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New Recovery Policy

The Government introduced the “New Recovery Policy” in 2021 and got it approved by the Parliament.

The policy is aimed at strengthening the economic independence of Mongolia, reducing the economic impact of the coronavirus pandemic, and resolving the factors obstructing the development of the country.

New Recovery Policy is a mid-term development program that will be effective for up to 10 years, complementing the effective implementation of Mongolia’s long-term development policy “Vision 2050”, improving the economic situation, infrastructure, and productivity of the state.

MNT 100-120 trillion will be required for implementing the New Recovery Policy for its duration of 10 years. The government announced that they will not finance this from the state budget, but instead, will tap into foreign and domestic markets, as well as public and private partnerships to raise investment by creating a favorable environment through legal reform.

RESULTS OF THE “New Recovery Policy”:

Within the frames of the “New Recovery Policy”, the following six complex problems limiting the development of Mongolia will be addressed on the back of active public-private sector partnerships and investors.


The Government perceives that Mongolia, as a landlocked country, must promptly connect border crossings by road, rail, and highway infrastructure, and step up the development of the aviation industry. Within this frame, the issues regarding border crossings have been prioritized on the New Recovery Policy.

The government completed construction of the railway along the Tavantolgoi-Gashuunsukhait route in 2022 and is planning further railway projects connecting the Khangi, Bichigt, Shiveekhuren, and Artssuuri border crossings. This will create a 5,600 km long national railway network and lay the foundation for the “Transit Mongolia” initiative promoted by the president.
Furthermore, it includes objectives of road connectivity to some border crossings, including Khangi, Tsagaandel, Burgastai, Tsagaannuur, Tes, Artssuuri, Khankh, Baga Ilenkh, Zelter, Ulikhan, Khavirga, Sumber, Bayankhoshuu, and Bichigt, and strengthening of regional economic competitiveness in phases. The initiative on connecting border crossings with a highway will begin with a 987 km long highway in the Altanbulag-Zamyn-Uud route.

Prime Minister L.Oyun-Erdene announced plans to develop port-based free economic zones and new cities by strengthening the competitiveness of border checkpoints and their entry capacities

New Recovery Policy on railway network

Source: The Government of Mongolia


Source: The Government of Mongolia


Mongolia’s border status: The country has 42 inland ports, and 4 air borders. The country borders with Russia via 29 crossings, and with China via 13 crossings. As of today, 7 border checkpoints are connected by road, 3 by railway, and 1 by air. The country is ranked 130th with its port capacity out of 160 countries in the world.



