RDCC, the project implementing company, completed construction of 43.2 km long, 16.8 wide and 3 line Nariinsukhait-Shiveekhuren heavy duty road located in Gurvantes soum, Umnugobi province by the investment of Monnis International LLC and SouthGobi Sands LLC. The road ensures safety for heavy duty transportation in compliance with the international standard and it was successfully handed over to the State Commission in September 2014.
In accordance with the Government resolution no. 262 of Mongolia in 2011, RDCC LLC signed the Concession agreement to Build-Operate-Transfer (BOT) Nariinsukhait-Shiveekhuren road with State Property Committee on 26th October, 2011. It is the second concession agreement at the national level and is distinct, as this is the first BOT type of concession agreement and is the first project successfully implemented under Public-Private Partnership (PPP).
The old dirt road did not have any engineering facilities and drainage and the maintenance of the road was not regular. Due to travelling of heavy duty coal haul trucks, there was excessive dust that resulted restriction of visibility on the road. As a consequence, occurrence of traffic accidents, appearance of multiple roads, destruction of soil and pasture for livestock and the air and noise pollution have reached peak level. Therefore, the Government of Mongolia made decision to build the concession road by regulating coal haul issues in the territory of Gurvantes soum, Umnugobi province through the state policy aimed at protecting environment and provision of healthy and safe conditions to the rural residents.
RDCC LLC, the concession owner, has to ensure maintenance and traffic safety of the road during concession period and will transfer the concession road to the government free of charge upon completion of the concession agreement and the road will be state property.