Investment Projects

Tuul Water Complex Project 

Photo source: https:prestige.mn

The Tuul Water Complex Project (2025–2032) is a strategic national infrastructure initiative designed to secure a long-term and reliable water supply for Ulaanbaatar and surrounding urban areas, while supporting growing demand from households, industry, and agriculture. The feasibility study, currently 90% complete, is being prepared by Kalpataru Projects International Limited (KPIL), India. The project includes comprehensive assessments of surface and groundwater resources to establish a sustainable water supply system. With a planned storage capacity of 50–100 million cubic meters, the project will strengthen water security, improve the ecological flow of the Tuul River, enhance flood protection, and support future urban expansion, satellite cities, and industrial development.

Key project specifications:

• Water storage capacity: 50–100 million cubic meters
• Dam length: 685.15 meters
• Dam height: 35.8 meters
• Reservoir depth: 19.84 meters
• Catchment area: 5,569 km²

The feasibility study is being developed by Kalpataru Projects International Limited (KPIL) of the Republic of India. The study includes comprehensive assessments of both groundwater and surface water resources, evaluates water utilization potential, and develops engineering solutions to establish a secure and sustainable water supply system for Ulaanbaatar.

Once completed, the project is expected to strengthen Ulaanbaatar’s long term water security, maintain the ecological flow of the Tuul River, reduce flood risks, and improve the sustainable management of water resources.

“Selbe-20 Minute City” Project

The Selbe – 20-Minute City Project aims to develop Ulaanbaatar’s first model “20-minute city” by transforming ger districts into modern, sustainable residential areas.

The project focuses on creating a compact urban environment where residents can access essential services, schools, workplaces, and public facilities within a 20-minute distance by walking, cycling, or public transport.

The project will provide housing for approximately 8,575 households through 113 residential blocks, along with modern infrastructure including schools, kindergartens, a general hospital, and public service facilities.

The project will help reduce air pollution, traffic congestion, and urban concentration while improving residents’ quality of life.

Key developments include 48.7 km of pedestrian walkways, 58.11 hectares of green space, office and residential areas, and a light rail transit system.

Project Progress: 22.1% completed, with engineering infrastructure completed and 92% of land parcels cleared.

The project offers investment opportunities in urban development, green infrastructure, transportation, smart city solutions, and public facilities.

MÖRÖN–ULIASTAI PAVED HIGHWAY PROJECT​

The Ministry of Road and Transport is implementing the 261.8 km Mörön–Uliastai Paved Highway Project under a Public-Private Partnership (PPP) framework to connect the provincial centers of Khövsgöl and Zavkhan. Serving as Mongolia’s third major east-west transport corridor, this key infrastructure initiative replaces severely deteriorated routes and multi-track dirt roads, restoring vital access to basic social services and mitigating natural hazards such as flooding.

By establishing a paved connection between central and western provincial capitals, the project will enhance logistics efficiency for trade and mining freight, boost tourism, increase regional exports and drive local economic growth. Furthermore, eliminating unpaved tracks will significantly reduce dust pollution, pastureland degradation and soil erosion—establishing essential baseline conditions to preserve Khövsgöl’s pristine natural environment. Under the concession agreement, the private partner will build, operate and maintain the highway before transferring it to the state free of charge upon contract expiration.

Kharkhorum New City Development Project

The Kharkhorum City Development Project aims to establish a modern, smart, and green city in the historic capital region of Mongolia, creating a new economic hub and supporting balanced regional development.

The project will address key infrastructure needs, including water supply, geothermal energy, industrial and technology parks, free economic zones, tourism facilities, and transportation networks.

Upon completion, the city will accommodate approximately 500,000 residents, with 50% of the total area allocated for green spaces. The project will develop 1,538.7 hectares of green areas, plant 1 million trees, and promote smart city solutions based on advanced ICT.

The project offers investment opportunities in urban development, green infrastructure, renewable energy, tourism, technology, and transportation sectors.

