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					                                 PROTOCOL
          OF THE FOURTH MEETING OF JOINT COMMITTEE
         BETWEEN THE CZECH REPUBLIC AND MONGOLIA

                            APRIL 24 - 25, 2012
                         ULAANBAATAR, MONGOLIA


1. H.E. Milan Hovorka, Deputy Minister of Industry and Trade of the Czech Republic
   visited Mongolia on April 23 – 26, 2012. In this connection and pursuant to
   Article V of the Agreement on Economic Cooperation between the Government
   of the Czech Republic and the Government of Mongolia signed in Ulaanbaatar
   January 24, 2005, the Fourth Meeting of Joint Committee between the Czech
   Republic and Mongolia was held in Ulaanbaatar on April 24 - 25, 2012.

2. H.E. Milan Hovorka, Deputy Minister of Industry and Trade of the Czech Republic
   headed the Czech Delegation. H.E. Tsedev Dashdorj, Minister of Roads,
   Transportation, Construction and Urban Development headed the Mongolian
   Delegation.

3. The Czech Delegation was accompanied by a Business Mission of Czech
   companies.

4. The lists of the Czech Delegation and the Business Mission, the Mongolian
   Delegation and the Agenda are listed in Annexes No. 1, No. 2 and No. 3,
   respectively.

5. During the stay in Ulaanbaatar H.E. Milan Hovorka, Deputy Minister of Industry
   and Trade of the Czech Republic held meetings with H.E. Dashdorj Zorigt,
   Minister for Mineral Resources and Energy of Mongolia, H.E. Gonchigzeveg
   Tenger, Deputy Minister of Foreign Affairs and Trade of Mongolia, Mr.
   Gombosuren Munkhbayar, Mayor of the Capital and Governor of Ulaanbaatar
   city and Mr.Purevjav Purevlkhagva, Deputy Governor of the Orkhon aimag.

6. The Heads of the two Delegations attended the Mongol-Czech Business Forum
   organized by the Foreign Investment and Foreign Trade Agency of Mongolia and
   the Czech Chamber of Commerce in cooperation with the Czech-Mongolian
   Chamber of Commerce in Ulaanbaatar on April 24, 2012. During the stay in
   Ulaanbaatar, the Czech Delegation also visited Mongolian companies using


                                                                                 1
   Czech equipment and technologies: Thermal Power Plant No. 4 and Talkh
   Chikher Bakery.

7. The Meeting proceeded in plenary session. The Delegations exchanged
   information on their countries economic situation, reviewed bilateral trade and
   investment relations and had talks on promotion of bilateral economic relations
   and cooperation.


I. OVERVIEW ON ECONOMIC DEVELOPMENT

8. Both Sides exchanged information on current economic situation in their
   countries and exchanged views on regional and multilateral development. The
   two Sides shared the view, that at present time, when the world economy still
   faces many difficulties and uncertainties, solutions should be sought in closer
   mutual economic cooperation as well as in promotion of international trade and
   economic cooperation and removal of existing barriers to trade.

9. The Heads of both Delegations stated that the promotion of mutual trade and
   economic cooperation is the objective shared by the two Governments. Both
   Sides appreciated the role of the Joint Committee as a facilitator to promote
   contacts between business enterprises of the two countries. It was noted that the
   Joint Committee retains its importance as a body to oversee development of
   bilateral economic cooperation in various fields and to advise the two
   Governments regarding measures aimed at supporting commercial activities.

10. Both Sides appreciated that relations between the European Union and Mongolia
    have been developing positively and expressed their satisfaction over the
    conclusion of negotiations for the Mongolia-EU Partnership and Cooperation
    Agreement (PCA) expected to be signed in the near future. The two Sides
    underlined that PCA would also open new possibilities to expand and deepen
    their bilateral economic ties and other activities, including possibilities of
    cooperation with respect to the EU programme for introduction and
    implementation of European norms and standards.


II. REVIEW OF BILATERAL TRADE RELATIONS

11. Both Sides reviewed the development of their bilateral trade and noted with
    satisfaction that the total volume of trade in 2011 had increased as compared to




                                                                                   2
   the previous year of 2010. However, it was pointed out that the current volume of
   trade still lacks behind the level achieved in the record year of 2008.

