Mongolia : Ulaanbaatar Urban Services and Ger Areas Development Investment Program - Tranche 1
The program approach aims to initiate a redevelopment process in ger areas. Improving infrastructure within the ger area subcenters and connectivity with the city core center is critical for inclusiveness and important to facilitate the movement of people and goods, develop urban corridors, and create clusters of subcenters. Better urban planning combined with a network of infrastructure along priority roads will initiate a structural change of subcenter urban fabric. This will (i) improve residents access to basic urban services, public space, and socioeconomic facilities; (ii) support local economic development; (iii) allow residents and businesses to take advantage of urban economies; and (iv) provide better housing options. The changes in land use and higher urban density will improve water, sanitation, and heating services delivery.
Project Details
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Project Officer
Mamatkulov, Raushanbek
Sectors Group
Request for information -
Country/Economy
Mongolia -
Modality
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Sector
- Water and other urban infrastructure and services
Related Projects
Project Name | Ulaanbaatar Urban Services and Ger Areas Development Investment Program - Tranche 1 | ||||||||||||||||
Project Number | 45007-004 | ||||||||||||||||
Country / Economy | Mongolia |
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Project Status | Active | ||||||||||||||||
Project Type / Modality of Assistance | Grant Loan |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships Private sector development |
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Sector / Subsector |
Energy / Energy utility services Transport / Urban roads and traffic management Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban slum development |
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Gender | Effective gender mainstreaming | ||||||||||||||||
Description | The program approach aims to initiate a redevelopment process in ger areas. Improving infrastructure within the ger area subcenters and connectivity with the city core center is critical for inclusiveness and important to facilitate the movement of people and goods, develop urban corridors, and create clusters of subcenters. Better urban planning combined with a network of infrastructure along priority roads will initiate a structural change of subcenter urban fabric. This will (i) improve residents access to basic urban services, public space, and socioeconomic facilities; (ii) support local economic development; (iii) allow residents and businesses to take advantage of urban economies; and (iv) provide better housing options. The changes in land use and higher urban density will improve water, sanitation, and heating services delivery. Road map. Based on government and Municipality of Ulaanbaatar (MUB) priorities to redevelop ger areas, the road map for the program will support the MUB in establishing a network of well-developed subcenters to provide jobs, housing, and economic opportunities with reduced soil and air pollution. It comprises sequenced investments, municipal reforms, and capacity building (policy, planning, and monitoring), with four strategic objectives: (i) expand roads and basic urban services (water, sewerage, and heating) within subcenters and improve connectivity to initiate land use transformation; (ii) increase economic and public services through investments in socioeconomic facilities to meet population needs, increase urban functions, and encourage job creation; (iii) increase service provider efficiency by improving water supply, sewerage, and heating service operations; and (iv) strengthen institutions and capacity by improving urban planning and subcenter development, community awareness, participation and empowerment, service provider operations and management, and program implementation capacity. Strategic context and sector policy. In February 2013, Parliament approved the Adjustments to the Ulaanbaatar City Urban Development Master Plan 2020 and Development Directions 2030. The master plan produced two important outcomes: (i) integration of ger area development into the city master plan, and (ii) acknowledgement of the value and function of ger area subcenters as key elements of future city growth. The MUB is developing the Ger Area Development Program and established a Ger Area Development Agency, supervised by the vice mayor in charge of urban development and investment. On 30 May 2013, the city council resolution No.10/38 endorsed the program, subcenter locations under project 1, and coordination of the investment program with the city master plan. The MUB proposed a special purpose