LAW OF MONGOLIA

May 11, 2017 Ulaanbaatar city

LAW ON AUTOROADS

/Revised edition/

CHAPTER ONE

GENERAL PROVISIONS

Article 1.The Purpose of Law

1.1.The purpose of this Law is to regulate relations between an organization and an individual to plan, construct, finance, possess and exploit auto roads.

Article 2.Legislation on auto roads

2.1.Legislation on auto roads comprises of the Constitution of Mongolia, Civil Law, Law on Auto transports, Law on Traffic Safety, this Law and other legislation enacted in compliance with them.

2.2.If the international treaties to which Mongolia is a party provides otherwise than this Law, the international treaties shall prevail.

Article 3.Applicability of the Law

3.1.This Law shall be effective to regulate matters related to planning of national auto road network on the territory of Mongolia, construction, financing, possession, exploitation, maintenance, repair and control of auto roads, road structures regardless of property type and status.

Article 4.Legal definitions

4.1.The following terms used in this law shall be interpreted as follows:

4.1.1."auto road" means any compact, gravel paved road, street with road structure, maintained and upgraded; and regular dirt road designated for transport vehicle to travel;

4.1.2."auto road registration and information database" means electronic database which contains key data, cost value and other information related to the auto road and road structure;

4.1.3."auto road maintenance" means daily work and service performed for the purpose to maintain auto road and road facility exploitation at the regular level;

4.1.4."auto road norm, normative, technical documentation" means norms, procedures, rules, technical regulation, instructions, albums, methodology, documents and standards related to budget pricing formation approved by competent organization;

4.1.5."auto road routine repair" means regularly executed work for the purpose to ensure safe condition of an auto road and road structure, to ensure traffic safety and improve exploitation level;

4.1.6."auto road scheduled repair" means scheduled work to be executed for the purpose to determine an auto road and road structure exploitation level and extend exploitation term without changing classification and layout design;

4.1.7."auto road overhaul maintenance" means scheduled construction work to be executed for the purpose to upgrade and improve auto road and road structure utilization classification, category and exploitation level;

4.1.8."auto road land strip" means area specified in Article 16 of this Law that is designated to ensure traffic safety, carry out technological operations and to expand auto road in the future;

4.1.9."Municipal auto road of entities and organizations" means auto road constructed for personal use on the own territory of entities and organizations;

4.1.10."contractor" means an authorized legal entity to perform auto road and road structure drawings and design, construction, overhaul maintenance, regular maintenance, technical and technological control on the basis of agreement with a Client;

4.1.11."road structure" means all types of bridge, overpass, viaduct, road for bicycle, pedestrian and disabled, drainage devices, cuttings, tunnel, equipment to regulate traffic movement and ensure traffic safety, tolls points within the auto road strip, parking and other structures;

4.1.12."road manager" means an authorized legal entity to perform maintenance and repair to ensure auto road and road structure exploitation readiness and traffic safety on the basis of agreement with a Client;

4.1.13."road edge" means strips on two sides of roadway;

4.1.14."road intensity" means an indicator provided in quantity of auto vehicles on the auto road and road structure for unit period of time;

4.1.15."roadway" means section of the auto road and road structure designated for auto vehicles;

4.1.16."special lane of roadway" means section of auto road and road structure designated for public, emergency and service transport;

4.1.17."advisory service" means meaning specified in Clause 5.1.15 of the Law on procurement of goods and services with state municipal funds;

4.1.18."drawing design" means integrated documentation including exploration and geological recommendation, geodesy measurement report, environmental study, detailed drawings, technical requirements required for construction, repair, renovation of auto roads and road structures;

4.1.19."design drawing author" means a legal entity which is certified to develop auto road, road structure design and budget;

4.1.20."design drawing verification" means an activity to provide expert recommendation on suitability of auto road and road structure design drawings, engineering solution and estimate with environmental, climatic and geographic conditions; compliance of traffic movement coordination and safety with auto road and road structure norm, normative and technical documentation requirements;

4.1.21."contingencies" means additional mandatory work to be executed during the construction of auto roads and road structures;

4.1.22."National auto road network of Mongolia" means auto road network that consists of international, national, metropolitan, local and special auto roads within the territory of Mongolia;

4.1.23."metropolitan auto road" means an auto road in the territory of Ulaanbaatar city, its satellite towns and its districts;

