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Urban rural recovery

Urban rural recovery

Implementing major economic and infrastructure projects through ensuring balanced urban and rural development.

Programs will be realized to improve the quality and standards of public transportation in the capital city of Ulaanbaatar. The includes,  introducing new types of high-capacity public transportation services, expanding and renovating the network of main and basic highways, streets and road facilities, establishing multi-level intersections, and increasing accessibility while reducing traffic congestion.

The development of new residential areas, satellite cities, and free economic zones will be intensified to, mitigate urban centralization. Support will be provided to citizens and businesses who have migrated from Ulaanbaatar to rural areas through the implementation of a relevant comprehensive policy.

Aimag centers will be developed as independent cities, and local governments' inancial and economic opportunities will be supported to generate their budget revenues independently.

Sustainable growth of livestock and agricultural production will be supported through regional economic development policies, aiming to meet domestic food demand and increase the share of food products in total exports.


In recent years, there has been a significant surge in the number of people relocating from local areas to settle in Ulaanbaatar. Consequently, the city's road congestion has reached an alarming 78%, with the capacity of the main roads exceeding three times their intended limit, primarily attributed to a 1.8-fold increase in registered vehicles within the capital. This rapid growth in vehicle numbers has outstripped the capacity of bthe road network, revealing a pressing need for substantial improvements in road transport infastructure. 

As a consequence, citizens spend on average of 2.4 hours a day and 35 days a year stuck in traffic jams. The cumulative impact of these congestion issues over the past 10 years has resulted in a staggering estimated loss of opportunities amounting to 11.8 trillion MNT.

In the city of Ulaanbaatar


Two sets of projects have been approved within the policy framework. These projects aim to reduce traffic congestion in the capital through infrastructure improvements and create new residential areas and satellite cities by decentralizing the city.


With the implementation of these projects, the road congestion index is expected to decrease by 15-20%, leading to the creation of new production, services, and jobs in the local area. As a result, the number of migrants to Ulaanbaatar will decrease, reducing the concentration burden in the capital.


Urban and Rural Recovery and its implementation