The Asian Development Bank (ADB) has announced it will grant a $60m loan to support Mongolia road improvement projects and help rehabilitate 311km of road corridors in the country.

The improvements are aimed at facilitating economic cooperation and trade in the country.

ADB East Asia Transport and Communications director Sujata Gupta said: “Mongolia’s economy slowed down recently with the country’s gross domestic product growth declining from a high of 17.3% in 2011 to 5.1% in 2017.

“Having safe and reliable road networks will help Mongolia foster economic activities through trade and tourism, which will underpin the economic outlook.”

“Funding will also be used to improve road safety in the project areas, including the installation of road markings, barriers, as well as guide posts.”

At present, Mongolia has a road network of approximately 48,538km. However, only around 13.2% of roads are paved, which adversely affects the country’s growth prospects, particularly on jobs, trade, and connectivity.

Along with the funds, the bank will also provide technical assistance to help improve the management of roads, including road improvement and maintenance.

ADB stated that the Regional Road Development and Maintenance Project will regenerate and enhance the safety of road corridor sections to improve Mongolia’s links with the People’s Republic of China and the Russian Federation along Ulaanbaatar-Darkhan and Darkhan-Altanbulag routes.

Funding will also be used to improve road safety in the project areas, including the installation of road markings, barriers, as well as guide posts.

Road improvement projects will also include independent road safety audits.

Upon completion, the Mongolia road improvement project will support inclusive economic growth through increased trade, while strengthening agriculture, agribusiness, and tourism.