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Traditionally Mongolian people are nomads who move about according to the seasons to feed their animals. However, people come to give up nomadic lives and settle down near the cities to seek employment opportunity, higher income, and better education and health care for children. They put their tents on a piece of land and later build simple wooden or brick houses when they earn enough money. Such settlements are called ger (traditional tent in Mongolian language) areas. Ger areas do not benefit from any utility services while apartments in the cities are served by electricity, water supply, central heating, etc. Ger area residents purchase water from sales kiosks, use charcoal/firewood for heating and cooking, and have no proper toilets. Ger area population accounts about a half of the total population of Ulaanbaatar, the capital of Mongolia, and it reaches to 90% in some cities. Therefore, poor living condition in ger areas is a major urban issue in Mongolia.

ADB has provided support for the urban development sector since 1998 through loan, TA, and grant projects for improvements of basic urban services in provincial capitals, housing finance, living environment improvements in ger areas, and cadastral survey and land registration.

Among them, Provincial Towns Basic Urban Service Project was aimed at improving the health and living conditions of the residents of the project towns with total population of approximately 130,000, and at reducing inequality in access to urban services between apartment and ger residents.

The new water kiosks and public bathhouses dramatically improved the quality of life of the residents. Also, the number of water distribution points in ger areas has increased significantly. According to a survey, the residents can afford to use more water, as the price has declined in real terms, and as the average walking distance to a water kiosk has been reduced to 300 meters for 80% of ger residents. The sewer network has been extended considerably, and the discharge of untreated sewage into rivers has been minimized. Solid waste collection services cover more ger residents. Generally, irregular street dumping has been substantially reduced.

The Project cost of $6.8 mil. was funded by ADB. Ms Zundui Tuul, Project Director of the Project Management Office, says that ADB guidance and instructions helped significantly in project implementation and its missions played an important role in solving implementation problems.

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