STUDY ON BASIC ISSUES RELATED WITH THE EMPLOYEES HOUSING PROGRAM 2008

This study was conducted according to the Consulting Agreement between Ivanhoe Mines Mongolia Inc LLC and Achid Consulting LLC. In broad terms, the main purpose of the study was to explore the major issues related with future housing program of Oyu Tolgoi project employees. Within this scope of  study,  Achid  Consulting provided comprehensive consulting service based on quantitative research methodology as well as extensive financial calculations on potential solutions to employee housing program. The study is sectioned into 2 major parts with specific  focus on Mongolian housing environment where the first part aims to study the overall environment of the housing and construction sector. Within this scope, 8 aspects of this sector were studied and reported on:

  1. Mongolian Construction industry
  2. Housing demand
  3. 40000 housing unit program
    1. The program design
    2. The implementation state
  4. Mortgage market development in Mongolia
  5. Mongolian Mortgage Corporation
  6. Mortgage loan terms by bank
  7. Legal and Regulatory Framework
  8. Mongolian Experience in Employee Housing programs

The second part consists of 5 parts each designed to explore the different facets related to the Umno-Gobi province housing sector where primary research methodology such as questionnaire, survey and focus group workshops were utilized extensively. Based on the research outcome, potential housing program was designed with its financial projections.

  1. Construction and financial market of Umno-Gobi province:
    1. Construction market in Umno-Gobi
    2. Current demand for housing in Umno-Gobi province
    3. Financial Institutions market and its availability in Umno-Gobi Province
    4. Housing cost estimates in Umno-gobi province
  2. Capacity of the market to provide Ivanhoe Mines (IM) desired service
    1. Minimum amount of financing required to provide IM desired service
    2. Period of time required to provide IM desired service
    3. Capacity of building companies to provide IM desired service
    4. Challenges and issues of construction business in Mongolia
  3. Field study report
    1. Compilation and summary of all the survey questionnaire, focus group discussions, and interview results
  4. Possibilities for land possession/use for foreign and foreign invested companies in Mongolia, the licensing process and related laws
    1. Possibilities for land possession/use for foreign and foreign invested companies in Mongolia
    2. Terms and conditions of land use by foreign invested companies
    3. Related laws on terms and conditions of land use  by foreign invested companies
    4. About land management plans
    5. Structure and Authority of Government institutions responsible for land issues
    6. Related law clauses on land usage licensing process
    7. Land fees
    8. Time and costs set by law to acquire a land use license
    9. List of related laws and regulations
    10. Research based alternative to the implementation of the housing program

 

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