Some obstacles faced by Mongolian foreign traders foreign traders

Operation of state organizations

  • No initiatives from policy makers to incorporate business interest and comments in the process of policy formulation, elaboration of policy documents;
  • Methodology for determining of net weight and total weight;
  • Information database developed by State Customs Administration used for determination of customs value
  • Poor capacity of laboratory facilities for export and import goods;
  • Non acceptance by trading partners of some documents required by Customs for customs necessary documents;

Bribery, corruption

  • According to Red Tape Perception Index developed by MNCCI, State Customs Administration ranked at 2 place, implying poor performance.
  • Financial courses
  • Lack of long term investment capital in domestic financial market;
  • Lack of foreign trade documentation services provided by banks and financial institutions

Lack information and knowledge

  • Information source and database of foreign and domestic market;
  • Standards and technical requirement of goods to supply in foreign markets,information source of advanced technology;
  • Lack of trainings for foreign trade managers;
  • Lack of information in terms of foreign and international aid programs for Mongolia.

August 6, 2007 at 5:53 am Leave a comment

FOREIGN INVESTMENT LAW OF MONGOLIA

FOREIGN INVESTMENT LAW OF MONGOLIA

Chapter One
General Provisions
Article 1. Purpose of the law
The purpose of this law shall be to encourage foreign investment, to protect the rights and
property of foreign investors in Mongolia, and to regulate matters relating to the foreign
investment. /This paragraph was rephrased by the Law of January 3, 2002/
Article 2. Legislation on foreign investment
1. The legislation on foreign investment is comprised of the Constitution of Mongolia, this
law and other relevant legislation which is consistent with those laws.
2. If an international treaty to which Mongolia is a party is inconsistent with this law, then the
provisions of the international treaty shall prevail.
Article 3. Definitions
1. “Foreign investment” means every kind of tangible and intangible property which is invested
in Mongolia by a foreign investor for the purpose of establishing a business entity with
foreign investment within the territory of Mongolia or for the purpose of jointly operating
with an existing business entity of Mongolia.
2. “Foreign investor” means a foreign legal person or individual (a foreign citizen or stateless
person not residing permanently in Mongolia or a citizen of Mongolia permanently residing
abroad) who invests in Mongolia.
3. “Mongolian investor” means a Mongolian legal person or individual (a citizen of Mongolia,
immigrant or stateless person permanently residing in Mongolia) who invests.
4. “Investment agreement” is an agreement and/or a contract on concession, product sharing,
marketing, management, financial leasing and franchise investment concluded by foreign
investors for implementation of concrete project without having to establish a legal entity.
/This paragraph was added by the Law of January 3, 2002/
5. “One stop service” is a complex service including to receive applications and other relevant
materials on establishing a business entity with foreign investment or a branch of foreign
legal entity, issuing certificate, license and special permission in order to start a business
activity, making a conclusion, appraisal at one place and to organize activities to solve of
these issues by relevant authorities, and to provide investors with necessary information
as well as consultancy service.” /This paragraph was added by the Law of January 3,
2002/
Article 4. Areas for foreign investment
1. Foreign investment may take place in all areas of production and all services other than
those prohibited by the laws of Mongolia.
2. Foreign investment may take place in all parts of the territory of Mongolia where the
types of production to be undertaken or services to be provided are not prohibited by the
laws of Mongolia.
Article 5. Types of foreign investment
A foreign investor may invest in the following:
1) freely convertible currencies and reinvestment of togrogs yielded by investments;
2) moveable and immovable property and property rights;
3) intellectual and industrial property rights.
Article 6. Forms of foreign investment
Foreign investment shall be made in the following ways:
1) by establishing wholly foreign-owned business entities or local branches or subsidiaries
of foreign enterprises;
2) by establishing business entities jointly with Mongolian investors;
3) a foreign investor makes a direct investment by buying stocks, shares and other securities
of the Mongolian business entities under the legislation of Mongolia; /This paragraph
was rephrased by the Law of January 3, 2002/
4) by acquiring rights by law, concession and product sharing contract to exploit and process
natural resources. /This paragraph was amended by the Law of January 3, 2002/
5) Conclude a contract for marketing and management,
6) Make an investment through financial leasing and franchise. /The paragraphs 5, 6 were
added by the Law of January 3, 2002/
Article 7. Purchase of shares or other securities
Foreign investors may purchase shares or other securities in any business entity which is
operating within the territory of Mongolia in accordance with the laws of Mongolia.
Chapter Two
Protection of Foreign Investment
Article 8. Legal guarantees for foreign investment
1. Foreign investment within the territory of Mongolia shall enjoy the legal protection
guaranteed by the Constitution, this law and other legislation which is consistent with
those laws and as guaranteed by the international treaties to which Mongolia is a party.
2. Foreign investment within the territory of Mongolia shall not be unlawfully expropriated. /
The word “nationalized” was cancelled from this paragraph by the Law of January 3,
2002/
3. Investments of foreign investors may be expropriated only for public purposes or interests
and only in accordance with due process of law on a non-discriminatory basis and on
payment of full compensation.
4. Unless provided otherwise in any international treaties to which Mongolia is a party, the
amount of compensation shall be determined by the value of the expropriated assets at
the time of expropriation or public notice of expropriation. Such compensation shall be
paid without delay.
5. Losses suffered by foreign investors due to a state of emergency or war in Mongolia shall
be treated equally with losses suffered by Mongolian investors.
Article 9. Treatment of foreign investors
Mongolia shall accord to foreign investors no less favourable treatment in respect of the
possession, use, and disposal of their investments than that accorded Mongolian investors.
Article 10. Rights and obligations of foreign investors
1. Foreign investors shall enjoy the following rights:
1) to possess, use, and dispose of their property including the repatriation of investments
which contributed to the equity of a business entity with foreign investment; This
subparagraph was amended by the Law of January 3, 2002/
2) to manage or to participate in managing a business entity with foreign investment;
3) to transfer their rights and obligations to other persons in accordance with the law;
4) Remit the following income, profit and payments to abroad without any barriers:
(a) allotted stockholders income and share dividends;
(b) allotted income after property and securities’ sale, transfer of property right to
other party, completion of an investment agreement and liquidation of an entity;
(c) principal and interest of debt or other identical payments;
(d) compensation payment for confiscated property;
(e) other income gained under the legislation of Mongolia. /This subparagraph was reedited
by the Law of January 3, 2002/
5) any other rights conferred by law.
2. Foreign investors shall have the following obligations:
1) to observe the laws of Mongolia;
2) follow commitments stated in the Agreement and Statute of the business entity
with foreign investment, branch of a foreign legal entity and in Investment
agreement; /This subparagraph was re-edited by the Law of January 3, 2002/
3) to implement measures to ensure the protection and restoration of the natural
environment;
4) to respect the customs and traditions of the people of Mongolia.
Chapter Three
Activities of a foreign entity and a branch of a foreign legal entity
Article 11. Business entities with foreign investment
1. Business entity with foreign investment is a entity, established in accordance
with the
legislation of Mongolia, of which not less than 25 percent of the equity is
constituted
with an investment of a foreign investor. /This paragraph was re-edited by the
Law of
January 3, 2002/
2. A business entity with foreign investment shall become a legal person of Mongolia from
the date of its registration and shall conduct its operations in accordance with the laws of
Mongolia.
/The article 12 was annulled by the Law of January 3, 2002/
Article 13. Valuation of tangible and intangible property
1. Investors of a business entity with foreign investment shall negotiate on evaluation
of the property and intellectually valuable items invested from them to form the
equity of the entity following the same principle sued for convertible currency and
tugrug (local currency). If investor considers it as necessary, the evaluation can be
done by either Mongolian or foreign specialized company licensed to conduct asset
evaluation. /This paragraph was re-edited by the Law of January 3, 2002/
2. Conversion of togrogs into freely convertible currency shall be done at the rate of exchange
set by the Bank of Mongolia and applicable at the time of valuation.
Article 14. Plenary rights of the state administrative body in charge of foreign
investment
1. The State Central administrative body in charge of foreign investment shall have the following
plenary rights with respect to foreign investment:
1) to formulate foreign investment policy in accordance with the Government general
action plan on development country’s economy and society, and monitor its
implementation;
2) to ensure and supervise the implementation of legislation regard to foreign investment;
3) to work out a proposal on leading sectors and directions of foreign investment.
2. The State administrative body in charge of foreign investment shall have the following
plenary
rights:
(1)to implement policies and legislation with respect to foreign investment;
(2)to research possibilities to increase foreign investment, to organize investment
promotional activities, to provide investors with relevant information, and to involve
foreign investors to project tender;
(3) to render foreign investors with complex “One-stop service”;
(4) to prepare information on foreign investment statistics;
(5) to approve and/or disapprove establishment of a business entity with foreign
investment or a branch of a foreign legal entity;
(6) to terminate, temporarily or completely, the activities of a business entity with foreign
investment or a branch of a foreign legal entity;
(7) other rights specified in legislation.
3. The State administrative body in charge of foreign investment issue shall render some of
the
services specified in the provision 3 of section 2 of this Article on charge base. /This article
was
re-edited by the Law of January 3, 2002/
Article 15. Registration of Business entity with foreign investment, branch of a foreign
legal entity and Investment agreement
1. A business entity with foreign investment and a branch of a foreign legal entity that
received a certificate from the State administrative body in charge of foreign investment
shall be registered by the National General Taxation Office with state registration.
