Ambassador Richard Buangan’s Remarks at the Public-Private Partnership Forum

Vice Minister Davaasuren, fellow members of the diplomatic community, and special guests of both the public and private sector, thank you for inviting me today to help open the Public-Private Partnership Forum and be a part of this special occasion.

First, I would like to congratulate the Government of Mongolia, specifically the Ministry of Economy and Development, on the launch of its public-private partnership policy and regulatory framework. Since 2022, you have been working diligently on creating the legal foundation needed for the private sector to join the effort of providing essential infrastructure to the Mongolian people. Today’s launch, and Mongolia’s embrace of the PPP model, is not just another routine legal adoption. Rather, it represents a potential paradigm shift in how Mongolia views development that may finally unlock its true investment potential. I have often said that the private sector, not the government, must be able to take the lead if Mongolia is to achieve true economic progress.

Over my tenure as Ambassador, I have seen first-hand the economic opportunities that Mongolia has to offer. This country’s potential in critical minerals, energy, digital technology, and tourism paired with the opportunity to be the gateway to Central Asia should be every investor’s dream. But unfortunately, I have also seen Mongolia time and time again fail to fully embrace the private sector and have watched interested investors become frustrated, give up, and leave Mongolia to go search for other markets. Confusing regulations and stifling bureaucratic red tape have created an investment environment that often sees Mongolia moving in the wrong direction.

It is not a secret that Mongolia needs to clean up the regulatory and statutory framework affecting private sector activities. The current system scares off investors, leaving Mongolia to rely on a narrow band of largely state-owned players which has created a system that does not reward innovation or investment, but in-fact does the opposite. The results are visible: despite a decade of general economic growth the country continues to face critical energy shortages, navigates traffic that chokes small businesses and drains productivity, and sees the regions outside of the capital fall further and further behind.

Thankfully, many of you have recognized this reality and have dedicated your time to create a better system, one that recognizes that Mongolia must embrace the private sector to achieve real progress. This new PPP framework provides a unique opportunity to close the infrastructure gap that limits Mongolia’s economic development by leveraging private business to deliver sustainable, high-quality projects.

As Mongolia’s Strategic Third Neighbor, we want to see Mongolia achieve its full economic potential and become a thriving economy in the region. To this end, we have worked side by side with various Mongolian ministries and leaders through our Commercial Law Development Program. Beginning in 2022, our legal experts have worked with their Mongolian partners to incorporate best practices and lessons learned from the United States into Mongolia’s PPP regulations. These practices have been captured and compiled to create the Mongolia PPP Operations Manual, which will provide Mongolia a concrete guide on how to successfully attract and turn private investment into critical infrastructure projects. And while the program may be finishing soon, the strong economic partnership between the United States and Mongolia will continue to grow as we look for more opportunities for our development finance mechanisms and private sector to become active partners in Mongolia’s development.

I am encouraged that Mongolia continues to embrace reform and look for ways to incorporate more private sector participation and I am proud that you have chosen to work with the United States toward achieving this goal. I wish the government the best of luck on now implementing this PPP framework and kickstarting the improvement in the investment climate that is so sorely needed.