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Happy Monday! The government is considering appointing disgraced politicians as “Special Envoys” to lead mega projects. But what is the real plan? Another Mega Scandal by recycling corruption with ousted politicians? 🤥

Today’s highlights in 3 sentences…

• 🤑 New Loan for Transcapital

• 💸 Tender Boom

• 🇲🇳🇰🇷 Growing Partnership

Buckle Up!

MARKET

MSE: LendMN NBFI (LEND) earns a “Customer Protection Certificate” from MFR Global Rating Agency.

EBRD: The EBRD provides a loan of up to $1.5 million to Transcapital to support micro, small, and medium-sized enterprises (MSMEs) led or owned by individuals under 35.

MNG: The regular spring session of Parliament commences today.

 💸 Tender Boom: Key Projects and Budgets

Mongolia plans to announce 29,931 tenders in 2025, marking a significant year for infrastructure and development. As of now, 4,237 tenders are already issued, reflecting the government’s push for major projects.

🍰 Breakdown of Tenders

Among the tenders issued so far, 

• 📦 2,887 focus on procurement of goods, with a total budget of ₮5.2 trillion,

• 🏗️ 1,002 are for construction projects, amounting to ₮1.8 trillion,

• 🫳🏻 346 are for services, allocated ₮204 billion.

Ulaanbaatar, the capital, plays a central role in this development. The city schedules 3,183 tenders this year, with 51% or 1,554 tenders already announced. Major projects include metro development, a cable-stayed bridge, and new highways, signaling an era of rapid urban transformation.

🛣️ Tuul River Expressway: A Delayed Yet Crucial Project

Last Friday, Ulaanbaatar’s authorities plan to open the bidding for the Tuul River expressway. However, the tender opening day postpones to April 1st. This 33 km, 6-lane highway aims to improve traffic flow from east to west, cutting congestion by 13.5% by 2027.

• ⌚ The total budget stands at ₮1.9 trillion, with ₮538.6 billion allocated for 2025. City officials set a 24-month deadline for completion, emphasizing the urgency of the project.

🗓️ Upcoming Tender: Connecting Key Roads

On March 28th, another major tender opens for a bridge structure over the Naadamchdiin highway. This project connects the Tuul River expressway to the Airport expressway, further enhancing traffic efficiency. The budget for this initiative is ₮116 billion.

What to Watch… With large-scale projects underway, Mongolians, as the ultimate financers, need to scrutinize tender processes and budget allocations. It’s no secret that tenders can serve political and personal interests. Ensuring transparency in tender selection is the first step toward holding leaders accountable and turning ambitious promises into real development.

 💘 South Korea and Mongolia: A Growing Partnership

Mongolia and South Korea establish diplomatic relations in 1990, marking the start of their cooperation. Over the years, this relationship strengthens, evolving into a close partnership.

🍙 Another One Besides Japan

To date, Mongolia has a Free Trade Agreement (FTA) exclusively with Japan. For the past 2 years, Mongolia has been negotiating a similar agreement with South Korea, and the draft is now finalized. This development raises public concerns, fearing that "South Korea to take the best parts, leaving Mongolia with the scraps." But what exactly are these "best parts" and "scraps"?

🤔 Broad Scope: Beyond Trade Tariffs

South Korea, unlike Mongolia, has free trade agreements with 22 countries. The proposed agreement with Mongolia consists of 14 chapters, covering trade, services, and investment, making it more than just a tariff reduction deal, it focuses on broader economic cooperation.

• 📌 Under this agreement, both countries are expected to grant mutual tariff reductions, ease trade barriers, improve the investment climate, align trade regulations, and expand collaboration in the service sector.

😞 However…

South Korea's presence in Mongolia's infrastructure, mining, and cultural sectors is expanding. For instance, KT Group to begin importing rare earth elements from Mongolia, and South Korea is involved not only in metro projects but also in railway developments. In this context, we import $956 million from the country since 2023, but our exports are 5 times less than that.

To conclude… Japan, Mongolia's only FTA partner, provides Mongolia with significant non-repayable aid. Strengthening ties with South Korea offers clear advantages, but we need to ensure that the benefits to be balanced.The draft provisions of the free trade agreement are designed to promote mutual economic growth, but careful consideration is necessary to address potential imbalances and ensure that both nations benefit equitably from the partnership.

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⭐ Selected for you

ECONOMY & BUSINESS

• Fibo Cloud Signs a Cooperation Agreement with Uztelecom JSC. (FiboCloud)

• Hydrogen Aviation Technology and Think Green LLC Mongolia Reached an International Cooperation Agreement. (SMM)

• Aero Mongolia to Increase Ulaanbaatar-Tokyo Frequency From Jul-2025. (CAPA)

• SouthGobi Announces Update on Mongolia Tax Audit. (GuruFocus)

• The MongolZ Secure 3rd Place in ESL Pro League Season 21, Winning $80,000. (TheMongolZ)

POLITICS

• Poland, Mongolia Strengthen Ties with New Agreements. (PolskieRadio)

• Mongolian Delegation strengthens public procurement cooperation with S. Korea. (TheKoreaPost)

• Mongolia Looks to Third Neighbours for Energy Reform. (EastAsiaForm)

• Ambassador of Mongolia Presents Credentials to President of Poland. (AKIPress)

CULTURE & LIFESTYLE

• The Time Magazine Highlights Mongolia in The World’s Greatest Places of 2025. (Time) 

• Korean Hospital’s Liver Transplant Program Gives New Life to 300 Mongolians. (KoreaBizWire)

• Mongolian Herders Struggle to Recover From Harsh Winter. (WION)

• Chinggis Khan Exhibition Brings Rare Mongolian Treasures to Prague. (RPI)

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.