A Cabinet meeting on last Saturday agreed to submit a draft law on general agreement approval of financing of this program to parliament.
The investment program aims to promote an inclusive peri-urban development in Ulaanbaatar city’s ger areas. Combining spatial and sector approaches, it will introduce sustainable urban services and support the socioeconomic development of urban communities in subcenters located in ger areas. The proposed program will: (i) support urban governance, livelihood and socioeconomic activities through land use planning, and improved access to financial services; (ii) extend and upgrade appropriate and affordable water supply, wastewater collection, and district heating infrastructures; and (iii) improve the operation and maintenance capacities of service providers, and enable sound institutional and regulatory settings for service delivery.
The program is expected to be carried out in three stages within 10 year’s time.
Forty percent of Ulaanbaatar’s 1.3 million inhabitants live in the city core while 60% (approximately 800,000 people or 30% of the national population) live in ger areas. The ongoing in-migration of households to Ulaanbaatar has accelerated the growth of these ger areas. Despite their size, ger areas have been considered as merely temporary settlements and therefore never been formally integrated in the city development process and infrastructure programming. Thus, the continuing ger area densification and sprawl is putting tremendous pressure in the urban environment. Challenges associated with ger area upgrading are well documented and the huge gap between services in the formal and ger areas remains one of the most difficult challenges for the government.