The Millennium Challenge
Account-Mongolia (MCA-M) and
XacBank have signed an agreement to cooperate on joint implementation of a
clean air project to reduce air pollution in Ulaanbaatar. Around USD31 million
of MCA-M money will be used to produce energy efficient products and increase
their use in ger district households.

The plan is to provide financial assistance to households to enable them to buy
such products and to set up arrangements to market such products to consumers.
XacBank will be responsible for distributing the financial support to
households. The program is expected to begin in Khoroo 12 of Chingeltei
district in winter 2011, and then gradually spread to all khoroos of the city.
The ger districts account for some 60% of the population of Ulaanbaatar, and if
they use energy efficient, environment-friendly products, the air pollution
caused by burning coal is expected to be significantly reduced.