26% of total loans to Mongolia have been given from the People’s Republic of China. This tendency is likely to continue in recent years.
By the latest statistics, China has given to Mongolia loans of 800 million US dollars, and projects are being implemented for improving the infrastructure in Zamyn-Uud and constructing roads of western region with the loan of 300 million US dollars. Rest of the loans are going at the discussion level, and the two countries are about to sign credit agreements for the “E-health” and “Education of new century” projects.
In addition, the non-refundable aid from China made up two per cent of all the non-refundable aid or 808 million Chinese Yuan given from all international organizations and donor countries.
With the non-refundable aid from China, some projects have been financed for the Central Stadium, the spirit factory in Suunkharaa, the “Yaarmag” bridge and the autoroad between Zamyn-Uud and Erlian.
68% of the direct investment from China is made for the geological and mining sectors, whereas majority of the loans are spent for the infrastructure, and the largest amount of aid is given to the areas of social welfare, education and health.