The South Korean consortium – Mongolian Railway (MTZ) signed a memorandum of understanding (MOU) for the cooperation of the Mongolian railway project
▲ CEO Park, Chang-kyoo (Left) of Lotte E&C, who is the supervisor of the Korean Consortium, and CEO Batzya (Right) of MTZ are shaking hands after exchanging ‘the MOU for the cooperation of the Mongolian railway project’ at Lotte Hotel, Seoul on the 24th.
The ‘Korean Consortium’ that is led by Lotte E&C and Mongolian Railway (MTZ) signed ‘a memorandum of understanding (MOU) for the cooperation of the Mongolian railway project’ in Lotte Hotel, Seoul at 6 p.m. on Apr. 24th (Thur.).
The event on this day was held in the presence of the people interested in Mongolia including CEO Batzya of MTZ and the ‘Korean Consortium’ including the CEO of Lotte E&C Park, Chang-kyoo, etc.
Provision of the foundation for the promotion of the actual project
As ‘The Korean Consortium’ had submitted a preliminary proposal for cooperation to MTZ in early March and MTZ had reviewed the proposal and accepted the request for collaboration in the project, both parties signed the MOU this time.
Through this, both parties will cooperate on the development, construction, and operation of the Mongolian railway project. The partnership will be extensive, covering a wide range of business decisions such as business structure, financing, shareholders’ structure, establishment of new companies for the project, and other small details.
The business plan will be completed by the end of the year through the discussion of both parties, and a joint company will be established to start the constructions from the first half of 2012.
Meanwhile, the Mongolian government has stressed the importance on the promotion of the mine-connected railroad network project, and the Korean Consortium plans to participate in one of the railroad construction business of Mongolia, which is the 1st phase project conducted throughout 1,040km between Taven Tolgoi ~ 준바얀 and Saynshanda ~ Choybalsan. The estimated construction expense is about 3 billion USD and the business period is expected to be 5 years.
CEO Park, Chang-kyoo (Left) of Lotte E&C said, “Since the Mongolian railway project is the long-cherished ambition of Mongolia, the delegation of the Korean business will exert the utmost efforts for the success of this project through the conclusion of this MOU based on a more practical approach.”
