The Asian Development Bank has approved a USD 60 million loan to help improve and rehabilitate the 311km of road corridors in Mongolia, which will help facilitate economic cooperation and trade. The Regional Road Development and Maintenance Project will rehabilitate and enhance the safety of road corridor sections, Mongolia’s links with China and the Russian Federation, along Ulaanbaatar-Darkhan and Darkhan-Altanbulag. The road improvement project will promote inclusive economic growth through increased trade, as well as boost agriculture, agribusiness, and tourism.

 “Mongolia’s economy slowed down recently with the country’s gross domestic product growth declining from a high of 17.3% in 2011 to 5.1% in 2017,” said ADB Director for East Asia Transport and Communications Ms. Sujata Gupta. “Having safe and reliable road networks will help Mongolia foster economic activities through trade and tourism, which will underpin the economic outlook.”

Currently, Mongolia has a road network of about 48,538 km, but only about 13.2% are paved—a situation that affects the country’s growth prospects, particularly on jobs, trade, and connectivity. The project and its attached technical assistance will improve Mongolia’s road asset management practices.

Road safety in the project areas will also be improved, including the installation of road markings, barriers, and guide posts. Independent road safety audits will be conducted.