EBRD investment to double capacity of 202km road connecting Ulaanbaatar and Darkhan

ongoing

The European Bank for Reconstruction and Development (EBRD) is investing to improve the regional integration and international trade between Mongolia, China, and Russia with the completion of a major infrastructure project. The EBRD is providing US$137 million in investments to double the capacity of a 202-kilometer roadway that links Mongolia’s capital Ulaanbaatar and the third largest municipality of Darkhan. The investment takes the form of a sovereign loan, which will finance the construction of two additional lanes adjacent to the existing lanes of the Ulaanbaatar-Darkhan motorway. This is Mongolia’s busiest road, which was constructed in stages between 1943 and 1974. It has not been properly maintained and over 90% of the carriageway now requires urgent refurbishment. The investment will also address road safety and will deliver a number of economic benefits for Mongolia and the greater region. In addition to the employment opportunities, the improved roadway will increase local infrastructure, including the rehabilitation of bridges and installation of flood protection schemes, which will result in safer journeys for the community. The EBRD investment is supported by the Mongolia Ministry of Road, Transport and Development of Mongolia, and benefitting from technical co-operation funds also provided by the EBRD. These funds will assist in making the state road fund operational and help improved road maintenance throughout the country. All contracts under the project were by open tender, and in strict compliance with the EBRD’s Procurement Policies and Rules, which provides equal opportunities for eligible bidders and contributed to the transparency and cost efficiency of the project. Contractor progress will be supervised by an independent engineer. The EBRD investment is complementary with previous construction on the same road corridor that was funded by the Asian Development Bank. The EBRD is supporting a diverse economy in Mongolia by developing the private sector and supporting infrastructure improvements. To date, the EBRD has invested more than €1.7 billion in 104 projects in the country since they started operations there in 2006.