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Mongolia — Daily

Mongolia Daily: Altanbulag border port expands, satellite city plan advances, and blast-hit block demolition begins

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Politics

Government Unveils 2026 Budget That Cuts Tax Burden, Trims State Footprint, and Channels Investment to Health and Infrastructure

Published: 2025-09-03

The cabinet submitted the 2026 budget emphasizing lower taxes, reduced state intervention, and expanded space for private enterprise, while holding economic growth through infrastructure spending rather than a balanced budget. Health and education capital outlays are sharply increased, with health investment reportedly rising 5.5x and education doubling. The government plans phased tax reforms through 2028, including VAT relief tied to purchase size and a significant expansion of simplified VAT eligibility from MNT 50 million to MNT 400 million, alongside raising the SME tax relief ceiling to MNT 2.5 billion.

"There is no government money—only taxpayers’ money" - Prime Minister G. Zandanshatar (unuudur.mn)

"The initial MNT 800 billion of tax-burden reduction will take effect next year, with measures phased through 2028" - Finance Minister B. Javkhlan (unuudur.mn)

The cabinet also targets consolidation of state-owned firms (from 108–109 to around 70–87), workforce reductions, and stronger efficiency mandates. Fitch affirmed Mongolia’s B+ (stable) rating, while the Russia–China gas pipeline via Mongolia moved forward with a memorandum between Gazprom and CNPC. Authorities project higher power capacity with MNT 3.9 trillion in energy investment and aim to further raise coal exports to the Chinese market.

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Citizen Input Drives 2026 Budget Priorities, Boosting Health, Education and Energy Projects

Published: 2025-09-03

The government used E-Mongolia to crowdsource priorities for the 2026 state budget, collecting 188,016 responses—about 8.2% of adults—marking a first large‑scale, systematized public input into budget drafting. Respondents favored channeling spending to health, education and energy while tightening administration and state‑owned enterprise costs. Following this guidance, capital allocations surge: health investment rises to MNT 1.3 trillion (about 5.5x 2025) for major facilities and equipment, education exceeds MNT 1 trillion for 117 schools, 73 kindergartens and 32 dorms, and energy receives MNT 4 trillion across 32 projects. Digital and science initiatives triple to MNT 168 billion. Regional budgets will also receive targeted financial support. The approach is positioned as a shift to a “people-centered” budget, with emphasis on performance‑based spending and better targeting of welfare and tax policies.

"We named it the ‘Human Development’ and ‘Citizens’ Budget’ because it was developed with public input." - Prime Minister (urug.mn)

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Published: 2025-09-03

Mongolia’s government is increasingly imposing “special regimes” on state-owned and strategic enterprises while appointing plenipotentiary representatives with sweeping decision-making powers, the article reports. The practice intensified after reversing privatizations at Erdenet, Darkhan Metallurgical Plant, and Khötöl Cement, and extended to Erdenes Tavan Tolgoi (ETT), Tavan Tolgoi JSC, the TT railway, and DCS-3 following an accident. Critics note there is no explicit legal basis in current company, state property, or government laws; officials have relied on a 1991 statute predating the 1992 Constitution. The Constitutional Court only recently agreed to hear challenges to pre-1992 acts. Allegations include unchecked authority, high compensation, and political appointments—such as J. Ganbat at ETT reportedly receiving significant pay and mass dismissals, and recent appointments of J. Batzandan and U. Byambasuren. Supporters claim improved revenues and project progress, but outcomes remain hard to verify.

"Ts. Elbegdorj was the first to use the 1991 law to appoint a plenipotentiary at Erdenet in 1998." - D. Amarbayasgalan, then Cabinet Secretariat Chief (unuudur.mn)

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Government Approves 2,195 Land Parcels for Allocation and Use in 2024

Published: 2025-09-03

The Cabinet approved a nationwide list of locations, sizes, and purposes for 2,195 land parcels to be allocated or leased in 2024. Parcels are categorized across five annexes: 1,879 for urban and settlement use, 210 for agriculture, 83 for roads and utility corridors, 19 within forest reserves, and four for state special needs. Following the 2025 planning directive, Ulaanbaatar, four districts, and 62 soums in 20 aimags amended their land-use plans and submitted 3,625 parcels via the unified Land Fund digital system; the government cleared 2,195 for this year. The Agency for Land Administration and Management, Geodesy and Cartography was tasked with oversight, underscoring state control and protection of the land fund. This decision signals continued urban expansion, infrastructure build-out, and sector-specific land allocation through a centralized digital process.