4.1.24."local auto roads" means auto roads connecting town, soum, urban area, farm, industrial complex of agriculture in the territory of provinces and internal auto roads within enterprises;

4.1.25."international auto road" means an auto road on which international auto transport vehicles can travel on the basis of international agreements of Mongolia;

4.1.26."technical and technological control" means activities including review and oversee compliance of construction and repair of auto roads and road structures to be in compliance with approved design drawings, budget, norm, normative and technical documentation, provide advices and certify work performance;

4.1.27."special purpose auto road" means an auto road designated for special purpose transportation services;

4.1.28."national auto road" means an auto road which connects the capital city with provincial centers, roads connecting provincial centers and with border ports;

4.1.29."control strip area" means an area that limit passenger's range of vision and required to ensure safety during constriction, repair and exploitation of auto road and road structures;

4.1.30."quality guarantee period" means a specified period of time to be responsible for quality since commissioning of auto road and road structure, to repair damages occurred due to construction technological inaccuracies.

Article 5.State guidelines on development of national auto road network

5.1.The state shall adhere following principle to develop national auto road network:

5.1.1.develop national auto road network in conjunction with integrated development policy and plan;

5.1.2.build auto roads and road structures in accordance with standards, norm and normative approved by the competent organization;

5.1.3.activities associated with construction, ownership, exploitation, maintenance, protection and repair shall not have any adverse impact to human health and environment;

5.1.4.integrated structure and system to develop and exploit national auto roads shall be in place.

Article 6.Financing of auto roads and road structures

6.1.Activities such as development of design drawings, construction, repair, maintenance and technological control shall be financed by the national and municipal budget, foreign loan and assistance, investments of domestic and foreign private sectors and other sources.

6.2.The State shall support national and foreign investments in auto road sector development within state and private sector partnership framework.

6.3.The Government shall approve the list of auto roads and road structures to be constructed with private funds within state and private sector partnership based on the proposal of the state principal administrative organization.

Article 7.Insurance of auto roads and road structure

7.1.Property and responsibility insurance may be obtained when providing advisory services for construction, possession and exploitation of auto roads and road structures.

7.2.Insurance of auto roads and road structure shall be included and executed in the design tasks and work agreement.

Article 8.Auto road norm, normative, technical documentation, norm and normative fund

8.1.Mongolia shall maintain an integrated structure of auto road norm, normative and technical documentation.

8.2.A Government member, appropriate competent organization in charge of auto road matters shall approve auto road norm, normative and technical documentation.

8.3.Auto road norm, normative and technical documentation are prohibited to be duplicated without authorization from state central administrative organization in charge of auto road matters.

8.4.An "Auto road norm, normative fund" to develop, approve and upgrade auto road norm, normative and technical documentation shall be in place and the fund shall comprise of following sources:

8.4.1.revenue amounting to 0.4 per cent of budgeted cost of auto road construction, repair, feasibility study, design and drawings;

8.4.2.revenue from sales of auto road norms, normatives and technical documentation;

8.4.3.donation provided for the purpose to review and update norm, normative and technical documentation;

8.4.4.other.

8.5.Funds of "Auto road norm, normative fund" shall be used for activities to draft, duplicate, promote and organize auto road and road structure norm, normative and technical documentation.

8.6.A Government member in charge of auto road matters shall approve "Regulation of Auto road norm, normative fund operations"

CHAPTER TWO

Mandate of State organization in charge of auto road matters

Article 9.Government mandate

9.1.The Government shall execute the following mandate on auto roads:

9.1.1.ratify, enforce and oversee state policy on development of auto road sector of Mongolia;

9.1.2.ensure enforcement of legislation on auto roads;

9.1.3.approve policy on development of national auto road network;

9.1.4.draft investment program and budget of auto road sector and submit to the State Great Khural;

9.1.5.grant authorization to resolve matters related to construction, maintenance, repair of auto roads and road structures with foreign loan and assistance, enter into an agreement with an investor;

9.1.6.provide integrated support for auto road repair and maintenance, contract auto road research and development organization responsible to upgrade and improve road standards, norm, normative and technology;

9.1.7.for the purpose to ensure standard exploitation conditions and traffic safety of international, national auto roads and road structures, specify funds required for auto road maintenance and scheduled repair set by norm and normative in the state budget annually and ensure execution;

9.1.8.approve regulation on construction and exploitation of special purpose auto roads and road facilities.

