(2022.12.03-ны өдрийн орчуулга)                                          Unofficial translation

LAW OF MONGOLIA

May 11, 2017                                                                                            Ulaanbaatar city

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 arisen in connection with planning, constructing, financing, possessing and exploiting auto roads.

Article 2.Legislation on auto roads

2.1.Legislation on auto roads is comprised of the Constitution of Mongolia, the Civil Code, the Law on Auto transports, the Law on Traffic Safety, this Law and other legislative acts enacted in compliance with them.

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

Article 3.Applicability of the Law

3.1.This Law shall apply to regulate relations in connection with the planning of national auto road network on the territory of Mongolia, construction, financing, ownership, possession, exploitation, maintenance, repair and control of auto roads, road structures regardless of property type and status.

Article 4.Definitions of terms of the Law

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 and street with road structure, and maintained, upgraded and regular dirt road designated for transport vehicle to travel;

4.1.2."Auto road registration and 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 to be performed for the purpose of maintaining auto road and road structure 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 a work to be executed regularly for the purpose of ensuring safe condition of an auto road and road structure, ensuring traffic safety and improving exploitation level;

4.1.6."Auto road scheduled repair" means scheduled work to be executed for the purpose of determining an auto road and road structure exploitation level and extending 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 of upgrading and improving auto road and road structure exploitation classification, category and exploitation level;

4.1.8."Auto road land strip" means area determined as 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."Internal auto road of business entities and organizations" means auto road constructed for personal use on the own territory of business 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."Consulting service" means the service specified in Article 5.1.15 of the Law on procurement of goods and services with state local funds;

4.1.18."Drawing design" means integrated documentation including exploration and geological opinion, geodesy measurement report, environmental study, detailed drawings, technical requirements and cost estimation 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 opinion on suitability of auto road and road structure design drawings, engineering solution and estimation with environmental, climatic and geographic conditions or not, on the compliance of traffic movement coordination and safety with auto road and road structure norm, normative and technical documentation requirements or not;

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 purpose 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, dwellings, farm, industrial complex of agriculture in the territory of aimags and internal auto roads within them;

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 aimags' centers, roads connecting aimags' 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 construction, 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, and to repair damages occurred due to construction technological inaccuracies.

Article 5.Principles to be adhered to by State on development of national auto road network

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

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

5.1.2.to 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, possession, exploitation, maintenance, protection and repair shall not have any adverse impact on human health and environment;

5.1.4.to have an integrated structure and system of the management to develop and exploit national auto roads network.

Article 6.Financing of auto roads and road structures

6.1.Activities such as development of design drawings, construction, repair, maintenance, technical and technological control shall be financed by the state and local budgets, 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 the auto road sector development within public-private partnership framework.

6.3.The Government shall approve the list of auto roads and road structures to be constructed with private funds within the public-private partnership based on the proposal of the state central administrative body in charge of auto road matters.

Article 7.Insurance of auto roads and road structure

7.1.Property and responsibility insurance may be obtained when constructing, possessing, exploiting, and providing consulting services of auto roads and road structures.

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

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

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

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

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

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

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

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

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

8.4.4.other.

8.5.Funds of "Auto road norm and 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 Cabinet member in charge of auto road matters shall approve "Operational Procedure on Auto road norm and normative fund".

CHAPTER TWO

POWERS OF STATE AUTHORITIES IN RESPECT TO AUTO ROADS

Article 9.Government powers

9.1.The Government shall exercise the following powers in respect to auto roads:

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

/This sub-paragraph was amended by the law as of December 16, 2021/

9.1.2.to ensure enforcement of legislation on auto roads;

9.1.3.to enforce policy on development of national auto road network;

/This sub-paragraph was amended by the law as of December 16, 2021/

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

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

9.1.6.to provide with integrated organization for auto road repair and maintenance, to have worked the auto road research and development organization with functions to upgrade and improve road standards, norm, normative, technique and technology;

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

9.1.8.to approve a procedure on construction and exploitation of special purpose auto roads and road structures.

Article 10.Powers of state central administrative body in charge of auto road matters

10.1.A state central administrative body in charge of auto road matters shall exercise the following powers:

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

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

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

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

10.1.5.to execute construction, repair, maintenance, consulting services, client's 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.to approve and oversee the execution of norm, normative and technical documentation associated with construction, repair, maintenance, design drawings, and technical and technological control of auto road and road structures;

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

10.1.8.to provide with professional management and methodology on development and execution of policy and master plan to develop metropolitan and local auto roads;

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

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

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

10.2.A state central administrative body in charge of auto road matters may be performed the auto road maintenance and scheduled maintenance work by a legal entity with a special permit upon concluding an agreement.

