Infrastructure in Mongolia: Challenges and Opportunities

Eurasia Capital views that outlook for infrastructure market in Mongolia is positive. The Mongolian government and the Parliament will continue considering the sector as a priority. Launching major mines in the southern region will lead to increased demand for infrastructure services, and, given financing constrains of Mongolia’s internal sources, offer strong investment opportunities. Major mining companies, expected to exploit the mines, may be committed to develop the infrastructure, related to the inside mine area only. The nation’s authorities are likely to offer outside‐mine area to international infrastructure companies in power, water and transport industries. International financial institutions are also likely to continue financially support the infrastructure development in the country. Considering the current low global prices for coal and copper, expecting that the prices for these commodities will rebound soon, as well as recognizing the strategically importance of avoiding futher grow in poverty, the authorities are likely to speed up their efforts in creating and improving legislations and regulations to involve private investors in the country’s infrastructure. With cofinancing and advisory support by the IFIs, the mining companies and interested partners, private investors participation in the market is viewed to grow.