Article 10.Mandate of state central administrative organization in charge of auto road matters

10.1.A state central administrative organization in charge of auto road matters shall ensure the following mandate:

10.1.1.ensure execution of legislation on auto roads, Government decisions;

10.1.2.approve and execute regulation on training, refreshment trainings and award professional degrees for auto road sector skilled human resources;

10.1.3.coordinate development of investment plan to develop international, national auto road network based on the municipal economic and social benefits and priorities, submit to the Government for approval and ensure the execution;

10.1.4.coordinate activities to obtain expert recommendation on auto road and road structure design, technology and quality of material from the professional research and development organization; upgrade norm, normative, technical documentation and cost formation, introduce scientific achievements, new technologies;

10.1.5.execute construction, repair, maintenance, advisory services, client and technical, technological control of international, national and special purpose auto roads and road structures with state budget, foreign loans and assistance and other sources of funding;

10.1.6.oversee construction, repair and design drawings of auto road and road structures, approval and execution of norm, normative and technical documentation associated with technical and technological control;

10.1.7.develop, submit for approval and ensure execution of construction, repair and exploitation of special purpose auto road;

10.1.8.facilitate development and execution of policy and master plan to develop metropolitan and municipal auto road development with competent management and methodology;

10.1.9.arrange integrated policy, expert management and coordination for exploitation, maintenance and repair of international, national and special purpose auto roads, ensure traffic safety and regular conditions of exploitation;

10.1.10.coordinate commissioning of international, national and special purpose auto roads and road structures, register in the database, incorporate into current assets, evaluate depreciation and amortization, and remove from registration;

10.1.11.assign tasks and directives to organization and entities to ensure entirety and standard exploitation conditions of an auto road and ensure execution;

10.1.12.conduct a risk assessment on accident grounds of sites with frequent accidents on international, national and special purpose roads and take appropriate actions.

10.2.A state central administrative center in charge of auto road matters may conclude an agreement with a legal entity with a special permit and contract auto road maintenance and scheduled maintenance to perform the work.

Article 11.Functions of an organization in charge of auto road research and development

11.1.An organization in charge of auto road research and development shall execute following functions:

11.1.1.ensure execution of auto road legislation, Government decisions;

11.1.2.develop and promote auto road and road structure norms, normative documentation, coordinate execution;

11.1.3.coordinate and oversee maintenance and repair of international, national auto roads and road structures;

11.1.4.coordinate activities to account and allocate auto road and road structure norm and normative fund;

11.1.5.coordinate activities to provide refreshment and specialized trainings, award professional degrees to auto road sector skilled human resources;

11.1.6.execute auto road sector research, study, scientific and technological policy;

11.1.7.review, provide recommendation and endorse results on component norms of materials and production to be used for construction and overhaul maintenance of auto roads and road structures;

11.1.8.organize activities to certify auto road, road structure, railway, airport projects, select and grant expert certification to individuals and legal entities;

11.1.9.keep track of registration and database on auto roads and road structures, create integrated database;

11.1.10.develop, submit for authorization and execute auto road price formation, budgeted cost, benchmark rating, price index;

11.1.11.coordinate activities to review and authorize auto road, road structure manufacturing technology manual;

11.1.12.execute technical and technological control auto road, road structure on the basis of an agreement with a client;

11.1.13.employ mobile patrol to ensure auto road, road structure exploitation readiness and traffic safety;

11.1.14.for the purpose to determine auto road, road structure quality and exploitation rate to conduct comprehensive study and determine extent and timeline of scheduled and overhaul maintenance;

11.1.15.other as specified in the legislation.

11.2.the functions can be executed by a non-governmental organization based on the decision of an authorized organized with functions provided in 11.1.2, 11.1.5 of this Law.

