Улаанбаатар
ADB Approves USD 60 Million for Ulaanbaatar’s First Bus Rapid Transit System
Society
Ulaanbaatar, December 10, 2025 /MONTSAME/. The Asian Development Bank (ADB) has approved a USD 60 million loan to support the Government of Mongolia in improving public transport services in Ulaanbaatar through the development of a bus rapid transit (BRT) system. Under the project, an additional USD 500,000 in grant funding will be provided through the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP).
“Introducing
a bus rapid transit system in Ulaanbaatar for the first time will enable the
city to deliver higher-quality public transport services to passengers,”
said ADB Country Director for Mongolia Shannon Cowlin. “This will encourage
residents to shift from private cars to public transport, helping reduce
traffic congestion and air pollution while supporting economic activity.”
Driven
by population growth, the number of registered vehicles in Ulaanbaatar has
surged, pushing traffic congestion to critical levels and
negatively affecting economic productivity and quality of life. During peak
hours, average traffic speeds drop below 10 kilometers per
hour, while emissions from diesel buses further worsen air
pollution.
The
project will support the design and construction of the BRT system as a high-capacity, fast, reliable, safe, and cost-effective
service. The system will include a dedicated median bus
lane, off-board fare collection, accessible stations, traffic signal priority
for buses at intersections, bicycle lanes, and pedestrian-friendly
facilities—designed in line with international best practices and quality
standards.
This
initiative aligns with ADB’s 2025–2028 Country
Partnership Strategy with Mongolia and will contribute
to the country’s nationally determined contribution under the UN Framework
Convention on Climate Change, which targets a 22.7
percent reduction in greenhouse gas emissions by 2030.
In May 2023, ADB announced the IF-CAP, a landmark program designed to significantly scale up support for the region in tackling climate change. IF-CAP’s initial partners include Denmark, Japan, the Republic of Korea, Sweden, the United Kingdom, and the United States. Financing mobilized through IF-CAP will contribute to ADB’s enhanced target of delivering USD 100 billion in climate financing from its own resources during 2019–2030.
ADB is committed to promoting a prosperous, inclusive,
resilient, and sustainable Asia and the Pacific while continuing its efforts to
eradicate extreme poverty. Founded in 1966, the bank is owned by 68 members,
including 49 from within the region.
