Mongolia and the Asian Development Bank (ADB) on Thursday signed an agreement involving loans worth 170 million U.S. dollars.
The loan deal, signed by Finance Minister Sangajav Bayartsogt and Robert Goelhammer, the ADB representative in Mongolia, was aimed at financing construction of a longitudinal arterial road in the west region of the country.
Bayartsogt said the project would significantly promote international transportation development by connecting the road networks of China and Russia, and accelerate economic and social development in western Mongolia.
The 32-year-term loans were set at an annual interest of one percent.
The government plans to complete the road project by 2018. Mongolia’s international and national road networks are expected to top 6,000 km by that time.