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Lawmakers Split Over Tobacco Control Bill as Science-Policy Rift Widens

Published: 2025-09-03

Parliament’s working group on the revised Tobacco Control Law faces internal disagreement over how to regulate e-cigarettes and heated tobacco products. Working group head MP O. Nominchimeg has publicly equated the harms of electronic and combustible cigarettes, drawing criticism for allegedly misrepresenting customs data and contradicting international research. In contrast, MP D. Ganmaa, an academic by background, endorsed evidence indicating tobacco-specific nitrosamines (TSNAs) are significantly lower in non-combustible products compared to cigarettes, aligning with assessments by WHO-linked and Cochrane reviews. The outcome matters for public health strategy and market dynamics: evidence-based rules could shape prevention efforts, curb illicit trade, and stabilize tax revenues, while science-agnostic provisions risk misinformation, black-market growth, and fiscal losses.

"RIGHT." - MP D. Ganmaa, responding to whether TSNA and NNN levels are 90–95% lower in e-cigarettes and heated tobacco than in cigarettes (news.mn)

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Economy

Fitch Affirms Sovereign Rating at B+ with Stable Outlook as Debt Ratio Declines

Published: 2025-09-03

Fitch Ratings affirmed the sovereign rating at B+ with a Stable Outlook, citing steady growth prospects and a downward trajectory in government debt despite persistent external vulnerabilities. The agency projects GDP growth at 5.7% in 2025 and 5.3% in 2026–2027. A recovery in agriculture and stronger copper exports are expected to offset weaker coal prices, while sustained mining investment and stable non-mining activity support the medium-term outlook. Fiscal consolidation has improved, with deficits contained and government debt forecast to fall below 40% of GDP in the medium term. External risks remain due to reliance on commodity exports, elevated financing needs, and inflation averaging about 8.5% in 2025–2026. Recent liability management has smoothed upcoming maturities by refinancing portions of bonds due in 2026–2027.

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2026 Budget Sets Coal at $70/Ton, Copper at $9,700 as Export Mix Shifts

Published: 2025-09-03

The government’s 2026 budget plan projects balanced revenue of MNT 31.6 trillion and total spending of MNT 32.98 trillion, targeting a fiscal deficit of 1.3% of GDP. Assumptions anchor coal at $70/ton and copper at $9,700/ton, reflecting subdued coal prices and stronger copper demand tied to EVs, renewables, and data centers. Coal export volume is slated to rise to 90 million tons in 2025 via expanded border capacity and intensified output at state-owned Erdenes Tavan Tolgoi, offsetting private exporters’ pullback. Copper concentrate exports are planned at 1.9 million tons. The Stabilization Fund would receive MNT 367.7 billion, while the National Wealth Fund is set to accumulate MNT 2.96 trillion through AMNAT allocations, SOE dividends, and investment returns. The budget’s commodity reference prices track LME copper forecasts for 2026.

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Parliamentary Committee Presses Oyu Tolgoi Investors to Cut Shareholder Loan Interest

Published: 2025-09-03

Parliament’s temporary oversight committee will prioritize two issues at Oyu Tolgoi: reviewing license transfers related to the deposit and pushing investors to reduce the project’s shareholder loan interest. The committee, chaired by MP O. Batnairamdal, plans talks this autumn, leveraging a clause in the Shareholders’ Agreement allowing interest revisions once every seven years, with a window open until December 31, 2025. Batnairamdal argues the 11.1% rate on related-party shareholder loans from Rio Tinto to Oyu Tolgoi is out of line with market benchmarks and says lowering it could bring forward Mongolia’s dividend timeline by 5–10 years.

"We are demanding a fair, internationally benchmarked rate—reducing the interest could advance Mongolia’s dividend by 5–10 years." - O. Batnairamdal, Chair, Temporary Oversight Committee (itoim.mn)

The committee has a six-month mandate. Rio Tinto has not publicly responded, though its board members are currently visiting Mongolia and the Oyu Tolgoi mine.

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Gazprom Shares Slide After Russia and China Sign MoU on Power of Siberia 2 Transit via Mongolia

Published: 2025-09-03

Russia and China signed a memorandum of understanding to advance the long-discussed Power of Siberia 2 gas pipeline, set to cross Mongolia, but investors reacted negatively as the document lacks binding terms. Gazprom’s shares fell 3.1% on the Moscow Exchange, erasing over 100 billion rubles ($1.2 billion) in market value—outpacing the broader index drop. The 2,600 km pipeline, estimated to cost Gazprom about 2 trillion rubles ($25 billion), has no Chinese financing commitment, and pricing remains unsettled. Analysts warn discounted sales to China could strain Gazprom’s already pressured finances, despite recent headline profits. One market view underscored the gap between optics and substance:

"For now, it’s just an MoU. Had ‘memorandum’ been replaced by ‘contract,’ Gazprom’s shares would have jumped 20%." - Igor Sokolov, analyst, Alor Broker (ikon.mn)

Negotiations reportedly hinge on China seeking partial volumes at domestic-level prices ($120–$130/tsm) versus Russia’s ask near current PS-1 terms ($265–$285/tsm).

