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

The UB Post - - Business & Economics -

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.

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