12. According to the data provided by the Czech Side, the total value of bilateral
    trade in 2011 reached the level of USD 13.8 million and showed an increase of
    65 per cent over the trade performed in 2010. In 2011, the value of Czech
    exports to Mongolia amounted to USD 13.3 million, while Mongolian exports to
    the Czech Republic amounted to USD 0.5 million.

13. According to the statistics of the Mongolian Side the total value of bilateral trade
    in 2011 reached the level of USD 9.6 million Mongolian exports to the Czech
    Republic amounted to USD 146.9 thousand, Mongolian imports from the Czech
    Republic amounted to USD 9.5 million.

14. In 2011, Czech exports to Mongolia included road motor vehicles, cosmetics,
    sanitary, plumbing, heating and air-conditioning fixtures and equipment,
    containers, mining equipment, paper, pumps, beer and other food products,
    tubes, plastic products, food processing machines, razor blades, measuring and
    control equipment and other industrial and consumer goods. Mongolia exported
    to the Czech Republic textile and garments, crude animal materials,
    manufactures of base metals and other mineral products.

15. Both Sides shared the opinion that the existing level of bilateral trade does not
    reflect the traditions and quality of mutual relations as well as the real potential of
    their economies. The Sides pointed out that the scope for developing trade and
    economic cooperation between the countries is considerable and agreed to exert
    efforts to encourage further development of their trade on a mutually beneficial
    basis.


III. DISCUSSION ON EXPLORING WAYS TO PROMOTE BILATERAL TRADE
AND ECONOMIC RELATIONS AND COOPERATION

Trade Promotion

16. To dynamize the growth of bilateral trade, both Sides agreed to further profile the
    role of chambers of commerce, confederations of industry, agencies for
    promotion of investment and trade as well as other intermediary organizations to
    encourage and support companies of the two countries, including SMEs, in
    intensifying exchanges between them and to increase cooperation through
    organizing forums, business seminars and other trade promotion activities.



                                                                                          3
17. The two Sides agreed to continue organizing the Joint Committee meetings in
    the future with the participation of business representatives.

18. Both Sides agreed to encourage their institutions and corporate sectors to
    explore opportunities and identify concrete projects of business cooperation in
    the line of mutual interest, particularly in the sectors of energy, natural resources,
    geology and mining, infrastructure and construction activities, agro- and food
    industry, development of water resources and environment protection.

19. The two Sides recognized the importance of participation in the specialized fairs
    and exhibitions for the promotion of trade, investment and tourism, and agreed to
    encourage the participation of their business communities in trade, investment
    and tourism fairs organized in each country.

20. The Czech Side invited Mongolian companies and organizations to take part in
    Czech fairs, including a specialized event STYL/KABO (International Fashion,
    Textiles, Footwear and Leather Ware Fair) held in Brno semiannually, in
    February and August.

21. The Mongolian Side invited Czech companies and organizations to take part in
    seminars and events to promote investment environment in Mongolia.

Investment

22. Both Sides agreed that the development of economic ties through the promotion
    of investment between both countries is one of avenues to be pursued.

23. The Mongolian Side informed that since 1990, by the end of 2011, foreign
    investment from Czech Republic, registered in Mongolia, reached USD 7.09
    million.

24. The Foreign Investment and Foreign Trade Agency of Mongolia in cooperation
    with the Czech Chamber of Commerce organized the “Mongolia-Czech Business
    Forum” on April 24, 2012 in Ulaanbaatar. The event was aimed at expanding
    trade and investment relations of the two countries and discussed the cooperation
    opportunities in the following sectors: mining, infrastructure, banking and finance,
    food, agriculture and light industries.

25. Both Sides also agreed to further explore the possibilities of cooperation between
    the business circles of the two countries in the fields of Power Generation, Water
    Resources, Environment Protection and Construction.




                                                                                         4
26. In view of promoting investment cooperation, both Sides agreed to do their best
    to expedite the conclusion of the protocol amending the bilateral investment
    agreement that is currently negotiated between the two countries.