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U.S. Dollar Climbs to MNT 3,615 as Market and Official Rates Diverge

Published: 2025-09-03

The tugrug continued to weaken against the U.S. dollar, with street market quotes at MNT 3,606–3,616 and commercial banks selling cash dollars at MNT 3,610–3,613. The central bank’s reference rate stood lower at MNT 3,593, creating a roughly MNT 23 gap versus unofficial trading—an unusually persistent spread that economists say has held since spring. Compared with late 2023, the dollar is up 6.3% (about MNT 210); versus five months ago, it has risen 3.3% (about MNT 116). Banks’ buy-sell spreads remained tight, and cash versus non-cash rates were close, suggesting orderly retail markets despite steady depreciation. The widening difference between the Bank of Mongolia’s rate and market pricing underscores ongoing FX demand pressures and signals continued tugrug softness absent policy or inflow shifts.

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Staple Food Prices Mixed: Bread and Meat Edge Up as Vegetables Ease in Latest Survey

Published: 2025-09-03

Mongolia’s National Statistics Office (NSO) reported mixed movements in key food prices as of September 1, 2025. In Ulaanbaatar, average retail prices show mutton at MNT 16,691/kg, beef at MNT 20,737/kg, and goat at MNT 12,151/kg. First-grade flour is MNT 2,443/kg, loose milk MNT 4,759/liter, sugar MNT 4,952/kg, rice MNT 4,913/kg, and domestic potatoes MNT 2,675/kg. The NSO noted some core items fell 0.3% week-on-week and 0.8% month-on-month. In aimag centers, mutton averages MNT 13,548/kg, beef MNT 17,683/kg, goat MNT 11,554/kg; flour is MNT 2,675/kg, loose milk MNT 3,280/liter, sugar MNT 4,235/kg, and rice MNT 4,086/kg. Fuel benchmarks in aimag centers: AI-92 at MNT 2,783/liter, A-80 at MNT 2,648/liter, and diesel at MNT 3,169/liter. No official statements accompanied the release.

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Erdenes Mongol Appoints Ts. Odkhuu as Board Chair; Leadership Shifts Across State Mining Holdings

Published: 2025-09-03

"[Appointed] as Chair of the Board of Directors" - Ts. Odkhuu, Deputy Chief of the Cabinet Secretariat (news.mn)

Erdenes Mongol LLC’s shareholders appointed Cabinet Secretariat Deputy Chief Ts. Odkhuu as Chair of the Board, signaling continued government-led consolidation of state mining assets. Odkhuu previously led oversight and audit at the Ministry of Mining and Heavy Industry and held senior posts in transport and civil aviation policy, along with board chair roles at Tavantolgoi Railway and Mongolian Railway. Sh. Munkhtseren, who chaired Erdenes Mongol’s board from 2022–2025, transitions to board chair of newly formed Erchist Mongol LLC, tasked with governance and management of state-owned enterprises. Established in 2007 to bring strategic deposits into economic circulation, Erdenes Mongol leads a 31-company group spanning fuel and energy, copper and metals, and infrastructure and logistics, holding significant shares of Mongolia’s coal, copper, fluorspar, and iron reserves and generating about 30% of export revenue.

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Social Insurance Fund Books MNT 35 Billion in Interest from Bank Deposits

Published: 2025-09-03

Mongolia’s Social Insurance Fund reported MNT 35 billion in interest income to date after placing MNT 700 billion of idle balances in one-year deposits at four commercial banks at 15% interest. August alone generated MNT 8.9 billion, following MNT 26.1 billion accrued over May–July. Authorities expect total interest earnings of about MNT 105 billion by the end of the deposit term. The new approach follows past losses and lingering receivables when fund balances were previously placed in commercial banks without adequate safeguards. Legal amendments now require investing excess balances in “reliable, transparent, and independent” financial instruments, with deposit amounts and rates approved by the National Council on Social Insurance, reflecting a shift toward tighter governance and cash management.

