Loan agreement on solid waste modernization project supported

2018-06-13 15:52:20
Ulaanbaatar/MONTSAME/ At its regular meeting on June 13, the Cabinet backed to submit to the Parliament a Bill on Ratifying the Loan Agreement to be established between the Government of Mongolia and European Bank for Reconstruction and Development.

‘The Ulaanbaatar Solid Waste Modernization’ Project will provide significant environmental and social benefits to the Municipality of Ulaanbaatar and surrounding communities through the provision of a landfill designed to EU standards, building of a new Construction and Demolition Waste (CDW) plant at the Moringiin davaa dumpsite and improving operational efficiency and environment and hygiene standards. Also, it will introduce a unified tariff to solid-waste field, and proper management practices in relations to construction waste.

As a result of the project waste collection, transportation, recycling and disposal services will be upgraded and the capital's landfilling capacity will be expanded by 4 million tons.

EBRD will co-finance investment grants worth EUR4.5 million and provide a sovereign loan worth USD9.7 million, along the technical assistance worth USD1.5 million for formulating and implementing the project.
The loan worth USD9.7 million will have a repayment term of 15 years, with a moratorium period of three years.