​ PUMPED STORAGE HYDRO POWER PLANT PROJECT WITH UP TO 100 MW CAPACITY FOR GRID FREQUENCY AND LOAD REGULATION

To meet rising winter peak loads and reduce heavy reliance on imported energy, Mongolia is introducing its first operational Pumped Storage Hydro Power Plant to supply load-balancing capacity to the Central Energy System. Upon commissioning, the facility will produce 292 million kWh of electricity annually—connecting directly to the 220/110/35 kV Baganuur Substation via a 220 kV overhead transmission line—while generating an estimated USD 18.2 million (MNT 62.6 billion) in tax revenues and boosting foreign direct investment. As a clean, eco-friendly energy solution, the plant will lower greenhouse gas emissions, improve local microclimate conditions and drive regional industrial growth and employment.

Furthermore, it will establish vital strategic water reservoirs, build local technical capacity in complex hydraulic engineering and introduce cutting-edge storage innovation to advance Mongolia’s energy sector.

THE SUPPORT TO THE ESTABLISHMENT OF THE NATIONAL CARDIOVASCULAR CENTRE (NCC)​

EBRD Finances USD 34.87 Million Sovereign Loan for New National Cardiovascular Centre in Ulaanbaatar

In a major step toward upgrading Mongolia’s healthcare infrastructure and advancing sustainable development, the European Bank for Reconstruction and Development (EBRD) is providing a sovereign loan of USD 34.87 million to finance the construction of a state-of-the-art facility for the National Cardiovascular Centre (NCC) in Ulaanbaatar. Jointly implemented by the Ministry of Health of Mongolia, the Third Central State Hospital (TCSH) and the NCC, the project will deliver a modern 120-bed healthcare facility and associated infrastructure designed to meet growing national demand.

Beyond expanding medical capacity the project serves as a key initiative under the Ulaanbaatar Green City Action Plan (GCAP). Engineered with high-performance sustainability standards, the new building is targeted to achieve an EPC A+ certification, outperforming baseline benchmarks by 22% in primary energy efficiency and 38% in water efficiency. With a 100% Green Economy Transition (GET) share and an Expected Transition Impact (ETI) score of 70, the facility integrates climate change adaptation solutions optimized indoor climate control and advanced resource management.

This investment significantly enhances the quality, safety and accessibility of high-complexity cardiac care across Mongolia helping reduce the country’s reliance on costly overseas medical treatments. Furthermore, the initiative emphasizes inclusive development by expanding clinical teaching, professional training and telemedicine capabilities—strengthening regional healthcare networks and extending specialized medical services to underserved rural populations.

BAIDRAG 30 MW HYDROELECTRIC POWER PLANT PROJECT

Designed to supply load-balancing and peak-shaving capacity for Mongolia’s Central Energy System, the Baidrag Hydroelectric Power Plant will generate 59.8 million kWh of electricity annually and reduce transmission losses by 17 million kWh. By replacing power imports and building strategic water storage reservoirs, the project substantially advances national energy independence while connecting to the Bümbögör Substation via a 28 km, 110 kV overhead transmission line. As a zero-emission renewable energy source, the facility supports public health, lowers greenhouse gas emissions and enhances local microclimate conditions by increasing water supply and reducing dust in the forest-steppe zone. Furthermore, the initiative drives green economic growth, stimulates industrial development, creates local jobs and fosters national technical expertise in operating complex hydraulic structures.

Egiin River Hydroelectric Power Project

The Egiin River Hydroelectric Power Project, with a total budget of USD 827,600,000, is a critical energy initiative designed to integrate into Mongolia’s central power grid, reduce import reliance and stop the outflow of financial capital. Reassessing the 2014 Feasibility Study, the project addresses the lack of technical solutions for winter peak flow fluctuations to protect the Selenge River ecosystem while meeting urgent national peak-load demands.

To ensure long-term ecological and community benefits, the project is developing updated technical solutions and comprehensive impact assessments adhering to UNESCO, IFC, and IUCN international standards. A key requirement involves finalizing the “Study to Determine the Impact of Changes on the Ecosystem of the Selenge River,” conducted jointly by expert teams from the Mongolian Academy of Sciences and the Russian Federation to safeguard both the Selenge River and Lake Baikal.

GEOTHERMAL PROJECT OF DEEP GROUND HEAT IN A HEAT SUPPLY SYSTEM

The Geothermal Project of Deep Ground Heat in a Heat Supply System aims to unlock a reliable, year-round energy source that is independent of weather and seasonal changes. Focused on the Bayankhongor, Arkhangai, Uvurkhangai and Bulgan regions, the project addresses the lack of historical hydrogeological data through basic research in geology, geophysics, and geochemistry, alongside targeted experimental drilling. By determining exact reservoir temperatures, flow rates, pressure, water composition and usable thermal capacity (MWth), the project will build a comprehensive GIS database of regional thermal imaging and resources to significantly reduce exploration risks for future investors.

