2012 election program of Democratic Party of Mongolia

According to official Website of Democratic Party of Mongolia (, “it is a political organization, coalition and union of self-willed citizens who, aspiring for national interests of Mongolia and ensuring social progress, desire for and have goals of

  • Strengthening independence, sovereignty and solidarity of the nation and country
  • Lawful state, rule of law, human rights, freedom, justice, development and their productive capacity

based on free democratic ideology as its theory and basis of its activities”

Further, 2012 election program of Democratic Party( called “A MONGOLIAN PERSON”  includes following excerpts that might be of interest for investors


“Key goal of macro economical field is to implement fiscal and monetary policy aimed at forming self-sustainable, internationally competitive economy that is to supply in stable manner main needs of the population”

  • “Will legalize principle of not increasing expenditures and not increasing deficit of budget proposed by Government to Parliament
  • Keep inflation in single digits and have tugrug’s purchasing power stable
  • Salaries and pensions will be increased annually in correlation with inflation and productivity
  • Salaries will be increased by sector in order not to raise consumer prices
  • Budget expenditures will be limited to no more that 40% of GDP
  • Monetary policy will be aimed to support real economy
  • Development Bank will increase discount financing to support infrastructure and processing
  • All tenders by budget funds will be done 100% online transparently under supervision of public
  • Double taxation agreement with other countries will be updated complying with interests of Mongolia or invalidated
  • 90% of official tax paid by enterprises with annual sales revenues less than 1.5 billion tugrug in sectors other that certain sectors such as mining, minerals, import of petroleum products, export of crude, mobile operators, liquors and vodka, cigarettes will be refunded to them
  • Budget funded suppliers will be required to procure no less that 30% from non-budget field
  • Limiting regulation will be done on investment by state owned companies of foreign countries
  • Sectors will large labor absorption will be supported by policy
  • Independence and not depending from few countries agricultural and food sector will be paid attention to
  • Capital markets development will be supported by supporting activities of MSE and opportunity to attract private sector investment will be improved”


  • “State regulation and control in mining will be strengthened and state participation limited, participation of national enterprises and citizens supported
  • While issuing mineral license  principle of getting opinion of local citizens and establishing agreement will be implemented
  • Issuance of mineral license from Mineral Resources Agency will be stopped and Government will be in charge of issuance
  • Certain limits will be imposed on number of license that can be owned by legal entity
  • Minerals exports will be implemented by policy “ One window”
  • Legislation will be created and implemented to have Mongolian stake in companies to be established on mining deposits not less than 51%
  • Mining will poor economic benefits and significant environmental damage will be prohibited
  • Environmentally friendly and best technology’s introduction into mining production will be supported, counting of damaged areas finished , rehabilitation done by guilty party and in the future rehabilitation expenses will be placed in state budget account
  • Level of processing of mining products will be increased and valued added final products producers will be supported by tax policy
  • Legislation will be formed to have national enterprises to work as subcontractors to supply goods and services to mining and other major projects in Mongolia
  • State will own not less than 51% of companies to be established on deposits explored by state budget funds
  • Strategic minerals such as thermal and coking coal, copper, iron ore and rare earth elements will be classified and special for them policy implemented
  • Policy will be implemented of adding value-add to mineral sector raw materials, half-processed and final products produced and exported”


  1. 1.Industrialization policy

Industrial park to process mining products will be established in Sainshand town of Dornogobi province which will include

  • plant to process one million tons of coke per year
  • Coal to liquid plant to produce 850 thousand tons of gasoline and 85 thousand tons of liquid natural gas per year
  • Plant to produce 660 thousand tons of copper concentrate per year
  • Metallurgical plant to produce 500 thousand tons of final products

Darkhan Metallurgical Plant will be renovated and will concentrate iron ore

Production of construction materials will be developed and policy will be adhered to of supplying consumption of materials such as cement, steel structures and insulation materials by domestic production

Thermal power plants will be established in provinces based on thermal coal mines

Power will be produced from sun, wind and coal and  will be connected to Asia’s united power grid

Enterprises working in the field of renewable energy will be supported by state by taxation policy

Hydropower plant will be established at Selenge river

First stage of 5th power plant to supply consumption of UB will be commissioned

60M Wt. thermal power plant based on Mogoi gol coal deposit in order to provide permanent and reliable source of power for Altai-Uliastai system


Wool, cashmere and leather will be made into final products and supplied to market

Textile products design park to support competitiveness of wool, cashmere and leather products will be established

Cashmere industrial technology park will be established in UB

Establishment of environmentally friendly no waste leather processing plants in Darkhan and UB vicinity will be supported


New system of meat supply will be formed in order to keep meat and meat prices stable


Frequency and routes of international flights to Mongolia will be increased twice


Modern advanced technology to implement all payments and settlements, registration not depending on time and distance will be introduced

Funding mechanism for biotechnology projects possible to introduce into agriculture and food production will be established on priority basis


Processing plants will established and minerals and crude products extracted in Mongolia will be supplied to domestic plants on priority basis

Duty for domestic procurement for goods and services required for mines will be legislated

Extraction of crude will be increased in order to ensure economic security of Mongolia and crude processing plants will be established at Dornod and Zuunbayan

Amount of state reserves will be increased in order to ensure stability of supply of petroleum products, retail price will be kept stable

Coal to gas, coal to liquid research will be boosted, advanced technology introduced and domestic source established to separate from dependence from abroad in gas, fuel and petroleum products

Methane gas, oil shale and other sources research will be boosted, policy on use and extraction developed and legal environment formed


Program will be implemented to teach English to staff of taxis, hotels, restaurants and other services


Railroads will be built according to stages reflected in state programs and policy approved by Parliament

  • Dalanzadgad-Tavantolgoi-Tsagaan Suvarga – Zuunbayan 400 km
  • Sainshand – Baruun Urt 350km
  • Baruun Urt – Khuut 140km
  • Khuut –Choibalsan 150 km
  • Nariin Sukhait – Shivee Khuren 45.5km
  • Ukhaa Khudag – Gashuun Sukhait 267
  • Khuut – Tamsagbulag-Numrug 380km
  • Khuut –Bichigt 200km

Provincial centers will be connected with UB and nearest border crossing by total of 5572 km of paved roads

UB auto road network will be converted into circular road system and bridge entry and exit roads, 2 staged crossroads will be built where required

Altanbulag-UB-Zamyn Uud highway will be built and commissioned to increase transit transportation

International auto road network’s AN-3 (Zamyn Uud-UB-Altanbulag) auto road will be commissioned

New International airport at Khushigt Valley will be internationally competitive passenger and cargo center

New urban planning for UB will done again within framework of New Ulaanbaatar project, engineering infrastructure established by united policy and 17 comprehensive residential districts built in UB

Policy to enroll each employed person in residential financing will be implemented in reality,  ger districts will be turned into apartment districts according to urban planning, infrastructure programs will be implemented on city, provincial and soum village levels

1000 families apartments project will be implemented in each province

Domestic production of construction materials will be developed, construction materials testing laboratories  will be established in regional centers

Construction sector standards will be updated to international standards and safety for people’s living environment will be improved by enforcement

Ownership of land by citizens will be completely resolved and real opportunity will be created to have funding by putting as collateral land in ownership

Frontier Securities will summarize election program of Mongolian People’s Party shortly.