EBRD agrees $137m loan for Mongolian road project
The European Bank for Reconstruction and Development is providing $137 million for investments to double the throughput capacity of the 202km road between Mongolia’s capital Ulaanbaatar and the third largest municipality of Darkhan.
The sovereign loan will finance the construction of two new lanes adjacent to the existing lanes of the Ulaanbaatar-Darkhan motorway.
The country’s busiest road, which was constructed between 1943 and 1974, has not been properly maintained and over 90 per cent requires urgent refurbishment. The EBRD says the project will boost regional integration and international trade between Mongolia, China and Russia.
The investment is supported by the Ministry of Road, Transport and Development of Mongolia and benefited from technical cooperation funds provided by the EBRD. All contracts under the project have been procured by open tender.
The EBRD investment is complementing earlier works along the same transport corridor funded by the Asian Development Bank.