Ultimately designed to lay the groundwork for next-stage investment, this initiative will yield actionable technological solutions and a bankable Feasibility Study for centralized district heating. Transitioning to deep geothermal energy will directly reduce local coal consumption, lower fuel transportation costs, cut urban air pollution and stimulate regional economies through new job creation.

Khangai Sheep Farming and Wool Processing Plant Project

The Khangai Sheep Farming and Wool Processing Plant Project is a USD 10,000,000 integrated agricultural initiative designed to maximize the economic value of livestock by establishing dual revenue streams through sheep farming and value-added processing. Over a 5-year timeline, the project aims to scale its core flock from 3,000 head to 20,000 certified sheep. By producing high-quality meat, breeding stock, processed products and diverse fiber-based raw materials, the initiative builds a sustainable, multi-revenue farming model.

In addition to livestock operations, the project includes constructing and operating a 6,624 m² multi-fiber processing plant. This facility will process locally raised wool as well as third-party raw materials to generate additional commercial income from custom processing and product sales. Designed as a strategic investment opportunity, this planning-based project is structured to strengthen Mongolia’s rural economy, optimize agricultural supply chains and boost value-added exports.

Youth Co: Lab Mongolia Project

The Youth Co: Lab Mongolia initiative, with a total budget of USD 373,908, is a strategic project designed to empower Mongolian youth by enhancing their skills, leadership and capacity for social entrepreneurship. By offering targeted training, practical learning and mentorship, the project enables young leaders to develop and implement innovative, inclusive and sustainable solutions to pressing social, economic and environmental challenges. Furthermore, it expands employability and business opportunities for youth while fostering a collaborative ecosystem that connects government entities, the private sector, academia, development partners and civil society.

In addition to driving inclusive economic growth, the project places a strong emphasis on youth leadership in policy dialogue, decision-making and climate action. It addresses critical environmental issues—including land restoration, desertification, drought and climate change—highlighted by capacity-building platforms like the 2026 Model COP and its resulting Youth Declaration. Ultimately, Youth Co: Lab Mongolia aligns local youth-led social innovations with the Sustainable Development Goals (SDGs), reinforcing the broader regional mission of driving sustainable community impact through empowered young changemakers.

“Ger and Nature” Digitalization Project

The “Ger and Nature” Digitalization Project, valued at USD 200,000, is a community-based initiative designed to advance sustainable eco- and cultural tourism across rural Mongolia. By establishing sustainability standards and certification, the project aims to diversify herder livelihoods, create green jobs and protect nomadic heritage while strengthening climate resilience. Building on prior progress—where PAGE training has already reached over 300 herders, small and medium enterprises (SMEs) and community organizations across multiple provinces—the initiative enhances local capacity to deliver high-quality, eco-friendly tourism services.

To drive market access and investment, the project integrates physical eco-infrastructure with digital solutions, including destination mapping, identified travel routes and interactive content. By connecting herder communities directly to the tourism economy, the initiative reduces over-reliance on traditional livestock management, fosters public-private partnerships and lays a foundation for inclusive, green economic growth.

113 km Darkhan–Altanbulag Road Widening and Upgrade Project

The Darkhan–Altanbulag Road Widening and Upgrade Project addresses urgent modernization needs along a critical 113.3 km section originally built in 1970–1974. Last repaired in 1999–2000 with Asian Development Bank financing, the aging corridor requires comprehensive reconstruction to repair severe structural settlement, grid cracking and pothole damage. Upgrading this vital segment of the Asian Highway Network (AH-3) will establish a high-quality international transit corridor connecting Russia, Mongolia and China that is 2,000 to 3,000 km shorter than Far East detour routes, thereby unlocking seamless Asia-Europe freight and passenger flows.

By upgrading the route, the project will dramatically enhance road capacity, improve safety, cut travel times and reduce vehicle operating costs. Beyond trade efficiency, the modernized corridor will accelerate regional socio-economic development by supporting the Altanbulag Free Zone, fostering roadside commerce, tourism services and driving local job creation to elevate living standards across rural Mongolia.