ULAANBAATAR, MONGOLIA (20 December 2018) — The Asian Development Bank (ADB) and the Government of Mongolia today signed $53 million in grant agreements to help transform ger areas in Ulaanbaatar into affordable, low-carbon, and climate-resilient eco-districts.
Minister of Finance Mr. Khurelbaatar Chimed and ADB Country Director for Mongolia Ms. Yolanda Fernandez Lommen signed the agreement at a ceremony in Ulaanbaatar. Representatives from the Municipality of Ulaanbaatar also attended the event.
“A third of Mongolia’s population live in urban ger areas and suffer from poor sanitation, inadequate solid waste management, and limited water supply, which pose health and environmental hazards,” said Ms. Fernandez Lommen. “The project will provide sustainable and comprehensive solutions to transform the ger areas into affordable, low carbon, and livable eco-districts.”
The project will build 10,000 homes in 20 new environmentally friendly districts with good services, green spaces, and access to shops and jobs. Out of 10,000 housing units, 1,500 will be social housing, 5,500 will be affordable housing, and the remaining 3,000 will be sold at the prevailing market price.
In addition to the signed grants, which consist of $50 million from the Green Climate Fund (GCF) and $3 million from the High-Level Technology Fund, ADB is also providing a $80 million loan with GCF providing a $95 million loan to the project. The project is expected to leverage around $300 million more in investments from developers, commercial banks, and beneficiaries.
A key element of the project is the voluntary land swapping approach for creating the eco-districts. Under this approach, households owning or renting a plot of land within the proposed eco-district perimeter can choose to participate or not in the plan to shift into the new homes from the ger homes.
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 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.