2. Any amendment to the Agreement or Statute of a business entity with foreign
investment and a branch of a foreign legal entity shall be registered with the National
General Taxation Office as approved by the State administrative body in charge of foreign
investment.
3. The State administrative body in charge of foreign investment will register an
Investment agreement based on an application to register an investment agreement and
a notarized copy of the investment agreement, and will issue a certificate within 10 business
days after the receipt of the application. /This article was re-edited by the Law of January
3, 2002/
Article 16. Terminating a foreign invested entity and branch of a foreign legal
entity
1. The operations of business entities with foreign investment and a branch of a foreign
legal entity may be suspended or terminated on the grounds provided in the laws of
Mongolia. /This paragraph was amended by the Law of January 3, 2002/
2. /This paragraph was annulled by the Law of November 30, 2001//
Article 17. Liquidating a foreign invested entity and a branch of a foreign legal
entity
1. If a business entity with foreign investment or a branch of a foreign legal entity resolve to
suspend or terminate its operations it shall submit that resolution to the State Central
Administrative body in charge of foreign investment and to the General Department of
National Taxation within 14 days of its adoption. /This paragraph was rephrased by the
Law of November 30, 2001 and was amended by the Law of January 3, 2002/
2. An investment agreement shall be removed from the registration and a certificate of
approval shall be revoked when duration of the investment agreement expires and/or the
investor annuals the agreement or violates laws of Mongolia. /This paragraph was added
by the Law of January 3, 2002/
3. /This paragraph was annulled by the Law of November 30, 2001/
4. Upon receiving the notice referred to in paragraph 1 of this article, the General Department
of National Taxation shall remove the business entity with foreign investment or a branch
of a foreign legal entity from the State register and publish that fact. /This paragraph was
amended by the Laws of November 30, 2001 and January 3, 2002/
5. If the operations of the business entity with foreign investment or a branch of a foreign
legal entity cease in preparation for dissolution, then the foreign investor concerned shall
be entitled to transfer the returns referred to in paragraph 4 of article 10 of this law upon
completion of the final accounts of the business entity concerned. /This paragraph was
amended by the Law of January 3, 2002/
Article 18. Taxation
1. Business entities with foreign investment and a branch of a foreign legal entity shall be
liable for tax under the tax laws of Mongolia.
2. Tax incentives and/or exemptions to a business entity with foreign investment, branch of
a
foreign legal entity and an implementing entity of an investment agreement will be subject
to
Income tax law of Business entities and organizations1, Customs tariff law2, Value added
tax
law3, Excise tax law4 and Land law5 of Mongolia. /This paragraph was added by the Law
of
January 3, 2002/
Article 19. Stability Agreement
1. In the event of a request by the investor intending to undertake an investment project
of not less than US$ 2 million or equivalent amount in Mongolian national tugrigs in
Mongolia, the Cabinet Member responsible for taxation policy issues as permitted by the
Government of Mongolia may sign an agreement with that investor on a stability as a
legal guarantee for a stable environment to conduct business activities.
2. A sample of a stability agreement will be approved by the Government of Mongolia.
This agreement sample shall contain provisions to ensure stable tax conditions during
certain period and state objectives and amount of the investment, its implementation
period and rationale to revoke the agreement.
3. If a start-up investment amount of the project to be implemented by a foreign investor
is US$ 2.0-10.0 million or equivalent amount of Mongolian national tugrigs a stability
agreement can be signed for I0 years and if the amount is over US$ 10.0 million or its
equivalent in Mongolian national tugrigs for 15 years.
4. In the event of a termination of activities by sole initiative of an investor before the
period stated in the stability agreement when a business entity with foreign investment
and/or a branch of a foreign legal entity was not bankrupted in accordance with the laws
of Mongolia or their activities were not stopped by the respective authorities or the parties
did not terminate the contract upon their mutual agreement the amount of tax discounts
and/or exemptions awarded to that investor shall be compensated by the investor. /This
article was added by the Law of January 3, 2002/
Article 20. Conclusion of a Stability Agreement
1. An investor willing to conclude a Stability Agreement shall submit its application and
draft Stability Agreement to the State central administrative body in charge of taxation
policy issues.
2. The Government member in charge of taxation policy issues shall examine the
application and the draft agreement within 14 business days following the receipt and
shall conclude the Stability Agreement with the applicant, if no clarifications are required.
If additional clarifications are required, the applicant shall be notified of it within 7 business
days.
3. Relevant organizations shall be notified of such Stability Agreement. /This article was
added by the Law of January 3, 2002/
Article 21. Land utilization by a foreign invested entity and a branch of a foreign
legal entity
1. Business entities with foreign investment and branch of a foreign legal entity may acquire
the right to use land by way of lease and subject to the conditions and procedures set out
in the legislation on land of Mongolia. /This paragraph was amended by the Law of January
3, 2002/
2. Any lease shall include the terms and duration of use, measures required to ensure the
protection and restoration of the environment to its natural state, the amount of annual
ground rent, and the liabilities of the lesser and lessee.
3. A lease for the business entities with foreign investment and branch of a foreign legal
entity shall be granted in accordance with the procedures below: /This paragraph was
amended by the Law of January 3, 2002/
1) a lease for the use of State-owned land by a wholly foreign-owned business entity
shall be entered into by the Mongolian landowner and the foreign investor and shall
be authorized by the relevant local Hural of Representatives and its Presidium;
2) a lease for the use of State-owned land by a business entity with foreign investment
in which a Mongolian investor is a participant shall be entered into by the Mongolian
landowner and the head of the business entity concerned and shall be authorized by
the relevant local Hural of Representatives and its Presidium;
3) a lease for the use of private freehold land by a business entity with foreign investment
in which a Mongolian investor is a participant shall be entered into by the Mongolian
landowner and the head of the business entity with foreign investment and shall be
authorized by the competent State authorities.
4. The obligations arising from the leases referred to in sub-paragraphs 2 and 3 of paragraph
3 of this article which are entered into by the head of a business entity with foreign
investment shall be borne by the Mongolian and the foreign investor in proportion to their
contributions in equity of the business entity. /This paragraph was amended by the Law
of January 3, 2002/
5. The duration of any lease shall be determined by the duration of the operations of the
business entity with foreign investment and branch of a foreign legal entity. The initial
term of a lease shall not exceed 60 years. The lease may be extended once for a period
of up to 40 years on the same conditions as the original lease. /This paragraph was
amended by the Law of January 3, 2002/
6. If a business entity with foreign investment and branch of a foreign legal entity are dissolved
before the expiry of the lease, then the lease shall terminate at the same time. /This
paragraph was amended by the Law of January 3, 2002/
7. Leasehold land may be substituted or taken back for a specific State purpose. Decisions
on that matter may be made only by the Government of Mongolia. Compensation for
losses suffered by foreign investors as a result of such action shall be paid without delay.
The amount of compensation shall be determined on the basis of value at the time of
such substitution or transfer.
8. If leasehold land is used to the detriment of the public health, natural environment or the
interests of national security, then the lease shall be cancelled.
Article 22. Finances, loans, accounts and inspections
1. Business entities with foreign investment and branch of a foreign legal entity shall conduct
their activities in respect of finances, loans, accounts, and foreign currency operations in
accordance with the laws of Mongolia.
2. Business entities with foreign investment and a branch of a foreign legal entity shall keep
account books and balance sheets in accordance with the laws of Mongolia.
3. The accounts and financial and business transactions of business entities with foreign
investment and a branch of a foreign legal entity shall be investigated by State financial
inspectors or by chartered auditors in accordance with the laws of Mongolia. Foreign
auditing organisations may be invited if required. /This paragraph was amended by the
Law of January 3, 2002/
Article 23. Insurance
Business entities with foreign investment and branch of a foreign legal entity may be insured
by Mongolian insurance agencies in accordance with the laws of Mongolia. /This article was
amended by the Law of January 3, 2002/
Article 24. Labour and social security relations
1. Business entities with foreign investment and a branch of a foreign legal entity shall
primarily employ citizens of Mongolia. Foreign citizens may be hired for jobs requiring
special or high qualifications. Issues on importing labour forces and experts shall be
regulated by the relevant legislation of Mongolia. /This paragraph was amended by the
Law of January 3, 2002/
2. Matters of labour and social security relating to citizens of Mongolia who are employed
by business entities with foreign investment and a branch of a foreign legal entity shall be
governed by the laws of Mongolia on labour and social security. /This paragraph was
amended by the Law of January 3, 2002/
3. Foreign citizens who are employed by business entities with foreign investment and a
branch of a foreign legal entity shall be liable for income tax in accordance with the laws
of Mongolia and may transfer their income abroad after paying tax. /This paragraph was
amended by the Law of January 3, 2002/
Chapter Four
Miscellaneous
Article 25. Settlement of disputes
Disputes between foreign investors and Mongolian investors as well as between foreign
investors and Mongolian legal or natural persons on the matters relating to foreign investment
and the operations of the business entities with foreign investment and a branch of a foreign
legal entity, shall be resolved in the Courts of Mongolia unless provided otherwise by
international treaties to which Mongolia is a party or by any contract between the parties to
the dispute. /This paragraph was amended by the Law of January 3, 2002/
Article 26. Coming into force of the law
This law shall come into force on 1 July 1993.
Speaker of the State Ih Hural of Mongolia
N.Bagabandi
Secretary General of the Secretariat of the State Ih Hural
N.Rinchindorj
(Footnotes)
1
Bulletin “State Information”
¹ 1
, 1993
2
Bulletin “State Information”
¹ 9
, 1996
3
Bulletin “State Information”
¹ 2
, 1998
4
Bulletin “State Information”
¹ 2
, 1993
5
Bulletin “State Information”
¹ 2
, 1995

