he Economic Development Board of Mongolia met on May 5, 2025, to discuss key draft laws aimed at reforming the country’s procurement and banking systems. One major focus of the meeting was the draft Law on Public Procurement.
Uchral Nyam-Osor, Chief of the Cabinet Secretariat, presented the draft Law on Public Procurement. He pointed out that the current system often promotes low-price competition, which has led to poor-quality outcomes. The proposed law seeks to address this issue by prioritizing quality-based criteria in procurement decisions. In addition to this, the draft law proposes the inclusion of environmental and social impact indicators in tender evaluations.
The draft Law also introduces several significant changes. It proposes that tenders valued at up to MNT 10 billion will no longer require financial guarantees. This change could allow 99% of procurement tenders to proceed without such requirements. Another key element is the provision that the Government will no longer ask for information already in its possession. Additionally, the draft law includes plans for conducting procurement processes digitally with the help of Artificial Intelligence.
Several board members gave their input on the draft Law. Tur-Od Lkhagvajav, President of the Mongolian National Chamber of Commerce and Industry (MNCCI), praised the inclusion of private sector suggestions in the draft law. He also emphasized the need for further digitalization of government procurement processes. Davaadalai Batsuuri, Economic Policy Advisor to the President of Mongolia, focused on enhancing provisions that promote “patriotic procurement” and support marginalized groups, such as people with developmental challenges.
Batsaikhan Purev, President of Shunkhlai Holding, proposed revisiting the cost threshold for mega projects, which is currently set at USD 36 million.
The meeting also included a discussion of the draft Law on Amendments to the Law on the Development Bank of Mongolia. The bank, which was once at risk of default, has recently made significant strides in repaying its debts. The proposed amendments seek to transform the bank into an export-import bank, which will focus on supporting economic diversification and boosting exports. This change would help prioritize sectors like renewable energy, agriculture, and mining.
Prime Minister Oyun-Erdene Luvsannamsrai emphasized the importance of private sector input on the Development Bank amendments. He also noted that the draft law would soon be presented to Mongolia’s State Great Khural. The Prime Minister reaffirmed that discussions like these are critical to Mongolia’s economic development and transparency.
The next meeting of the Economic Development Board will focus on social insurance and taxation issues.