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Livestock Supply Rises While Retail Meat Prices Hold Firm in Ulaanbaatar Markets

Published: 2025-09-03

Autumn typically brings lower meat prices as herders sell stock to prepare for winter, yet retail prices in Ulaanbaatar remain elevated despite strong supply at Emeelt and major markets. Traders report live animal purchase prices have eased: live sheep now buy at around MNT 10,000/kg (down from MNT 12,000), and goats at MNT 9,000–9,500/kg. Western and Gobi herders are offloading large shares due to poor summer pasture and expected harsh winter, with some selling up to half their herds. At retail, beef ranges roughly MNT 16,500–20,500/kg at Khuchit Shonkhor, with higher tags at Bаянзүрх. A trader noted steady supply but higher shopfront margins versus direct buys. A pensioner described price pressure on household budgets.

"Herders are selling a lot... especially in the west and Gobi, some are selling nearly 50% of their animals." - Meat trader D. (news.mn)

"Meat prices just don’t come down. Almost my entire pension goes to meat." - Pensioner Kh. Yanjmaa (news.mn)

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State Cement Plant Accused of Overpriced, Faulty Equipment Purchases as Losses Mount

Published: 2025-09-03

Hötelein Cement and Lime, a state-owned producer, remains underperforming three years after management halted operations for a promised technology upgrade. According to Cabinet Secretariat Chief S. Byambatsogt, newly procured equipment is malfunctioning and was allegedly pushed through at inflated prices, leaving the plant producing at a loss—spending MNT 1.07 for every MNT 1 earned. He said similar procurement abuses affected Erdenes Tavan Tolgoi’s coal-washing facility, prompting law enforcement scrutiny. The cement plant, designed for 500,000 tons per year, is falling short amid reduced investment, weaker raw material supply, and poor management. Authorities have issued time-bound directives to the plant’s management to improve efficiency and deliver measurable results.

"Overpriced and low-quality equipment was pushed through, and the plant now produces losses instead of profits." - S. Byambatsogt, Head of the Cabinet Secretariat (news.mn)

"The coal washing plant at Erdenes Tavan Tolgoi also became a ‘push-through’ project, and the issue is now under investigation." - S. Byambatsogt, Head of the Cabinet Secretariat (news.mn)

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Diplomacy

Beijing Stages WWII 80th Anniversary Parade Showcasing Advanced Arsenal as Xi Hosts Putin and Kim

Published: 2025-09-03

China marked the 80th anniversary of the end of World War II in Asia with a large-scale military parade in Tiananmen Square, presenting upgraded PLA capabilities—hypersonic and ballistic missiles (DF-5C with up to 12 MIRVs, DF-61 mobile ICBM), YJ-21 anti-ship and JL-3 submarine-launched missiles, stealth drones, laser system LY-1, underwater XLUUVs, and the J-35 stealth fighter. Over 10,000 troops and 100+ aircraft participated. Leaders from 20+ countries attended, including Russia’s Vladimir Putin, North Korea’s Kim Jong Un, and Mongolia’s President U. Khurelsukh. Analysts viewed the optics of Xi flanked by Putin and Kim as strategic signaling and a bid to frame China as a central security actor across the Global South. North Korea’s rare multilateral appearance underscored tightening ties; Putin publicly thanked Pyongyang for battlefield support in Ukraine, further highlighting the evolving bloc politics.

"China’s rise is an unstoppable forward march." - President Xi Jinping (gogo.mn)

"Your soldiers fought bravely and heroically. We will never forget the sacrifices." - President Vladimir Putin to Kim Jong Un (montsame.mn)

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Government Seeks World Bank Support for Affordable Housing, Ties to Air Quality and Finance Access

Published: 2025-09-03

Prime Minister G. Zandanshatar met World Bank Vice President for East Asia and the Pacific Manuela V. Ferro, seeking collaboration on an income-based affordable housing program to cut Ulaanbaatar’s air pollution and improve living standards. The government framed human development, green and digital transitions, state productivity, and tax reform as top priorities, alongside diversifying beyond mining by backing private sector exports. The World Bank welcomed Mongolia’s rapid post-pandemic recovery and highlighted agriculture—especially wool and cashmere—plus renewables and tourism as diversification levers. The talks emphasized establishing a financing mechanism to expand mortgage access for lower- and middle-income households.