Objective 1.1. Develop hard and soft infrastructure at border ports to improve the entry capacity of freight, passengers, and increase exports.
1.1.1Develop border crossings similar to the ports of neighboring countries by outlining and implementing a new general development plan, partial master plans for port development, and bringing infrastructure and transportation arrangements in line with international standards.Development plans will be prepared for all ports.
1.1.2Resolve the issues regarding freight transportation at border checkpoints through diplomatic channels with neighboring countriesThe proposal will be discussed and resolved through diplomatic channels with neighboring countries.
1.1.3Make diplomatic proposals to neighboring countries to resolve the extension of the opening hours of portsAgreements and deals will be made.
1.1.4Conclude and implement agreements and negotiations to reduce tariff and non-tariff barriers to export goods.Agreements and deals will be made.
1.1.5Expand and renovate port facilities (power, heating, water supply, sewerage, internet network, customs laboratory, passenger and freight terminals) and create a comfortable working environment for passengers and staff.Passenger and cargo capacity will be tripled.
1.1.6Construct container transport terminals, loading and unloading terminals, and transshipment terminals at major mining export ports.Terminals will be built.
1.1.7Study and build additional facilities (gondola lift, automatic transportation) to increase the cross-border shipping capacity.Entry capacity at border crossings will be increased by 2-3 times.
1.1.8Install smart gateways, modern high-capacity X-ray and inspection equipment, and laboratories in customs control zones.Border crossings will be equipped with modern high-capacity X-ray and sampling equipment and customs laboratories.
1.1.9Reduce inspection delays at border crossings by adopting digital solutions for customs control, clearance, and laboratory operations.Border inspection wait time will be reduced by at least 26 percent.
1.1.10Prepare arrangements for the transportation and transit of mining products at each port.The waiting time of mining products exports will be reduced.
Objective 1.2. Connect border crossings by rail and paved roads, strengthen transport and logistics competitiveness, improve freight traffic, and create the basic conditions for becoming a transit freight forwarding country.
1.2.1Improve road access to border crossings and increase transport capacity.2650 km long paved roads and 4600 km long railways will be built. 11 border checkpoints will be connected by paved road and 4 checkpoints by rail.
1.2.2Expand the national railway network and create the basic conditions for becoming a transit freight forwarding country in the future.Western and eastern vertical railway projects will proceed.
1.2.3Establish a regional logistics center connecting Asia and Europe and increase transit freights.Transit freights will increase.
Objective 1.3. Improve Mongolia’s airspace and air traffic management, increase the number of transit aircraft, establish a freight hub and support the tourism sector by gradually continuing air transport liberalization in phases.
1.3.1Increase the number of permanent international airport hubs and develop cargo transportation and tourism.Improved capacity at local airports and six airports will have international border crossings for passenger and freight traffic.
Objective 1.4. Increase trade turnover through gradual establishment of free economic zones and dry ports based on Mongolia’s regional development concept.
1.4.1Investigate and resolve the issue of developing some border crossings as free zones.New free economic zones will be established.
1.4.2Develop cross-border tourism near selected border crossings.Six border checkpoints will be developed as tourism regions. With increase in standard.
1.4.3Altanbulag, Zamyn-Uud, and Sainshand dry ports will be established in phases in accordance with the 2013 intergovernmental agreement on dry ports of the United Nations Economic and Social Commission for Asia and the Pacific.A logistics center connected to a seaport will be established for one or more modes of transportation, loading, and storage of goods transported for international trade, storage, and related inspections.


The energy sector is one of the biggest laggards to Mongolia’s development, according to the Government of Mongolia. Therefore, objectives in the “New Recovery Policy” are aimed at connecting to the Northeast Asian Super Grid and establishing a high-capacity overhead transmission line between Russia and China. Renewable energies, especially hydropower stations, will be given priority with plans to complete the Erdeneburen Hydropower Plant, and commence the development of Egiin Gol Hydropower Plant. The ongoing development projects, including the expansion of Thermal Power Plant III, construction of Tavantolgoi, Baganuur, and Choibalsan thermal power plants, and Amgalan Power Plant will be promptly completed.

New Recovery Policy on energy sector

Source: The Government of Mongolia


Current situation of Mongolia’s energy sector: The country couldn’t build any new source of energy since the establishment of Thermal Power Plant IV in 1986. However, the growing need for electricity is creating the necessity for thermal power plants. Mongolia annually spends over MNT 400 billion on energy imports.

Thermal power plants in Mongolia are 35-60 years old, while the transmission and distribution lines are 32-62 years old on average with over 40 percent being beyond the lifetime limits.

