The government and the MUB requested Asian Development Bank's (ADB) support to formulate a project that will (i) translate the existing Affordable Housing Strategy (AHS) into implementable plans, investments, and institutional reforms; (ii) increase the supply of AH; and (iii) enhance city livability through the construction of well-integrated and resource-efficient solutions in strategic locations in the ger areas. This will support the Ulaanbaatar City Master Plan. The project will build on existing ADB projects aiming to integrate and upgrade the ger areas and transform Ulaanbaatar into a more inclusive city; and will also build on prior ADB Housing Sector Finance Project and housing loans to the very poor. The project is consistent with ADB's interim country partnership strategy for Mongolia, 2014 2016 as well as with the core themes of green, competitive, and inclusive cities of ADB's Urban Operational Plan.

Special features and design principles. ADB's investment will launch a demonstration project and leverage private sector investment to deliver affordable and green housing stock, and establish policies, mechanisms, and standards for sustainable AH and green urban development. It tentatively aims to build 8,000 affordable and 2,000 social housing units and redevelop 130 hectares of ger areas into ecodisricts that are (i) mixed-use with ample public space and public facilities, (ii) mixed-income with at least 65% of combined affordable and social housing units, and (iii) resource efficient and maximizing the use of renewable energy. Physical development will integrate innovative planning to ensure maximum resource efficiency, social cohesion, and economic opportunities. Most of the redevelopment process and housing construction will be demand driven through land swap or land pooling processes. Intensive community consultation and participation will be integrated into each stage of the project design and implementation. Financial and institutional arrangements will establish sustainable housing finance mechanisms, such as micro-mortgages, rent-to-own schemes, contract savings schemes, subsidies, and grants, and will merge public and private financial mechanisms to ensure the comprehensive redevelopment of the selected areas. The project will strengthen regulatory, financial, and institutional framework and establish sustainable solutions for AH delivery. The targeted areas will mainly be located in ger areas where ADB has ongoing programs that aim to (i) improve public transportation system, and (ii) upgrade existing subcenters and urban corridors (footnote 10). This will (i) allow capitalizing on areas where communities have been engaged and organized, (ii) provide redevelopment options to the communities, and (iii) benefit from main trunk infrastructure implementation.

The project impact is in line with the Ulaanbaatar City Master Plan and the AHS of improved housing conditions in Ulaanbaatar ger areas. The project outcome will be replicable, sustainable, and comprehensive solutions for affordable housing and ger areas redevelopment established. The project outputs will be (i) mixed-use, mixed-income, and resource efficient ecodistricts built in ger areas; (ii) mechanisms for delivery of affordable housing units stock established; (iii) urban redevelopment process and standards improved; and (iv) project management, and institutions for urban redevelopment and AH strengthened.

IMPACT
Housing conditions in Ulaanbaatar ger areas is improved (Ulaanbaatar City Master Plan, 2014 2020).

OUTCOME
Replicable, sustainable, and comprehensive solutions for affordable housing and ger areas redevelopment established.

KfW Bankengruppe US$ 30.00 million
Climate Investment Fund US$ 30.00 million

Municipal Government of Ulaanbaatar
Sukhbaatar Square-11
Ulaanbaatar-46, Mongolia

ACCOUNTABILITY MECHANISM OF ADB
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