"We need an affordable housing program and a financing system that broadens access to credit to improve quality of life and reduce Ulaanbaatar’s air pollution." - Prime Minister G. Zandanshatar (montsame.mn)

"Mongolia has recovered quickly after COVID-19, and recent social and economic progress is evident." - Manuela V. Ferro, World Bank VP (gogo.mn)

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Beijing’s Deputy Premier Meets President Khurelsukh, Pushes Strategic Projects and Green Cooperation

Published: 2025-09-03

China’s Vice Premier Ding Xuexiang met President U. Khurelsukh in Ulaanbaatar, underscoring momentum in the Comprehensive Strategic Partnership and alignment following the SCO leaders’ meeting in Tianjin. Discussions centered on expanding trade and economic ties and accelerating cross-border infrastructure, energy cooperation, and science-education exchanges. Khurelsukh highlighted trilateral priorities with China and Russia, including the Economic Corridor and initiating the long-discussed gas pipeline, while seeking Chinese leadership for COP17 (UNCCD) in Ulaanbaatar in 2026 on pasture and water management, mine rehabilitation, and green infrastructure.

"We must intensify the projects under the Economic Corridor program and launch the natural gas pipeline." - President U. Khurelsukh (montsame.mn)

"China’s State Council will attach high importance to turning agreed initiatives into concrete actions and will focus on advancing bilateral and trilateral projects." - Vice Premier Ding Xuexiang (gogo.mn)

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Infrastructure

Altanbulag Border Port Expansion Boosts Annual Capacity to 2 Million Travelers and 800,000 Vehicles

Published: 2025-09-03

Altanbulag, Mongolia’s main road checkpoint with Russia, has completed a multi-year expansion financed by an Asian Development Bank concessional loan, raising annual capacity from 600–900k to 1.5–2m travelers and from 200–400k to 600–800k vehicles. Works include a segregated 1.7 km, four-lane access road, 7,000 m² parking, 30,000 m² internal areas, full utilities, smart e-gates, X-ray screening, a laboratory suite, and 42 new buildings for passenger and cargo processing plus infrastructure blocks. Authorities say daily passenger throughput could triple and cargo flows quadruple, easing bottlenecks at Mongolia’s busiest northern gateway for trade, tourism, and cross-border logistics with Russia and transit to Eurasian markets. The project, launched in 2020 and delayed by COVID-19, was delivered without direct state budget strain, officials said.

"Altanbulag will help Mongolia access a 183 million population and a $2.4 trillion market, expand exports, and become a regional transport and logistics player." - Prime Minister G. Zandanshatar (montsame.mn)

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Seoul-backed plan advances satellite city development and potential ministry relocations to ease Ulaanbaatar congestion

Published: 2025-09-03

South Korea’s KOICA-backed project to support Ulaanbaatar’s multi-center development and regional balance held a consultation discussing satellite city strategies, notably the Hunnu City near the new airport and the revival of Kharkhorum plans. Agendas covered relocating state agencies, land development and investment frameworks, free economic zones, and transport-logistics hubs, with the program running through 2027. Hunnu City is envisioned to host government complexes, a logistics hub, universities, and a free zone, targeting job creation and reduced capital congestion by distributing functions and infrastructure outward. Officials cited South Korea’s staged relocation from Seoul and the creation of Sejong as a model for long-term planning and differentiated urban zones.

"Relocating state bodies in phases and building new urban centers helped us address overconcentration in Seoul; Mongolia can adapt this by selecting suitable sites, dispersing functions, and linking them with infrastructure." - Tae Kyung-jin, Director, Han-A Urban Research Institute (montsame.mn)

"We are discussing how to phase government relocations to Hunnu, and align them with logistics centers, airport-based tourism, and a free economic zone." - M. Batbayar, Plenipotentiary Representative for Hunnu City (urug.mn)

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Demolition Begins on Blast-Damaged Apartment Block Near Dunjingarav; Reconstruction and Tenant Support Funded by City Reserve

Published: 2025-09-03

"The pedestrian path has been narrowed by the demolition fencing, forcing people—especially children from the nearby school—to walk on the roadway. This is dangerous and must be fixed quickly." - Citizen B.S., local worker (gogo.mn)

Ulaanbaatar authorities have started demolishing the 13‑story “207” apartment block in Bayanzürkh District, damaged by a liquefied gas truck explosion near Dunjingarav in January 2024. The city decided earlier this year to raze and rebuild rather than repair, allocating funds from the Mayor’s reserve. Officials estimate about MNT 2.4 billion for demolition and roughly MNT 12–12.3 billion for reconstruction, with new units priced at around MNT 2.5 million per sq m. Over 200 residents from 63 affected households remain in rental housing; the city will cover rent until completion. Safety and access are emerging concerns as fencing narrows sidewalks during site preparation, with full teardown set to proceed this week.

