Continued cooperation with Japan's JBIC proposed
Prime Minister of Mongolia Ch.Saikhanbileg, at the beginning of a meeting with Deputy Director of Japan Bank of International Cooperation Bank (JBIC) Koichi Yajima, asked to enhance Mongolia and Japan's relationship in the field of trade and investment and to further mutually beneficial co-operation.
He noted that the Government of Mongolia and citizens of Mongolia highly value the Japanese grant aid being provided to maintain and create a basis for development and enhancing Mongolia's modern progress and democracy.
Mongolian and Japanese economic relations and cooperation has been carried out through the granting of loans and grant aid.
The PM noted that at this new stage of joint cooperation, the active participation of the private sectors of both countries is very important. The Prime Minister stressed that for the creation of this environment, the participation and encouragement of JBIC is very important.
During this official visit of the Prime Minister to Japan, the signing of the "Agreement on Mongolian and Japanese Economic Partnership" is expected to be sign, the negotiations of which have continued for almost three years.
The Prime Minister has also expressed his intention to implement a mid-term program on Mongolian-Japanese strategic partnership to enhance cooperation in the following fields: building power stations, railway, factories to produce steel and copper, highways, and a metro.
Mongolian diplomats are also placing high value on Japan's Sumitomo Corporation's participation in the international consortium working on the exploitation of the Tavan Tolgoi strategic deposit.
The Prime Minister noted that Mongolia will adhere to working on a mutual profitable way forward and will receive Japanese grant aid for the production of value added products, and with the support of modern Japanese techniques and technology, will create a favorable environment for the mining sector and for the natural environment.
During the meeting, Koichi Yajima, Deputy President of JBIC, expressed gratitude for the signing of the economic partnership agreement with Japan.
In June 2013, Mongolia signed an agreement for setting up a credit line and cooperation in this field has begun. Under this agreement, the financing of projects being implemented in the mining, infrastructure, and production has been planned, and it has been decided that the products of Japanese exporters will be purchased and assistance will be provided to Mongolian importers. In the first stage, a loan of 8 billion JPY (about 6.7 billion USD) will be provided.
During the meeting, the Prime Minister reported that he will place attention on the implementation of the project, and as the project continues, he would like to create an additional credit line of 300 million USD. The possibility of the creation of this credit line will be reviewed.