J.Bat-Erdene, State Secretary at the Ministry of Road,
Transportation, Construction, and Urban Development, has said the initial cost
estimate made in 2005 for the proposed international airport in Khushig valley
in Tuv province was 21.9 billion yen but this has now increased substantially.
Final figures are being discussed among the Ministry of Finance, the
consultancies, and the Japanese Government. Denying that there is any
possibility of the project being abandoned disagreements on cost, the official
said there was a likelihood that some parts of the complex, like the cargo
handling facilities, some offices, and the monitoring tower will be built with
Mongolian investment. Tenders are scheduled to be announced at the end of 2011.

He says the 95 items on the list of concessions earlier
ratified by the Government have since been broken down into 124 after
suggestions from the State Property Committee and several Ministries.
Investments in these will now be invited, so that work can begin without any
demands on the State budget.

The list embraces a wide range of projects, from
infrastructure to repair of monasteries to road building to setting up industry
in the Sainshand complex to putting up apartments, to building railway. The
Government has prioritized the work to be done in 2010-2012 but will give due
consideration to investors’ choices when identifying any specific project to be undertaken. The
total capital required is estimated to be MNT15 trillion or around USD10
billion. Bat-Erdene said investors will be selected through competitive
tenders, the specific parameters of which will soon be published. The State
Property Committee will have a key role in the entire exercise.