Article 12.Mandate of Governor of province, capital city, soum, districts

12.1.Governor of province, capital city, soum, district shall execute following mandate on auto roads:

12.1.1.negotiate and draft jointly with a state central administrative organization in charge of auto road matters the policy and master plan to develop metropolitan and municipal auto road network in compliance with the state policy to develop national auto road network; submit for approval and ensure execution;

12.1.2.execute legislation, Government decisions on auto roads, decision of a state central administrative organization in charge of auto road matters within its jurisdiction;

12.1.3.coordinate activities to account and allocate funds in the metropolitan and municipal auto road fund;

12.1.4.coordinate activities on auto road, road structure construction, repair and maintenance to be constructed with metropolitan and municipal funds;

12.1.5.assign tasks and directives on ensuring and protecting entirety of international, national, municipal and special purpose roads to organizations and individuals of the jurisdiction, ensure execution;

12.1.6.develop regulation on financing, construction, exploitation, repair, maintenance of metropolitan auto roads, collaborate with state central administrative organization in charge of auto road matters, submit to the metropolitan Citizens' Representative Council for approval and execute the regulation;

12.1.7.in case of emergency to repair damage of auto roads triggered by the natural disaster, unforeseen accidents and incidents coordinate activities to enforce later to be reimbursed relocation of transport vehicles, communication equipment, mechanisms and assets with reimbursement and relocate required personnel from entities and organizations within the jurisdiction

12.1.8.coordinate and regulate traffic movement within its jurisdiction in accordance with the legislation;

12.1.9.Governor of province, capital city, soum, district shall collect and consider proposals and recommendations from a state central administrative organization in charge of auto road matters prior of land master plan development.

Article 13.Participation of Non-governmental Organizations

13.1.Non-governmental organization of auto road sector can run operations including review and update legislation, norm, normative and technical documentation on auto roads, upgrade quality and access of state services, train and retrain professionals of the sector, award professional degrees and protect rights of auto road workforces.

13.2.A Government member in charge of auto road matters shall make a decision to contract a non-governmental organization for works specified in Clause 13.1 of this Law on contract basis.

CHAPTER THREE

Auto road network, auto road classification, composition, right holder, proprietor

Article 14.Auto road network

14.1.The National auto road network of Mongolia consists of international, national, metropolitan, local and special purpose auto roads.

14.2.The Master plan to develop international and national network shall be developed by the central public administration organization in charge of auto road matters and approved by the Government.

14.3.A Governor of province and capital city shall develop a metropolitan and municipal auto road network development master plan aligned with the international and national auto road network development master plan. The plan shall be approved by the metropolitan Citizens' Representative Council.

14.4.A Governor of province, capital city shall obtain proposals and recommendations of the state central administrative organization in charge of auto road matters on development of the plan stipulated in Clause 14.3 of this Law.

Article 15.Auto road classification

15.1.Auto roads shall be classified as following for its purpose:

15.1.1.international auto roads;

15.1.2.national auto roads;

15.1.3.municipal auto roads;

15.1.4.metropolitan auto roads;

15.1.5.special purpose auto roads;

15.1.6.internal auto roads of an entity, organization.

15.2.A state central administrative organization in charge of auto road matters shall make a decision on classification of auto roads and changing the classification.

15.3.An auto road shall have a route name and number.

15.4.A state central administrative organization in charge of auto road matters shall define route, route name and number of international, national and special purpose auto roads; a Governor of the jurisdiction shall negotiate with a state central administrative organization in charge of auto road matters and define route, route name and number of metropolitan and municipal auto roads.

15.5.An auto road service rate and assumption shall be classified by the main design and classification shall be determined. Determination of auto road classification, rating and requirements shall be regulated by the norm, normative technical documentation.

Article 16.Auto road incorporation

16.1.An auto road shall incorporate from following elements:

16.1.1.roadway;

16.1.2.road edge;

16.1.3.road structure;

16.1.4.road land strip;

16.1.5.strip area for inspection;

16.1.6.auto road special lane.

16.2.Roadway width of an international, national and special purpose auto road shall be 100 meters (50 meters to both sides of a median), roadway width of municipal national auto road shall be 60 meters (30 meters to both sides of a median).

16.3.Governor of province, capital city shall determine roadway width of metropolitan, municipal and urban area road way in accordance with the associated norms and regulations.

16.4.In exceptional cases the width of auto road land strip of international, national and special purpose auto road shall be determined differently depending on the auto road and territory specific characters by the state central administrative organization in charge of auto road matters; and the width of metropolitan and municipal auto road strips shall be determined differently by a Governor of province and capital city within the norm and regulation range.

16.5.A state central administrative organization in charge of auto road matters shall determine control strip area dimensions of international, national and special purpose roads ased on the design project; and a Governor of province and capital city shall determine metropolitan and municipal control strip area width based on the design project.