May 14, 2007 at 1:45 pm Leave a comment

Regulation for establishment of foreign representative office in Mongolia

THE REGULATION FOR THE ESTABLISHMENT OF FOREIGN REPRESENTATIVE OFFICE
WITHIN THE TERRITORY OF MONGOLIA

Attachment of the Government
Resolution number 247 of 1991

1. The foreign companies, banks and other commercial organizations (hereinafter referred to as
“foreign organizations”) may establish their representative office in accordance with this
regulation in Mongolia.
2. The objectives of the establishment of foreign representative office are:
2.1. Cooperation between the business entities of Mongolia and foreign organization in the field
of trade and economy, currencies and finance, science and technique, transport and tourism,
and other; information exchange and introduction of advanced technique and technology;
2.2. Rendering assistance in encouragement and promotion of foreign investment;
2.3. To organize efficiently the conclusion and fulfillment of contracts and other transactions.
3. The Foreign Investment and Foreign Trade Agency shall grant the establishment of foreign
representative office unless otherwise stipulated by the law of Mongolia.
Permission for the establishment of foreign representative office shall be granted for 3 years and
its duration may be extended for 2 years when a foreign organization considers that its
obligations are not fulfilled completely.
4. The foreign organization wishing to establish its representative office shall submit the
following documents to the Foreign Investment and Foreign Trade Agency:
4.1. Application letter (shall mention – the purpose of the representative office establishment, its
business contracts and scope of cooperation with the Mongolian organization, the intention of
further development and other things shall be stated);
4.2. Introduction of the foreign organization and its Statutes;
4.3. Bank confirmation – from investor’s national bank;
4.4. Copy of the National State Registration Certificate;
4.5. Copy of permission of the representative office establishment abroad – If that kind of
permission from relevant authorities is required according to their national laws. /shall be
guaranteed by notary/;
4.6. Statutes of the representative office (shall mention – its organization and structure, main
activities, stuff number and their rights and responsibilities);
5. The Certificate of foreign representative office shall be granted within 10 working days upon
the receiving foreign organization application letter.
6. The Certificate of foreign representative office must indicate the address, purpose, conditions
and the term of activities. The Certificate date of issuance is considered its establishment date.
If the representative office doesn’t function within 6 months from the date of Certificate issuance,
the Certificate will be considered invalid.
7. Several foreign organizations may have joint office.
8. Representative office must act on behalf of its own organization within the framework of the
Mongolian legislation. Representative office is prohibited to carry out any commercial activities
for the profit earning purpose within the territory of Mongolia.
9. The Authority, which granted the Certificate of foreign representative office, shall render
assistance in creation of conditions required for the normal operations of representative office.
10. The representative office shall possess an office and a flat in the territory of Mongolia on the
basis of contracts concluded with the relevant organizations and individuals and be supplied
with the domestic services.
11. The representative office may employ Mongolian citizens according to the Mongolian
legislation on the basis of lobar contract.
12. The head of the representative office shall act within the powers given by the foreign
organization.
The head of the representative office shall inform the Authority that granted the Certificate of its
activities, staff numbers and changes.
13. Representative office is obliged to provide with information concerning its activities to the
Mongolian competent authorities upon their request.
14. The representative office shall be dissolved in the following cases:
14.1. Certificate duration is expired
14.2. Termination of the foreign organization which established its representative office in
Mongolia.
14.3. Invalidation of agreement and contract which served a basis for the establishment of
representative office.
14.4. Violation of the requirements for the establishment of representative office and its
operations contradicting the legislation of Mongolia.
14.5. A decision by the foreign organization on dissolution of its representative office.
15. The registration fee of 700$ or other equivalent hard currency is to be paid for the granting
the Certificate of Foreign Representative Office. The fee of 300$ or other equivalent hard
currency is to be paid for the extension of permission.