development vehicle (subcenter redevelopment authority) to facilitate, supervise, and coordinate the redevelopment process of the selected subcenters. In addition, the Ministry of Economic Development s Street Project is to improve road conditions in Ulaanbaatar and includes a ger area component. The National Development Strategy and the New Reconstruction Midterm Program (2008 2016) constitute the national framework for program implementation. The program is consistent with the Asian Development Bank (ADB) country partnership strategy, 2012 2016 for Mongolia; ADB s Strategy 2020 priorities, including environmental sustainability and private sector development; as well as the core themes of green, competitive, and inclusive cities of ADB s Urban Operational Plan. Policy dialogue and capacity development. To supplement the strong policy framework, policy dialogue and capacity development will focus (i) in communities, on community participation, awareness, and empowerment, including design and implementation of the social and gender action plan; and establishment of community development councils (CDCs) and small- and medium-sized enterprise (SME) development councils (SDCs); (ii) in subcenters, on subcenter upgrading, including technical guidance for preparing and implementing local development plans, urban zoning regulation and construction standards, and a development framework with a transparent mechanism to regulate land redevelopment insuring current residents are integrated in the redevelopment plan; and (iii) in the city, on the master plan through ongoing ADB technical assistance to strengthen urban planning capacity. Capacity development for water and wastewater utilities will target (i) improving the MUB and USUG management contract, (ii) defining a clearer tariff road map, and (iii) providing technical support to the Water and Sewerage Regulatory Commission. For heating, the focus will be to ensure financial sustainability and capacity of new and existing heating facilities operators in the selected subcenters and to strengthen provisions in management contracts. Financing modality. An MFF is the proposed financing modality to promote a long-term partnership between ADB, the government, and the MUB to facilitate the development of sustainable, inclusive, and livable ger areas. The MFF will support the policy framework for the redevelopment of ger areas, and provide opportunities for constructive dialogue and capacity development on city planning, policy reforms, and physical and nonphysical investments. It will generate critical mass, predictability, and continuity for basic urban services provision in ger areas, and enable ADB to better respond to MUB needs. Development coordination. In preparing the program, ADB coordinated closely with development partners involved in Ulaanbaatar s urban sector. Three ADB-financed projects will directly support the program: (i) a bus rapid transit line from the city center to Selbe subcenter; (ii) support for housing and micro-, small-, and medium-sized enterprise financing in ger areas targeted by the program; and (iii) capacity development technical assistance to strengthen MUB urban planning capacity. |
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Project Rationale and Linkage to Country/Regional Strategy | In 2012 Ulaanbaatar had a population of 1.3 million. Since the 1990s, it has had limited formal extension of its core, which largely comprises apartment blocks with comprehensive utility services, including dedicated heating, water, and sanitation. However, successive waves of in-migration with ger tents have reshaped the city s geography, with (i) little upgrading or extension of basic urban services; and (ii) government policy, since 2003, to give each citizen about 700 square meters of land. A vast low-density peri-urban area, named ger areas, now extends around the city core, characterized by unplanned settlement of low- and medium-income households with land ownership, unserviced plots, unpaved roads, and poor facilities. The ger area population is estimated at 800,000, representing 60% of Ulaanbaatar or 30% of the country population. Despite their size, ger areas have until recently been considered temporary settlements. However, their official integration in the 2013 city master plan provides the necessary provision to plan the redevelopment of a formal peri-urban area. Living conditions in ger areas are difficult. Poor sanitation households almost exclusively rely on open pit latrines and poor waste collection have created highly unsanitary living conditions. Air pollution is among the most severe in the world, particularly during winter because of inadequate household heating systems and unpaved roads. Access to water, supplied by kiosks operated