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ADB to Upgrade Two New Border Crossing Points in Mongolia to Ease Trade

News from Country Offices | 3 September 2019

ULAANBAATAR, MONGOLIA (3 September 2019) — The Asian Development Bank (ADB) has approved a $27 million loan as additional financing to expand the scope of an ongoing cross-border trade facilitation project in Mongolia, which will now include two new border crossing points. 

“Improving the efficiency and transparency of trade processes is essential to facilitate trade and transport in Mongolia,” said ADB’s Regional Cooperation Officer in Mongolia Ms. Unurjargal Dalaikhuu. “ADB’s support will help the government remove bottlenecks and reduce trade costs through the rehabilitation and provision of border facilities in the border crossing points.” 

As a landlocked country between the People’s Republic of China (PRC) and the Russian Federation, a large share of Mongolia’s gross domestic product is linked to foreign trade. From 2009 to 2017, exports increased from about $1.9 billion to $6.2 billion. Over that same period, imports increased from $2.1 billion to $4.3 billion. 

The newly approved additional financing for the ongoing Regional Improvement of Border Services Project will further upgrade border crossing points in Bichigt, bordering the PRC in the east; and Borshoo, which borders the Russian Federation in the west. The project will replicate the development initiatives of the ongoing project, which is already upgrading facilities and equipment of the crossing points in Altanbulag and Sukhbaatar, located in the northern part of Mongolia.

The ongoing work to improve the communications infrastructure for the Customs Automated Information System as well as the preparatory work for a single window system for the border crossing points in Altanbulag and Sukhbaatar will also be replicated in the two additional locations. Technical knowledge and capacity of relevant border agencies for all crossing points under the expanded project, meanwhile, will be enhanced.

The Government of Mongolia expects these two additional crossing points to become gateways for Mongolia’s bilateral and transit trade with and through the PRC and the Russian Federation. The annual trade turnover in Bichigt is forecast to double to $400 million by 2026, including $95 million in imports, while trade turnover in Borshoo will triple to $95 million, mostly through increased imports.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.