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

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

11.1.1.to ensure enforcement of auto road legislation, Government decisions;

11.1.2.to organize activities to develop and promote auto road and road structure norms, normative documentation, and to coordinate the execution;

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

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

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

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

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

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

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

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

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

11.1.13.to 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.others as specified in the legislation.

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

Article 12.Powers of Governor of aimag, soum, capital city, and districts

/The title of this article was amended by the law as of April 22, 2022/

12.1.Governor of aimag, soum, capital city, and district shall exercise the following powers in respect to auto roads:

/This paragraph was amended by the law as of April 22, 2022/

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

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

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

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

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

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

12.1.7.in case of emergency to repair damage of auto roads triggered by the natural disaster, unforeseen accidents and incidents, to coordinate activities, 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.to coordinate and regulate traffic movement within its jurisdiction in accordance with the legislation;

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

/This sub-paragraph was amended by the law as of April 22, 2022/

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 Cabinet member in charge of auto road matters shall make a decision to be performed by a non-governmental organization of the works specified in Article 13.1 of this Law on contract basis.

CHAPTER THREE

AUTO ROAD NETWORK, AUTO ROAD CLASSIFICATION, COMPOSITION, OWNER, AND POSSESSOR

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 auto road network shall be developed by the state central administrative body in charge of auto road matters and approved by the Government.

14.3.A Governor of aimag and capital city shall develop a metropolitan and local 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 respective Citizens' Representatives Khurals.

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

Article 15.Auto road classification

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

15.1.1.international auto roads;

15.1.2.national auto roads;

15.1.3.local auto roads;

15.1.4.metropolitan auto roads;

15.1.5.special purpose auto roads;

15.1.6.internal auto roads of a business entity and organization.

15.2.A state central administrative body in charge of auto road matters shall make a decision on entering an auto road into 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 body in charge of auto road matters shall determine route, route name and number of international, national and special purpose auto roads; a Governor of the respective jurisdiction shall determine route, route name and number of metropolitan and local auto roads upon negotiating with a state central administrative body in charge of auto road matters.

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 on them shall be regulated by the norm, normative, and technical documentation.

Article 16.Auto road composition

16.1.An auto road shall consist of the following elements:

16.1.1.roadway;

16.1.2.road edge;

16.1.3.road structure;

16.1.4.auto 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 local auto road shall be 60 meters (30 meters to both sides of a median).

16.3.Governor of aimag, capital city shall determine roadway width of metropolitan, towns and dwellings 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 body in charge of auto road matters; and the width of metropolitan and local auto road strips shall be determined differently by a Governor of aimag and capital city within the norm and regulation range.

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

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

Article 17.Owner, possessor of auto road and road structure

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

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

17.3.A possessor of metropolitan, local auto road and its strip area shall be a Governor of aimag, capital city and a party authorized by the him/her.

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 body in charge of auto road matters.

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

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 auto roads shall be approved by a state central administrative body in charge of auto road matters; a Governor of aimag, capital city shall approve metropolitan and local roads' and an auto road Client shall approve for another 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 are:

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 not to 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 Cabinet member in charge of auto road matters shall approve a procedure to verify and provide opinions 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 opinion on design drawing technical solution which is specified in Article 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 agreement concluded with a client in accordance with applicable legislation.

20.2.A client shall provide design drawings, road line (horizontal alignment), geodesy points, land possessing 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 opinions.

20.4.It shall be prohibited to execute construction of auto road and road structure without approved design drawings with verification opinions 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 structure, a permit must be obtained in advance from a competent organizations.

20.7.It shall be 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 Article 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.Cabinet members in charge of finance and budget and auto road matters shall jointly approve a procedure 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 Cabinet 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 consulting 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 works

22.1.An auto road possessor shall provide professional management, methodology and control for auto road maintenance and repair.22.2.Auto road maintenance and repair works shall be classified as follows:

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 the 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 the special permits.

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

22.8.Cabinet members in charge of finance and budget and auto road matters shall jointly approve financing norm, normative and procedure 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 obligations:

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 owners and possessors 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 local auto roads.

