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Minister of Road, Tnmsport and Tourism of Mongolia Mr. TSENGEL Tsegmid's.speech
at the Ministerial Sessionof an Asian Pacific region on Public-Private Partnershipsin the
Developmentof Infrnstmcture /2-5 October 2007, Seoul, South Korea!
D Ladies and Gentlemen:
I I am so pleased to give a speech coming far from Mongolia
with a flat steppe
heartland which is located in the Central Asia.
I Mongolia is landlocked and the least densely populated developing country with a
population of 2.77 million.
.Before 1990 our country had communist political system aligning to the Soviet Union
and centrally planned economy. Beginning from 1990s we have chosen democratic
government and free-market economic relation in which basically going through the
transition period so far.
I During the beginning of transition, which is from 1990 to 1994, economy had fallen
drastically while public revenue decreased dramatically and started emerging negative
phenomena such as unemployment, poverty, crime and alcoholism. But from 1995
economy have been reviving and increasing, and also private sector stabilizing while
developing.
I Economic growth of Mongolia
grew by about 8.1 percent per annum in recent 4
years as well as appearing lots of positive trends in macro economy such as inflation
rate has transferred into one figure, deficit of the balance of foreign trade decreased
radically and the ,total balance of budget is becoming profitable. Over and above
GDP /General Domestic Product! per capita have reached US 1017.8$ in 2006 while
it was US 477$ in 2002, which means it is increasing by 2.1 times during all this
time.
I By 2006, 40.8 percent of GDP is occupying service sector, 40.4 percent is production
field and 18.8 percent is field of agriculture respectively.
I
according to the survey from National Statistics, private sector grew
from 52.6% in 1995 to 77.7% in 2005.
I For our country with a wide steppe land and the least densely populated, the field of
Furthennore,
road and transport is the vital one which have an effect on our economy. In the
sub-field of a transport sector railway, transport, maritime and auto transport are
included.
.Survey shows that by public sum 5.7% of the total employeesand 9.6% of the GDP
is related to the transport field.
I 24.0 million tons of goods were transported in 2006 by all kind of transport means
that it is increased by 2.2 times than 2000 and by 11% than 2004. By 2006, 61.6%
of the total goods transportation is by railway, 38.3 percent is by road and the rest
0.1 percent is by air and by sea. And also, by railway the 4.5 million tons are
transmit transport of the goods that the 14.8 million tons of goods were transported.
by double number there are 97.6 percent of the passengers arebeing
by road while 195.4 million people are transported by all kind of
transportation way per annum as well as 2.4 percent is by railway and by civil
aviation transport.
I By 2006, in our country 93.5 percent of the total 14.6 million cars are under state
and private sector.
.In
other words, in the field of auto transport except public transportation companies
of the city there are also private companies are in charge which means90 percent of
the transportation work is being completed by them.
In further, we are focusing on adopting privatization policy in public transportation
companiesby conforming to the market principles.
There are six more private companiesexcept state owned company MIA T are running
their activities in the field of aviation transport. In the market 52 percent of
international civil a~iation transportationis occupied by state owned company MIA T,45
percent is by foreign aviation companies and the rest 3 percent is occupied by
domestic private companies. Therefore, about 70 percent of the market is invoJved
with private companies.
I The closest way of connecting Europe and North America with Asia and East Asia is
passing through Mongolia.
I By now, there are 9 air ways passing on the territory of Mongolia. As a result of
adopting those measures such as (ocusing on providing safety flight services to the
flights that are passing by those ways, harmonizing the air navigation services with
international standards, expanding internal cooperation, raising personnel's qualification,
.Moreover,
and improving technologies the international flight number that passed through our
country's territory increased in 2006 by 5 times than 1995.
I Nowadays, Mongolian railway has 1815 kilometers railway that have connec.ted the
Russian Federation and People's Republic of China as well as branched off to the
local towns, villages and industrial districts. And it is accomplishing the 96.8 percent
of freight turnover and 47.7 percent of passenger turnover of the country.
I Mongolia-Russian joint venture "Ulaanbaatar Railway" community which is established
in 1949 is in charge alone in railway transport. And its agreement between two
governments as well as regulation is not corresponding with today's market principle.
Therefore, we are planning to carry out some duties such as privatizing some part of
it, improving the legal environment and spreading out the local network of railway by
matching up with the market principle of a railway transport.
According to this, we believe that transmit transport of freight from Europe to East
Asia through the territory of Mongolia will boost greatly.
By now, Mongolia has 49250 kilometers road and from this
country type and the rest of them is local type.
1218 kilometers is
Today in auto road sector there are 216 organizations managing their activities and
the 19 of them are state owned or joint companies, and the rest is private.
I
About 80 percent of building and repairing the road is being done by private
enterprisesand joint ventures.
I In 2004 government of Mongolia joined an agreement on joining
in a network of
Asian highway. Consequently, our country is connected in international auto road
network by 3 directions, which is AH-3 /Altanbulag-Ulaanbaatar-Zamyn Uud/, AH-4
/Tsagaannuur-Ulgii-Khovd- Y arantai/, AH-32 /Khovd-Ulaanbaatar-Undurkhaan-Choibalsan
-Nurnrugi, that means we have got a chance to use other countries' auto road
network. From the above mentioned direction by completing the construction of auto
road Altanbulag-Zamyn Uud in 2008, environment will be come out for developing
transmit auto transport relation through Mongolia.
I Weare
planning to join Asian auto road network in 2021 and to entirely cover the
international road with asphalt.
I In our country tourism sector based on private sector is developing rapidly in recent
10 years.
By today in our country there are about 600 private tour operator companies, travel
agencies, 320 hotels, around 200 camps and tourism complex running and about 40
colleges and universities are preparing personnel of that sector.
Alongside number of the tourists is increasing a lot each year. For instance, 137.3
thousand tourists came in 2000 while 282.0 thousand tourists have come by August2006.
In the further we are aiming to increase power of tourist transport and
accommodation, improve main regional road of tourism and intercommunication,
electricity supply, to develop projects, programs on developing service quality and
providing tourist safety, to build bigger tourism complexes, and to develop various
kind of trips region by region that attracts tourists.
In the end, by today dominant percentage of the work in a road, transport, tourism
sector is completed by private enterprises and in the further we are abiding the
policy of supporting the country's economic growth by developing the network of
road and transport based on private sector.
Thank you for you attention!