Key Project

Regional Road Development Project

  • Sector: Transport
  • Date Approved: 22 Jul 2004
  • Status: Completed
  • Funding Amount:
    • $37 million (Asian Development Bank)
    • $15.6 million (Government of Mongolia)
    • $1.5 million (Government of the People's Republic of China)
    • $23.9 million (Government of the Republic of Korea)
View complete project details

An underdeveloped road network characterized transport in Mongolia in 2004, confining movements to the north-south railway line between the northern border with the Russian Federation at Sukhbaatar and the southern border with the People's Republic of China near Zamyn-Uud, with access to international markets only through a port at Tianjin.

Previous Asian Development Bank support had paved road sections along the north-south corridor linking Altanbulag at the Russian Federation border with Ulaanbaatar, and extending the corridor south to the border with the People's Republic of China.

The Regional Road Development Project sought to further raise transport efficiency and safety on the north-south corridor by completing the first modern road between Mongolia's economic centers and its trading partners, complementing the earlier improvement.

Formulated in accordance with Mongolia's road sector strategy, the project constructed a 427-kilometer paved road between Choir and the border with the People's Republic of China near Zamyn-Uud.

The Government of Mongolia also introduced the Transit Mongolia National Program, under which a transit traffic framework agreement with the People's Republic of China and Russian Federation was drafted, regulations for cross-border vehicles were established,greater access of Mongolian vehicles to the People's Republic of China was negotiated, vehicle fees were collected for road maintenance, and vehicle weight control was enforced.

To enhance road safety, the project installed safety features on the Ulaanbaatar-Altanbulag section, conducted a road safety audit, and procured patrol vehicles equipped with breath analyzers for alcohol and speed monitors. To develop the area, four access roads were built at Erdene, Orgon, and Sainshand, and local laborers were trained on road construction and maintenance. Technical assistance was also provided to mitigate the risks of HIV/AIDS transmission and human trafficking on the corridor.

The project was Mongolia's highest-priority transport project. The paved road replaced earth tracks, reducing travel time by 60% and vehicle operating costs by 45%. Vehicles increased by more than 40% within 4 months alone. It enabled access to markets and other socioeconomic activity centers; cross-border trade through Zamyn-Uud increased from $143 million in 2007 to $1.4 billion in 2013; and better connectivity increased herd numbers in the area, contributing to overall socioeconomic development.

Revenue of Dornogovi Province grew from MNT2 billion (about $979,000) in 2005 to MNT34 billion (about $16.6 million) in 2013. At the same time, road deterioration was minimized by restrictions on overloaded vehicles, and the equipment procured made traffic police more capable and responsive. The project also provided direct employment equivalent to 6,000 labor-months.

(Source: Asian Development Bank. 2015. Completion Report: Regional Road Development Project in Mongolia. Manila.)