Mongolia : Ulaanbaatar Urban Services and Ger Areas Development Investment Program - Tranche 2

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 - Urban water supply

Tranche 2 of the multitranche financing facility will (i) extend the urban infrastructure upgrading and spatial restructuring to two additional subcenters in the northern ger areas, namely Dambadarjaa and Denjiin, and provide additional investments in Selbe and Bayankhoshuu subcenters under Tranche 1; (ii) support the delivery of socioeconomic facilities; and (iii) further improve institutional strengthening and capacity building.

Ulaanbaatar city is home to over 1.4 million people. The central core of the city largely comprise apartment blocks with comprehensive utility services; including district heating, piped water supply, and wastewater collection and treatment. Surrounding the central core is a vast, low density, 100 square kilometers of peri-urban area (so-called ger areas) with poor infrastructure that accommodates about 60% of the city's population (approximately 800,000 inhabitants). Ger areas have spread and expanded through successive waves of migration. These settlements of low- and medium-income households are characterized by loosely aligned plots, creating irregular pathways that remain unpaved. Lack of basic urban services causes severe pollution that affects the city residents' health because of (i) unimproved individual coal stoves used by most ger area residents during winter which generate high air pollution; (ii) poor sanitation, since households almost exclusively rely on open pit latrines; (iii) poor solid waste collection which creates highly unsanitary living conditions, along with limited access to water supplied by water kiosks; and (iv) traffic congestion caused by unmanaged road network. Finally, poor basic urban services in ger areas are combined with critical lack of public space, public facilities, commercial areas, and economic amenities.

On 12 December 2013, ADB approved the Ulaanbaatar Urban Services and Ger Areas Development Investment Program using the multitranche financing facility (MFF) modality. The program supports the Ulaanbaatar city master plan in upgrading priority service and economic hubs (subcenters) in ger areas. The program will support the implementation of the Municipality of Ulaanbaatar's Master Plan 2030 by upgrading priority ger area subcenters from 2013 to 2023 through three projects. The investment program is in line with the Asian Development Bank (ADB) country partnership strategy (2012-2016) and country operational business plan (2016) for Mongolia. Further, the program is in line with ADB''s Strategy 2020, Poverty Reduction Plan, and Urban Operational Plan 2012-2020.

The program is geographically targeted with multisector interventions. It aims to initiate a redevelopment process in ger areas and proposes an integrated solution to respond to the urgent demand for basic urban services, respond to the ongoing densification process, and develop urban subcenters as catalysts for growth in the ger areas. Improving infrastructure within the ger area subcenters and connectivity with the city core center is critical for inclusiveness and is important to facilitate the movement of people and goods, develop urban corridors, and create clusters of subcenter. 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.

Improved living conditions in Ulaanbaatar.

A network of livable, competitive, and inclusive subcenters in Ulaanbaatar's ger areas.

Roads and urban services expanded

Economic and public services in targeted areas improved

Institutional capacity for program management and urban development strengthened

3.1 Project management and implementation support

3.2 Detailed design, construction supervision, and engineering services inputs on Project 3 feasibility study

3.3 Subcenter planning and development, community participation, SME development in Dambadarjaa and Denjiin, and completion of Project 3 feasibility study