Cooperation in the Field of Energy and Natural Resources

27. Both Sides recalled discussions held during the visit of the Minister for Mineral
    Resources and Energy of Mongolia to the Czech Republic on January 8 – 12,
    2012 and share the view that the development of energy and natural resources
    represent one of the most important areas for commercial and industrial
    cooperation between the Czech Republic and Mongolia.

28. The Czech Side presented to the Mongolian Side a detailed list of Czech
    companies active in the energy and mining sector, including data on possible
    suppliers of power and mining machinery and equipment and requested that the
    list would be distributed to the respective Mongolian agencies and corporations.
    The Mongolian Side took note of this.

29. Referring to the previous successful co-operation, both Sides agreed that there
    are possibilities for Czech companies to participate in modernization and
    rehabilitation of thermal power plants and central heating plants, including
    deliveries of automated systems for technology processes control.

30. Stressing the existing considerable scope for mutual co-operation in the sector of
    energy and natural resources, the two Sides agreed to encourage their
    companies to identify concrete projects of cooperation. The projects of power
    stations for Erdenet Thermal Power Plant and Heat Only Boilers in Dundgobi and
    Dornogobi aimags for Mongolian cities were pointed out as examples for further
    elaboration. It was noted that other potential exists in hydro, wind and solar
    power plants as well as projects for power distribution and transmission. The
    cooperation with “Eko Bokra” in the field of reducing air pollution and introducing
    technology in Ulaanbaatar shall be promoted. The cooperation between Erdenet
    power plant and Grandera company in the framework of their signed
    Memorandum of Understanding in April 25, 2012 shall be promoted.

31. The Czech Side informed about the expertise of Czech manufacturers of mining
    equipment and their interest to deliver machinery for open cast coal mining and
    other mining projects in Mongolia. It was agreed in this connection to encourage
    corporate sectors of both Sides for further discussions on their cooperation.




                                                                                      5
32. Having referred to their traditional cooperation in the field of geology and mining,
    both Sides agreed that there are extensive possibilities for further participation of
    Czech companies in the field of research, mining and processing of resources in
    Mongolia. Nothing the considerable Czech experience in the uranium industry,
    the two Sides agreed that there was a considerable potential for cooperation in
    the exploration of uranium ore and connected activities.

Cooperation in Infrastructure, Construction and Transport

33. Both Sides recalled the previous activities of their companies in the field of
    construction and agreed that there is a considerable potential for further
    collaboration.

34. The two Sides agreed on possibilities of cooperation in particular in housing,
    industrial projects and related infrastructure (e.g. Erdenet, Sainshand),
    commercial centres and city illumination systems (Ulaanbaatar, Erdenet).

35. The Czech Side informed about interest of Czech companies to participate in the
    development of railway and road infrastructure, supplies of transport equipment
    as well as signal, radar and software equipment for airports.

Cooperation in the Field of Agriculture and Food Industry

36. The two Sides agreed that mutual activities in the field of agroindustry
    implemented within the framework of bilateral development cooperation and on
    commercial basis created a good reference for launching new commercial
    cooperation between their corporate sectors.

37. The cooperation in baking industry and recently completed projects of bakery
    lines were highlighted as a good example for further cooperation in this field as
    well as in flour milling, processing, packaging and storing of food products.

Cooperation in the Environmental Protection

38. Both Sides appreciated the traditional collaboration between Mongolia and the
    Czech Republic in the field of environmental protection, expressed willingness to
    continue mutual cooperation and readiness to exchange relevant environmental
    information and facilitate transfer of experience and knowledge.

39. The Czech Side informed about capabilities of Czech companies in providing
    environmental protection and services and stated that comprehensive


                                                                                        6
   information in this respect is available at a database of the Ministry of
   Environment of the Czech Republic available at the website:
   http://www.mzp.cz/Envibase.

40. The Czech Side pointed out that the expertise of Czech companies includes:
    ecological consultancy and engineering; measuring and monitoring equipment for
    environmental protection control, survey, decontamination and recovery of
    environmental damage and accidents; drinking water sources and distribution,
    waste water management; municipal and industrial waste management;
    geological and hydro-geological survey, renewable sources of energy and energy
    efficiency.