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Five Builders Selected to Deliver 5,000 Homes under Selbe Housing Project

Published: 2025-09-03

Ulaanbaatar named five contractors to build roughly 5,000 apartments in the Selbe sub-center, advancing the “Selbe 20-minute city” plan across Chingeltei and Sukhbaatar districts. Following 64 bids from 34 domestic and foreign firms, awards went to: China Construction Fifth Engineering Bureau (Package 3.1: 11 blocks, 9 stories, 71 units per block); Morinsu vd (3.2: 12 blocks); Nutgiin Buyan (3.3: 14 blocks); Moncon (4.1: 16 blocks); and Profesionalstroy (4.2: six 9-story blocks plus eight 12-story blocks). The wider program targets 8,565 households in 113 blocks, with 8 km of roads, 39 km of sidewalks, 23 km of bike lanes, schools, kindergartens, a clinic, sports facilities, playgrounds, and 40% green space. Initial construction for about 4,000 homes is already underway. No official timeline or financing details were disclosed in the reports.

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Fire at Erdenet Substation Triggers Widespread Power Outage Across Eight Provinces

Published: 2025-09-03

A fire at the National Power Transmission Grid’s Erdenet substation cut electricity to more than 140 soums across eight provinces—including Orkhon, Bulgan, Khuvsgul, Arkhangai, Uvurkhangai, Bayankhongor, Zavkhan, and Govi-Altai—after 18:51 on September 3. Authorities are investigating the cause while emergency crews work to extinguish the blaze and restore the 220/110kV system. Erdenet Mining Corporation halted operations due to the grid failure. The Orkhon provincial emergency commission noted the substation had prior equipment wear issues, with phased upgrades since 2008, and said restoration is underway. Critical hospital departments are on backup power, with intensive care services operating and no pediatric ICU cases reported. Repairs are being led by rapid-response teams from the Erdenet branch of the National Power Transmission Company.

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Government Confirms Mineral Extraction Coordinates for Oil Pipeline Support Works

Published: 2025-09-03

The Cabinet approved coordinates for areas where common-use minerals can be explored and extracted to supply the “Oil Pipeline Project” infrastructure. Ongoing works span five sections along the pipeline corridor, covering 528 km of technological road maintenance and construction. Contractors must avoid environmental harm, implement mitigation, restore sites, and hand rehabilitated areas to local authorities. Operations must stop and be reported if cultural or historical artifacts are discovered. Entities using common-use minerals will pay resource-use fees into local budgets, with governors of Dornod and Sükhbaatar provinces tasked to oversee compliance and revenue collection. The decision clarifies regulatory and fiscal responsibilities during large-scale infrastructure build-out, aiming to balance construction needs with environmental safeguards and local budget support.

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License-Plate Restrictions Seen as Stopgap as Ulaanbaatar Confronts Deepening Traffic Gridlock

Published: 2025-09-03

Ulaanbaatar’s recurring odd-even license-plate limits are gaining public backing but are unlikely to resolve chronic congestion without structural fixes, the article argues. A city poll of 2,542 respondents found 63% support three weeks of alternating-use rules, with some calling to extend them. Yet the capital’s road network was designed for a 1970s-era population and vehicle base, while today’s numbers have multiplied, straining infrastructure and worsening air and soil quality. International precedents—Mexico City, Beijing, Delhi, and Santiago—show initial relief from license-plate caps can backfire as households buy additional cars, ultimately increasing traffic and pollution. Ulaanbaatar also tripled vehicle taxes from January 2025 and halted new city plates for cars older than 10 years, but results remain limited. The piece urges integrated solutions: mass transit expansion, road upgrades, and decentralization by developing provincial cities to disperse population and economic activity.

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Ulaanbaatar Reviews Routes for 10 New Roads to Ease Congestion in 2025 Budget Plan

Published: 2025-09-03

Ulaanbaatar’s city council leadership inspected proposed alignments for roughly 10 new arterial and connector roads intended to reduce chronic congestion and divert traffic from major corridors. The task force, led by City Council Chair A. Bayar, evaluated on-site conditions to rank projects and prepare financing proposals for inclusion in next year’s budget. Targeted corridors include links from Songinokhairkhan’s Songsgolon Road to Energy Street, new routes through Yarmag’s ger districts, a connector from Yarmag’s main road to Nukhjt, a riverside road along the Tuul, and new alignments in Takhil and behind Zaisan’s Soyombo Hill. The initiative signals a push to break ground in 2025, contingent on budget approval and land acquisition, with potential to ease bottlenecks in fast-growing southern and western districts. No formal cost estimates or timelines were disclosed.

