– Interview with S.Myagmarjav, Superintendent of community development at Oyu Tolgoi –
Can you tell us about Oyu Tolgoi’s Goviin Shim programme?
‘Goviin Shim’ is one of five programmes implemented by our department. The objective of this programme is to support and contribute to local economic development by developing diversified and independent businesses that are market based, and not just dependent on the mining sector. The motto of the programme is 'Sustainable development starts from production'. It is beinge implemented in Khanbogd, Manlai, Bayan-Ovoo, Dalanzadgad soums, in the Oyu Tolgoi mine impact area.
What is the reason for implementing the programme?
The rapid development of mining in the South Gobi province is the main reason behind this programme. Many Gobi youth are turning to mining and you can’t rule out that this might affect local development negatively. Therefore, there is a real need to protect the local market and develop non-mining businesses and support entrepreneurs. Since the Gobi desert is far from markets and didn’t have a permanent power supply for many years, the conditions for starting and developing businesses were very poor. In the future, when the mine is closed, the local community should develop on its own and this programme is designed to support that.
How many business entrepreneurs are involved in this programme?
There are about 50 entrepreneurs from the four soums. Half of them are new entrepreuners who have not set up businesses before.
How much funding has Oyu Tolgoi allocated for loan funding under the 'Goviin shim' programme?
We deposited 1.5 billion MNT for financing loans at the Khan and Xac banks.
The loan interest rates of commercial banks has already increased. What is the loan interest rate of 'Goviin Shim'?
The loan interest rate is only 1 per cent. However, obtaining low interest loan does not mean all will succeed. There are many business skills and abilities that people need. We are involving business entrepreneurs in training in order to help them gain these skills and learn from the experiences of others.
What are the results of implementing the programme?
The results are promising so far. In Manlai soum, a bakery, photographers, chicken farm businesses have been set up. In Khanbogd soum, a dairy factory, cattle farm, bootmaker, bathhouse, and hairdressers. in Bayan-Ovoo, a cake shop, in Dalanzadgad brick production, sewing and garment service , a cafe, and a motor repair shop are developing.
Previously, the soums were importing most of their vegetables from China or Ulaanbaatar.The natural environment and climate means that the soil in the Gobi is not good for growing vegetables and therefore, people never ran businesses like this. Under the programme, vegetables were grown in three soums. Last spring, vegetables were planted in a 15 hectare area in Khanbogd and a further three hectare areas in Bayan-Ovoo and Manlai soums. Oyu Tolgoi financed this project by providing seeds, drilling water wells and building greenhouses.
People are forming groups and working together to grow vegetables. Previously, there are people who gave up in the face of challenges and difficulties. Since water is scarce in the Gobi, we used irrigation equipment. Despite the risks, the harvest was succesful. Recently, we harvested the first cucumbers.
The programme has provided 380 million tugrug in loans for 49 business entrepreuners. We have involved about 100 people in training and created 54 new jobs. These are just a few of the achievements of the programme. I think that we have accomplished much. This is a collective success. The 'Goviin shim' programme is benefitting the Gobi.
What is the future long term goal?
We will pursue the goal to develop diversified business sectors and develop mining tourism from 2015.
For more information about the 'Goviin Shim' programme, please contact us at the following addresses.
Khanbogd branch office
Umnugobi aimag, Khanbogd soum, Tsag-Uuriin gudamj 1-5
Tel: 976-153512188, 976-153512194
Bayan-Ovoo branch office
Umnugobi aimag, Bayan-Ovoo soum
Tel: 976-70536208
Manlai branch office
Umnugobi aimag, Manlai soum
Tel: 976-70536607
Representative office in Dalanzadgad
3rd bagh of Dalanzadgad soum of Umnugobi aimag, Building of “Tost Govi” LLC
Tel: 976-7053 3941
Fax: 976-7053 3963
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