The Mongolian government said Wednesday the research phase of Sainshand heavy industrial park would be completed by June, and development contracts would be signed this year.

Ganbold Dogsom, head of the heavy industrial policy department under the Ministry of Industry and Agriculture, said the development of the park would begin next year and would be completed by early 2018.

Discovery of a large underground water deposit near Sainshand solved a water supply issue, the biggest challenge to the project, the official said.

Development of the industrial park project will require investment of about 5.5 billion U.S. dollars, according to a preliminary estimation.

It is estimated about 5 million tons of steel will be produced annually and about 10,000 new jobs created under the project.

According to a report, Sainshand will be managed by Fluor, a global engineering construction company based in the United States.