Asian Development Bank offers loan to Mongolia for road improvement
The money will be earmarked for the renovation of 311 km of roads along the routes of Ulaanbaatar-Darkhan and Darkhan-Altanbulag.
The Asian Development Bank signed a deal worth 60 million U.S. dollars with the Mongolian government to help Mongolia renovate its roads. Mongolian Finance Minister Khurelbaatar and Yolanda Fernandez Lommen, Asian Development Bank’s country director for Mongolia, signed the agreement at a ceremony in Ulaanbaatar. Accordingly, the money will be earmarked for the renovation of 311 km of roads along the routes of Ulaanbaatar-Darkhan and Darkhan-Altanbulag, crucial parts in Mongolia's road corridor sections that link with China and Russia. The renovation work will begin later this year. The 27-year loan will have an interest rate of 0.6 percent and principal payments will be waived during the four years. "Road development is very important for any country's socio-economic development. Having good and safe roads will create many good opportunities for the economy through trade and tourism," Lommen said. Mongolia, with a total land area of over 1,5 million square km has a road network of about 50,000 km, but less than 15 percent has been paved. Over the past 25 years, the Asian Development Bank has implemented about 280 projects and programs in Mongolia involving a total of 1.9 billion dollars in fields such as health, social protection, infrastructure and urban planning.
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