TWO. ENERGY recovery

Objective 2.1. Build new energy sources, transmission and distribution networks, expand capacity, and improve the reliability of energy production and supply.
2.1.1Construction of Tavan Tolgoi thermal power plant with a capacity of 450 MW, and a 220 kV overhead transmission line to supply energy to strategic deposits and industrial and technology parks in the southern region.The power plant will annually generate 3,150.0 million kWh of electricity and meet the growing demand of Oyu Tolgoi's 2,242.5 million kWh energy, Tavan Tolgoi deposits, and other strategically important mining projects in the southern region.
2.1.2Expand the capacity of the Choibalsan Thermal Power Plant by 50 MW to meet the energy needs of mining and tourism projects in the eastern regionUninterrupted and reliable power supply will be provided for the growing demand of the Eastern region, and to soums and settlements of Dornod and Sukhbaatar provinces, minerals concentrators, mining complexes, and tourist complexes.
2.1.3Expand the Amgalan thermal power plant to increase heat consumption in the eastern region of UlaanbaatarProvision of heating to the eastern part of Ulaanbaatar and to new apartment areas in the Bayanzurkh district and around Uliastai as part of the redevelopment program.
2.1.4Build a new power source with a capacity of 400 MW based on the infrastructure of Thermal Power Plant III.The plant's capacity will be increased by 400 MW of electricity and 370 Gcal/h of heat, meeting the growing demand for heat and electricity in the central districts of Ulaanbaatar.
2.1.5Build a 300 MW power plant in Bagakhangai for the energy needs of new eco and green development projects in the capital city of Ulaanbaatar.The plant will have an annual capacity of generating 1,855.9 million kWh of electricity, which will be supplied to the central power grid and creating the technical capacity to fully supply eco-green projects to be implemented in Ulaanbaatar.
2.1.6Construction of Erdeneburen-Myangad-Uliastai 220 kV transmission line and substation to supply electricity generated by Erdeneburen hydropower plant to the regional networkImproved supply and accessibility of energy in the western region and 5 provinces of the Altai-Uliastai energy system.
2.1.7Provision of heat and electricity supplies needed to establish and develop new satellite cities and free economic zones in the Khushig valley of Tuv province.Heat and power sources will be created in line with the new satellite city plans.
Objective 2.2. Ensuring the reliability and stability of the integrated energy system with an appropriate balance of renewable energy and constructing hydropower plants.
2.2.1Construction of a 90 MW hydropower plant in Erdeneburen to meet the energy demand of the western region.A power plant with an annual capacity of 366 million kWh that can fulfill the energy needs of the western region.
2.2.2Adjustment of the peak load of the integrated energy system by installing 160 MW/h power storage.Accumulators will be put into operation to provide frequency and voltage auxiliary services to the central region's power system, improve energy quality, and ensure system stability.
2.2.3Complete the biodiversity impact study on the Egiin Gol hydropower plant and submit it to the World Heritage CommitteeA submission to the UNESCO World Heritage Committee for decision.
Objective 2.3. The gradual transition of the energy sector to an independent financial and economic system.
2.3.1Indexing and quarterly adjustment of energy prices and tariffs.Quarterly indexed prices and tariffs.
Objective 2.4. Preparation for the creation of renewable energy sources that will supply power to the Northeast Asian Integrated Power Grid, overhead transmission lines, and substations.
2.4.1Study on generating renewable energy from solar and wind sources of the Southgobi region in order to supply Northeast Asia's integrated power grid.Added renewable energy capacity in the South Gobi, transboundary high-voltage power transmission lines connected to the Northeast Asian power grid, technical and technological solutions of substations, and research on technological solutions to produce green hydrogen using solar and wind power in South Gobi.
Objective 2.5. Advancing the natural gas pipeline from the Russian Federation to the People’s Republic of China through Mongolia.
2.5.1Complete the feasibility study for the construction of a natural gas pipeline from the Russian Federation to the People's Republic of China through the territory of Mongolia and prepare for the construction phase.Studies and preparations regarding Mongolia's gas consumption, capacity, and the location, infrastructure, and logistics terminals of gas distribution facilities.


The government is prioritizing the construction of processing plants for value-added products exports. Therefore, the government put forward objectives for copper concentrators, coal washing plants, gold and oil refineries, and domestic food plants to shy away from imported goods and create an industrialized economy.

As part of the New Recovery Policy, objectives on constructing value-added mining and agricultural processing plants in phases have been outlined. Within this framework, Erdenet copper concentrate processing plant, Tavan Tolgoi coal concentrator, and steel plants in the Darkhan-Selenge region will be built and put into operation. Also, a commitment on setting up a tannery in Darkhan and a sub-center for raw materials supply are in place.


Source: The Government of Mongolia


Current situation of Mongolia’s industrial sector: 90 percent of the country’s commodities are exported raw at low prices and 90 percent of domestic consumption is imported from abroad.

Although the country is an agricultural-based country with about 70 million livestock, statistics show that about 15 million units of hides are wasted due to the inability to process.


