2023.08.23
On August 18, the Japan International Cooperation Agency (JICA) by signing a Record of Discussions with the Government of Mongolia. This momentous event took place during the “Japan-Mongolia Business Forum 2023” in Ulaanbaatar, which was jointly organized by the Ministry of Economy and Development (MoED), the Mongolian National Chamber of Commerce and Industry, the Japanese University Graduated Association of Mongolia (JUGAMO), the Mongolia-Japan Center, and JICA.
Signing Ceremony
Mongolia, a landlocked country boasting abundant rich underground resources and vast territories, holds significant importance for regional stability. However, the concentration of both the population and economic activities in the capital city of Ulaanbaatar, home to approximately 1.6 million people, or roughly half of the country’s total population, has resulted in persistent challenges related to urban environmental degradation and traffic congestion.
Given these circumstances, the Mongolian government has been working hard to improve the urban environment. For example, they have devised a comprehensive plan to address regional development disparities by establishing a new city (New Zuunmod City), along with a free economic zone, in the Khushig Valley area of Tuv Province.
The strategic location of this development aligns with the presence of the New Ulaanbaatar International Airport (Chinggis Khaan International Airport), which commenced operations in July 2021 with Japanese ODA Loan support. To further solidify this initiative, the State Great Khural (Parliament) of Mongolia approved the “New Zuunmod Development Master Plan” in April 2022. However, Mongolia has had no experience in developing new cities beyond Ulaanbaatar or establishing special economic zones outside of its borders since its transition to a market economy. In light of this, there have been calls for Mongolia to leverage Japan’s expertise and rich experience in development in both domestic and international development projects.
JICA has played a crucial role in supporting the construction and operation of the new airport through the "New Ulaanbaatar International Airport Construction Project," the "New Ulaanbaatar International Airport Operation System Design Support (Individual Expert)," the "New Ulaanbaatar International Airport Preparation for Use Action Plan Development Support (Individual Expert)," and the "New Ulaanbaatar International Airport Human Resources Development and Capacity Improvement for Operation, Maintenance and Management Project" under the Japanese ODA Loan program. The airport is widely recognized as a symbol of Japan and Mongolia’s strong cooperation. Furthermore, JICA has also conducted studies such as the "Information Gathering and Confirmation Study on Urban Development around the New Ulaanbaatar International Airport in Mongolia" to confirm the significance of new urban development around the airport, which it is assumed will be carried out once the new airport has opened. Utilizing the assets of these past efforts, this project will contribute to the realization of the consistent new urban development that is expected by the Mongolian government.
By establishing the necessary framework and strengthening the capacity of relevant agencies for the implementation of the new Zuunmod Development Master Plan in Mongolia, this project will contribute not only to the development of the target area but also to the achievement of SDGs (Sustainable Development Goals) Goals 9 (Industry, innovation and infrastructure) and 11 (Sustainable cities and communities).
Details for the project are provided below.
| Country | Mongolia |
|---|---|
| Project title | Project for Promoting the Development of the New Zuunmod City and Free Economic Zone |
| Planned implementation period | 24 months |
| Executing agency | Ministry of Construction and Urban Development (MCUD), Ministry of Economy and Development (MoED) |
| Target region | Khushig Valley Area, Tuv Province (New Zuunmod City) |
| Specific project details (provisional) | To strengthen the capacity of relevant Mongolian government agencies to coordinate and cooperate in the development of new cities based on the Master Plan, doing so by establishing the necessary framework for the implementation of the New Zuunmod Development Master Plan in the Khushig Valley Area of Tuv Province. Additionally, to strengthen the capacity of relevant agencies to develop the legal framework and investment environment for the establishment of new cities and free economic zones. |
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