Ulaanbaatar, Mongolia, September 28, 2021— In support of Mongolian capital city's green and digital transition, IFC and the Municipality of Ulaanbaatar today signed a memorandum of understanding (MoU) to jointly identify investment opportunities and collaborate with the aim of bolstering private financing for modern infrastructure facilities. The agreement is part of IFC's broader strategy to boost sustainable economic growth and climate resilience in Mongolia.
Almost half of Mongolia's population lives in Ulaanbaatar, with a rapid increase in the number of households living in the ger areas, or settlements of low- and middle-income households. The number of registered vehicles also reached 652,000 this year in a city with 1.4 million people. Subsequently, the city faces a range of urban challenges, including air and soil pollution, urban sprawl, centralization, and traffic congestion.
Under the MoU, IFC will provide advisory support to the Municipality of Ulaanbaatar with the objective of identifying new ways to implement sustainable development in key areas such as green transport, waste treatment and sanitation, street lighting, district heating, and green housing. The two parties will also work with other stakeholders to support structural reforms that will accelerate private sector participation in sustainable urban infrastructure and services.
"The partnership with IFC will help Ulaanbaatar access the expertise and financing needed to modernize our infrastructure and deliver better urban services. We will continue to focus on forging innovative partnerships to make our city greener, smart and more competitive," said Sumiyabazar Dolgorsuren, Governor of the Capital City and Mayor of Ulaanbaatar.
At the Climate Ambition Summit last December, Mongolia committed to a higher Nationally Determined Contribution (NDC) target of 27.2 percent reduction in greenhouse gasses by 2030. According to an IFC study, $11.5 billion in climate investments will be required to achieve this new target.
"Through developing sustainable and smart urban infrastructure, the Municipality of Ulaanbaatar will be able to improve energy efficiency of its services and reduce green-house emissions, thereby helping Mongolia reach its Nationally Determined Contribution targets," said Alfonso Garcia Mora, IFC's Regional Vice President for Asia and Pacific. " IFC's Cities initiative is uniquely positioned to support Ulaanbaatar in its endeavors to diversify and enhance its funding sources in order to successfully implement its climate resilience agenda."
Since 2004, IFC has invested and mobilized over $9 billion in more than 280 projects in the Cities infrastructure space. This is IFC's first project in East Asia and the Pacific region under its Cities initiative.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org or www.ifc.org/infrastructure or www.ifc.org/cities
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