/ Unofficial translation /

May 14, 2007 at 1:44 pm Leave a comment

Foreign Citizens Law

LAW ON LEGAL STATUS OF FOREIGN CITIZENS
CHAPTER ONE: GENERAL PROVISIONS
Article 1. Purpose of the law
The purpose of this law is to regulate relations concerning the entry, exit, transit and residence of
foreign visitors and stateless persons in Mongolia and to define their rights and responsibilities.
Article 2. Legislation and international treaties on legal status of foreign Citizens
1. Legislation on the legal status of foreign citizens is comprised of the Constitution of Mongolia,
this law and other legislative acts made in conformity with them.
2. If the international treaties of Mongolia stipulates otherwise than the present law, the international
treaties shall prevail.
Article 3. Foreign citizens
Persons with legal documentation certifying their foreign citizenship shall be considered as foreign
citizens.
Article 4. Legal subject of the law on legal status of foreign Citizens
The provisions of this law shall be applicable to foreign travelers to Mongolia, visitors in transit,
short and long term residents, immigrants and stateless persons (hereafter referred to as “foreign
citizens”).
Article 5. Diplomatic immunities and privileges of officers of diplomatic and consular
missions
The provisions of this law shall not affect the diplomatic immunities and privileges of officers of
diplomatic and consular missions of foreign countries or resident representative offices of the
United Nations and its specialized organizations as defined by the legislation and international
treaties of Mongolia.
Article 6. Political asylum
1. Foreign citizens being persecuted for ideas appreciated in Mongolia, can be granted the right to
residence and state protection.
2. The President of Mongolia shall carry the decision for granting residence status to a foreign
citizen according paragraph 1 of this Article.
Article 7. Organizations in charge of foreign citizens
1. The central state administrative body shall be responsible for issues in respect of the legal
status of foreign citizens in the territory of Mongolia and immigration in respect of those related to
them.
2. The council in charge of foreign citizens (hereinafter reffered as to “the Council” ) shall coordinate
the implementation of the State policy towards foreign citizens and the activities of the Central
State Administrative body relating to the legal status of foreign citizens and immigrations.
3. The Council shall have the following composition: chairman, secretary, and members. The
secretary of the Council is a full time post. The Council shall be chaired by the Government member
responsible for legislation issues.
4. The Government shall appoint the composition of the Council and adopt the rule of the Council.
CHAPTER TWO: LEGAL STATUS OF FOREIGN CITIZENS
Article 8. Basic principles of the rights and duties of foreign citizens
1. All persons legally residing in Mongolia shall be equal before the law and the courts.
2. Foreign citizens in Mongolia shall exercise the rights and freedoms equally to citizens of Mongolia
provided for by the legislation of the country.
3. In establishing the rights and duties of foreign citizens in this law, other legislative acts and
international treaties of Mongolia, Mongolia shall adhere to the principle of reciprocity with the
country of which the person is a citizen.
4. In exercising their rights and freedoms, as provided for in the legislation of Mongolia and its
international treaties, foreign citizens shall not infringe on the interests of Mongolia or the rights
and freedoms of Mongolian citizens or other human rights.
Article 9. Respect for the Constitution of Mongolia and obeying the law
1. Foreign citizens shall have a duty to abide by this law and other legislative acts.
2. Foriegn citizens shall respect the Constitution of Mongolia, obey its laws and honor Mongolian
national traditions and customs.
3. Foreign citizens shall pay taxes if it is not provided otherwise in other legislative acts or international
treaties of Mongolia.
Article 10. Specific rights and duties of foreign citizens
1. Foreign citizens shall not have the right to elect or be elected to the self-governing bodies of
administrative units, towns, villages or State organizations of Mongolia and shall not take part in
national opinion polls.
2. Foreign citizens shall not be employed as full-time civil servants of Mongolia.
3. Foreign citizens shall not be obliged to serve in the armed forces of Mongolia, ot any other
military service.
4. Foreign citizens shall not set up or join political parties or any organizations for political activities
on the territory of Mongolia.
5. It is prohibited for foreign citizens to campaign against the national unity of Mongolia.
6. Foreign citizens shall be employed at organizations classified by law as objects of State importance
only with permission of the Government of Mongolia.
7. In order to ensure the sovereignty of Mongolia, national security and public order, any necessary
restrictions may be placed on the rights and freedoms of foreign citizens apart from the basic
human rights.
Article 11. Employment
1. With the permission of the Central state administrative body in charge of labor issues, or an
organization which is empowered by it with long term residence status and immigrants shall be
allowed to be employed at any local or foreign organization other than those restricted by this law
or other legislative acts.
2. Foreign citizens with long term residence status and immigrants wishing to set up a business
entity in the production or service spheres shall obtain permission in accordance with legislation of
the country obtain permission from the Central state administrative body in charge of the labor
issues.
3. Foreign citizens who arrived in Mongolia on a labor contract and did not finish the contract term
or terminated the contract before the end of the term shall not be allowed to enter into another
contract with another organization or citizen.
4. Foreign citzens with temporary residence status shall be prohibited from working at a business
entity or organization or being engaged in the production or services spheres in order to make a
profit other than those of the purpose of their visit.
5. Organizations and business entities of any form conducting its activites on the territory of Mongolia
shall have a labor agreement for the employment of foreign specialists and workers from a foreign
country or public organizations with the permission of the Central state administrative body in
charge of labor issues.
CHAPTER THREE: ENTRY, EXIT AND TRANSIT VISAS FOR MONGOLIA
Article 12. Visas for Mongolia
1. If the there are no provisions stipulated in international treaties of Mongolia, foreign citizens
entering, exiting and transiting the country shall be issued a Mongolian visa.
2. Visas shall be issued to foreign citizens who are holders of valid foreign passports or equivalent
legal documents. Visas may be issued on attachments.
3. The grades of visa are: diplomatic, official and ordinary.
4. The types of visa are: single, double, multiple-entry, entry/exit, exit, exit/entry and transit.
5. Visa vignettes shall be approved by the member of the Government in charge of External
Relations.
Article 13. Visa issuing authorities
1. Visas shall be issued by the central state administrative body in charge of external relations and
diplomatic and consular missions of Mongolia to a foreign country.
2. The immigration office of the border guard of Mongolia may issue visas to foreign citizens who
arrive without transit visas.
Article 14 . Rights and duties of visa issuing authorities
1. The Central state administrative body in charge of external relations shall exercise
the following rights and duties:
1) to keep a central record of Mongolian visas;
2) to regulate visa issuing activities;
3) to audit the provisions on which visas are issued;
4) to refuse to issue a visa, shorten or extend a visa or to terminate a visa;
5) to issue a visa at the international airport in cases of urgency.
2. The Central department of police shall exercise the following rights and duties:
1) to keep a record of visas issued to immigrants and stateless persons in Mongolia;
2) to refuse to issue a visa if there are contradictions to the legislation.
3. Honorary Consuls of Mongolia, authorized by the central state administrative organization in
charge of external relations, shall have the right to issue visas for Mongolia.
Article 15. Provisions for visa issue
1. Mongolian visas shall be issued to foreign official visitors on the following basis:
1) at the invitation and request of a state organizations, self-governing bodies of an administrative
units, cities or villages, or political parties of Mongolia.
2) at the official request of the relevant country or international organization in respect of foreign
citizens to be employed at diplomatic or consular missions, the UN Resident Representative Office
or its specialized organizations in Mongolia and members of their families or in other cases, provision
of international treaties of Mongolia.
2. Visas shall be issued to foreign citizens arriving in Mongolia as private visitors on the following
basis:
1) invitations approved by central and local police organizations;
2) relevant contracts, approved invitations or with permission of the relevant organization in Mongolia
for visitors on tourist trips, for medical treatment and/or to participate in ceremonies and other
events;
3) official letters issued by the relevant central state administrative body for foreigners visiting
Mongolia for employment, launching production and service business, scientific research and
educational work;
4) in cases other than those in (2) or (3) above, an official invitation from a business entity or
organization;
5) written guarantee by the person himself or his or her sponsoring organization or citizen of the
