Source: JoongAng Daily                 Date: 17 March, 2011

A consortium of 19 Korean construction companies is likely to win a 1,000-km railroad construction project in Mongolia worth USD3 billion.  According to Lotte Engineering & Construction, the consortium, along with Korea Rail Network Authority, recently submitted its preliminary business plan as part of its bid to Mongolian authorities. This followed an agreement by the Korean government to cooperate on the railroad project at the request of the Mongolian government in 2009.

“The Korean consortium has received a positive response from the Mongolian side on our business plans to connect the Tavan Tolgoi mine with the railroad,” said Mr. Do Eun-dae, vice president of Lotte E&C.  “Countries such as China and Russia have shown interest in the Mongolian railroad project, but as a result of long cooperation, Mongolia has expectations of our technology and governmental support,” said Mr. Lim Young-sik, team leader at Korea Rail Network Authority. “The Mongolian government wishes to start the project as soon as possible.”

Construction of the railroad will take place between Tavan Tolgoi and Zuunbayan, and Sainshand and Choibalsan, which stretches over 1,040 km. Building is expected to last five years as the Korean consortium will be responsible for the first stage of the planned 5,500 kilometer railway.

Mongolian government officials are expected to visit Korea to sign a memorandum of understanding with the consortium this month.