Objective 3.1. Fully digitize and reduce the costs of mineral licensing, attract investment, improve the volume of value-added mining products based on advanced technologies, and increase proven resources of minerals.
3.1.1Digitalization of the issuance of mineral licenses increased the number of licenses, and more opportunities to attract investment.Electronic selection and application of mineral licenses, more private investment in exploration, and increased resources of minerals.
3.1.2State-funded geological explorations in perspective state special protected areas and near the border. To carry out geological exploration work with state budget funds in the state special protected area and perspective areas located near the border areaImproved supply and accessibility of energy in the western region and 5 provinces of the Altai-Uliastai energy system.
3.1.3Fully operational coal concentrator at Tavan Tolgoi and comprehensive development of the mineThe first module will commission a coal concentrator with a capacity of processing 10 million tonnes of coal in 2023, creating 928 new jobs and increasing export revenue.
3.1.4Comparative technology selection /1. Multi-shovel excavator-conveyor, 2. electric excavator-conveyor, 3. electric excavator-heavy truck/ and transitioning of JSC Erdenes-Tavan Tolgoi” JSC into a mining company in order to reduce the cost of open-pit mining and increase the capacity of the mine.Gradual increase of mining capacity to 50 million tons. 20-30 percent reduced mining costs
3.1.5Increase exports of Erdenes-Tavan Tolgoi JSC by using underground mining in areas that cannot be exploited by open pit mining methods.Additional 100 million tonnes of mining products and 1,500 to 1,800 new jobs.
Objective 3.2. Developing value-added heavy industry, fulfilling domestic demand for development, and increasing exports.
3.2.1Establishment of value-added production complexes of mining-metallurgical chemicals (copper concentrate processing plant, cathode copper production from oxidized ore) in order to increase the efficiency of Erdenet Mining Corporation.Plants in the heavy industry park will have an annual capacity of producing 135,000 tonnes of pure cathode copper, increasing export revenue and creating 1,050 new jobs. A cluster of small and medium-sized enterprises will be created for the production of copper products.
3.2.2Development of the metallurgical industry together with related factories to meet the domestic demand for steel productsValue-added final products of iron ore. "Mongolian Steel Complex I" will have an annual capacity of producing 350,000 tonnes of steel products, Altanshireet Industrial Park - 500,000 tonnes of cast iron, 1 million tons of coke, Erdenet Metallurgical Plant - 200,000 tonnes of steel products. Successful implementation of these projects will cover 80 percent of the country’s domestic demand for key steel products (such as rebar) and increase exports by the end of 2025.
3.2.3Establishment of a copper concentrate processing plant based on the Oyu Tolgoi deposit and increased production of value-added products such as cathode copper, gold, and silver.The project's facilities will produce an average of 257,000 tonnes of pure cathode copper, 5.7 tonnes of gold, and 57 tonnes of silver a year, boosting export earnings.
Objective 3.3. Supply of raw materials to the domestic oil refinery by increasing proven oil reserves and production.
3.3.1Reduction of dependence on imports of petroleum products, construction of an oil refinery that will base its raw materials domestically, and lay the foundation for the petrochemical industryFull operations of the plant will reduce the country’s dependence on fuel imports, establish the petrochemical industry, contribute to the state budget, and provide for 50-60 percent of domestic fuel needs, and reduce the trade deficit by about USD 1 billion.
3.3.2Exploration for oil reserves and construction of a pipeline to supply the refinery with domestic raw materialsIntensified exploration and development in the Davst-31 area by attracting foreign investors. Adaption of new transportation technology with the construction and commissioning of a 530 km long oil pipeline.
3.3.3Improved system quality standards and control systems for petroleum products and stabilization of supplies.Improved capacity of testing laboratories upgraded equipment, and internationally accredited laboratories. In order to strengthen importers’ reserves, cooperation with the Bank of Mongolia will be set up.
Objective 3.4. Development of agricultural production based on advanced techniques, technologies, and innovations, and increasing the number of new products, services, and production.
3.4.1Improve the level of primary processing of livestock raw materials and increase the production of value-added productsStabilization of livestock products and increased income for herder households by processing 60 percent of leather. Export revenue will increase by USD 232.7 million and budget revenue by MNT 32.7 billion. 4.5 million Tanneries with a total capacity of processing 4.5 million units of leather and skin annually along with 5 ancillary factories will be established, creating a total of 2,400 jobs.
3.4.2Improved level of primary processing of livestock raw materials in the Western region and production boost to value-added products.Establishment of 19 factories with advanced equipment and technology to improve economic and social development and competitiveness of the western region. Exports will reach USD 51.8 million as a result and about MNT 30 billion tax revenues to the state budget will be created. Furthermore, factories with a capacity of processing 200 large-sized and 500 small-sized livestock meat, 5,000 liters of milk daily, 3,000 tonnes of wool, 300 tonnes of cashmere, and 600,000 pieces of leather annually.
3.4.3Construction of four complexes with meat factory and quarantine zone, technological modernization, and international standards-met processing of livestock products.640,000 small-sized and 101,000 large-sized livestock products will be supplied to the market, improving the economy and income of herders. Additional 21,000 tonnes of export meat and meat products. International standards-met supply of raw materials to domestic tanneries.
3.4.4Development of various extruded panels and wood production in Selenge, Khuvsgul, Darkhan-Uul provinces and in the capital city.50,000 cubic meters of timber will be supplied to cover 70% of domestic demand for extruded wood panels, exporting 37% of total output and creating 2,500 new jobs.
Objective 3.5. Value addition to exports of semi-processed and final products by increasing the capacity of processing plants in line with agricultural raw materials and product resources.
3.5.1Stronger capacity for the processing industry, providing financial support to boost exports and investment.Doubled production of raw materials and products of domestic factories, and the utilization of installed capacity will grow to at least 80 percent.
3.5.2Better access to the halal processed meat market and export market expansion.A new line of export products to secondary markets with stable supply, and increased prices of goods per unit. Meat exports will be increased to 10,000 tonnes in the first year, and 5,000 tonnes will be added annually.
3.5.3Discuss the possibility of exporting meat and meat products by concluding an agreement with China’s administration of ports to create conditions for the transportation of meat and meat products by rail (special wagons).The additional export capacity of 50,000 tonnes of quality-assured meat can be supplied to the People's Republic of China annually. Plus, a reliable transportation network will be established, allowing for reduced transportation costs and deeper accessibility into the Chinese market.
3.5.4Establish a protocol with the People's Republic of China on quarantine, veterinary, and sanitary requirements for the export and import of horse by-products.Increased range and quantity of livestock export products.
3.5.5Gradually implementation of measures to improve the integrated warehouse and transportation and logistics infrastructure for wool, cashmere, leather, meat, and other raw materials of export importance.Improved warehousing and transportation and logistics infrastructure for raw materials and products of export importance.
Objective 3.6. Introduction of science-based high technology, blockchain, artificial intelligence, and development of industrialization in line with the digitalization of the economy.
3.6.1Human resources for the development of science-based industries, such as innovation, the Fourth Industrial Revolution, artificial intelligence, and blockchain.Increased export of information technology products.


