Ulaanbaatar
ADB grants to transform Ulaanbaatar ger areas into affordable eco-districts
Economy
Ulaanbaatar/MONTSAME/ The Asian Development Bank (ADB) and the Government of Mongolia today signed USD53 million in grant agreements to help transform ger areas in Ulaanbaatar into affordable, low-carbon, and climate-resilient eco-districts.
Minister of Finance Mr.
Khurelbaatar Chimed and ADB Country Director for Mongolia Ms. Yolanda Fernandez
Lommen signed the agreement at a ceremony in Ulaanbaatar. Representatives from
the Municipality of Ulaanbaatar also attended the event.
“A third of Mongolia’s
population live in urban ger areas and suffer
from poor sanitation, inadequate solid waste management, and limited water
supply, which pose health and environmental hazards,” said Ms. Fernandez
Lommen. “The project will provide sustainable and comprehensive solutions to
transform the ger areas into affordable, low carbon, and
livable eco-districts.”
The project will build 10,000
homes in 20 new environmentally friendly districts with good services, green
spaces, and access to shops and jobs. Out of 10,000 housing units, 1,500 will
be social housing, 5,500 will be affordable housing, and the remaining 3,000
will be sold at the prevailing market price.
In addition to the signed
grants, which consist of USD50 million from the Green Climate Fund
(GCF) and USD3 million from the High-Level Technology Fund, ADB is also
providing a USD80 million loan with GCF providing a USD95 million
loan to the project. The project is expected to leverage around USD300 million
more in investments from developers, commercial banks, and beneficiaries.
A key element of the project
is the voluntary land swapping approach for creating the eco-districts. Under
this approach, households owning or renting a plot of land within the proposed
eco-district perimeter can choose to participate or not in the plan to shift
into the new homes from the ger homes.
ADB is committed to achieving
a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while
sustaining its efforts to eradicate extreme poverty. Established in 1966, it is
owned by 67 members—48 from the region. In 2017, ADB operations totaled USD32.2
billion, including USD11.9 billion in cofinancing.
source:
The ADB Mongolia Country Office