16.6.Prohibited to grant land for ownership within international, national and special purpose auto road land strip. A state central administrative organization in charge of auto road matters shall make a decision on provisional ownership of land.

Article 17.Possessor, proprietor of auto road and road structure

17.1.International, national and special purpose auto roads, metropolitan and municipal roads shall be the state public property.

17.2.A possessor of international, national and special purpose auto road and its strip area shall a state central administrative organization in charge of auto roads and a party authorized by the organization.

17.3.A possessor of metropolitan, municipal auto road and its strip area shall be a Governor of province, capital city and a party authorized by the Governor.

17.4.An investor for special purpose auto road may possess an auto road on the basis of an agreement concluded with a state central administrative organization in charge of auto road matters.

17.5.Auto road possessor shall be responsible for repair and maintenance of auto road and road structures under its possession on the basis of agreement specified in Clause 17.4 of this Law.

CHAPTER FOUR

Building auto roads

Article 18.Feasibility study of auto roads

18.1.A client of an auto road shall coordinate feasibility study of an auto road.

18.2.A work assignment to develop feasibility study of international, national and special purpose roads shall be approved by a state central administrative organization in charge of auto road matters; a Governor of province, capital city shall approve metropolitan and municipal roads' and an auto road Client shall approve for other auto roads'.

Article 19.Design drawings of auto roads and road structures

19.1.A professional organization with a special permit shall perform an auto road and road structure design drawings according to the design scope assignment which is approved by a Client.

19.2.Requirements for auto road, road structure design project:

19.2.1.comply with design drawings scope, recommendation on exploration and geological survey, geodesy measurements, technical conditions, norm, normative and technical documentation;

19.2.2.comply with conditions to have no adverse impact on passengers' hygiene, traffic safety, environmental, historical and cultural heritage;

19.2.3.auto road and road structures to be equipped with viaduct, underpass, overpass in order to ensure conditions to not restrict environment, migration, movement of wild animals;

19.2.4.develop technical requirements inclusive of requirements for materials to be used for construction, repair of auto roads and road structures, specific technological steps;

19.2.5.design drawings of auto roads and road structures shall be verified and certified by a competent party.

19.3.A Government member in charge of auto road matters shall approve a regulation to verify and provide recommendations on auto roads and road structures.

19.4.An organization, author shall be responsible for inaccuracies of auto road and road structure design drawings and shall compensate the occurred loss.

19.5.A party which completed verification shall be responsible for inaccuracies of a recommendation on design drawing technical solution which is specified in Clause 19.4 of this Law.

Article 20.Construction of an auto road and road structure

20.1.Construction of auto road and road structure shall be executed by a legal entity with a special permit on the basis of applicable legislation and agreement concluded with a client.

20.2.A client shall provide design drawings, road line (horizontal alignment), geodesy points, land ownership permit required to start construction and smooth execution of auto road and road structure to a contractor and settle matters to make auto road construction site available.

20.3.Prior of disturbing land and its subsoil for the purpose to construct auto road and road structure, engage paleontological, archeological and ethnographical professional organization to conduct preliminary exploration and research and provide recommendations.

20.4.Prohibited to execute construction of auto road and road structure without approved design drawings with verification recommendations and technical and technological control.

20.5.A contractor for construction of auto road and road structure must comply with approved design project, norm, normative, technical documentation, technical, technological, hygiene, environment and traffic safety requirements.

20.6.If required to temporarily suspend operations of railway, communications and power line, potable and sewage water pipes and other facilities in order to construct auto road and road facility, a permit must be obtained in advance from a competent organizations.

20.7.Prohibited to temporarily suspend and interrupt regular operations of railway, communications and power line, potable and sewage water pipes and other facilities without permission of a competent organization specified in Clause 20.6 of this Law.

20.8.Mandatory additional works to be executed during construction of auto road and road structures shall be financed from the contingencies.

20.9.Contingencies shall be included in the total budget cost at ratio specified in the auto road and road structure norm, normative and technical documentation.

20.10.Government members in charge of finance and budget and auto road matters shall jointly approve a regulation to allocate contingency costs.

20.11.All levels of state organizations, entities and individuals must provide support to ensure smooth and consistent construction of auto roads and road structures.

Article 21.Technical and technological control of auto road construction

21.1.Technical and technological control of auto road and road structure construction shall be executed on the basis of a contract signed by a competent organization with a client.

