1. INVESTMENT OPPORTUNITIES OF MONGOLIA Invest Mongolia Agency Presented by: Mr. IRMUUN Demberel, Deputy Director Invest Mongolia Agency

2. Content Economic overview Foreign investment environment Projects are available for funding Invest Mongolia Agency

3. Economic overview:

4. 4 Source :World Bank, 2015 RUSSIA US$ 2,014 143 CHINA US$ 8,358 1,351 S.KOREA US $1,129 50 JAPAN US$ 5,959 127 MONGOLIA US$ 11,4 3 GDP 2013 in USD billions Population 2013in millions Mongolia has a leading land per capita in the world Territory: 1.6 million sq. km Population: 3.00 million (2015) Mongolia Overview

5. Key reasons to invest in Mongolia 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

6. Mongolia is ranked in 63 th from 146 world countries. Mongolia is ranked in 72 nd from 189 world countries. International Indexes

7. Foreign investment environment:

8. GDP growth rate (%) Source: NSO bulletin

9. Trade is balanced Foreign trade Exports $MImports $MTrade balance $M Source: Bank of Mongolia, Customs general office

10. Foreign direct investment /in billion USD/

11. Foreign direct investment /by sector/ Invest Mongolia Agency

12. Foreign invested companies /by number of companies/ Source: Invest Mongolia Agency, 2015

13. TOP INVESTORS COUNTRIES /2014/ /Billion USD/ Source: Invest Mongolia Agency № Top investor countries 1990-2014 % Amount /in billion USD/ 1Netherlands 29.96 4.2 2China26.653.75 3 Luxemburg 8.171.15 4 British Virgin Islands 7.871.10 5 Singapore 5.140.72 6Canada3.530.49 7 South Korea 2.690.38 8USA2.190.31 9Russia2.110.30 10Australia1.840.26

14. Investment Law of Mongolia, 2013 provides: Investment Incentives  Protection of investor`s interests and rights  Tax stabilization  Investment incentives  Stability guarantees

15. Preferential tax treatment Accelerated depreciation and amortization that is deductible from taxable income, Tax waiving Investment Incentives Tax incentives Exemption from the payment of certain taxes, including:

16. 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

17. 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

18. №Project nameTotal 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 Signed PPP projects

19. №Project NameТype of PPP 1The Center for Elder Care and Advanced IllnessDesign-Build-Own-Operate 2Improve morgue serviceDesign-Build-Own-Operate 3Tsogt ovoo- Tsogttsets paved roadBuild-Transfer 4 Ulaanbaatar city Conference and convention centerDesign-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 7Renovation of soum center infrastructureBuild-Own-Operate 8Nalaikh Civilian and Special purpose airport Renovate/Equip-Lease-Operate - Transfer 9 Renovation and Retrofitting of Dalanzadgad airport into International airport Design-Build-Operate-Transfer 10Hazardous waste disposal processing plantDesign-Build-Operate-Transfer 11Tuul river cascade reservoirs Design-Build-Transfer, Design-Build- Operate-Transfer 12Waste to electricity plantBuild-Own-Operate 13Kidney hemodialysis servicesBuy-Own-Operate 14Improve morgue service /Government Resolution N.313/Build-Own-Operate 15Medical oxygen production plantBuild-Own-Operate List of Concession projects

20. Investment opportunities:Tourism Energy and Mineral Resources Road, Urban development Trade & service Light industry Food Agriculture ICT and Human Development

21. PROJECTS ARE AVAILABLE FOR FUNDING :

22. CONSTRUCTION SECTOR 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 MINING AND HEAVY INDUSTRIES 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 Project to expand the concentrators Requested amount: 11.4 million USD

23. 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 LIGHT INDUSTRY SECTOR Emeelt light industry and technology park Requested amount: 262 million USD ROAD SECTOR New railroad project Requested amount: 8,575 million USD FOOD AND AGRICULTURE SECTOR Seaberry bio-farm Requested amount: 21 millions of USD Mutton export project Requested amount: 105 million USD

24. ENERGY SECTOR Tavan Tolgoi power plant project Requested amount: 933.8 million USD LOGISTIC & FREIGHT SECTOR Zamyn Uud Free Economic Zone Requested amount: 300 million USD Altanbulag free trade zone Requested amount: 193 million USD

25. Invest Mongolia Agency:

26. 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. 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

28. 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. 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

29. “Create a value in Mongolia” Address: Invest Mongolia Agency Sambuu Str.11, Government Bld.11, Ulaanbaatar 211238, Mongolia Email: javkhlan@investmongolia.com javkhlan@investmongolia.com Website: www.investmongolia.com www.investmongolia.com