBES Mongolia is ranked in 63th from 146 world countries.

Mongolia is ranked in 72nd from 189 world countries.

Doing Business

International Indexes

2006 2007 2008 2009 2010 2011 2012 2013 20140

2

4

6

8

10

12

14

16

18

20

3.74.5

6 6

8.2

17.5

12.3 11.8

7.4

GDP growth rate (%)

Source: NSO bulletin

Trade is balanced Foreign trade

Exports $M Imports $M Trade balance $M

Source: Bank of Mongolia, Customs general office

Foreign direct investment /in billion USD/

(2.00)

(1.00)

-

1.00

2.00

3.00

4.00

5.00

6.00

0.32 0.37 0.50 0.71 0.80

1.03

4.99

4.40

2.29

0.57

15.85%36.23%41.80%

13.01%28.06%

386.36%

-11.82%-47.95%

-75.20%FDI Percentage

Foreign direct investment /by sector/

0 10 20 30 40 50 60 70 80

73.6

16.6

3.4

1.4

1.3

0.9

0.8

0.4

0.4

0.3Information and communications

technology

Hospitality and tourism

Livestock-derived raw materials pro-cessing

Light industry

Construction

Transportation

Banking and financial services

Other

Trade and food

Geology, mining and exploration

Invest Mongolia Agency

Foreign invested companies /by number of companies/

Source: Invest Mongolia Agency, 2015

2005 2006 2007 2008 2009 2010 2011 2012 2013 20142015.040

200

400

600

800

1000

1200

1400

1600

1800

971

15051609

1551

613

769

933

774

390335 80

/Billion USD/

Mexico

Spain

Australia

Canada

Singapore

Brazil

Hong Kong, China

Russian Federation

China

United States

13

26

6

43

27

-3

92

95

101

338

38

39

50

62

64

64

77

79

124

188

FDI inflowFDI outflow

TOP INVESTORS COUNTRIES /2014/

Source: Invest Mongolia Agency

№Top investor countries

1990-2014 %Amount

/in billion USD/

1 Netherlands 29.96 4.2

2 China 26.65 3.75

3 Luxemburg 8.17 1.15

4 British Virgin Islands 7.87 1.10

5 Singapore 5.14 0.72

6 Canada 3.53 0.49

7 South Korea 2.69 0.38

8 USA 2.19 0.31

9 Russia 2.11 0.30

10 Australia 1.84 0.26

Investment Law of Mongolia, 2013 provides:

Investment Incentives

Protection of investor`s interests and rights

Tax stabilization

Investment incentives

Stability guarantees

Preferential tax treatment Accelerated depreciation and amortization that

is deductible from taxable income, Tax waiving

Investment Incentives

Tax incentivesExemption from the payment of certain taxes, including:

No import duty for machines and equipment of manufacturing, processing and industrial facilities

Employee training costs are deducted from taxable income

Investors are served through simplified registration and immigration procedures

Land lease by foreign investors from 40 to 60 years to development projects

Simplified procedures for permanent residence permit and multiple entry visa for investors

Investment Incentives

Non-tax incentives

Investor’s Protection in Mongolia

Investors in

Mongolia

WTO member

since 1997 Member of Multilateral Investment Guarantee

Agency (MIGA)

General agreement on

trade and economy with 24

countries

Washington Convention on

Investment Dispute

Settlement,

1996

Seoul Convention on

Investment Insurance,

1999

Agreement on Avoidance of

Double Taxation with 34 countries

Japan-Mongolia Economic

Partnership Agreement

(EPA) signed /2015/

Agreement on Mutual

Protection and Promotion of

Investment with 44 countries

Signed PPP projects № Project name Total Cost Concessionaire

1 “Telmen power plant” project $183.0 MLN “New Asia Group” LLC

2 “Altanbulag-Ulaanbaatar-Zamyn-Uud highway” project

$5.0 BLN “CHINGGIS LAND DEVELOPMENT GROUP” LLC

3 “Nariinsukhait – Shiveehuren” road project

MNT 88.0 BLN

“RDCC” LLC

4 “Establishment of the mining and metal processing complex” project

USD 725.0 MLN

“QSC” LLC

5 “Tuul-Songino power plant” project

CNY 1.0 BLN

“MORIT IMPEX” LLC

6 “Tavantolgoi-Khanbogd-Hangi” road project

MNT 440.0 BLN

“MCCC” LLC

7 “POWER PLANT #5” (CHP5) project

$1.2 BLN “GDF SUEZ, SOJITZ, POSCO, NEWCOM” LLC

№ Project Name Тype of PPP1 The Center for Elder Care and Advanced Illness Design-Build-Own-Operate2 Improve morgue service Design-Build-Own-Operate3 Tsogt ovoo- Tsogttsets paved road Build-Transfer4 Ulaanbaatar city Conference and convention center Design-Build-Own-Operate