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

24.3.An international, national road maintenance and repair shall be financed with funds of state auto road fund; metropolitan and local auto road maintenance and repair shall be financed with funds of metropolitan and local 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 body in charge of auto road matters and the metropolitan and local auto road fund shall be under supervision of a Governor of aimag and capital city.

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

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

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

Article 25.Sources for Auto road fund resources

25.1.The National auto road fund resources shall be comprised 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 on 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 local auto road fund assets are comprised of the following sources:

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

25.2.2.funds allocated from metropolitan and local budgets;

25.2.3.foreign loans, assistance and donation funds;

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

25.2.5.charges for utilization of metropolitan and local 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 is comprised of road users and civil representatives shall execute the public control over auto road readiness level, traffic safety, and auto road fund revenues and expenditures.

26.2.A Cabinet member in charge of auto road matters shall approve the composition of the Auto road council and procedure on its operations.

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

CHAPTER SIX

AUTO ROAD REGISTRATION AND INFORMATION

Article 27.Auto road registration and database

27.1.The auto road registration and database shall be comprised 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.others.

27.2.A state central administrative body in charge of auto road matters shall be responsible to maintain registration and database of international, national and special purpose roads; a Governor of aimag and capital city shall be responsible to maintain metropolitan and local 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 Cabinet member in charge of auto road matters shall approve and enforce a procedure on maintaining and providing information on integrated database of international, national and special purpose roads and a Governor of aimag and capital city shall approve and execute a regulation on maintaining and providing information on integrated database of metropolitan and local 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 body in charge of auto road matters  shall be responsible for commissioning of an international, national and special purpose auto roads, a Governor of capital city, aimag shall be responsible for commissioning of metropolitan and local auto road and road structure.

28.2.A Client organization shall be responsible for commissioning of auto roads and road structures other than those specified in Article 28.1 of this Law.

28.3.A Cabinet member in charge of auto road matters shall approve a procedure 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.A citizen or a legal entity has a right to exploit auto road and road structures by designation regardless of its jurisdiction and ownership status.

29.2.Auto road user holds following rights and obligations:

29.2.1.unless otherwise specified in 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 overweight 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' Representatives' Khural of aimag, capital city shall regulate road route, road length and charges for exploitation of metropolitan and local auto roads and road structures accordingly.

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

30.3.A Governor of aimag, capital city shall approve and enforce a procedure on fees for exploitation of metropolitan and local auto roads and road structures.

30.4.Local 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 Cabinet member in charge of auto road matters shall approve a procedure to close auto roads and road structures, and change road routes.

Article 32.Dispute resolution

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

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

CHAPTER EIGHT

SPECIAL PERMIT TO CONSTRUCT, REPAIR, MAINTAIN AND PROVIDE CONSULTING SERVICES OF AUTO ROADS

Article 33.Special permit to construct, repair, maintain and provide consulting services of auto roads

33.1.A special permit to develop feasibility study, design drawings of auto roads and road structure, construct, maintain, repair auto roads, provide consulting services on technical and technological control of auto roads shall be issued by the state central administrative body in charge of the auto roads in accordance with the Law on Permits.

/In this paragraph, the word "on licensing of business activity" was changed into "on Permits" by law as of June 17, 2022, and it shall be enforced on January 1, 2023/

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

/In this paragraph, the word "on licensing of business activity" was changed into "on Permits" by law as of June 17, 2022, and it shall be enforced on January 1, 2023/

CHAPTER NINE

NATIONAL CONTROL OF AUTO ROADS

Article 34.National control of auto roads

34.1.A state control on enforcement of legislation applicable for construction, maintenance, repair, protection and exploitation of auto roads and road structures shall be executed by an auto road owner, possessor, and manager organization, an specialized inspection authority, all levels of Governors, and relevant officials within their competence in accordance with the Law on State control and inspection.

CHAPTER TEN

MISCELLANEOUS

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

35.1.A competent organization and/or 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 law and enforcement organization confirms damage caused to a citizen, legal entity due to incompliance of auto road and road structure exploitation, the auto road manager and owner 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 violation of legislation, standards, norm, normative on auto roads and disruption of regular exploitation conditions do not constitute a criminal liability, a competent official shall impose penalty in accordance with applicable articles specified in the Law on Violations.

Article 36.Entry into force of the Law

36.1.Sub-paragraph 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.

THE CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA ENKHBOLD.M