MTZ signed an advisory agreement for construction of new railways

The Parliament of Mongolia, pursuant to Resolution No. 32 dated June 24, 2010, endorsed the State Policy on Railway Transportation (the “Railway Policy”) and entrusted the Government of Mongolia to, among other things, take measures to begin construction works for the railway infrastructure in a direction reflected in the Railway Policy and to commence the build-up of the first stage of rail infrastructure consisting of approximately 1,100 kilometers traversing the route Dalanzadgad – Tavan Tolgoi – Tsagaan Suvarga – Zuunbayan and Sainshand – Baruun-Urt – Khuut – Choibalsan (“Phase 1”, “Project”) within 2010.

The Government of Mongolia, pursuant to Resolution No. 283 dated November 3, 2010, granted the license to construct Phase 1 of the railway infrastructure to Mongolian Railways State Owned Shareholding Company (“MTZ”) and, among other things, charged MTZ to develop a proposal on selecting an advisory company (team) for the railway construction project.

Pursuant to resolutions from respective ministries, MTZ signed an advisory agreement with McKinsey as the Lead Advisor on April 7, 2011. McKinsey and other members of the advisory team shall develop a feasibility study for construction and development of a rail infrastructure for Phase 1 of the Railway Policy.

McKinsey is the world’s leading management consulting firm. With over 95 offices worldwide in more than 50 countries, 9,000 consultants serve close to 3,500 clients, including 95 of the world’s top 100 leading companies and leading state-owned companies as well as governments across continents. The company has over 75 years of experience in serving the leaders of the rail industry, including railways, governments, large customers and suppliers to the industry.

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