An agreement to
develop public transportation was signed between the Asian Development Bank and
the Mongolian Government at a ceremony on July 2, attended by, among others, Mayor
G.Munkhbayar, the head of the Loan Policy and Cooperation Department of Finance
Ministry, B.Khurelbaatar, and the ADB Representative in Mongolia, S.Ljunvoll. The
total cost of the project is USD299 million of which the first installment of
USD27 million will be released soon.

There will be 12.6-meter-wide
lanes for buses only.  GPS devices will
be installed and all the buses will be controlled from one center. It will take
seven years to build these special lanes. New subways will also come up in the 30
years of the project.

The ADB loan carries
one percent interest in the first eight years and 1.5 percent in the next 24
years.