– Bid Award process of Oyu Tolgoi LLC is conducted with the most fair principles –
Interview with Sh.Erdenebat, Vice President and Executive Director, Barilga Corporation
Tell us about Barilga Corporation?
Established in 1992, Barilga Corporation is the first Limited Liability Company that was formed by restructuring a state owned Mongolian enterprise, the first shareholding company established by share orders and the first company to initiate and implement the certificate and company bond market in Mongolia. With shareholders from 28 large organisations in Ulaanbaatar and Darkhan cities, we conduct business in construction, construction materials, construction transportation and mechanics, design drawing and exploration. Barilga initially functioned to coordinate market cooperation in construction, construction materials, construction design drawing and exploration organisations with government departments; provide assistance to member companies; provide a labor force; provide financial support; coordinate their activities; deal with major projects and events and bid on behalf of its members; develop common critical issues of the sector and submit them to the government; create proper forms of investment and construction funding; and carry out management trainings for member companies internationally and domestically.
How is the Barilga Corporation, operating in the large scale in the construction sector, connected with Oyu Tolgoi?
We have been working with the Oyu Tolgoi project since 2006. We carry out three functions for the project. First is the construction and installation work. Secondly, we provide all types of camp services, we have two contracts currently in this area and are in the process to fulfilling them. Thirdly, is the supply of goods and products. We have been supplying the Oyu Tolgoi projects with mining construction materials and consumables. This year we are building warehouse facilities at the site, the first was commissioned earlier this year. We are currently constructing a Sports and Cultural Centre at the site and working on construction of the concentrator.
What achievement is Barilga Corporation most proud of, since beginning their association with Oyu Tolgoi?
Working with Oyu Tolgoi has enabled us to double the number of our employees. Currently there are about 350 employees in our company. The growth in our company has many advantages, in particular to the 350 employees and their families. Supposing there are three people in one family, then you could say about 1,000 are benefiting as a result of our growth. We update the salaries of our employees once or twice a year. It is noteworthy that Barilga Corporation has been selected by Oyu Tolgoi LLC as the 'Supplier excellence award in new employment creation' in 2011.
Increasing employment is a big achievement and I assume that your company has been expanding along with it?
During our assiciation with Oyu Tolgoi, there have been many opportunities for growth and development in our business. We are learning continuously and our company's reputation has been enhanced. Foreign organisations are now approaching us for business and we have commenced work with several of them. We believe this new business is a direct result of the experience we have gained with Oyu Tolgoi. Oyu Tolgoi is providing business opportunities to thousands of Mongolian companies. Our employees are learning and developing. In general, Mongolians tend to fail to comply regulations and procedures. Having worked with Oyu Tolgoi our employees accustomed to following work practices at the mine construction site and they comply with all regulations and procedures. Substantial achievements have been made and we have learned and gained valuable safety experience. Our company has been selected as the 'Strongest improvement in safety culture' in 2010 at the Oyu Tolgoi project. We were the first company to operate 4,560,000 man/hours without LTIs in 2010.
I assume your company participated in many bids. Are bids by the Oyu Tolgoi conducted fairly?
Our company has participated in many bids since 2006. Oyu Tolgoi offers fair competition for Mongolian companies.Any bid with Oyu Tolgoi is conducted fairly and corruption free. They award contracts to competent companies. The most important thing is to ensure all bid requirements are met, including occupational safety, quality planning and performance planning. I advise companies intending to bid to ensure that they fully meet the criteria indicated.
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