Major construction projects transform the lives of thousands of Mongolians – whether they’re creating new plants, enabling better transport, or providing power to the surrounding area. Aside from creating thousands of jobs during the construction phase, they’ll bring in opportunities for the local economy that will continue to provide benefits for years to come.

Despite significant challenges facing Mongolia’s economy amid the COVID-19 pandemic, there are still several megaprojects either being built or being planned.

From Mongolia’s first ever oil refinery to hydro power plant to reconstruction of busiest road connecting capital city with the third largest municipality of Darkhan, we’re taking a look at the four biggest construction projects that will be carried by Mongolian Government. The mega projects—those that cost MNT 733.7 billion in 2020 State Budget.

MNT 150 billion for the Mongolia’s first ever oil refinery

To reduce its dependence on imports, the Government of Mongolia has commenced construction of the country’s own refinery, supported by a USD 1.24 billion soft credit line from India. The refinery with an initial capacity of 1.5 million tonnes per annum is being built in Dornogobi province.

According to officials, construction of the refinery will be completed in 2025. Currently, 13 American companies and eight Indian companies are participating in the construction which is running 30 percent of completion.

MNT 115.4 billion for the Erdeneburen hydropower plant

The 90-megawatt hydropower plant is considered crucial to ensuring long-term energy supplies to western Mongolia and laying the foundation for the development of renewable energy in the region. The Erdeneburen hydropower plant on Khovd River will be constructed in the coming five years, with USD 228.5 million soft loan from the Chinese government.

MNT 117 billion for 204 km road connecting Ulaanbaatar and Darkhan cities

204-km four-lane auto road connecting Ulaanbaatar and Darkhan cities are under construction. The cost of the renovation is largely being covered by the Asian Development Bank and the European Bank for Reconstruction and Development (EBRD); a total of USD 83.8 million in loans has been allocated by the government for the renovation of what has been dubbed the “deadliest road in Mongolia”.

Built in 1970-1980, the 244 km Ulaanbaatar – Darkhan highway passes through major industrial towns, agricultural regions and tourist camps. The road is of strategic importance, because it is part of the north-south corridor, linking the capital with Russia. Darkhan is the country’s third-largest city.

MNT 92 billion for thermal power stations in 10 provinces

Mongolia has started constructions of thermal power stations in 10 provinces with Chinese soft loan of USD 148.7 million. Thermal power stations are crucial for Mongolia, the one of coldest countries in the world.