Clause 3.3.10 of the “Action Program of the Government of Mongolia for 2020-2024” approved by Resolution No. 24 of the State Great Khural of 2020 states that “Establish an environmentally friendly complex for processing livestock and livestock-derived raw materials and increase the export of agricultural goods and products...” and Clause 3.3.10.2 of the “Measures to Implement the Action Program of the Government of Mongolia for 2020-2024” approved by Resolution No. 203 of the Government of Mongolia states that “The activities of the New Khovd Industrial and Technological Park will be intensified.” Also, the “New Revival Policy” approved by the Parliament provides for the establishment of the New Khovd Industrial and Technological Park in the Western Region to improve the level of primary processing of livestock-derived raw materials and increase the value of value-added products.

Last year, 665 million tugriks were allocated for the development of the infrastructure plan of the New Khovd Industrial and Technological Park, and this year 5.9 billion tugriks have been budgeted for infrastructure construction.

The construction of 6 infrastructure projects has been started and intensified this spring, and the main works are planned and targeted to be completed by 2023. The state pays special attention to the timely implementation of the infrastructure construction work that is the main basis of the project.

The western region has about 24 percent of the total livestock, or about 15 million heads, and has the potential to create raw material reserves, but it is far from the central production area. In Khovd aimag, considering the relatively good access to the market with the western region's support center and 2 border ports, it was decided to establish an industrial and technological park. The New Khovd Industrial and Technological Park is planned to be located 1,460 km west of UB city, on 100 hectares of land in Jargalant soum of Khovd aimag. A total of 19 factories will be built, including 1 million leather processing units per year, 3,000 tons of wool and 300 tons of cashmere processing units per year.

The following infrastructure works will be carried out. These include:
-For the park's highway, a total of 5,000 m long heavy-duty concrete with a width of 3.5 meters has been completed, along with sidewalks, lighting, green spaces, and parking lots.
-The construction of clean water and gray water pumps within the park, external heat supply, water supply lines, and sewage line embankments will be carried out.
-Work will be done to provide high-speed fiber optic internet to the industries and enterprises located in the park.
-A new 35 kV 2x6300 kV substation will be built by branching off the existing 35 kV Myangad - Khovd 2-circuit substation.
-For heat supply, the water and heat transfer center consists of 4 buildings, internal engineering network, boiler building 2 blocks, steam line, external heat line, and is planned as a horizontal boiler. It has been decided to expand in the future and provide heat to a certain part of the province. The 2 boilers currently in operation cannot produce steam for industrial purposes.
-The leather industry treatment plant has the capacity to treat 1,000,000 /one million/ leather and leather processing plants per year and 500-700 m3 of wastewater per day.

As of today, electricity supply is 30 percent complete, heat supply is 23 percent, roads are 20 percent complete, engineering network is 18 percent, and communication supply is 60 percent complete.