The Standing Committee on
the Economy has accepted the recommendations of a working group headed by R.Bud
on road construction to be included in the revised 2010 budget, the social security
fund and the budget of the Human Development Fund. The  group was assigned to study the actual cost
of road construction with money from the state budget.

The group found fluctuation
in the price of imported materials and diesel led to variation between actual
costs and original estimates. One liter of diesel cost MNT885 in 2007, rising
to MNT1,920 in 2008, falling to MNT1,350 in 2009 and standing between MNT1,300
and MNT1,400 at present.

Some 90 percent of road
construction work is done by using heavy machinery. Taking into account of Mongolia’s
harsh weather, construction companies planned to use Russian made bitumen at a
cost of MNT400,000 per ton. But the price went up to MNT950,000 and the present
market price is MNT1,120,000. All 36 companies that are building roads with
state funds together asked for an additional MNT7 billion, but the group
decided MNT6 billion would meet their needs.