41. The Czech Side stated that a Czech company had participated in a bidding
    process for reconstruction of the water treatment plant in Ulaanbaatar and
    informed about a continuing interest in this project.

42. Both Sides agreed to encourage private sectors in the two countries to
    collaborate in the field of environmental protection.


IV. CZECH OFFICIAL DEVELOPMENT ASSISTANCE (ODA)

43. The Czech Side informed that the Czech government had identified Mongolia as
    one of the priority countries for long-term development co-operation, primarily
    due to the need for development co-operation, the exceptionally strong tradition
    of development co-operation with the Czech Republic and the potential for
    secondary benefits gained from development co-operation.

44. It was noted that The New Programme of Cooperation was initiated under the
    coordination of the Ministry of Foreign Affairs of the Czech Republic in 2011
    serving as a framework for mutual cooperation during the period 2010-2017.

45. It was mutually agreed that in the framework of development co-operation with
    Mongolia, the Czech Republic will focus on the areas of education, water supply
    and sanitation, other social infrastructure, energy production and delivery,
    business and services, and agriculture, forestry, and fishery considering the
    extent of Mongolia’s development needs, the limits on the Czech Republic’s
    human and financial resources, and the requirements of efficiency and visibility.
    The economic impact and continuity will be considered as one of the key
    outcomes of the development cooperation.




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46. It is understood that no value added tax, customs charges and other import fees
    occurring in execution or implementation of the current projects shall be payable
    for import of goods and trade in goods and services. The Mongolian Side will
    also continue to grant exemption from value added taxes levied on supplies of
    goods, works, and services purchased in Mongolia within the framework of
    development cooperation in Mongolia based on the Letter of Exchange to be
    signed between the Minister of Finance of Mongolia and the Ambassador of the
    Czech Republic for the future projects, thus confirming the friendly based
    relations and understanding between Mongolia and the Czech Republic.

47. Both Sides noted that the Ministry of Finance on the Mongolian Side and the
    Czech Development Agency on the Czech Side are recognized as the main
    partners and coordinators of the development cooperation between both states.

48. The Mongolian Side appreciated the information that the Ministry of Industry and
    Trade of the Czech Republic is prepared to implement two projects under the
    programme “Aid for Trade” focused on know-how in the fields of energy and
    mining industry as well as in the development of small and medium enterprises.
    Both Sides agreed that details of the projects would be worked out in cooperation
    between respective designated subjects.


V. OTHER MATTERS

49. Both Sides reviewed the implementation of the Memorandum of Understanding
    between the Czech Office for Standards, Metrology and Testing and the
    Mongolian Agency for Standardization and Metrology (MASM) in the fields of
    conformity assessment, standardization and metrology, signed in Prague on
    December 3, 2010. The two Sides stated with satisfaction that the cooperation in
    the project “Introduction of standards for measuring time and frequency
    correction and the national primary standards for measuring of length, time and
    frequency” had been developing successfully. The two Sides noted that transport
    and installation of the respective laboratory equipment was prepared and training
    of MASM personnel in the Czech Metrology Institute laboratories was also in
    progress. It was further noted that a metrological seminar in Mongolia will be
    realized in September 2012.

50. Referring to the traditional cooperation in the field of health, the Czech Side
    informed about the interest of Czech companies in deliveries of complete hospital
    equipment, medical devices and preparations for the Mongolian health sector.




                                                                                    8
51. The Czech Side mentioned the Article 53 of the Protocol of the Third Meeting of
    the Joint Committee and requested for the respective attention of the Mongolian
    Side.

52. The discussions between the two Sides took place in the spirit of cordiality,
    reflecting the friendly relations between the two countries and the desire to
    strengthen and further develop their economic and commercial relations on the
    basis of mutual benefit.

53. The Czech Side expressed appreciation to the Mongolian Side for the sincere
    welcome and warm hospitality accorded to them throughout their stay in
    Mongolia and for the excellent arrangements made for the Fourth Meeting of the
    Joint Committee.

54. The two Sides agreed to hold the Fifth Meeting of the Joint Committee in Prague
    at a date to be agreed upon through diplomatic channels.

