WASHINGTON – The World Bank Board of Directors today approved a $100 million loan and $10 million credit from the International Development Association (IDA) for the Connectivity Improvement Project transport and logistics in Mongolia. The project aims to improve physical connectivity and reduce the cost of logistics for meat processing in Mongolia.

“This project is an important part of the government’s new economic recovery policy, which highlights the need for strategic transport infrastructure and drastic improvement of logistics for critical sectors,” said Khaltar Luvsan, Minister of Road and Transport Development of Mongolia. “We are delighted to partner with the World Bank and look forward to the successful implementation of the project.”

The project will support Mongolia’s plan to diversify its economy, which is heavily dependent on mining, and accelerate sustainable economic growth. With around 70 million head of cattle on which most of the poor in Mongolia depend for their subsistence and livelihoods, the meat sector in Mongolia has the potential to drive economic growth and drive shared prosperity. However, poor physical connectivity, lack of efficient and strategically located logistics hubs and unequal access to information among supply chain actors have proven to be major constraints to realizing the full potential of the sector.

“Improving logistics and investing in physical connectivity while supporting economic reforms will help lay the foundations for sustainable growth,” said Andrei Mikhnev, World Bank Country Director for Mongolia. “Investing in infrastructure can also help Mongolia create jobs and increase resilience to the impacts of climate change.”

To improve physical connectivity and logistical efficiency for meat processing in Mongolia, the project will introduce modern road asset management practices, rehabilitate 51 km of last mile connectivity roads and maintain 311 km of national roads. selected with the highest concentrations of livestock and commodity flow, will improve logistics service by developing a model regional logistics hub under a public-private partnership (PPP) and establishing a logistics and supply chain platform. ‘supply.

The World Bank’s InfraSAP report on Mongolia and the Country Partnership Framework for Mongolia for 2021-2025 provided guiding frameworks for the project. The project will also support the Mongolian government’s vision of unlocking productive sectors and economic diversification through investments in critical infrastructure, improved logistics services and reform of the national logistics regulatory framework.