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INVESTMENT GUIDE

Infrastructure

Power

The power system of Mongolia consists of the three unconnected energy systems (Central, Western and Eastern Energy System), diesel generators and heat-only boilers in off-grid areas.
The Western system provides three province (Aimag) centres and its 22 district (Soum) centers with electricity imported from Russia. The peak load of the imported electricity reaches 8.0 MW. Currently, there is no own generation capacity. It is planned to build two smaller coal plants with a capacity of 24 and 40 MW respectively to reduce dependency on Russia
The Eastern Energy System is based on the 36 MW Choibalsan Power Plant. The plant supplies the Aimag and Soum centers of the Dornod and Sukhabaatar provinces with electrical power.
The Central Energy System consists of five heat and power co generation power plants of Russian design, for base load operation, interconnected by a 220 kV line with the Russian-Siberian grid, one transmission network and four distribution networks. The system supplies power to the cities of Ulaanbaatar, Darkhan, and Erdenet and to the centers of 13 Aimags and about 150 Soum centers. The total capacity of the central grid is 680 MW or 840 MW including the maximum potential supplies from Russia. The total load currently amounts to 740 MW and is expected to increase to 780 MW by next year.
Electricity access rate- National: 67%, urban: 90%, rural: 36%

Railway and Road

The Trans-Mongolian Railway is the main rail link between Mongolia and its neighbors. It begins at the Trans-Siberian Railway in Russia at the town of Ulan Ude, crosses into Mongolia, runs through Ulaanbaatar and then passes into China at Erenhot where it joins the Chinese railway system.

The new railway is currently under construction to be completed in late 2016. The first phase will run from Dalanzadgad to Choibalson, whereas the second phase will connect several coal mines including Tavan Tolgoi to Chinese border in the south. The third phase will be extension of Phase 1 continuing from Dalanzadgad curving to the north to Uvs Province.

Most overland roads in Mongolia are only gravel roads or simple cross-country tracks. There are paved roads from Ulaanbaatar to the Russian and Chinese border and from Darkhan to Bulgan.

Airway

Mongolia has a number of domestic airports. The only international airport is the Chinggis Khaan International Airport in Ulaanbaatar. Regular flights exist between Mongolia and Moscow, Berlin, Frankfurt, Beijing, Hong Kong, Shanghai, Seoul, Tokyo, Osaka, Bangkok, Istanbul and Bishkek. MIAT is Mongolia's largest carrier in Mongolia and provides both domestic and international flights. A new international airport is currently under construction near Ulaanbaatar, which is expected to be finished by 2017.

Communication

Mongolia’s telephone network is improving with international direct dialing available in many areas. A fiber-optic network has been installed that is improving broadband and communication services between major urban centers with multiple companies providing inter-city fiber-optic cable services. The fixed-line telephone system has a very low tele-density with a decreasing number of main lines. In contrast, the mobile phone subscribership serviced by four providers is increasing rapidly. Especially in countryside, the government prefers the installation of cell phone base stations in over laying land lines. According to the National Statistics Office, every soum (administrative unit in Mongolia) is now covered by cellular service.

Access to internet was established in Mongolia in 1995, and only 28% of the total population have this access as at the end of 2013.11. Usage of internet is concentrated in Ulaanbaatar.

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