ULAANBAATAR, MONGOLIA (29 June 2020) — The Asian Development Bank (ADB) has approved loans totaling $43.65 million as part of a program to support the redevelopment of two additional subcenters in the eastern and western ger areas of Ulaanbataar, Mongolia.
The financing is the third tranche of the Ulaanbaatar Urban Services and Ger Areas Development Investment Program, approved in 2013, funded through an ADB multitranche financing facility (MFF) modality. It supports the Ulaanbaatar city master plan to redevelop the capital city ger areas, which are located on the outskirts of the capital.
“Tranches 1 and 2 of the program have supported the development of four subcenters in ger areas and institutional and capacity strengthening for the Municipality of Ulaanbaatar’s in urban development, service delivery, and program management,” said ADB Urban Development Specialist Jie Bai. “With the third tranche, our aim is to create a network of livable, competitive, and inclusive subcenters in Ulaanbaatar's ger areas.”
Ger areas accommodate about 60% of Ulaanbaatar’s population of more than 1.44 million people. Lack of basic urban infrastructure and services in ger areas has caused severe pollution that threatens city residents' health. The upgrading of ger areas is constrained by inadequate urban infrastructure, lack of urban planning, poor urban services, and limited public spaces and facilities.
Tranche 3 of the program intends to expand roads and urban services within the targeted subcenters of Sharkhad and Tolgoit ger areas and improve connectivity between subcenters. This involves the construction of priority roads with closed-circuit television cameras, overhead electricity cables, fiber-optic cables for a telecommunication network, sewerage pipeline, heating network, and one pumping station each for water supply in Sharkhad and Tolgoit.
It also aims to improve economic and public services in targeted subcenters by providing kindergartens, a primary health care center, training centers, community development and service centers, sports complex, green public spaces, and social housing units. Capacity building will continue to finalize and make operational a transparent mechanism that will ensure community-led ger subcenter redevelopment.
The program will also significantly contribute to Mongolia’s response to the coronavirus disease (COVID-19) by improving access to clean water, sanitation, and hygiene in the ger areas and reducing the citywide air pollution caused by household stoves and traffic congestion.
ADB is providing a regular loan of $25.05 million and a concessional loan of $18.60 million for the tranche. Total cost of the third tranche is $114.20 million, of which the European Investment Bank is providing $18.65 million, and the Municipality of Ulaanbaatar $51.90 million. Total program cost is $320 million, of which ADB is financing $163.7 million, EIB $60.30 million equivalent, and the municipality $96 million. Completion of the program is expected in December 2023.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.