by the Ulaanbaatar Water Supply and Sewerage Authority (USUG), is limited. In 2011, most of the 40,000 people migrating to Ulaanbaatar settled in ger areas; by 2022 the population is estimated to grow by 400,000 from in-migration and natural growth. Under current situation, the forecasted population increases is a serious threat to the city environment and the health of the population if the situation is not improved. Lack of long-term planning, infrastructure investment, and land use regulation in ger areas have resulted in haphazard development, limited availability of space for public facilities, poor access to socioeconomic services, reduced livelihood opportunities, and insecure neighborhoods. The lack of basic urban infrastructure is constraining rational and dynamic urban development, increasing the costs of doing business and of accessing services. The city core where jobs and services are concentrated now has unprecedented congestion. The service gap between the city core and ger areas means ger residents are poorly integrated in the urban economy; it is one of the most urgent and difficult development challenges. While various government and development partner initiatives have significantly improved living conditions in ger areas, approaches have generally focused on specific sectors, failing to design a sustainable vision and provide integrated solutions for the problems of peri-urban development. Subcenter upgrading. High construction cost, lack of urban planning, and inadequate infrastructure constrain the upgrading of ger areas. These areas are predominately residential with pockets of activity nodes, called subcenters, providing commercial and administrative services. The influence area of a subcenter varies from 30,000 to 100,000 people. Despite the critical function of subcenters in overall spatial and local development, urban services have not been substantially improved. The lack of basic infrastructure limits economic growth and increases negative environmental impacts. |
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Impact | Improved living conditions in Ulaanbaatar |
Project Outcome | |
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Description of Outcome | A network of livable, competitive, and inclusive subcenters in Ulaanbaatar's ger areas |
Progress Toward Outcome | Tranche 1 closed on 31 December 2021, and its financial closing will be processed once the arbitration issue with one civil works contractor has been resolved. All civil works have been completed such as the kindergartens and business incubator/vocational training centers in both Bayankhoshuu and Selbe subcenters, three bridges in Selbe, heating network connection to Bayankhoshuu subcenter, water supply and sanitation works, roads, heating network, and associated infrastructure, landscaping, installation of heating plant in Selbe, electricity and telecommunication network in Bayankhoshuu and Selbe. |
Implementation Progress | |
Description of Project Outputs | Roads and urban services are expanded within the targeted subcenters and connectivity between subcenters is improved Economic and public services in subcenters are improved Service providers become more efficient Institutional strengthening and capacity building 4.1 Subcenter development and community engagement 4.2 Operations and management of service providers improved 4.3 Strengthened program implementation capacity |
Status of Implementation Progress (Outputs, Activities, and Issues) | 180 households connected to water network and sewer network. Additionally, 29 business entities and 720 households are connected to central heating system. Density in Selbe subcenter is 160 persons per ha. Density in Bayankhoshuu subcenter is 128 persons per ha. Average density in targeted subcenter is 144 persons per ha. It is increased by 94 persons per ha. In total 106 trainings and activities were provided to 1,357 MSMEs of Bayankhoshuu and Selbe subcenters, of which 81.5% were women. As of June 2023, 155 equipment were provided to 60 MSMEs and 2 cooperatives. 94 people (60.6% female) including 36 business people are operating in Bayankhoshuu and Selbe business incubator centers. Unit production cost of water is MNT1,330 per m3, reduced by 77.6%. Electricity consumption for water production reduced from 69 kW (2012) to 39 kW in 2021 per m3. |
Geographical Location | Bayankhoshuuny, Ulaanbaatar Hot |
Safeguard Categories | |
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Environment | B |
