During cabinet meeting of May 3rd, the Government agreed to introduce “Draft Resolution of the State Great Khural with respect to guideline add-on” to the State Great Khural. The draft resolves to raise the nominal price of “Mongolian Railway” JSC based on future revenue forecasts and offer up to 49 percent of the company shares on domestic and foreign stock exchanges. Based on “State Policy on Railway Transportation,” the proceeds will be used to finance the first and second stage of railway construction. Once approved, the funding required for the railway construction will be raised through IPO, which will in turn add the capital market activity and provide investors the opportunity to invest in substantial construction projects. The Government believes that the listing of “Mongolian Railway” JSC’s shares on stock exchanges provides for better transparency and corporate governance. According to the provision No. 32 of State Great Khural, 1100 km of railroad with routes to Dalanzadgad-Tavantolgoi- Zuunbayan- Sainshand- Baruun- Urt- Choibalsan shall be constructed at the first stage. Within this framework, the Government has granted the permission to “Mongolian Railway” JSC to construct railroad structure following the railroad construction plan enacted by the Minister of Rail, Road and Transportation. Related organizations have already taken steps to install networks based on its geological positions and height levels. “Mongolian Railway” company has contracted with “McKinsey&Company” to conduct due diligence on its first stage of railroad construction. The first stage of the railroad construction is estimated to cost approximately USD 3 billion /construction of 1km railroad costs on average USD 2-2.5 million /. At the second stage, the plan is to construct approximately 900 km railroad with the following routes: Nariinsukhait- Shiveekhuren, Ukhaa hudag- Gashuunsukhait, Khuut- Tamsagbulag- Numrug, Khuut-Bichig. Source: www.shuud.mn