18.5 billion MNT: With this amount of money, it is possible to house 50 to 60 families in average-sized apartments, each ranging from 70 to 80 square meters. Based on an above-average market price, the cost per household would be approximately 300 to 370 million MNT. In addition, this budget could be used to build three to four kindergartens or one to two fully-equipped middle schools. With proper support and service infrastructure, it would also be possible to establish a model hospital or health center for a community.

If we calculate the cost of paving one kilometer of asphalt road at 600 to 800 million MNT, this budget would be enough to construct 20 to 30 kilometers of paved roads. To put it into perspective, if we consider an average pension of half a million tugrugs per month, this amount could cover the monthly pensions of 37,000 retirees or provide one year’s worth of pensions for 3,000 people. If we look at it from the perspective of income, 500 people working continuously for a year, earning 3 million MNT a month, would collectively generate this sum.

So, how does this amount of money seem to you now? Imagine, as taxpayers, that we contribute such a significant sum, only for it to be wasted on a substandard “theater” built in the name of serving the cultural needs of local communities. Wouldn’t it feel like a tragic waste? Unfortunately, the people in power, making policies and decisions, continue to allocate such huge amounts of money to build theaters and cultural centers—often of questionable quality—while draining taxpayers’ money, all under the pretext of meeting local cultural demands.

In some cases, these buildings are stretched over many years, with budgets constantly inflated and drained as they are “enhanced” over time. The original estimates and costs are often multiple times exceeded before these projects are eventually completed. A few examples that come to mind are the long-delayed projects like the “Central Khalkh” opera house in Dundgovi Province and the “Musical Drama Theater” in Arkhangai Province. The most recent and glaring example is the “Saran Khukhuu” Theater in Dornogovi Province, where the budget for the building is roughly equivalent to the cost of housing 50 to 60 families in apartments.

Initial budget stood at 9.5 billion MNT 

The Nomadic Theater, named after the prominent 19th-century Enlightener D.Danzanravjaa, is considered one of the oldest professional arts organizations in Mongolia, with a history spanning over 180 years. The theater’s building was initially constructed with the goal of being expanded and modernized to meet contemporary needs. In 2021, a tender was announced with a budget of 9.5 billion MNT for this purpose. The construction work was awarded to a company called Bolor Agramba LLC, and approximately 1 billion MNT were allocated as funding in that year.

This project was one of two major national works that were included in the 2021 national budget as part of the ruling Mongolian People’s Party’s (MPP) election platform for the development of Dornogovi Province. The other project was a water reservoir to be built in Sainshand soum of Dornogovi Province. The completion of the Saran Khukhuu Theater was scheduled for 2024, with a report in the fall of 2022 stating that 30 percent of the work had been completed. However, as of now, the construction of the building is still far from finished, with only about 60 percent of the work completed.

In response to the delays, relevant ministries and local authorities have reportedly formed a joint working group in an attempt to accelerate the construction process. Furthermore, the budget for the project has been doubled compared to the original estimate from four years ago. The projected completion date has also been postponed by another two years, with a new target of 2026. However, there are still doubts about whether the project will be completed on time, and concerns remain about whether the building will meet basic safety standards, quality requirements, and even the minimum construction norms.

Why did the budget double?

The budget for the Saran Khukhuu Theater has been increased by almost two times. But why did this happen? A task force responsible for monitoring the construction progress, including officials from the Ministry of Culture, Sports, Tourism, and Youth, and the Ministry of Finance, has failed to provide an adequate explanation for the cost increase. As the duration of any infrastructure or construction project extends, the cost of materials naturally increases. However, the idea that the cost could increase by 50 percent over the span of just four years seems excessive and unreasonable, something that is clear to anyone.

The Minister of Culture, Sports, Tourism, and Youth, Ch.Nomin previously claimed that the budget for the Saran Khukhuu Theater was originally set at 18.5 billion MNT. She stated that the project would be completed and operational by 2024. To expedite the process, she announced that a joint task force involving the Ministry of Finance and local authorities would be formed to fast-track the construction. This statement was made over a month ago on her official social media account.

However, an official document related to the tender process available on the tender.gov.mn website clearly states that the initial project budget was 9.5 billion MNT, which is in black and white. The Ministry of Culture (formerly) was listed as the organizer of the open tender. This means that the project, financed by the national budget, was initially under the authority of the ministry, and the tender process was also initiated by them. Given this, it’s rather puzzling—and not coincidental—that the sector minister would be misinforming the public, suggesting that the budget had not increased at all, when in fact the official documents clearly indicate otherwise. So, why has this construction project faced delays?

Putting blame on others

Local authorities and officials from the Saran Khukhuu Theater have attributed the delay in the theater’s construction to issues with funding. One employee of the theater explained, “In the early years, the funding was allocated, but then it was cut off. After that, the then Ministry of Culture and local officials had to negotiate and fight to secure the budget, and only then did work finally begin.”

However, when the Minister of Culture, Sports, Tourism and Youth, Ch.Nomin reported on the progress of the theater’s construction last month, she pointed to several systemic issues: “Buildings and projects funded by the national budget have often been delayed or prolonged due to insufficient feasibility studies, the lack of accountability from both contractors and project owners, and poor coordination between state agencies.” She then continued, “These issues have resulted in many projects stagnating for years, wasting taxpayers’ money, and depriving citizens of quality services. To efficiently use taxpayer funds and ensure the swift delivery of government services to the people, we must stop including poorly planned projects in the national budget and instead focus on better coordination during project implementation.”

Shortly after her statement, the Minister of Finance, B.Javkhlan remarked that “the designs for the three theaters started in the Gobi region were inadequate. The original budget of 11 billion MNT has now ballooned to 35 billion MNT.” At present, the two ongoing theater projects in the Gobi region are the Central Khalkh Theater in Dundgovi Province and the Saran Khukhuu Theater in Dornogovi. Therefore, both ministers’ statements clearly point to the Saran Khukhuu Theater as the source of the confusion and project mismanagement.

The Saran Khukhuu Theater’s construction has been delayed, its budget has doubled, and eventually, government officials had to step in to “oversee” the project. This begs the question: why did the construction get delayed, and why has the budget increased so significantly? Minister B.Javkhlan’s comment about “inadequate designs” suggests that the mistakes made during the planning phase have yet to be corrected. Despite searching through public records, no information was found on the performance, bidding process, or feasibility study related to the theater's construction. This leaves us with no clear answer as to who is at fault and where exactly the mistakes were made, though government officials continue to hide behind the excuse of “financial difficulties”. 

Ultimately, the key issue here is clear: from the outset, the project was handled irresponsibly and without proper oversight. Both the Ministry of Finance, which is responsible for budget policies, and the Ministry of Culture, Sports, Tourism and Youth, which initially introduced the project, share the blame for the situation. In times of budget shortages, when pensions and allowances are delayed, is it really justifiable to spend approximately 20 billion MNT on a theater in the countryside? This is a question that needs to be addressed by the relevant authorities.

Officials at the Saran Khukhuu Theater have argued that “our theater staff is still able to operate in our old building, and nothing has deteriorated to the point of disaster”. However, let’s not forget: 18.5 billion MNT is enough to house almost 60 families in 70 to 80 square meter apartments or build three to four kindergartens or one to two middle schools. Is it more important to build a 700-seat theater, or would it be better to invest in a school that can accommodate 700 children? This is a point that must be seriously considered.

By D.CHANTSALMAA