According to the Bank’s website, the project aims to improve urban mobility in Ulaanbaatar, increasing the use of public transport through the quality improvement of public transport along a selected corridor.

Ulaanbaatar, the capital city of Mongolia, had a population of 1.7 million in 2023, accounting for about half of the country's total of 3.5 million, and 70% of the urban population. The city also concentrates economic activity contributing around 63% of gross domestic product (in 2022). However, the city's continued growth presents challenges. The city's population is projected to reach almost 2 million by 2035, outpacing national population growth. Infrastructure investments have lagged behind population growth, resulting in inefficient systems that are incapable of meeting present needs and anticipated growth. In 2020, 22% of households lived in ger areas with limited services.

In addition to the steep rise in Ulaanbaatar's population, vehicle registration increased by 13.4 times from 2000 to 2019 while the urban road network expanded only 3.3 times. The city's public transport includes 18 bus companies operating on 111 routes, but quality and coverage are mixed. The poor state of public transport has encouraged the use of private vehicles and informal taxi services, resulting in a highly congested and polluting transport system. The urban road network has deteriorated because of high traffic volume, funding gaps in maintenance, and flooding. These factors, combined with inadequate land use planning and lack of enforcement of zoning regulations, poor traffic engineering design, and disregard for traffic laws, contribute to heavy traffic congestion and long travel times.

The Government of Mongolia (GOM) has requested the Asian Development Bank (ADB) to help finance the development of a Bus Rapid Transit (BRT) corridor, to improve the quality of and increase the demand for public transport in Ulaanbaatar and curb the increasing demand for the use of private vehicles.

Environment: B
Involuntary Resettlement: B
Indigenous Peoples: C

Loan (Ordinary capital resources): US$ 60.00 million

No contacts available at the time of disclosure.

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The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.