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Press Releases

April 16, 2015

Signing of Japanese ODA Loan Agreement with Mongolia
Supporting construction of a new airport in the capital city

photoSigning ceremony

On April 16, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of Mongolia in Ulaanbaatar, the capital of Mongolia, to provide a Japanese ODA loan of up to 36.85 billion yen for the New Ulaanbaatar International Airport Construction Project (II). A Japanese ODA loan (the Loan Agreement was signed in May 2008 for 28.807 billion yen) was provided for stage I of this project, and this will be the second loan. This ODA loan is the largest amount of support for Mongolia since JICA began providing cooperation to Mongolia in 1977.

This project will construct a new international airport in the suburbs of Ulaanbaatar, improving safety and reliability along with convenience at the capital’s airport, and contributing to further economic development in Mongolia. The funds for this project will be allocated to airport construction and consulting services.

Mongolia is undergoing steady economic growth due to the transition to a market economy underway since 1990, and development in manufacturing, mining and other sectors. In particular, the growth in the service industry, and expanding investment in the country’s ample underground and livestock resources have, in recent years, stimulated travel between Mongolia and other countries, as well as domestic travel. With these developments, the number of domestic and international travelers at Chinggis Khaan International Airport, which currently serves the country’s capital, has rapidly grown from approximately 610,000 per year in 2008 to approximately 1.1 million in 2013, and existing facilities must be rehabilitated and new facilities built to meet the further expected increase. However, the airport has geographic restrictions as there are surrounding mountains to the south and the east, and meteorological conditions such as wind direction cause many delays and flight cancellations, so expansion and improvement projects cannot be carried out at the current location. This project will construct a new airport at a location without such geographical restrictions, which is expected to solve such problems and meet the demand for increased air travel.

Reference
1. Terms and Amount of Loan

Project title Amount
(million yen)
Annual interest rate (%) Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
New Ulaanbaatar International Airport Construction Project (II) 36,850 0.1 0.01 40 10 Japan tied

Note: Special Terms for Economic Partnership (STEP) apply.

2. Executing Agency
Ministry of Road and Transport
Address: Chinggis Avenue 11, Sukhbaatar District, Ulaanbaatar 14251, Mongolia
Phone: +976-62263191

3. Planned Implementation Schedule
(1) Completion of project: May 2017 – when the facilities are put into service
(2) Consulting services (including design and construction monitoring) in service
(3) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Airport Construction Package (Civil Works and Others) - agreement concluded

4. JICA Contact Information
For further information about the procurement schedule, please contact the office listed below.
Contact Point: JICA Mongolia Office
Address: 7F, Bodi Tower, Sukhbaatar Square 3, Ulaanbaatar, Mongolia
Phone: +976-11-325939, fax: +976-11-310845

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