Representatives
of road and bridge construction companies have told a press conference that
with prices of raw materials rising, it now takes MNT475 million to construct 1
km of a 3-level paved road, using asphalt and concrete, and MNT14 million per
meter for bridges.. Builders can now hope to keep a profit varying between
0.84% and 1.3% per km of road and between 4.3% and 4.4% on the case of a long
bridge. They deplored the usual official preference for the lowest bidder,
disregarding considerations of quality. Companies that persist in using better
material even if prices have risen since they got the contract are in an
unenviable situation, with no redress from the Government.

The company that is building
a16-km road from Mandalgobi to Undur Dov is spending MNT281.85 million per km.
At this price, no quality road can be built. Similarly, work on the road
connecting Arvaikheer and Bayankhongor is costing MNT 195 million. Both companies
offered low prices to win tenders, and are now experiencing problems.

The law allows a revision in
costs if construction takes more than two years or if there is an unexpected rise
in prices of materials. Accordingly, 34 companies are demanding MNT10 billion
in total.

B.Enkhtur, director of the
Road Department, said their estimate of the average price was MNT360million-MNT440
million per km, but this may not be enough to build roads of international
standard.