Mongolia: EIB and the Government of Mongolia partners in regional green development and sustainable forestry

Minister of Finance of Mongolia Javkhlan Bold, Ambassador of the European Union Axelle Nicaise, EIB Vice-President Teresa Czerwińska signed in March 2024 the first tranche agreement of EUR 54.4 million, including EUR 9.5 million European Union’s investment grant to support the “Aimag and Soum Centres Green and Resilient Regional Development Investment Programme“(ASDIP). The European Union will contribute total of EUR 19.5 million grant for the programme.

The new EIB loan and grant financing for ASDIP will be used to upgrade basic infrastructure in Mongolia’s regional cities, including the construction of wastewater treatment plants and affordable housing, and energy efficiency renovations and improvements in public buildings, schools and hospitals. The programme will also improve flood protection and rainwater drainage and expand the use of solar power on public buildings.

The scheme will increase financing for sustainable private sector investment by local agriculture and agribusiness and include dedicated support for herder groups to better manage grasslands by reducing overgrazing and adopting more sustainable livestock practices.

The Forest Partnership Memorandum of Understanding (MoU)  enables the EIB to support the EU-Mongolia Forest Partnership. It will help the country to better preserve existing forests and facilitate the development of a sustainable and inclusive economy and society under sound forest management that takes into account the needs of the local communities.

The EU-Mongolia Forest Partnership supports tree planting in the framework of the “One Billion Trees” initiative by the Mongolian President Ukhnaagin Khurelsukh.

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