5 Center for Transportation and logistics in western part of Ulaanbaatar city

Design-Build-Own-Operate

6 Center for Transportation and logistics in eastern part of Ulaanbaatar city

Design-Build-Own-Operate

7 Renovation of soum center infrastructure Build-Own-Operate8 Nalaikh Civilian and Special purpose airport Renovate/Equip-Lease-Operate -

Transfer9 Renovation and Retrofitting of Dalanzadgad airport into

International airportDesign-Build-Operate-Transfer

10 Hazardous waste disposal processing plant Design-Build-Operate-Transfer

11 Tuul river cascade reservoirs Design-Build-Transfer, Design-Build-Operate-Transfer

12 Waste to electricity plant Build-Own-Operate13 Kidney hemodialysis services Buy-Own-Operate14 Improve morgue service /Government Resolution N.313/ Build-Own-Operate

15 Medical oxygen production plant Build-Own-Operate

List of Concession projects

Shibu lijack

PROJECTS ARE AVAILABLE FOR FUNDING :

Eco- Yarmag 1

Redevelopment of ger area

Requested amount: 100 million USD

Buyant Ukhaa-2, Phase -2

Requested amount:116.6 million USD

Industrial and technology park of construction materials in Nalaikh district

Requested amount: 47.8 million USD

Building information modelling

Requested amount:1.6 million USD

Construction sector

New cleaner fuel comprehensive utilization project

Requested amount:6 million USD

Nanometal steel plant

Requested amount: 129.7 million USD

Tanil lime project

Requested amount: 12.8 million USD

Chandmani Uul Copper, Gold and Iron mine

Requested amount: 30 million USD

Dorniin Gan project

Requested amount: 40.5 million USD

Mining and heavy industries sector

Project to expand the concentrators

Requested amount: 11.4 million USD

Tumurtein Gol Project

Requested amount: 21.2 million USD

Glass factory of Dundgobi province

Requested amount: 119 million USD

Wood based panel by processing secondary raw materials

Requested amount: 20.3 million USD

Mining and heavy industries sector

Emeelt light industry and technology park

Requested amount: 262 million USD

New railroad project

Requested amount: 8,575 million USD

Light Industry sector

Road sector

Seaberry bio-farm

Requested amount: 21 millions of USD

Mutton export project

Requested amount: 105 million USD

Food and Agriculture sector

Tavan Tolgoi power plant project

Requested amount: 933.8 million USD

Zamyn Uud Free Economic Zone

Requested amount: 300 million USD

Altanbulag free trade zone

Requested amount: 193 million USD

Energy sector

Logistic & Freight sector

Republic of Bulgaria’s FDI to Mongolia

• Totally, FDI from 112 countries have been registered.

• Bulgaria is on the 20th place

Since 1990:• 21 companies from Bulgaria • Total investment - 31.1 million USD

Mining & geology ex-ploration

Service & trade

Enjineering constuction

Food production

Information and commu-nication technology

Source: Invest Mongolia Agency

FDI by sectors 98.1%

1.27%

0.56%

0.13%

00.2%

IMA’s structure

Director General

Promotion and Consulting

Division

Investment Policy, Assessment

Division

Administration, Human

Resources Division

Concession, Public- Private Partnership

Division

Project Assessing

Council

27

Mission

1. Promotion of investment

2. Protection of investors

3. Update the domestic market to foreign investors

4. Consulting support in planning their investments

5. E-consulting services

6. Issuing tax stabilization certificate

7. Review the implementation of invested projects

8. To support in continuing the investment

9. One-Stop Shop services

10. Organize field trips / Project site visit

Services to Investors

1. Provide integrated information

2. Guide Investors to business and public procedures

3. Organize Field Tours

1. Legal Consultancy

2. Project Management Consultancy

3. Aftercare assistance

1. To establish and develop the national systems of innovation policy and regulations

2. To improve the business environment for policy and strategy formulation and implementation of coordination

3. Industrial cluster development policy and strategy formulation and implementation

1. Investment Research

2. Investment & Investors Database

3. Targeted Promotion & AD Campaign

Shibu lijack

“Create a value in Mongolia”

Address: Invest Mongolia Agency

Sambuu Str.11, Government Bld.11,

Ulaanbaatar 211238, Mongolia

Email: info@investmongolia.com

Website: www.investmongolia.com