21.2.A Government member in charge of auto road matters shall approve a regulation to execute technical and technological control of auto roads and road structures.

21.3.Expenses for advisory service of technical and technological control and client control shall be included in the budgeted cost of the auto road and road structure.

CHAPTER FIVE

Auto road maintenance and repair

Article 22.Auto road maintenance and repair

22.1.An auto road possessor shall provide expert management, methodology and control for auto toad maintenance and repair.

22.2.Auto road maintenance and repair shall be classified as following:

22.2.1.maintenance;

22.2.2.routine repair;

22.2.3.scheduled repair;

22.2.4.overhaul maintenance;

22.2.5.repair depending from unpredicted factors.

22.3.Requirements for auto road maintenance and repair priorities shall be determined by norm, normative and technical documentation.

22.4.Road manager shall execute auto road maintenance, routine and scheduled repair and repair caused by unforeseen factors. If required a contractor for routine repair and repair caused by unforeseen factors shall be selected to execute repairs on contract basis.

22.5.A contractor to execute work on overhaul maintenance of auto roads and road structures on contract basis can be selected from parties with a special permits.

22.6.A contractor to execute technical and technological control of auto roads and road structures' overhaul maintenance on contract basis can be selected from parties with a special permit.

22.7.Auto road repair and routine repair shall be financed on the basis of the auto road exploitation readiness level.

22.8.Government members in charge of finance and budget and auto road matters shall jointly approve financing norm, normative and regulation on the basis of the auto road exploitation readiness level.

Article 23.Organization responsible for auto road maintenance and routine repair

23.1.A manager organization shall be responsible to ensure auto road exploitation, traffic safety and execute maintenance and routine repair on regular basis. A road manager organization shall be a state and privately owned legal entity with a special permit to execute road maintenance and repair.

23.2.The road possessor shall determine road route and length to be managed by the road manager.

23.3.Road manager shall have following responsibilities:

23.3.1.ensure readiness of auto road exploitation and traffic safety;

23.3.2.execute inspection, maintenance and repair on regularly basis in accordance with auto road regulation, obtain information on road and road structures damages from passengers on auto road and immediately take necessary actions;

23.3.3.track records of auto road registration and database, enter to the integrated database;

23.3.4.protect auto road land strip and control strip area;

23.3.5.provide information on regular basis to auto road possessors and proprietors on road exploitation;

23.3.6.immediately inform public on traffic congestion and damages caused by disaster and accidents and immediately clear obstacles;

23.3.7.prevent from and oversee over-size and overweight vehicles than permitted and chain-wheel vehicle without special protection to be on road

23.3.8.coordinate intensity register of auto road traffic within the territory in accordance with appropriate regulation.

Article 24.Auto road fund

24.1.An "Auto road fund" shall be in place with a purpose to finance maintenance, repair and other activities related to international, national, metropolitan and municipal auto roads.

24.2.Auto roads shall be classified as national, metropolitan and municipal.

24.3.An international, national road maintenance and repair shall be financed with funds of state auto road fund; metropolitan and municipal auto road maintenance and repair shall be financed with funds of metropolitan and municipal road fund accordingly.

24.4.Auto road maintenance, routine repair and repairs due to unforeseen factors shall be financed with funds of auto road fund as top priorities.

24.5.The auto road fund shall provide financing for expenses required to strengthen industrial base of an organization in charge of auto road repair and maintenance, conduct research and development, upgrade technology, organize an independent control, contract mobile patrol, train specialists, execute legislation on auto roads.

24.6.The National auto road fund shall under supervision of a state central administrative organization and the municipal auto road fund shall be under supervision of a Governor of province and capital city.

24.7.The Government shall approve a regulation to account and allocate funds in auto road fund.

24.8.Prohibited to use funds of the Auto road fund for other purposes other than specified in Clauses 24.3, 24.4, 24.5 of this Law.

24.9.A state central administrative organization in charge of auto road matters shall approve and execute work scope and expenditure to be contracted for the specific year with funds of state auto road fund; a governor of province, capital city shall approve and execute work scope and expenditure to be contracted for the specific year with funds of metropolitan and municipal auto road fund accordingly.

