The World Bank has approved a loan of US$100 million and a credit of US$10 million for the Mongolia Transport Connectivity and Logistics Improvement Project from the International Development Association (IDA).

The aim of the project is to improve physical connectivity and reduce the cost of logistics for meat processing in Mongolia. The project will introduce modern roads asset management practices, rehabilitate 51 km of connectivity roads and maintain 311 km of selected national roads, improve the logistics services by developing a model regional logistics hub under a public-private partnership (PPP), and establish a logistics and supply chain platform.

The project also aims at helping with the diversification of Mongolia’s economy, which is heavily dependent on mining, as well as the acceleration of sustainable economic growth. The meat sector has the potential to increase shared prosperity. However, poor physical connectivity, lack of strategically located and efficient logistics hubs, as well as uneven information access among actors in the supply chain have prevented realizing the sector´s full potential.