EBRD provides $137m loan to build 202km road in Mongolia


The European Bank for Reconstruction and Development (EBRD) has agreed to provide a loan of $137m for the construction of 202km road in Mongolia.

The loan will help in building the road between the country’s capital Ulaanbaatar and the third-largest municipality of Darkhan. Two new lanes adjacent to the existing lanes on the motorway will be built.

Considered to be the country’s busiest road, it was built between 1943 and 1974. As it has not been properly maintained, over 90% of the road needs urgent refurbishment, EBRD said.

Completion of the infrastructure project is expected to boost international trade and regional integration between Mongolia, China and Russia.

The investment will also address the issue of road safety while adding several economic benefits for the country and the region.

Additionally, the improved road, with better infrastructure, rehabilitated bridges and flood protection installations are expected to result in safer rides for the community and transport vehicles.

Supported by Mongolia’s Ministry of Road, Transport and Development, the project will benefit from the technical cooperation funds offered by EBRD. The funding is also expected to make the state road fund operational while strengthening the overall road maintenance in the country.

EBRD further stated that all the contracts under the project were obtained by open tender, complying strictly with EBRD’s procurement policies and rules.

It is also claimed that equal opportunities for all the eligible bidders, adding to the transparency and cost-efficiency of the project. The activities of the contractors will also be monitored by an independent engineer, the European financial institution said.

In 2018, EBRD supported Mongolia by providing $9.7m and €4.9m ($6m) in European Union funding to improve municipal waste services in the capital city of Ulaanbaatar.

The funding will be used for the development of a landfill complying with EU standards, purchase new waste-collection equipment and introduce a construction-and demolition-waste plant.

The additional landfill will help the city to dispose of a significant part of its waste and the new equipment will help in improving waste collection, transportation, recycling and disposal services.


Image: EBRD supports road development project in Mongolia. (Credit: The European Bank for Reconstruction and Development).

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