ADB provides 53 million USD for transforming ger area into eco-districts

The Asian Development Bank (ADB) has granted 53 million USD to Mongolia to transform ger areas in Ulaanbaatar into affordable, low-carbon, and climate-resilient eco-districts.

Minister of Finance Ch.Khurelbaatar and ADB Country Director for Mongolia Yolanda Fernandez Lommen inked the agreement on Thursday. Representatives from the Ulaanbaatar Mayor’s Office 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,” Lommen said. “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 50 million USD from the Green Climate Fund and three million USD from the High-Level Technology Fund, ADB is also providing an 80 million USD loan with the Green Climate Fund providing a 95 million USD loan to the project. The project is expected to leverage around 300 million USD 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 ecodistrict perimeter can choose to participate or not in the plan to trade new homes for their land.