Article 25.Sources for Auto road fund resources

25.1.The National auto road fund resources shall comprise of the following sources:

25.1.1.not less 20 per cent of excise taxes imposed on imported vehicles;

25.1.2.funds from foreign loan, assistance and donation;

25.1.3.funds allocated from the state budget;

25.1.4.charges for exploitation of international, national and special purpose auto roads;

25.1.5.penalties imposed to a violator of traffic safety on international, national and special purpose auto road and legislation on auto roads;

25.1.6.fees and charges for international transportation vehicles transiting through the territory of Mongolia;

25.1.7.charges for services provided in auto road land strip pursuant to obtained permits;

25.1.8.others.

25.2.Metropolitan and municipal auto road fund assets comprise of the following sources:

25.2.1.taxes on auto transports and self-propelled devices;

25.2.2.funds allocated from metropolitan and municipal budgets;

25.2.3.foreign loans, assistance and donation funds;

25.2.4.penalties imposed to a violator of traffic safety on metropolitan and municipal auto roads and legislation on auto roads;

25.2.5.charges for utilization of metropolitan and municipal roads, parking;

25.2.6.charges for services provided in auto road land strip pursuant to obtained permits;

25.2.7.others.

Article 26.Auto road council

26.1.An Auto road council comprising of road users and civil representatives shall execute the public control on auto road readiness level, traffic safety and auto road fund revenues and expenditures.

26.2.A Government member in charge of auto road matters shall approve the regulation on Auto road council structure and its operations.

26.3.Auto road possessor, proprietor and manager shall be responsible to execute recommendations of the Auto road council on matters related to auto road readiness level, ensure traffic safety and operations of the auto road fund.

CHAPTER SIX

Auto road registration and information

Article 27.Auto road registration and information database

27.1.The auto road registration and information database shall comprise of the following information associated with auto roads and road structures:

27.1.1.technical and exploitation indicators;

27.1.2.capacity, classification, condition;

27.1.3.budgeted cost, registration and information on depreciation and amortization;

27.1.4.commissioned date;

27.1.5.information on maintenance of auto roads and road structures' maintenance;

27.1.6.information on damages to auto roads and road structures and road and traffic accidents;

27.1.7.information about an organization that built, maintained and repaired auto roads and road structures;

27.1.8.other.

27.2.A state central administrative organization in charge of auto road matters shall be responsible to maintain registration and information database of international, national and special purpose roads; a Governor of province and capital city shall be responsible to maintain municipal auto road registration and database.

27.3.Auto road manager organization shall maintain registration and database of roads and road structures under their management and deliver related information annually to an auto road possessor within specified timeline.

27.4.A Government member in charge of auto road matters shall approve and execute a regulation on maintaining and providing information on integrated database of international, national and special purpose roads and a Governor of province and capital city shall approve and execute a regulation on maintaining and providing information on integrated database of metropolitan and municipal auto roads.

CHAPTER SEVEN

Exploitation of auto roads and road structures

Article 28.Commissioning of auto roads and road structures

28.1.A state central administrative organization shall be responsible for commissioning of an international, national and special purpose road, a Governor of capital city, province shall be responsible for commissioning of metropolitan and municipal auto road and road structure.

28.2.A Client organization shall be responsible for commissioning of auto roads and road structures except cases specified in Clause 28.1 of this Law.

28.3.A Government member in charge of auto road matters shall approve a regulation to launch, continue, and commission an auto road and road structure construction.

28.4.Quality guarantee period for newly constructed auto road and road structure shall be three years for each contractor and a legal entity in charge of technical and technological control.

Article 29.Exploitation of auto roads and road structures

29.1.An individual, legal entity has a right to exploit auto road and road construction by designation regardless of its jurisdiction and ownership status.

29.2.Auto road user holds following rights and responsibilities:

29.2.1.except cases specified by the legislation, to exploit auto roads and road structures free of charge;

29.2.2.file a complaint and urge relevant organization, official on auto road maintenance, repair and traffic safety;

29.2.3.receive reimbursement for any loss caused by irresponsibility of an organization in charge for auto road repair and maintenance;

29.2.4.comply with this Law and associated legislation;

29.2.5.immediately inform the organization on charge about severe damages and violations on auto roads that may cause loss to others;

29.2.6.in case of disturbing entirety of auto road such as dig and cut road, build exit and entry for mandatory construction, expansion of facilities, connection to the piping system, a permit must be obtained from auto road proprietor organization and hand over to the proprietor after completion of work ensuring regular exploitation.

