MONGOLIA’S Government has awarded a permit to Khot Infrastructure Holdings’ majority-owned subsidiary Ashid Munkhiin Zam LLC (AMZ) for construction of a 110kV powerline. The permit allows AMZ to further increase the scope and scale of bidding opportunities in the powerline construction sector.
Khot’s COO Erin Chutter said, “We are very pleased to add this permit to our arsenal which now includes road and bridge building, road maintenance and rail bed construction licences.
“The optimism and excitement around the US$5.2 billion expansion of Oyu Tolgoi has brought new investor interest to Mongolia and heightened interest in these burgeoning infrastructure sectors.”
In June 2016, the leaders of Mongolia, China and Russia agreed to cooperate on development of an economic corridor, including investments in upgrading the Trans-Mongolian rail line and focus on road transportation infrastructure.
AMZ previously announced the acquisition of three other important licences in the rail bed, road construction and asphalt provision sectors. All are critical for ongoing relationship negotiations under way with major financial and construction entities that will enable AMZ to fully exploit these major infrastructure opportunities.
Khot also intends to acquire a final 25% interest in AMZ from a company controlled by affiliates of Firebird, Khot’s largest shareholder, bringing Khot’s holdings to 100% of AMZ.
Khot’s goal is to become the leading Mongolian transportation contractor and the preferred choice for employees, shareholders and partners. Its focus is on high margin contracts, such as highways and regional roads, and its mission is to provide the infrastructure needed for Mongolia.
Khot’s in-country management team says the success of the Mongolian People’s Party in the June 29 elections, in which it gained 67 of 76 seats, would help ensure political stability for four years and enable government to implement new policies designed to attract foreign capital and stimulate domestic growth. “The party has a mandate to fast track critical Mongolian infrastructure needs and the new government has acted swiftly to address the delays in executing key concessions,” Erin Chutter said.
“In August the government announced its four year master economic development plan. This includes a major infrastructure focus - extensions to the electrical grid; expanding paved roads connecting provincial centres and continuation of the Millennium road project; and further rail and rail bed projects linking major trading partners.”