Chinese Government provides $500,000 grant — via ETCA — for Wholesale Network Project (linked to Record ID #s #40400, #40211, #86280)

On December 31, 2002, the Chinese Government and the Government of Mongolia signed an Economic and Technical Cooperation Agreement (ETCA), which committed $4 million for multiple projects (see Record ID#40211).

Wang Fukang, charge d'affaires of the Chinese Embassy in Mongolia, and Mongolia's Foreign Minister Luvsangiin Erdenechuluun signed the agreement.

Then, on March 5, 2003, the Government of Mongolia issued a resolution that stated that the grant proceeds from the ETCA would be allocated to following projects/activities: (1) $2 million for Mongolian National Chamber of Commerce and Industry Building Construction Project (captured in Record ID#40400); (2) $1.5 million for the development of an “Altanbulag” free trade zone master plan and feasibility study as well as Phase 1 “Altanbulag” free trade zone construction activities (Record ID#86280); and (3) $500,000 of the grant proceeds from the ETCA would be earmarked for the Wholesale Network Project (“Бөөний худалдааны сүлжээ” хөтөлбөрийг) (Record ID#85384).

It is unclear whether the Chinese Government ever disbursed funds for the Altanbulag free trade zone construction project or for the Wholesale Network project, as the Chinese Government ended up devoting over $4 million to the Mongolian National Chamber of Commerce and Industry Building Construction Project alone.

The aim of the Wholesale Network Project was to create a real market price level between urban and rural areas by continuously supplying the population with high quality food and consumer goods, production with raw materials, creating an appropriate system of preparation and supply of goods and raw materials, and optimizing storage and transportation of goods and raw materials.