Ulaanbaatar
Funding Resolved for Bagakhangai-Khushig Valley Branch Railway Project
Society
Ulaanbaatar, October 16, 2025 /MONTSAME/. A
total of 2,748 engineers and technicians from over 63 domestic
enterprises and organizations are working on the construction of the
87.2-kilometer Bagakhangai-Khushig Valley branch railway, which includes three
stations and four sidings.
As of October 16, 2025, around 93.5 percent of substructure earthworks, 81.4 percent of water pipelines, and 84 percent of bridge construction have been completed. The approved budget for the first phase of construction is MNT 850.4 billion, of which MNT 156.2 billion will be transferred as a performance payment.
The remaining funds are arranged in cooperation with the International Finance Corporation (IFC). Until external financing is secured, the Government has instructed relevant officials to issue domestic bonds worth MNT 300 billion in accordance with legislation and approved the resolution “On Measures to Finance the Railway Construction Project.”
Resolving
the financing issue will enable the successful implementation of the project.
