Japan’s Minister of Land, Infrastructure, Transport and Tourism Akihiro Ohta this week signed a Memorandum of Cooperation for infrastructure development in Mongolia, a country where the needs for investment in fresh road, energy and mining infrastructure have been estimated at $50 billion over the next decade.
Mongolia’s National Development Strategy, which considers road infrastructure to be a key instrument in fostering regional development, hopes to have a 7,000-mile paved national road network completed by 2021, according to local press reports.
Whereas $300 million of public money has already been allocated to a private-public partnership programme, foreign investors are currently being courted by the Mongolian government to help finance related projects.
During his visit to Mongolia, Ohta signed additional memorenda with the Minister for Roads and Transportation and the Minister for Construction and Urban Development. Along with related Japanese companies, he also participated in a meeting with Mongolian counterparts related to the management contract for the New Ulaanbaatar International Airport.
Ulaanbaatar, Mongolia’s capital, was built to host about 500,000 inhabitants. It now needs an infrastructure upgrade to help it serve a population that is now twice this size.
Nearby cities including Darkhan, Baganuur, Choir and Zuun Mod also need more and better road infrastructure, according to public officials.