55. Done and signed in Ulaanbaatar on April 25, 2012, in two originals in the English
    language.




 On behalf of the Czech Side                 On behalf of the Mongolian Side




     Milan Hovorka                                   Tsedev Dashdorj
     Deputy Minister                             Minister for Road, Transport,
  of Industry and Trade                            Construction and Urban
                                                         Development




                                                                                    9
                                                                Annex No. 1



                           List of the Czech Delegation


HE. Milan Hovorka                                         Head of
Deputy Minister                                           Delegation
Ministry of Industry and Trade

H.E. Václav Jílek
Ambassador
Embassy of the Czech Republic, Ulaanbaatar

H.E. Jakub Kulíšek                                        Member
First Deputy Minister
Ministry of the Environment

Mr Milan Holeček                                          Member
Chairman
Czech Office for Standards, Metrology and Testing

Mr Pavel Kavina                                           Member
Director of Department
of Energy Security
Ministry of Industry and Trade

Ms. Renata Oblezarová                                     Member
Deputy Department Director
and Head of Foreign Protocol
Ministry of Industry and Trade

Mr Miroslav Okrouhlý                                      Member
Director for Asian Countries
Ministry of Industry and Trade

Ms Kateřina Ďurove                                        Member
Expert
Ministry of Industry and Trade




                                                                         10
Ms Pavla Žáková                                        Member
Third Secretary
Embassy of the Czech Republic, Ulaanbaatar

Ms. Barbora Latečková                                  Member
Expert
Czech Development Agency

Ms.Iveta Chmielova Dalajková                           Member
Head of the Secretariat of the First Deputy Minister
Ministry of the Environment

Ms. Veronika Kapišovská                                Interpreter




                                                                     11
                     List of the Czech Business Mission


Czech Chamber of Commerce                      Mr Antonín Kerner
                                               Mr Petr Talafús

1. Geotermální Litoměřice, a.s.                Mr Karel Krejza

1. Primossa Corporation, a.s.                  Mr Pavel Moravec

Agromont Vimperk s.r.o.                        Mr Jaroslav Smola

Alta, a.s.                                     Mr Michal Šiler

Avers s.r.o.                                   Mr Martin Koška, Mr Jan Koška

Barx Energy                                    Mr Jiri Borovka
                                               Mr Lukas Kveton

Bohemia Müller                                 Mr Miroslav Polák

Bokra Energy                                   Mr Daniel Bojko

Charles University, Prague                     Mr Dobroslav Matějka
Faculty of Natural Sciences

Czech Export Bank                              Mr Michal Bakajsa

Czech Geological Survey                        Mr Petr Mixa

Czech-East Asian Chamber of Commerce           Mr Milan Klečka, Mr Zbyněk
                                               Trojan, Mr Josef Ermold

Eurosound, s.r.o.                              Mr. Jan Novotny

Fabricom CZ, a.s.                              Mr Vladimír Říha, Mr. Jiří
                                               Ticháček

Grandera, a.s.                                 Mr Jaroslav Vlach, Ms Ivana
                                               Körnerová, Mr Šimon Zemek,
                                               Mr Lubomír Svoboda

Hanzl, a.s.                                    Mr Petr Ramerth

Hyposwiss, AG                                  Mr Ivan Kormanak

Hokej Šumperk 2003, s.r.o.                     Mr Vladimír Velčovský



                                                                               12
Inekon Group, a.s.                   Mr Josef Hušek

Inter Techno Group                   Mr Valeri Grach,
                                     Mr. Dergeis Uleshtchenko

Jacobo Europe CZ                     Mr Petr Látal

Josa, s.r.o.                         Mr Pavel Sova

Kostečka Group, s.r.o.               Mr Michal Kostečka

KVS Ekodivize, a.s.                  Mr Tomáš Wontroba

Metrostav, a.s.                      Mr Martin Kulhavý

Modřany Power, a.s.                  Mr Štefan Silván, Mr Peter Kupčík

ND LOR Uničov, a.s.                  Mr Todor Kraevsky

Nemesis Consortia, a.s.              Mr Martin Sluka

Noen, a.s.                           Mr Vladimír Jaroš

Richter + Frenzel, s.r.o.            Mr Jan Víša

Stavební geologie – Strojges, a.s.   Mr Ivan Kraml

Ysat Plzeň, s.r.o.                   Mr Gustav Vacek

ZTC Holding                          Mr J.Chrpa




                                                                    13
                                                                        Annex No. 2

                          List of the Mongolian Delegation




Ts.Dashdorj                                       Head of delelgation
Minister for Roads, Transportation,
Construction and Urban Development
Head of the Mongolian delegation

