ADB funding opens up western Mongolia

The Asian Development Bank (ADB) has agreed a loan worth up to US$ 170 million to improve transport links in western Mongolia in a bid to help reduce the region's isolation and spur development in one of the country's poorest areas.

Mongolia, the most sparsely populated country in the world, suffers from high levels or poverty and underdevelopment, due in part to poor road networks. The new US$170 million financing facility will be used to make improvements and develop the Western Regional Road Corridor.

An eight-year programme will construct 290 km of regional roads, rehabilitate and construct some connecting local roads, build and equip three road maintenance units, and provide training and support for road sector institutions.

Foreign contractors have carried out previous ADB-funded road development work. However, this new development plan will put the onus on increased input from domestic contractors. It is hoped this will aid Mongolia's road sector institutions to construct, manage and maintain the country's rapidly expanding road network.

The Western Regional Road Corridor will link Mongolia to the Russian Federation in the north and People's Republic of China in the south.