The 20.9 km road from Gachuurt to the Nalaikh and Choir junction opened for traffic on 4 November. The road has been reconstructed to a 26-meter wide dual carriageway. However, it will be fully completed by July, 2020 once pavements, cycleways and flyovers have been added.

The road has been reconstructed after 60 years since it was first built in 1959. The modernization has been funded with USD 36 million soft loans by Chinese Government.

The Nalaikh highway is the main gateway that links Ulaanbaatar to the eastern and southern provinces, and to the districts of Nalaikh, Baganuur and Bagakhangai districts. It also links the capital with the Terelj-Gorkhi tourism region.