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Environment

Farmers Seek Soft Loans as Government Eyes 200,000 ha Expansion of Cropland

Published: 2025-09-03

Prime Minister G. Zandanshatar met growers in Selenge’s Yeruu district after a dry summer threatened yields across major farming zones. Producers asked for long-term concessional loans and policy support for storage and sales. The agriculture ministry says expanding cultivated land by 200,000 ha is needed, with local councils to table proposals for Cabinet review. The government has already disbursed MNT 800 billion in soft loans to the sector this year and plans to redirect financing toward better-performing segments. Authorities also ordered strict enforcement of grazing restrictions within 500 meters of cropland until October 25 to protect harvests.

"We extended MNT 800 billion in concessional loans to agriculture this year, and will shift lending toward more effective use going forward" - Prime Minister G. Zandanshatar (montsame.mn)

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Pasture Growth Report Flags Drought Conditions Across 46% of Territory as High Winds Batter Steppe

Published: 2025-09-03

Mongolia’s meteorological agency reports 46% of the country’s pastureland is experiencing drought or near-drought conditions as of August 31, with 54% considered normal. Pasture growth is poor in parts of Bayan-Ulgii, Uvs, and Tuv, and isolated soums of Khovd, Zavkhan, and Dundgovi. Conditions remain normal across most of Arkhangai, Govisümber, Dornod, and large areas of Govi-Altai, Khuvsgul, Bayankhongor, Selenge, Dornogovi, Umnugovi, Sukhbaatar, as well as parts of Uvurkhangai, Tuv, Khentii, and select soums in Bayan-Ulgii, Uvs, Khovd, and Bulgan. Over the past 10 days, temperatures were near to 1.1–3.0°C above average and precipitation exceeded norms in over 95% of areas. Dangerous winds of 16–27 m/s were recorded in steppe and Gobi zones, reaching 30–31 m/s in Khentii’s Ömnedelger and Bayan-Ovoo. The outlook signals heightened pressure on herders, fodder supply, and logistics into autumn.

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Government orders region-based winter readiness as drought raises dzud risk; plans market sale of 10+ million livestock

Published: 2025-09-03

Mongolia’s Deputy Prime Minister S. Amarsaikhan directed a region-based winter preparedness plan following assessments that 2025–2026 winter and spring could be severe. Authorities report 70–80% drought across the western region, where 14.8 million head are expected to winter; nationwide, 62.4 million livestock will winter, with 653,000 in nine otor (seasonal grazing) zones. Agencies must integrate data, streamline customs for imported fodder, curb price spikes, register migrating herds, and prevent animal disease. The agriculture ministry is steering herders to reduce herd size and increase market supply, targeting more than 10 million head for domestic demand and export. Local administrations, such as Arkhangai, are advancing insurance uptake and culling plans, signaling a shift toward risk management and liquidity as dzud risk looms.

"We are warning herders to put their livestock into economic circulation as winter and spring 2025–2026 pose higher risks." - Minister of Food, Agriculture and Light Industry J. Enkhbayar (ikon.mn)

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Wheat Harvest Expected to Cover Flour Demand as Agriculture Drives Growth

Published: 2025-09-03

Mongolia projects a wheat harvest of 255.8 thousand tons this autumn, expected to cover domestic flour requirements, according to the agriculture ministry’s preliminary balance. Allocations are planned for spring sowing (38.6k tons), seed reserves (12.5k), feed (24.8k), alcohol production (11k), and flour milling (168.9k). An estimated 100k-ton shortfall will be met through wheat imports for feed and spirits. The government highlights value-chain gains in cashmere under the “White Gold” program, noting full domestic purchasing and combing, and increased foreign investment in processing. Agriculture contributed 3.6 percentage points to 5.6% GDP growth in H1, with 58,000 new jobs.

"We will maintain imports for livestock, pig and poultry feed, and alcohol production wheat needs." - J. Enkhbayar, Minister of Food, Agriculture and Light Industry (montsame.mn)

Policy priorities for the 2026 budget include expanding concessional credit to private firms while reducing ministry expenditures, accelerating meat exports as part of efforts to address overgrazing and bring 20 million head of livestock into economic circulation.

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Innovation

Japan Explores Partnership on Ulaanbaatar Metro and Smart Mobility Technologies

Published: 2025-09-03

Japan’s Ministry of Land, Infrastructure, Transport and Tourism signaled interest in collaborating on Ulaanbaatar’s planned metro and smart-city initiatives, including drone logistics and 3D modeling for traffic management. Deputy Minister for International Projects Kenichi Ogasawara emphasized public–private partnership (PPP) potential for urban infrastructure.

