Mongolia : Ulaanbaatar Transport Improvement Project 1

Sovereign Project | 55279-001

The project aims to improve urban mobility in Ulaanbaatar,10 increasing the use of public transport through the quality improvement of public transport along a selected corridor.

Project Details

  • Project Officer
    Dei Castelli, Nicolas
    East Asia Department
    Request for information
  • Country/Economy
  • Sector
    • Transport
Project Name
Ulaanbaatar Transport Improvement Project 1
Project Number
Country / Economy
  • Mongolia
Project Status
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan: Ulaanbaatar traffic management and public transport improvements project
Source Amount
Ordinary capital resources US$ 60.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP4: Making cities more livable
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Transport / Urban public transport

Effective gender mainstreaming
The project aims to improve urban mobility in Ulaanbaatar,10 increasing the use of public transport through the quality improvement of public transport along a selected corridor.
Project Rationale and Linkage to Country/Regional Strategy

Ulaanbaatar, the capital city of Mongolia, had a population of 1.7 million in 2023, accounting for about half of the country's total of 3.5 million, and 70% of the urban population. The city also concentrates economic activity contributing around 63% of gross domestic product (in 2022). However, the city's continued growth presents challenges. The city's population is projected to reach almost 2 million by 2035, outpacing national population growth. Infrastructure investments have lagged behind population growth, resulting in inefficient systems that are incapable of meeting present needs and anticipated growth. In 2020, 22% of households lived in ger areas with limited services.

In addition to the steep rise in Ulaanbaatar's population, vehicle registration increased by 13.4 times from 2000 to 2019 while the urban road network expanded only 3.3 times. The city's public transport includes 18 bus companies operating on 111 routes, but quality and coverage are mixed. The poor state of public transport has encouraged the use of private vehicles and informal taxi services, resulting in a highly congested and polluting transport system. The urban road network has deteriorated because of high traffic volume, funding gaps in maintenance, and flooding. These factors, combined with inadequate land use planning and lack of enforcement of zoning regulations, poor traffic engineering design, and disregard for traffic laws, contribute to heavy traffic congestion and long travel times.

The Government of Mongolia (GOM) has requested the Asian Development Bank (ADB) to help finance the development of a Bus Rapid Transit (BRT) corridor, to improve the quality of and increase the demand for public transport in Ulaanbaatar and curb the increasing demand for the use of private vehicles.


Urban mobility in Ulaanbaatar improved (Vision 2050: Long-Term Development Policy

of Mongolia)


Public transport services improved.


A climate-resilient bus rapid transit corridor and associated facilities constructed in Ulaanbaatar.

Effective project management and sustainable bus rapid transit operations established.

Geographical Location

Safeguard Categories

Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation


Responsible ADB Officer
Dei Castelli, Nicolas
Responsible ADB Department
East Asia Department
Responsible ADB Division
EASI, East Asia Department
Executing Agencies
Ulaanbaatar Municipal Government


Concept Clearance
30 Apr 2024
Fact Finding
02 Sep 2024 to 13 Sep 2024
31 Oct 2024
Last Review Mission
Last PDS Update
08 Jul 2024


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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.