About 850 thousand people live in Ulaanbaatar’s ger areas; which is blamed for air and soil pollution in capital city. These districts suffer from poor sanitation, inadequate solid waste management, and limited water supply, which pose health and environmental hazards. A heavy reliance in these ger areas on cheap coal for heating and energy generates large carbon dioxide emissions and worsens air pollution, especially during winter.

The Asian Development Bank’s (ADB) Board of Directors has approved a USD 80 million loan to help transform the ger areas in Ulaanbaatar into affordable, low-carbon, climate-resilient and livable eco-districts. The ADB will additionally administer a USD 95 million loan and a USD 50 million grant from the Green Climate Fund (GCF), as well as a USD 3 million sector grant from the High-Level Technology Fund (HLTF).

This project will improve the lives of around 100 thousand people, including 10 thousand direct beneficiary households that will have access to green housing units, by financing 20 new environmentally friendly districts with good services, green spaces, and access to shops and jobs.

The project is expected to be completed by the end of 2026 and will cost a total of USD 570.1 million.