Involuntary Resettlement | A |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | Project 1 is categorized B for environment. An initial environmental examination was disclosed. It complies with ADBs Safeguard Policy Statement (2009) and is deemed adequate. Environmental impacts are anticipated during construction, including dust and noise (arising from earthworks, transport, and handling of aggregate materials and waste), temporary traffic disturbance, risks to community and occupational health and safety, and impacts of the heating subcomponent operations (gas emissions, ash, and slag). Mitigation measures defined in the environmental management plan, such as construction site management and regular monitoring of the projects environmental performance during construction and operation, will reduce anticipated impacts and other construction-related health and safety concerns to acceptable levels. Subsequent projects are expected to be categorized B for environment. |
Involuntary Resettlement | The resettlement framework prepared for the program outlines procedures required to prepare satisfactory land acquisition and resettlement plans (LARPs) and stipulates arrangements for consultation and public participation, grievance redress, and monitoring and evaluation. Project 1 is categorized A for resettlement. LARPs were prepared for Bayankhoshuu and Selbe subcenters and disclosed to the affected people in their local language. Copies of the LARPs are available in subdistrict and community offices in the project 1 area. While road design is optimized to minimize the resettlement impact, small strips of land (3,800 square meters) will be acquired to widen roads in the two subcenters. The project will affect about 12 residential structures, 32 toilets, 21 ground attachments, five gers, and 75 fences; and a total of 75 households and 379 people. The LARPs will be updated based on a census of affected persons and a detailed measurement survey during project implementation. |
Indigenous Peoples | Project 1 is categorized C for indigenous people. Subsequent projects are expected to be categorized C. |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | Consultation with initial stakeholders included ger area residents, private and public services, services providers in the subcenters, local government, Ulaanbaatar Municipal Government, public utilities (i.e., USUG and heating companies). The PPTA conducted a poverty and social analysis and addressed social safeguards. A socioeconomic survey, affordability survey, stakeholder workshops, focus group discussions and key informant interviews were also conducted during the PPTA. |
During Project Implementation | Relevant sections of the Facility Administration Manual such as social action plan, gender action plan, resettlement plan, environmental management plan, and stakeholder communication strategy provide information on stakeholder communication, participation, and consultation. |
Business Opportunities | |
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Consulting Services | All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). |
Procurement | All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). |
Responsible ADB Officer | Mamatkulov, Raushanbek |
Responsible ADB Department | Sectors Group |
Responsible ADB Division | Water and Urban Development Sector Office (SG-WUD) |
Executing Agencies |
Ulaanbaatar Municipal Government |
Timetable | |
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Concept Clearance | - |
Fact Finding | - |
MRM | 02 Sep 2013 |
Approval | 17 Dec 2013 |
Last Review Mission | - |
Last PDS Update | 21 Sep 2023 |
Grant 0380-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
17 Dec 2013 | 30 Jun 2014 | 24 Sep 2014 | 30 Jun 2018 | 31 Dec 2019 | 21 Nov 2019 |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 36.85 | Cumulative Contract Awards | |||
ADB | 0.00 | 23 Oct 2023 | 0.00 | 3.70 | 100% |
Counterpart | 33.15 | Cumulative Disbursements | |||
Cofinancing | 3.70 | 23 Oct 2023 | 0.00 | 3.70 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3098-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
17 Dec 2013 | 30 Jun 2014 | 24 Sep 2014 | 30 Jun 2018 | 31 Dec 2021 | - |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 27.50 | Cumulative Contract Awards | |||
ADB | 27.50 | 23 Oct 2023 | 26.38 | 0.00 | 96% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 23 Oct 2023 | 26.64 | 0.00 | 97% |
Loan 3099-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
17 Dec 2013 | 30 Jun 2014 | 24 Sep 2014 | 30 Jun 2018 | 31 Dec 2021 | - |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 22.50 | Cumulative Contract Awards | |||
ADB | 22.50 | 23 Oct 2023 | 18.73 | 0.00 | 92% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 23 Oct 2023 | 20.03 | 0.00 | 99% |
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Tenders
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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SHPTC: Testing and commissioning of Selbe heating plant | Loan 3099 | 30 Aug 2021 | International Power LLC | Han-Uul District, Ulaanbaatar, Mongolia | Ulaanbaatar Municipal Government | 187,230.81 | 187,230.81 |
