Economic Policy Reform and Competitiveness Project (EPRC)

Chemonics
www.eprc–chemonics.biz

Economic Policy Support

Improving IT systems at the General Agency for Specialized Inspection (GASI):  Towards implementing the Memorandum of Understanding (MoU) signed 20 February 2009, the project IT specialist undertook a field trip to the GASI office in Zamiin-Uud to conduct the training of 55 inspection officers on IT systems, networking, security and computer maintenance.  In preparation for connecting GASI to the Customs offices in Zamiin-Uud and Ulaanbaatar, the project also assisted GASI, Zamiin-Uud to initiate installation of their local area network which will enable inspection officers to easily access the common database of the Customs office’s GAMAS information system.

Market analysis of cement, glass-making, and iron bar manufacturing:  Preliminary analysis of the data and implementation of the “Master Plan on Construction Materials Production Development 2007-2015”  was submitted to, and discussed with, the leaders of the GoM working group on “Industrialization Policy and Coordination.” The analysis will be presented to an expanded working group meeting in April 2009.

Legal and regulatory framework for Public-Private Partnerships (PPPs) and Concessions:  During 9-21 March, with project assistance, five GoM and parliamentary committee officials accompanied by two EPRC long-term local advisors attended the IP3 workshop “Designing Legislative, Institutional and Regulatory Frameworks for Successful PPP's” in Washington DC.  During the training the team identified specific problems being faced by Mongolia and developed an action plan to resolve those issues.

Financial Markets Support

Corporate governance training for directors:  With project assistance, the Institute for Finance and Economics (IFE) launched the twelve-module corporate directors training course, developed by EPRC and adapted to the Mongolian context with IFE assistance, with a half-day overview of the course on 6 March 2009. This presentation was specifically designed for directors and senior executives of companies listed on the Mongolian Stock Exchange. A Pilot three-day presentation of the full 12 modules was delivered to 15 directors and regulators 13–15 March 2009.  The training program aims to help enhance the skills level of Mongolian business leaders in corporate governance; improve transparency, responsibility and accountability; and improve the fair treatment of all shareholders.  It will be rolled out on a commercial basis over the course of 2009.

Mongolia Corporate Governance Development Center:  A corporate governance diagnostic assessment of Mongolian companies was conducted by the project in September 2008. The results of this assessment were presented to the public at the Mongolian Corporate Governance Forum held on 9 October 2008. A joint declaration signed by the leading participants at the end of the Forum included a resolution for the establishment of a Corporate Governance Development Center in Mongolia. On 6 March 2009, the Financial Regulatory Commission (FRC) and the IFE signed a MoU to establish the center and asked EPRC to prepare a concept paper for the center based on best international practices. 

The project presented a draft concept paper to the FRC and IFE on 24 March. The concept was adopted and approved on 25 March at the initial founders meeting for the Mongolia Corporate Governance Development Center, which will be registered as a Mongolian NGO in the coming weeks. The Mongolian Corporate Governance Development Center will have three key activities—directors training, research and standard setting, and advocacy and public outreach. The Mongolia Corporate Governance Development Center will be formally launched at the Mongolia Corporate Governance Forum on 9 April 2009.

Credit Information Center (CIC):  Assisted by the project, the Board of Directors held two meetings in March to fast track the organization of the company, selection of a project manager, advance the joint project with IFC to select an international strategic operating partner, and promote the package of laws necessary to implement the project. The Board chose a candidate for the position of project manager who is expected to start work by 3 April. The CIC, assisted by the project, IFC and the Mongolia Bankers Association, is holding a day-long workshop on 6 April with the primary goal of educating parliamentarians and regulators on the operation of credit bureaus and the enabling legislation which will be presented for consideration in the spring session of Parliament. CIC expects to finalize a mandate with IFC for the selection of an international operating partner in early April.

Energy Sector Support

Energy sector financial status: The ERA has evaluated the requests for electricity and heat tariff increases and issued a proposal to increase tariffs, including the amounts and timing thereof. That proposal stimulated much discussion, both pro and con, from the GoM, the labor unions, the public, the media and some civil societies. If tariffs are to be increased that will likely happen in July 2009, as called for in the approved Tariff Reform Plan.  EPRC continues to assist the ERA in implementing the remaining tasks in the approved Tariff Reform Plan in accordance with the plan schedule.

Competitive electricity market design and implementation:  The project completed and distributed a second revised draft of the market rules following a workshop-style meeting with the New Market Working Group. A second workshop-style meeting was held with the Working Group on 26 March to review and discuss the second draft of the rules.  EPRC continued work on a revision of the Grid Code in keeping with the new market design and the rules and development of Vesting Contracts. The goal is to have the new market rules ready for implementation in 2010.

Update of ERA Assessment: The update of the November 2006 assessment has been completed and is currently being revised and edited by project. It will be issued to all interested parties by the end of March. It shows significant gains by the ERA in the past two years with the average score of the internationally accepted attributes addressed, on a scale of 1-5, increasing from 3.56 in 2006 to 4.08 in 2008. The assessment makes significant recommendations for further improvement.

GoM and Donor Energy Working Group (EWG) and GoM/external partners meetings: The next EWG meeting is to be held on 31 March. No GoM/External Partners Technical Session is currently scheduled.

MMRE Energy Group and New Energy Authority: The MMRE energy group is now in place. They are currently updating the sector policy and strategy developed by the previous Ministry. A meeting was held with the head of the Ministry’s Energy Policy Group on 24 March and meeting notes have been issued. It was agreed that an Action Plan for continuing and perhaps intensifying collaboration between the Ministry and Project will be developed. A new Energy Authority was created and commenced operating on 1 March as a unit of the MMRE. It includes the restructured Energy Research and Development and Renewable Energy Centers. The EA’s mandate is to “…implement the Government policy on the generation, transmission, distribution and supply of energy in conformity with the Energy Law and related legislation.…”    

Consensus Building, Public Education, and National Dialogue Support

National dialogue and consensus building on mining policy and issues: The project continued to assist civil society organizations and MMRE in developing proper communications strategies for a productive dialogue on mining policy issues. A short-term international mining expert facilitated additional training sessions with members of civil society on the mining life cycle in addition to providing global case study examples of civil society effectively engaging with government on various mining issues.

Collaboration with the Cabinet Secretariat:  EPRC prepared a draft MOU with the Cabinet Secretariat for continuation of project support for the promotion and management of the Open Government website, in addition to providing technical assistance to the Cabinet Secretariat’s information technology department. The Cabinet Secretariat is reviewing the document with signature expected early April 2009.