29.3.Auto road user is prohibited to conduct the following actions:

29.3.1.damage auto roads and road structure;

29.3.2.make changes to the auto road design, plan and designated without appropriate permission;

29.3.3.hinder auto road construction, repair, maintenance and protection;

29.3.4.dispose garbage, disgorge water, place stones, metal items on roadway, edge, strip area of auto roads, place address board, promotional boards, items that hinder traffic and limit range of vision;

29.3.5.allow transport vehicles without special protection or chain vehicles and over size, over capacity and over weight vehicles that exceed auto road restrictions to be on the road;

29.3.6.run business activities within auto road land strip that are unrelated to auto road exploitation and without permits from competent organizations;

29.3.7.other activities prohibited by the legislation.

Article 30.Fee for exploitation of auto roads and road structures

30.1.The Government shall regulate road route, road length and charges for exploitation of international, national and special purpose auto roads and road structures; Citizens' Representative Council of province, capital city shall regulate road route, road length and charges for exploitation of metropolitan and municipal auto roads and road structures accordingly.

30.2.A Government member in charge of auto road matters shall approve a regulation on fees for exploitation of international, national and special roads.

30.3.A Governor of province, capital city shall approve and enact a regulation on fees for exploitation of metropolitan and local auto roads and road structures.

30.4.Municipal self-governing and administrative organizations are prohibited to establish and operate a unit to collect fees and charges on international, national auto roads and road structures.

30.5.Transportation vehicles designated for disabled people shall be free of fees to exploit auto road and road structures.

Article 31.Closing of auto roads and road structures

31.1.Auto roads may be temporarily closed in cases of potential danger to auto road, road structure and traffic movement, infeasibility to drive on roadway and auto road requires mandatory repair.

31.2.A Government member in charge of auto road matters shall approve a procedure to close auto roads and road structures, change road routes.

Article 32.Dispute resolution

32.1.A dispute related to constriction, possession and exploitation of auto roads shall be resolved by a competent organization.

32.2.If a competent organization specified in Clause 32.1 of this Law fails to make a decision on a dispute, the case shall resolved by the court.

CHAPTER EIGHT

Special permit to provide advisory services to construct, repair, maintain roads

Article 33.Special permit to provide advisor services to construct, repair and maintain roads

33.1.A special permit to provide services to develop feasibility study, design drawings of auto roads and road structure, construct, maintain, repair auto roads, provide technical and technological control of auto roads shall be granted by the state administrative organization in charge of the auto roads in accordance with the Law on Special permit of enterprise activities.

33.2.An applicant applied for a special permit to provide advisory service to develop feasibility study and design drawings, construct, maintain, repair and conduct technical and technological control of auto road and road structure shall comply with requirements specified in Law on the Special permit of enterprise activities and comply with additional requirements to confirm availability of skilled labor force and technical equipment capacity. The applicable regulation shall be approved by a Government member in charge of auto roads.

CHAPTER NINE

National control of auto roads

Article 34.National control of auto roads

34.1.A state control on legislation execution applicable for construction, maintenance, repair, protection and exploitation of auto roads and road structures shall be executed by an auto road proprietor, possessor, manager organization and a competent control organization, all levels Governors, relevant official within their mandate in accordance with the Law on State control and inspection.

CHAPTER TEN

Miscellaneous

Article 35.Liabilities for the breaches of legislation on auto road

35.1.A competent organization, official shall ensure that a liable person shall pay a compensation for damage caused to others due to violation of legislation on auto roads in accordance with applicable legislation.

35.2.If legislative organization confirms damage caused to a citizen, legal entity due to incompliance of auto road and road structure exploitation, the road manager and proprietor shall pay a compensation for damage.

35.3.Reimbursement of damage by a violator of a legislation on auto roads shall not serve as a basis to indemnify the violator from other legal liabilities.

35.4.If breach of legislation, standards, norm, normative on auto roads and disruption of regular exploitation conditions do not constitute a criminal offence, a competent official shall impose penalty in accordance with applicable clauses specified in the Violation Law.

Article 36.Entry into force

36.1.Clause 25.1.1 of Article 25 of this Law shall enter into force on January 1, 2018.

36.2.This Law shall enter into force on July 1, 2017

SPEAKER OF THE PARLIAMENT OF MONGOLIA M.ENKHBOLD