visitoros financial ability to live in Mongolia and his or her intention to return to his or her home
country.
3. Visas shall be issued to foreign citizens arriving in Mongolia as immigrants on the lowing basis:
1) an application explaining the reason for immigration, identifying documents;
2) permission from the competent organization of Mongolia;
3) an international health certificate ensuring the absence of any epidemic diseases;
4) a written guarantee by the person him or herself of his or her financial ability to live in Mongolia.
Article 16. Duration of visa
For foreign citizens traveling to Mongolia shall be issued an entry /exit visa for a period of 30 days.
The duration of the visa may be extended once for a period of up to 30 days.
Article 17. Entry to Mongolia
Foreign citizens with valid passport or equal legal document with permission issued by the competent
Mongolian organization shall enter the Mongolian border according to the regulations determined
in the legislaation of the country.
Article 18. Transit travel through Mongolia
1. After obtaining a permission from the competent Mongolian organisation, foreign citizens with a
valid passport or equivalent legal document shall travel through the country as a transit passenger.
2. Transit travelers on international air flights shall not require a transit visa. However, those who
are traveling by car, other means of transport or on foot shall be required to obtain a transit visa for
the necessary period.
Article 19. Refusal of entry to Mongolia.
The following reasons shall be the basis for the refusal of entry to Mongolia:
1) children and persons without legal capacity unless accompanied by a guardian;
2) persons sentenced for criminal offences in Mongolia if the term of sentence is not completed;
3) persons expelled from Mongolia as persona non-grata;
4) persons who threaten the national security or public order of Mongolia.
Article 20. Exit from Mongolia and refusal of exit visa
1. Foreign citizens shall be obliged to leave the country before the expiry of their visa.
2. The exit of foreign citizens shall be prohibited for the following reasons and periods of time:
1) persons suspected of criminal offences, until a court has been able to make a decision;
2) persons sentenced to imprisonment, until either the end of the term of sentence, an amnesty is
granted, or transfer to their country of nationality in accordance with international treaties to which
Mongolia is a party;
3) persons who have infringed the rights, freedoms, and legal interests of others or competent
organizations, until the existence of such infringement is proved or the problem is solved;
4) if there are is any threat to national security or public order.
CHAPTER FOUR: VISITS TO AND RESIDENCE IN MONGOLIA
Article 21. Residence of foreign citizens in Mongolia
Foreign citizens who are holders of valid foreign passports or equivalent legal documents may visit
or reside in Mongolia after obtaining permission from the competent Mongolian organizations.
Article 22. Foreign visitors, temporary and long-term residents and immigrants
1. Foreign citizens traveling to Mongolia under the provisions of this law for private or official
reasons for up to 30 days shall be considered as visitors.
2. Foreign citizens visiting Mongolia for up to 183 days shall be considered as temporary residents.
3. Foreign citizens living in Mongolia for up to 5 years shall be considered as long-term residents.
4. Foreign citizens living permanently in Mongolia for private reasons shall be considered as
immigrants.
Article 23. Extension of term of residence
Requests from foreign citizens, except for immigrants, for an extension of their term of residence in
Mongolia shall be considered by the central state administrative body in charge of this matter.
Article 24. Number and composition of immigrants in Mongolia
1. The number of immigrants residing in Mongolia shall not exceed 1% of the citizens of the
country and immigrants from any one country shall not exceed 0.33%.
2. The State Ih Hural shall define annually the number and composition of immigrants in the
administrative units of Mongolia according to the proposal submitted by the Government.
Article 25. Issue, extension and cancellation of residency permits of foreign immigrants
1. The council shall consider official requests and other necessary documents from foreign citizens
who wish to obtain immigrant status and shall issue permission for residence in Mongolia for a
term of up to 5 years depending on the internal situation or economic capacity of the country,
requests from the recipient organizations, education and professional ability, language and personal
capability of the applicant.
2. Issues in respect of the extension of the residency status of immigrants shall be decided by the
council depending on the number of immigrants from any one country.
3. If a foreign citizen with immigrant status in Mongolia has not resided in the country for over 90
days within a one year period, the Council shall revoke the immigrant status and inform the person.
The person shall have the right to apply to court within 7 days of receiving notification.
4. If an immigrant has seriously breached the legislation of the country, the Council shall cancel his
or her immigrant status.
Article 26. Registration of foreign citizens
1. Foreign citizens, apart from those who came at the invitation of state organisations, self-governing
bodies of administrative units, towns or villages, shall be registered at the police office by their
sponsoring organization, business entity or citizen within 10 days of their arrival.
2. Foreign citizens (and members of their families) who arrive in Mongolia to work at foreign diplomatic
or consular missions, resident representative offices of the UN or its specialized organizations and
foreign press offices shall be registered at the central state administrative body in charge of external
relations within 10 days of their arrival in Mongolia.
3. Employees of foreign non-governmental and international charity organizations shall be registered
at the central state administrative body in charge of legal affairs within 7 days of their arrival.
4. Unless otherwise provided by law, foreign immigrants moving from one administrative unit to
another shall cancel their registration at the police office in the first administrative unit and register
at the new one within 7 days of their arrival.
5. Foreign immigrants shall advise the police offices of changes in their family status o job within 7
days of the change.
6. Foreign citizens with long term residence status traveling to other administrative units for a
period of more than 7 days shall be registered at the police office of the area visited.
7. The Central Department of Police shall monthly inform the relevant Mongolian organizations of
the movement of foreign citizens entering, exiting and transiting the country; those foreign citizens
who offended the law; those foreign citizens who were expelled from the country and those who
were declared persona non- grata by the competent international organizations.
Article 27. Visits by stateless persons abroad
1. Stateless people residing in Mongolia may visit abroad.
2. The Central organization of police shall provide stateless persons with identity documents
necessary for their foreign visits.
3. Unless otherwise provided by law, stateless people shall have the rights given to citizens of
Mongolia under the law on private foreign travel and immigration of Mongolian citizens.
Article 28. Documents provided to immigrants and stateless persons residing in Mongolia
1. The Central organization of police shall provide immigrants and stateless people with a “Certificate
of Residence in Mongolia”, defining of which administrative unit is he/she resident.
2. Immigrants and stateless persons residing in Mongolia shall temporarily return their residence
certificate to the police office of the area in which they reside during any period of visit abroad. The
certificate shall be collected in case of the immigrants and stateless persons are leaving forever.
3. The member of the Government in charge of external relations shall approve the design of the
documentation to be provided to immigrants and stateless people for their overseas visit.
CHAPTER FIVE: MISCELLANEOUS
Article 29. Responsibilities of business entities, organizations and citizens inviting or
employing foreign citizens
1. Business entities, organizations and citizens inviting and/or employing foreign citizens for a
certain period of time according to the legislation of the country shall take responsibility for registering
and accommodating their guest.
2. Foreign organizations and business entities in Mongolia inviting and/or employing specialists or
labour force, according to the legislation of the country, shall have the same responsibilities as
local ones.
Article 30. Deportation of foreign citizens from Mongolia
1. If there are no reasons for criminal charges, foreign citizens shall be deported on the following
reasons:
1) foreigners who entered the country on an invalid passport or forged documents, or those who
did not leave the country after expiry of the term of their visa.
2). Foreign citizens who did not leave the country after their residence permit was withdrawn or
canceled.
2. The council’s decision on deportation shall be implemented by the police organization. Foreign
citizens shall leave the country within the period of the resolution.
3. Expenses in respect of the deportation shall met by the defaulting party.
4. Deportation shall not include the transfer of criminal offenders to another country.
Article 31. Penalties for offences against the law
Those in breach of the Law on the Legal Status of Foreign Citizens shall be charged in accordance with the provisions of the Criminal Code and the Law on Administrative Responsibilities.

