A regular session of the Mongolian Government was held on August 03, 2016. During the session, the number of departments under the Secretariat of the Government has been confirmed, and the number of personnel to be employed by the government approved.
One interesting development from the session is the newly established Investor Protection Committee. The Committee is intended to play a role in facilitating resolution of disputes involving foreign investors and foreign invested projects in Mongolia. Mongolia has seen numbers of arbitrations involving foreign investors increasing in recent years. The World Bank estimates that the average such case lasts 3 and a half years and costs around 3 million USD.
The Committee will work to protect investors’ rights and interests, promote cooperation within the legal framework of Mongolia, minimize foreseeable risks and facilitate settlement of disputes swiftly, in hopes of avoiding unnecessary costs.
This is another positive step for Mongolia and for potential foreign investors in industry and infrastructure projects in the country. If the committee works as planned it could significantly reduce costs and mitigate risks for foreign investors in major projects in the country.