"We are exploring opportunities to work together on Ulaanbaatar’s infrastructure projects, especially the metro, and believe PPPs can significantly contribute to the development of the city and Mongolia as a whole." - Kenichi Ogasawara, Deputy Minister for International Projects (ikon.mn)

A smart city project lead, Taku Mihara, highlighted experience across Asia and proposed cooperation on drone logistics and 3D traffic applications.

"Our team has extensive experience implementing smart-city projects across Asia, and we are eager to work with Ulaanbaatar on drone logistics, 3D modeling, and their application to road traffic." - Taku Mihara, Smart City Research Project Lead and Urban Planning Manager (ikon.mn)

City officials discussed PPP options and presented infrastructure and smart-city plans. The metro’s first-phase tender for the Tolgoit–Amgalan corridor attracted 27 companies from seven countries, with Chinese (11), South Korean (8), and three Mongolian firms among the applicants.

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MCA-Mongolia Seeks Consultant for Visual Campaign on True Cost of Water Services

Published: 2025-09-03

MCA-Mongolia issued a Request for Qualification Information for consulting services to design and run a visual campaign that improves public understanding of the real costs of water services in Ulaanbaatar. The assignment supports the MCC-funded Water Supply Project, which includes new downstream groundwater wells and an advanced purification plant, a wastewater recycling facility to redirect treated water to industry, and policy and institutional reforms to ensure long-term sector sustainability. Firms will be selected under MCC’s Consultants’ Qualification Selection procedures. Registration requires emailing [email protected] (cc: [email protected]) to obtain the RQI. Clarification questions are due by September 10, 2025 (14:00 Ulaanbaatar time), with responses by September 11 (17:00). Electronic submissions of qualifications are due September 17, 2025 (15:00), with late or non-electronic submissions rejected.

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Health

Published: 2025-09-03

Parliament member O. Saranchuluun highlighted research indicating a statistical link between school bullying and covert smoking during discussions on amendments to Mongolia’s Tobacco Control Law. Citing recent adolescent health surveys, she said schools reporting bullying are twice as likely to have secret smoking, arguing that price hikes and admonitions alone won’t curb youth use. She pressed for integrating anti-bullying measures into education policy as part of tobacco control and called for stronger parental oversight and peer-support environments. Saranchuluun also criticized pervasive smoking scenes in entertainment media, despite existing advertising restrictions.

"If a school has bullying in classrooms, the likelihood of secret smoking there is twice as high... It’s time to address anti-bullying policy through legal reforms." - MP O. Saranchuluun (ikon.mn)

"We lack the cultural immunity to educate through arts and media, while many popular shows and films unfold in cigarette smoke." - MP O. Saranchuluun (ikon.mn)

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Health experts urge steep tobacco price hike and flavor ban to curb youth vaping

Published: 2025-09-03

Health professionals and some MPs discussed proposed amendments to the Tobacco Control Law, highlighting tax and product restrictions to reduce consumption. A national study presented by Dr. T. Ariuntuya of MNUMS’ School of Public Health estimates that raising retail cigarette prices by 75% could cut use by 1.2%, or about 40,000 people, potentially saving 145,000 life-years over time. She argued that a 25% tax rise would have limited long‑term impact, while removing flavors and scents—already restricted in 62 countries—would help deter youth initiation, especially for e‑cigarettes. Recent surveys of 15–17-year-olds found around 30% vape daily and roughly 60% have tried e‑cigarettes, with widespread exposure to marketing near schools and in urban retail outlets.

"Banning e‑cigarette flavors is among the most effective measures to prevent children and adolescents from taking up tobacco." - Dr. T. Ariuntuya, School of Public Health, MNUMS (ikon.mn)

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Arts

Korean Culture and Tourism Days Bring K‑pop Performances to Sukhbaatar Square on January 6–7

Published: 2025-09-03

Ulaanbaatar’s Tourism Department and the Embassy of the Republic of Korea will host “Korean Culture and Tourism Days 2025” on January 6–7 at Sukhbaatar Square, marking 35 years of diplomatic ties. Jeolla Province will showcase regional products, alongside taekwondo demonstrations, traditional dance, and fusion and folk music. A headline concert features artist Punch—known for OSTs from Goblin, Moon Lovers, and Descendants of the Sun—as well as live band The Ade, the Gugak folk dance troupe, and the Shining Youth dance group. Attendees can sample Korean cuisine and explore beauty products, with additional contests planned. The public event underscores deepening cultural exchange and tourism promotion between the two countries, leveraging K‑culture’s popularity to draw broad audiences in central Ulaanbaatar.

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