Article 32. Enforcement of the law
This law shall come into effect on 1 February 1994.

Chairman of the State Ih Hural N.Bagabandi

May 14, 2007 at 1:42 pm Leave a comment

Labor Cost

Comparative Labor Costs by Country for the Manufacturing Industry (Average)




May 14, 2007 at 7:32 am Leave a comment

Licensing in energy related operations

Licensing in energy related operations

An application for a License

To: Energy Regulatory Authority
Subject: An application for a License
Our company . . . . . /company’ name/ . . . . . /local address/ would like to apply for a license of . . . . . . /type of activity/ according to the Law on Energy of Mongolia.
We do have financial and technical capability to perform, and satisfy all requirements: . . . . . . . . . . . of above mentioned activity. Documents are correctly prepared and enclosed with the application.
We will comply with Law on Energy, Law on operational licenses of Mongolia, requirements for license and other legislation. We also will respect consumer right.

APPLICANT:

HEAD /DIRECTOR/ OF COMPANY . . . . . . . . . . . . . . .
/signature/
SENIOR ACCOUNTANT . . . . . . . . . . . . . . . . . . . . . . .
/signature/
p/o address:
phone:
fax:
e-mail address:

Documents shall be enclosed to an application for a License

A License for Dispatching

1. State registration /A copy shall be approved by notary organization and enclosed/

There shall be also enclosed a company introduction related to its establishment, structure, type of capital, type of activities, scope of services, foreign investments, projects that are being implementing or will be implemented by assistance and loan, sources of financing, debt, receivables, statements of financial capability which are shown by diagrams, and other specifications.
2. Technical and economic basis
a/ Necessity of Dispatching:

♦ Consumption and generation are performed at the same time.
♦ The Energy System development
♦ Importation and exportation
♦ Load changing of year, month, and day
♦ Accounting between generators or generator and transmitter
♦ Emergency recovery
♦ How actual dispatch is monitored
♦ Performance plan
♦ To perform function switch

b/ Feasibility of Dispatching

♦ Established in . . . /start date/ and has experience to perform transmission
♦ A list of equipment, technical personnel and software
♦ Completion of Legislation
♦ Study of Law on Energy and requirements for license
♦ Contracts and agreements made with other licensees

c/ Calculation on expenses of Dispatching
d/ Profit or loss to be achieved

    3. Study of energy resources to be used for energy transmission

Agreement on required MW of capacity storage to recover the lack of system capacity, in case of emergency circumstances in the electricity section shall be concluded and attached.

    4. Type, quantity and quality indicators of product
    ♦ Capacity of Energy system and consumption balance for last 5 years and the next 5 years Instrument which regulates voltage level of system, regulating methods, rules and procedures shall be enclosed Instruction related to the system frequency and place where frequency to be regulated Measures, rules and procedures to decrease loss of electricity transmission line

    5. Main characteristics of equipment to be used for operation

a/ software support

    ♦ Short break current software calculation
    ♦ Static balancing software calculation
    ♦ Dynamic balancing software calculation
    ♦ Neutral performance calculation
    ♦ Performance software to be distribute load between plants
    ♦ Network diagrams and procedures of communication system
    ♦ Operation monitoring
    ♦ Length, quantity and transmission capacity of line
    ♦ Relay type blocking and automatics set on transmission line

b/ Communication instrument
c/ Emergency shut down instrument of system /automatics, their calculation settings, emergency writing instrument, etc/
d/ legislation to be complied /Rule of dispatching Center, Rule of system, business rule, and agreements made between Licensees on exportation and importation of electricity, etc/

    6. Scope of service, boundaries of ownership, energy generation, supply and consumption balance

    ♦ Complete diagrams showing scope of electricity network service /220/110/35kV
    ♦ Calculation diagrams of electricity network
    ♦ Location diagrams of electricity network
    7. Sources of financing and financial capability

    ♦ Study and information on financing and capital resourse and capability, financial activity, foreign and domestic loan, debt and receivables of company or organization
    ♦ Profit and loss calculation on the price and tariff of operation
    8. Description of skills and experience of technical personnel

Study and information on technical personnel, wage fund, qualification, education, duration of employment, skill, experience and qualification status.


