The Government meeting on December 22 approved the agreement
reached during Prime Minister S.Batbold’s visit to Russia to raise the equity
capital of the Russia-Mongolia joint venture Ulaanbaatar Railway by USD250
million. Minister of Road, Transportation, Construction and Urban Planning,
Kh.Battulga was authorized to accept USD125 million from Russia and Minister of
Finance S.Bayartsogt was asked to provide the Mongolian share of USD125 million
in the first half of 2011.

The money will be used for badly needed upgrading of
equipment and technology. Even though both the number of passengers and the
volume of freight have increased, 65% of the railway’s equipment is outdated
and 400 km of track needs urgent repairs.