After the introduction of Law on Concessions in 2010, Mongolia’s PPP Unit has expanded the regulatory framework and gained significant project experience.

Responsibility for PPPs shifted from the State Property Committee to the Ministry of Economic Development (MED) in 2012 and then the Ministry of Industry after the MED was dissolved in 2014. Political commitment to PPPs stays strong, but further systematic challenges block the foreign investment. However, The 2013 investment law, in addition to equitable rules on procurement in the concession law has created a fairly level playing field for foreign and domestic private-sector parties.

The concessions law provides a powerful, flexible basis for PPP project creation at central and local government level, and across a range of PPP models and sectors. PPPs are underway or being considered for roads, power plant and airports besides, social infrastructure. The detailed framework for PPPs is provided by the Constitution of Mongolia, the Law on Government, the Civil Code, the Law on State and Local Property, the Law on Investment and the integrated Budget Law (IBL).

Overall, the legal framework is well designed and progress on projects signed so far has been encouraging. Nevertheless, implementation of project selection and monitoring requirements has been hindered by a lack of skills, man-power and cross-ministerial coordination, as well as frequent institutional changes.

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