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EBRD finances major infrastructure project in Mongolia

By Anton Usov

EBRD finances major infrastructure project in Mongolia

  • EBRD sovereign loan of US$ 137 million to upgrade major road in Mongolia
  • 202-kilometre road to receive additional lanes
  • Improving connectivity with China and Russia

Regional integration and international trade between Mongolia, China and Russia will be boosted by the completion of a major infrastructure project supported by the EBRD.

The Bank is providing US$ 137 million for investments to double the throughput capacity of the 202-kilometre road between Mongolia’s capital Ulaanbaatar and the third largest municipality of Darkhan.

The sovereign loan will finance the construction of two new lanes adjacent to the existing lanes of the Ulaanbaatar-Darkhan motorway. The country’s busiest road, which was constructed between 1943 and 1974, has not been properly maintained and over 90 per cent requires urgent refurbishment.

The investment will address the issue of road safety and will bring a number of economic benefits for the country and the region. In addition to employment opportunities, the improved road will offer better infrastructure, including rehabilitated bridges and flood protection installations, which will result in safer rides for the community and transit vehicles. 

The investment is supported by the Ministry of Road, Transport and Development of Mongolia and benefited from technical cooperation funds provided by the EBRD. The funds will assist in making the state road fund operational and help improve overall road maintenance in the country.

All contracts under the project have been procured by open tender in strict compliance with the EBRD's Procurement Policies and Rules. This has provided equal opportunities for eligible bidders and contributed to the transparency and cost efficiency of the project. Contractors’ activity will be supervised by an independent engineer.

The EBRD investment is complementing earlier works along the same transport corridor funded by the Asian Development Bank.

In Mongolia the EBRD works to support building a diverse economy by developing the private sector and supporting infrastructure improvements. The Bank has invested more than €1.7 billion in 104 projects in the country since it started operations there in 2006.

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