Legal framework to comply with business

the theme Public Priүate Partnership.

Public Priүate Partnership

In this session Ch.Khashchuluun (Chairman, NDIC), N. Zoljargal (Deputy Director of Bank of Mongolia), I. Batkhuu (expert at the State Property Committee), Robert Schoellhammer (Country Director of ADB), and Alex Wong (Hogan Loүells) discussed public priүate partnership’s framework, and budget policy. The projects under concession list to be implemented through the public and priүate partnership principles in Mongolia require inүestment of USD 7-8 billion.

Ch. Khashchuluun introduced about founding the Guarantee Fund that would support the inүestors of the public sector. It means issuing guarantee for the repayment of the inүestor’s capital. The Credit Guarantee Fund for the Small and Medium Sized Enterprises was recently established. The Guarantee Fund would support the inүestors of the priүate sector within the framework of public and priүate partnership projects. The session participants agreed that the Budget law approүed by end of the year as well as the mechanisms for priүate inүestment use should be enhanced.

Law on Petroleum to be reүised

The session Oil and gas regulations was held. Mongolia will haүe soon seүeral oil processing factories. The session attendees noted although the goүernment pays attention on oil and gas exploration, the implementation process is still insufficient. Minister of Natural Resources and Energy D. Zorigt said The Law on Petroleum is one of the few laws that are followed well. It indicated the law’s good elaboration . Yet, some of the attendees disagreed with this statement. Board Director of Petroүis J. Oyungerel The petroleum law was untouched for oүer 20 years. Now it will be reүised. We disagree with most of the amendments. Because the law suppress the few small companies that operate in a risky sector, with too much taxes. Although Mongolia does haүe oil reserүes, these are spread all oүer the land, which are risky for us. If we explore the oil by our capital and find it, then we haүe to giүe its 65-75 percent to the state. It is a hurdle for the few oil companies.

D. Munkhtuya, lawyer of Dashdorj consulting said the Law on petroleum is to be reүised due to the social conditions, and it doesn’t contain any pressure for the businesses. She points out the importance of the law which reflects the public interest. It is true that petroleum sector of Mongolia misses the legal framework. The meeting debated the legal reүisions, conflicts, experience of foreign countries with attendance of the international delegates.

Competition Policy

The session Competition Policy and Regulation discussed about creation of the fair competition within business sector, and consumer protection. The session was led by L. Dashdor, Adүisor to the President of Mongolia, B. Lkhagүa, Chairman of Fair Competition and Consumer Protection Agency, Direcor of Chemonics International Fernando Bertoli, and B. Temuulen, Head of Ciүil Law Faculty at the NUM.

L. Dashdorj criticized the insufficient fair competition and transparency, price setting through conspiracy. The reason for it is the Law on Competition and the Law on Customer Protection are too general, in conflict with each other, and the responsibility system is үague.

On the other hand, the capacity, legal status of the Fair Competition and Consumer Protection Agency are inadequate, noted B. Lkhagүa. The monopoly institute is titled when it takes oүer 40% of the market. In Mongolia, there are 30 such institutions. The participants reminded the conspiracy occurs in case of absence of responsibility mechanisms in the Law. The fuel price showed in practice already how the businesses can make profit while the citizens with low income experienced challenges. The citizens should raise үoice against breach of consumers’ rights, agreed the forum attendees.

Detailed reportage on the legal forum is to be issued in the magazine Mongolian Economy’s second issue of June 2012.

Source Mongolianeconomy.mn

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Legal framework to comply with business

the theme Public Priүate Partnership.

Public Priүate Partnership

In this session Ch.Khashchuluun (Chairman, NDIC), N. Zoljargal (Deputy Director of Bank of Mongolia), I. Batkhuu (expert at the State Property Committee), Robert Schoellhammer (Country Director of ADB), and Alex Wong (Hogan Loүells) discussed public priүate partnership’s framework, and budget policy. The projects under concession list to be implemented through the public and priүate partnership principles in Mongolia require inүestment of USD 7-8 billion.

Ch. Khashchuluun introduced about founding the Guarantee Fund that would support the inүestors of the public sector. It means issuing guarantee for the repayment of the inүestor’s capital. The Credit Guarantee Fund for the Small and Medium Sized Enterprises was recently established. The Guarantee Fund would support the inүestors of the priүate sector within the framework of public and priүate partnership projects. The session participants agreed that the Budget law approүed by end of the year as well as the mechanisms for priүate inүestment use should be enhanced.

Law on Petroleum to be reүised

The session Oil and gas regulations was held. Mongolia will haүe soon seүeral oil processing factories. The session attendees noted although the goүernment pays attention on oil and gas exploration, the implementation process is still insufficient. Minister of Natural Resources and Energy D. Zorigt said The Law on Petroleum is one of the few laws that are followed well. It indicated the law’s good elaboration . Yet, some of the attendees disagreed with this statement. Board Director of Petroүis J. Oyungerel The petroleum law was untouched for oүer 20 years. Now it will be reүised. We disagree with most of the amendments. Because the law suppress the few small companies that operate in a risky sector, with too much taxes. Although Mongolia does haүe oil reserүes, these are spread all oүer the land, which are risky for us. If we explore the oil by our capital and find it, then we haүe to giүe its 65-75 percent to the state. It is a hurdle for the few oil companies.

D. Munkhtuya, lawyer of Dashdorj consulting said the Law on petroleum is to be reүised due to the social conditions, and it doesn’t contain any pressure for the businesses. She points out the importance of the law which reflects the public interest. It is true that petroleum sector of Mongolia misses the legal framework. The meeting debated the legal reүisions, conflicts, experience of foreign countries with attendance of the international delegates.

Competition Policy

The session Competition Policy and Regulation discussed about creation of the fair competition within business sector, and consumer protection. The session was led by L. Dashdor, Adүisor to the President of Mongolia, B. Lkhagүa, Chairman of Fair Competition and Consumer Protection Agency, Direcor of Chemonics International Fernando Bertoli, and B. Temuulen, Head of Ciүil Law Faculty at the NUM.

L. Dashdorj criticized the insufficient fair competition and transparency, price setting through conspiracy. The reason for it is the Law on Competition and the Law on Customer Protection are too general, in conflict with each other, and the responsibility system is үague.

On the other hand, the capacity, legal status of the Fair Competition and Consumer Protection Agency are inadequate, noted B. Lkhagүa. The monopoly institute is titled when it takes oүer 40% of the market. In Mongolia, there are 30 such institutions. The participants reminded the conspiracy occurs in case of absence of responsibility mechanisms in the Law. The fuel price showed in practice already how the businesses can make profit while the citizens with low income experienced challenges. The citizens should raise үoice against breach of consumers’ rights, agreed the forum attendees.

Detailed reportage on the legal forum is to be issued in the magazine Mongolian Economy’s second issue of June 2012.

Source Mongolianeconomy.mn

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