Mongolia’s Government to provide long-term support to private sector

Most of the projects included in the Government's "New Revival Policy" are planned to be implemented through public-private partnerships. In this context, the Law on Public-Private Partnership was developed by the Government and approved by the Parliament, MONTSAME reports.

The law will come into force from January 1, 2024. Procedures and regulations to be followed in the implementation of the law, including issuing government guarantees, establishing partnership agreements, and giving permission were discussed and approved at the Cabinet meeting.

The main goal of the Law on Public-Private Partnership is that the government will not compete with the private sector, but will provide long-term support and implement infrastructure projects. The involvement of the private sector in public service will result in many gains, such as the promotion of competition, the full implementation of asset management, the introduction of financial instruments to meet growing needs, the reduction of the budget burden in the long term, and boosting private sector-based economic growth.

The law includes regulations for ensuring the common interests of the partners equally, long-term mutually beneficial cooperation, project risk sharing, and clarifying government support in the partnership. With the law, a legal framework is to be formed in line with international standards that targeted to attracting private sector investment so that large-scale infrastructure and development projects are financed not only through public investment and foreign loans and using the capabilities of the private sector to make public services accessible to the public at low cost.