A License for Electricity Transmission

    1. State registration /A copy shall be approved by notary organization and enclosed/

There shall also be enclosed a company introduction related to its establishment, structure, type of capital, type of activities, scope of services, foreign investment, projects that is being implementing or will be implemented by assistance and loan, sources of financing, debt, receivables, statements of financial capability which are shown by diagrams and other specifications.
2. Technical and economic basis

a/ Necessity of electricity transmission:

    ♦ Scope of service
    ♦ Location of the generator and the consumer
    ♦ Development of electricity network., etc

b/ Feasibility of electricity transmission

    ♦ Established in . . . /start day/ and has experience to perform transmission
    ♦ A list of equipment, technical personnel and software
    ♦ Completion of Legislation
    ♦ Study of Law on Energy and requirements for license
    ♦ Contracts and agreements made with other licensees etc..

c/ Profit, loss and cost calculation of electricity transmission

3. Indicators of type, quantity and quality of electricity to be transmitted

    ♦ Quantity of electricity and capacity balance
    ♦ Study of network loss /by voltage level/
    ♦ Instrument which regulates voltage level of system, regulating methods, instructions, and procedures shall be enclosed
    ♦ Rules and procedures related to the decreasing of transmission network loss
    4. Main characteristics of equipment to be used for operation

a/ main equipment

    ♦ All characteristics of main equipment of transmission network
    ♦ Relay and automatics set on transmission line
    ♦ Electricity meters installed between generator and transmitter, or between transmitter and distributor, calculation methodology, diagrams and drawings also shall be enclosed.
    ♦ Other transmission and communication lines connected with roads or railway /by location/
    ♦ Study on machines to be used for operation
    ♦ Legislation to be complied /Rule of dispatching Center, Rule of energy system, business rules, and agreements made between Licensees for generation, distribution of electricity, etc/
    5. Scope of service, boundaries of ownership, and balance of energy generation, supply and consumption

    ♦ Complete diagrams showing scope of electricity grid service /220/110/35kV
    ♦ Calculation diagrams of electricity grid
    ♦ Location diagrams of electricity grid
    6. Assessment of the environmental impact
    ♦ To assess environs of electricity transmission line
    ♦ To assess safety zone of electricity transmission line
    ♦ Environmental assessment of new construction
    7. Action plan for environmental protection

Implementation period, expenses of action plan which are based on the conclusion of above mentioned assessment shall be enclosed to application.

    8. Sources of financing and financial capability
    ♦ Study and information on financing and capital resource and capability, financial activity, foreign and domestic loan, debt and receivable of company or organization
    ♦ Profit and loss calculation on the price and tariff of operation

    9. Description of skills and experience of technical personnel

Study and information on technical personnel, wage fund, qualification, education, duration of employment, skill, experience and qualification status.


A license for Importation and Exportation of Electricity

    1. State registration. /A copy shall be approved by notary organization and enclosed/

There shall also be enclosed a company introduction related to its establishment, structure, type of capital, type of activities, scope of services, foreign investment, projects that are being implementing or will be implemented by assistance and loan, sources of financing, debt, receivables, statements of financial capability which are shown by diagrams and other specifications.

    2. Technical and economic basis

a/ necessity of importation or exportation of electricity

    ♦ Technical and economical feasibility of the company
    ♦ Quantity of electricity to be imported shall be defined by Authority
    ♦ Agreement with other parties for importation and exportation of electricity
    ♦ Business agreement with the Dispatching center related to the regulation of importation and exportation activity
    ♦ Agreement or protocol made with Transmission Network related to the distribution and calculation of imported and exported electricity loss
    ♦ Study of Law on Energy, and requirements of license
    ♦ Agreements and contracts made with other licensees
    ♦ Cost calculation on importation and exportation of electricity
    ♦ Profit and loss calculation on the price and tariff of operation
    ♦ Principles to be observed for importation and exportation of electricity, action plan, and disadvantages at present
    3. Indicators of type, quantity and quality of electricity to be imported and exported

    ♦ Capacity of Energy system and consumption amount for last 5 years and the next 5 years
    ♦ Capacity, quantity, contract price, line loss, transmission cost and payment status of imported and exported electricity at the above mentioned time
    ♦ Calculation method and methodology to monitor performance of importation and exportation of electricity.
    ♦ Technical and organized measures taken to normalize voltage level of main network
    ♦ Rules and procedures related to the decreasing of transmission line loss and free charge of electricity exportation, shall be enclosed.
    4. Main characteristics of equipment to be used for operation

    ♦ Contract for use of transmission line or main characteristics of using equipment
    ♦ Automatics, safety and communication tools

    ♦ Calculation diagrams of transmission line
    ♦ Legislation to be complied / operation manual of 2 sides, Agreement with other licensees for transmission, Distribution, and Dispatching/

    5. Sources of financing and financial capability
    ♦ Study and information on financing and capital resource and capability, financial activity, foreign and domestic loan, debt and receivable of company or organization
    ♦ Profit and loss calculation on the price and tariff of operation

    6. Description of skills and experience of technical personnel

Study and information on technical personnel, wage fund, qualification, education, duration of employment, skills, experience and qualification status.


A License for Regulated Supply of electricity and heat

    1. State registration /A copy shall be approved by notary organization and enclosed/

There shall also be enclosed a company introduction related to its establishment, structure, type of capital, human resource, type of other operational activities.

    2. Technical and economic basis

a/ technical and other feasibility of company to perform electricity and heat transmission
b/ economic calculation and research of profit, loss and cost which a company can get from generation of electricity and heat

    3. Type, quantity, and quality indicators of energy to be supplied

a/ Quantity and quality statements of purchasing electricity and heat from plants, and distribution and transmission networks / voltage level, frequency, pressure, temperature and etc./
b/ Study of line, substation, pump station and consumers that do not satisfy requirements of energy quality
c/ study and information on quantity of interruption and restriction of consumer’s energy supply shall be done in detail

    4. Main characteristics of equipment to be used in operation

a/ study and information on meters installed at the boundaries of ownership, their supply for consumers, technical indices, operational conditions, energy balance and monitoring
b/ characteristics of meters and metering tools, and their maintenance condition
c/study and information on system of selling payments, and loss of distribution line;

    5. Scope of service, ownership boundary, energy generation, supply, and consumption balance

a/ drawing and diagrams shown the area where electricity and heat supply /selling/ performed
b/ fundamental and location diagrams of distribution network which is used for energy supply
c/ structure and classes of consumers, / natural consumer , budget organizations and enterprises/ their energy consumption, requirements of agreements to be made with them
d/ balancing of electricity and heat which were purchased from plants and transmission, distribution /other/ networks and sold to consumers
e/ to classify loss of selling energy by consumers location and line feeder.