CSOI: IMPROVED OPERATIONS AND MANAGEMENT OF SERVICE PROVIDERS AND INSTITUTIONAL AND REGULATORY REFORM | Loan 3099 | 16 Jan 2020 | HANKUK ENGINEERING CONSULTANTS CO. LTD | ANYANG-SI, GYEONGGI-DO KOREA, REPUBLIC OF KOREA, REPUBLIC OF | Ulaanbaatar Municipal Government | 438,508.00 | 438,508.00 |
BEC13: ELECTRICITY AND TELECOMMUNICATION NETWORK IN BAYANKHOSHUU SUBCENTER | Loan 3099 | 12 Jan 2019 | (JV) ODCON HOLDING CO. LTD & ODCON ERCHIM LLC | ULAANBAATAR MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 2,151,473.52 | 2,151,473.52 |
BRDH11: ROADS, HEATING NETWORK, AND ASSOCIATED INFRASTRUCTURE IN BAYANKHOSHUU SUBCENTER (PHASE 1) | Loan 3098 | 15 Feb 2019 | YANCHENG XINGGUO CONSTRUCTION ENGINEERING CO. | PRC CHINA,PEOPLE'SREP.OF | Ulaanbaatar Municipal Government | 6,444,013.45 | 3,731,879.17 |
SEC13: ELECTRICITY AND TELECOMMUNICATION NETWORK IN SELBE SUBCENTER | Loan 3098 | 11 Feb 2019 | (JV) DORNIIN IKH GEGEE LLC & MONKHAS LLC | MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 1,899,861.71 | 1,054,423.25 |
SSF05 (LOT 2): CONSTRUCTION OF BUSINESS INCUBATOR AND VOCATIONAL TRAINING CENTER IN SELBE SUBCENTER | Loan 3099 | 12 Feb 2019 | (JV) BRIDGE CONSTRUCTION LLC & MONKHAS LLC | MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 1,065,365.45 | 1,063,747.58 |
SSF05 (LOT 1): CONSTRUCTION OF KINDERGARTEN IN SELBE SUBCENTER | Loan 3099 | 12 Feb 2019 | TSAST CONSTRUCTION LLC | MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 1,015,536.15 | 1,013,993.95 |
BEC13: ELECTRICITY AND TELECOMMUNICATION NETWORK IN BAYANKHOSHUU SUBCENTER | Loan 3098 | 06 Mar 2019 | (JV) ODCON HOLDING CO LTD & ODCON ERCHIM LLC | MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 2,151,473.52 | 1,194,067.80 |
BSLS09 (LOT 1): LANDSCAPING IN BAYANKHOSHUU SUBCEN TER | Loan 3099 | 23 Sep 2019 | (JV) DUUREN TRADE LLC & BAIGUULAMJ LLC | ULAANBAATAR MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 1,188,034.26 | 1,188,034.26 |
CS-CSDS: FEASIBILITY STUDY FOR SELBE HEATING PLANT AND DETAILED DESIGN OF THE EXTERNAL CONNECTIONS FO R BAYANKHOSHUU AND SELBE SOCIAL FACILITIES | Loan 3099 | 19 Dec 2018 | RICHWELL ENGINEERING LLC (IN ASSOCIATION WITH | ULAANBAATAR MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 150,763.33 | 150,763.33 |
CSDA: DESIGN AUTHOR SUPERVISION CONSULTANCY SERVICES | Loan 3099 | 05 Jul 2019 | RICHWELL ENGINEERING LLC (IN ASSN WITH NEW UR | ULAANBAATAR, MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 899,997.50 | 899,997.50 |
BRDH14: ROADS, HEATING NETWORK, AND ASSOCIATED INF RASTRUCTURE IN BAYANKHOSHUU SUBCENTER (PHASE 2) | Loan 3098 | 27 Nov 2018 | (JV) LUDWIG PFEIFFER & PFEIFFER LEIPZIG | LILIENTHALSTRASSE 33, 34123 KASSEL GERMANY GERMANY | Ulaanbaatar Municipal Government | 9,183,120.00 | 4,805,883.00 |
SBR08: CONSTRUCTION WORK OF THREE BRIDGES (WITH 60, 30, AND 24 METERS) | Loan 3098 | 21 Nov 2018 | ZMZ LLC | MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 1,245,378.00 | 674,691.00 |
BHF06: HEATING NETWORK CONNECTION TO BAYANKHOSHUU SUBCENTER | Loan 3098 | 17 Oct 2018 | JOINT VENTURE OF CHMM LLC AND S&A TRADE LLC | ULAANBAATAR, MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 3,673,719.00 | 2,357,614.00 |
SRDH11: ROADS, HEATING NETWORK, AND ASSOCIATED INFRASTRUCTURE IN SELBE SUBCENTER (PHASE 1) | Loan 3098 | 05 Apr 2018 | (JV) WHITE PHOENIX, HASU MEGAWATT, EVTTRUCK | BAYANGOL DISTRICT MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 7,825,337.00 | 4,343,062.00 |
SRDH14: ROADS, HEATING NETWORK, AND ASSOCIATED INF RASTRUCTURE IN SELBE SUBCENTER (PHASE 2) | Loan 3098 | 09 Dec 2017 | (JV) NABSAN LLC, TERGUUN INVEST LLC, TEGSH PL | MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 6,406,741.00 | 3,383,370.00 |
BSF05 (LOT 1): KINDERGARTEN AND BUSINESS INCUBATOR IN BAYANKHOSHUU SUBCENTER | Loan 3099 | 22 Nov 2017 | US-ORCHIN LLC | MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 1,252,278.00 | 1,252,278.00 |
BSF05 (LOT 2): VOCATIONAL TRAINING CENTER IN BAYAN KHOSHUU SUBCENTER | Loan 3099 | 22 Nov 2017 | (JV) TOMO BUILDING LLC AND BMCM LLC | MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 1,294,296.00 | 1,294,296.00 |
SHF06: DESIGN, SUPPLY, AND INSTALLATION OF HEATING PLANT IN SELBE SUBCENTER | Loan 3098 | 20 Oct 2017 | (JV) KHURD JSC AND XINXIANG GONGSHEN BOILER | SUKHBAATAR STREET-71, 6TH BLOCK, CHINGEL TEI DISTRICT, ULAANBAATAR-46, MONGOLIA MONGOLIA | Ulaanbaatar Municipal Government | 6,710,531.00 | 3,724,344.00 |
Procurement Plan
Title | Document Type | Document Date |
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Ulaanbaatar Urban Services and Ger Areas Development Investment Program - Tranche 1: Procurement Plan | Procurement Plans | Jul 2023 |