S.Javkhlanbaatar
Deputy director, Department of Foreign
Trade and Economic cooperation, MFAT              Deputy Head of delegation

S.Tsoggerel
Ambassador of Mongolia
to the Czech Republic

Sh.Odonbaatar
Director, European department, MFAT

B.Ganzorig
Head of the Foreign investment and foreign trade agency

E.Oyuntegsh
General secretary,
Mongolian chamber of commerce and industry

S.Munkhbat
Senior Officer, Foreign cooperation department,
Mongolian chamber of commerce and industry

B.Khurenbaatar
Director, Development Financing and Cooperation department
Ministry of Finance

G.Ulziijargal
Senior officer, Ministry of Finance

T.Tserenpurev
Director, Energy policy Department, MMRE


                                                                                 14
B.Batkhuu
Director, Mining and heavy industry policy Department, MMRE

S.Battulga
Deputy director, Geology policy Department, MMRE

Ts.Bayarbaatar
Director, Energy policy Department, MMRE

B.Tseveen
Director, Power plant IV

G.Gantumur
Director, Mongolian Agency for
Standardization and Metrology

G.Zorigoo
Head of Section, Mongolian
Agency for Standardization and Metrology

S.Dambii
Deputy Director, Department of Policy monitoring,
Ministry of Labor and Social Welfare

L.Munkhzul
Senior officer, Department of Strategy planning,
Ministry of Labor and Social Welfare

Ch.Battuvshin
Officer, Department of Treaty and Foreign cooperation

О.Bolortsetseg
Officer, Foreign cooperation Department,
Ministry of Justice and Home Affairs

А.Batzaya
Officer, Foreign cooperation Department,
Ministry of Defence

D.Jantsankhorol
Director, National Centre of Livestock Gene pool




                                                              15
D.Batmunkh
Senior Officer, Animal Husbandry policy Department,
Ministry of Food, Agriculture and Light Industry

D.Batzorig
Officer, Foreign cooperation Department, Ministry of Food,
Agriculture and Light Industry

B.Yanjmaa
Director, Foreign cooperation Division, Ministry of Health

B.Byambadorj
Director, First General Hospital
B.Saran
Deputy Director, Department of Environment and Natural Resources,
Ministry of Nature, Environment and Tourism

R.Erdenehtsetseg
Deputy Director of Department, Ministry of Roads,
Transportation, Construction and Urban Development

B.Nyamdavaa
Director, Foreign cooperation Department,
Ministry of Roads, Transportation, Construction and Urban Development

А.Lkhamserjid
Officer, Foreign cooperation Department,
Ministry of Roads, Transportation,
Construction and Urban Development

М.Ganchimeg
Head, Foreign cooperation Division,
National Statistical office

Kh.Mandakhtsetseg Secretary of the Mongolian side
for the Mongolia-Czech Intergovernmental Committee meeting




                                                                        16
                                                                      Annex No. 3



                                   AGENDA

                          for the Fourth Meeting
                          of the Joint Committee
                                   between
                  the Czech Republic and Mongolia


I.      Opening Remarks/Presentation of Delegations

II.     Overview on Economic Development

III.    Review of Bilateral Trade Relations

IV.     Discussion on Exploring the Ways to Promote Bilateral Trade and
        Economic Relations and Cooperation

        a) Trade and Investment
        b) Energy and Natural Resources
        c) Infrastructure, Construction and Transport
        d) Agriculture and Food Industry
        e) Environmental Protection

V.      Official Development Assistance (ODA)

VI.     Other Matters

VII.    Dates and Venue for the Next Meeting of the Joint Committee

VIII.   Adoption of the Protocol

IX.     Closing Remarks

X.      Signing of the Protocol of the 4th Meeting of the Joint Committee




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