    6. Sources of financing and financial capability

Study and information on financing and capital resource and capability, financial activity, foreign and domestic loan, debt and receivable of company or organization;

    7. Description of skills and experience of technical personnel

Study and information on technical personnel, wage fund, qualification, education, duration of employment, skills, experience and qualification status.


A License for Distribution of Electricity and Heat

1. State registration /A copy shall be approved by notary organization and enclosed/
There shall also be enclosed a company introduction related to its establishment, structure, type of capital, human resource, type of other operational activities.

    2. Stamp duty

A company shall pay tax, according to the Law on State mark and send it to ERA.

    3. Technical and economic basis

a/ technical and other feasibility of company to perform electricity and heat distribution
b/ economic calculation and research of profit, loss and cost which a company can get from distribution.

    4. Type, quantity, and quality indicators of energy to be distributed

a/ Quantity and quality indicators of distributing electricity and heat by own line / voltage level, frequency, pressure, temperature and etc./
b/ Study of line, substation, pump station and consumers that do not satisfy requirements of energy quality
c/ study and information on quantity of interruption and restriction of consumer’s energy supply shall be done in detail
d/ study and information on capacity limit of distribution line

    5. Main characteristics of equipment to be used in operation

a/ length of line, and technical loss /line voltage /
b/ capacity, quantity and technical loss of substation, heat distribution center, and pump station /by all level of capacity/
c/ operational condition of line, substation, heat distribution center, pump station and other equipment at present
d/ safety reserve of spare parts and equipment, for example: wire for line, support
e/ study of machine and equipment to be used in services of operation and maintenance

    6. Scope of service, ownership boundary, energy generation, supply, and consumption balance

a/ drawings and diagrams showing the area where electricity and heat distribution performed
b/ fundamental and location diagrams of distribution network
c/ balancing of electricity and heat which were purchased from plants and transmission, distribution /other/ networks and sold to consumers

    7. Assessment of the environmental impact

A Company shall assess line environs and safety zone conditions.

    8. Action plan for environmental protection

Action plan shall be based on the assessment of the environmental impact.

    9. Sources of financing and financial capability

Study and information on financing and capital resource and capability, financial activity, foreign and domestic loan, debt and receivable of company or organization;

    10. Description of skills and experience of technical personnel

Study and information on technical personnel, wage fund, qualification, education, duration of employment, skills, experience and qualification status.
A License for Generation of Electricity and Heat

    1. State registration. /A copy shall be approved by notary organization and enclosed/

There shall also be enclosed a company introduction related to its establishment, structure, type of capital, human resource, type of other operational activities.

    2. Technical and economic basis

a/ technical and economic feasibility of company to perform electricity and heat generation using certain type of equipment
b/ economic calculation and research of profit, loss and cost which a company can get from generation of electricity and heat

    3. Type, quantity and quality indicators of energy to be generated

a/ quantity of electricity and heat to be generated, transmitted and distributed, and their quality indicators /voltage level, frequency, pressure, temperature and etc./
b/ Study of line, substation, pump station and consumers that do not satisfy requirements of energy quality
c/ study and information on quantity of interruption and restriction due to technical reason
d/ study and information on capacity limit of distribution and transmission lines

    4. Main characteristics of equipment to be used in operation

a/ length of line, and technical loss /line voltage /
b/ capacity, quantity and technical loss of main and auxiliary equipment, substation, heat distribution center, and pump station /by all level of capacity/
c/ operational condition of line, substation, heat distribution center, pump station and other equipment at present
d/ emergency reserve and reserve and capacity to be generated
e/ study and information on meters installed at the boundaries of ownership, their supply for consumers, technical indices, operational conditions, energy balance and monitoring
f/ safety reserve of spare parts and equipment, for example: wire for line, support for substation
g/ study of machine and equipment to be used in services of operation and maintenance
h/ water reserve and communications

    5. Scope of service, ownership boundary, energy generation, supply, and consumption balance

a/ drawings and diagrams showing the area where electricity and heat distribution performed
b/ fundamental and location diagrams of distribution network
c/ electricity and heat balancing which were purchased from transmission, distribution /other/ networks and distributed to the consumers, location of meters and their certification.

    6. Assessment of the environmental impact

A company shall assess its line environs and safety zone conditions.

    7. Action plan for environmental protection

Action plan shall be based on the assessment of the environmental impact and monitored by the Ministry of Environment.
8. Sources of financing and financial capability

Study and information on financing and capital resource and capability, financial activity, foreign and domestic loan, debt and receivable of company or organization;
9. Description of skills and experience of technical personnel

Study and information on technical personnel, wage fund, qualification, education, duration of employment, skills, experience and qualification status.


Decision term of an application for License

♦ The Regulatory Authority and Regulatory boards of Aimags and the capital city shall make decision within 60 days from the date of receipt of the application for a license.
♦ In case the application and enclosed documents fail to meet the requirements, they shall be returned to the applicant within 10 days from the date of receipt.
♦ The decision to issue license or justification for refusal shall be published.
♦ A license shall be granted to a financially capable legal entity, which possesses experience or is able to operate in the given field.
♦ In case several legal entities submit applications for the same type of license, the license shall be granted on the basis of competitive tendering.

Term of License and its Extension

♦ The term of a license for energy generation and transmission shall be 5 to 25 years; the term of a license for construction of energy facilities shall be up to 5 years; terms of other licenses shall be up to 10 years
♦ If the licensor considers that the Licensee has been properly meeting conditions and requirements of the license and that its normal operations can be sustained further in terms of technical and technological requirements, the licensor shall extend the license for up to 25 years.
♦ An application for extension of the license shall be submitted no later than 180 days prior to the expiry of the term of the license.

May 14, 2007 at 1:53 am Leave a comment

Mineral Exploration Service fee

mineral exploration Service fee:

¹

Service names

Fee for exploration license holder

Fee for mining license holder ($)

Foreigners, legal units ($)

Foreign invested legal unit ($)

Mongolian citizen, legal unit (MNT)

1

Revise an application for a new license

1,000

400

250,000

1,000

2

Revise an application to transfer a license

2,000

2,000

1,500,000

5,000

3

Revise an application to extend a license

1,000

1,000

1,000,000

2,000

4

Revise an application to guarantee a license

1,500

1,500

1,000,000

2,000

5

Revise an application to transfer a license under guarantee

1,500

1,500

1,000,000

2,000

6

Revise an application to return the area under license

100

75

50,000

500

7

Revise an application to resolve a boundary conflict

600

350

250,000

500

8

Re-issue lost license

300

200

200,000

250

9

Revise additional application

500

200

200,000

1,000

May 14, 2007 at 1:51 am Leave a comment

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