Mitsubishi Corporation and Chiyoda Reach Agreement for Construct

Mitsubishi Corporation and Chiyoda Reach Agreement for Construction of New
Ulaanbaatar International Airport in Mongolia 
Tokyo, May 14, 2013 - (JCN Newswire) -  Mitsubishi Corporation (MC) and Chiyoda
Corporation (Chiyoda) are pleased to announce that they have reached an
agreement with the Civil Aviation Authority of Mongolia (CAAM) to construct the
New Ulaanbaatar International Airport in Mongolia. The contract price is
approximately 50 billion yen. 
The new international airport, which meets all International Civil Aviation
Organization (ICAO) standards, will be located on the plains approximately 50
km South-West of Ulaanbaatar, capital of Mongolia. 
The scope of the project includes civil engineering works such as the transfer
of approximately 3 million cubic meters of earth to build the foundation for a
3,600 meter runway equipped to accommodate large aircraft, and the construction
of a 33,000 square meter passenger terminal with capacity for 2 million
passengers per year. Securing and putting in place other special systems and
equipment necessary for the airport to function effectively as an international
airport, including IT systems, air traffic control systems, and aircraft fuel
hydrant system, also fall within the scope of the project. 
The construction period is set at 43 months (approximately 3 and half years).
However, it is estimated that the actual time worked will be 28 months
(approximately 2 and half years) as outside construction work is likely to be
interrupted or made impossible at times due to the severity of Mongolian
winters, where temperatures often drop to 40℃ below zero. This
geographical reality will pose a major challenge for the 2 companies. 
Due to its abundant mineral and livestock resources, Mongolia has enjoyed high
economic growth in recent years, registering a 17.3% growth in GDP in 2011. The
number of incoming overseas passengers has also been increasing over the years.
However, take-off and landing at the existing Chinggis Khaan International
Airport, the only international airport in Mongolia at the moment, are greatly
restricted due to the airport’s proximity to the mountains and to climatic
conditions. 
Construction of the New Ulaanbaatar International airport will vastly increase
the number of passengers arriving to Mongolia, thereby contributing to
Mongolia’s further economic growth. Given the importance of this new airport
development, the Mongolian government has earmarked approximately 10% of its
annual budget for the project. This will be complemented by technology and
funding provided under the Japanese government’s Special Terms of Economic
Partnership (STEP) ODA loan scheme, or international yen loan. 
MC has been gaining expertise in this area of logistics and infrastructure
development by working with similar airport construction projects on the basis
of international yen loans in the Philippines, Indonesia and Uzbekistan. MC
intends to maintain an active focus on expanding this and other related
business activities, particularly in Asia. 
Chiyoda also has an enviable track record in supplying aircraft fuel hydrant
system to major Japanese airports, such as Narita International Airport and
Tokyo International (Haneda) Airport. It has also supplied Utility Systems to
Riyadh International Airport and Dammam International Airport, both located in
the Kingdom of Saudi Arabia. As an integrated engineering company, this project
will also be an opportunity for Chiyoda to reinforce its business in the
transportation infrastructure sector, including the airport sector. 
About Mitsubishi Corporation 
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business
enterprise that develops and operates businesses across virtually every
industry including industrial finance, energy, metals, machinery, chemicals,
foods, and environmental business. MC's current activities are expanding
far beyond its traditional trading operations as its diverse business ranges
from natural resources development to investment in retail business,
infrastructure, financial products and manufacturing of industrial goods. With
over 200 bases of operations in approximately 80 countries worldwide and a
network of over 500 group companies, MC employs a multinational workforce of
nearly 60,000 people. For more information, please visit www.mitsubishicorp.com. 
Contact: 
Mitsubishi Corporation
Telephone: +81-3-3210-2171
Facsimile: +81-3-5252-7705 
Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net 
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