Due to the high level of urbanization in the capital city Ulaanbaatar, the population density currently exceeds capacity. As a result, the country’s economy has mostly concentrated in the capital, and the gap between the development of the capital city and the countryside is widening, causing a significant social problem. Thus, equal development of both the capital and rural areas has been included in the New Recovery Policy.

Within this frame, a detailed study on the construction of a new residential area equivalent to Ulaanbaatar based on the ancient capital city of Kharkhorum was launched in collaboration with international urban planning engineers, also kicking off development activities for establishing a free economic zone and a new city in the Khushig Valley.

Provincial capitals will also be developed into independent cities, opening up financial and economic opportunities for local governments to generate their own budget revenues, and increasing the authority and responsibility of local governments.


Source: The Government of Mongolia

As part of reducing traffic congestion,

Ulaanbaatar’s public transportation system will undergo a complete renovation, and the construction of a 41-kilometer-long public transport with pier bridges in three directions will commence, with the first line planned to be completed by 2024.

The 136 km-long railroads surrounding the Bogd Khan Mountain that connects to the south of Ulaanbaatar will be reconstructed. By developing the Bogd Khan railroad, the railroad load inside Ulaanbaatar city is estimated to reduce by 50 percent. Construction of a 72-km long highway connecting the densely populated sub-centers of Ulaanbaatar is also included in the plan.


Source: The Government of Mongolia


Current situation of Mongolia’s urban planning:
Mongolia ranks first in the world in terms of land area per capita. However, over 50 percent of its population lives in the capital, which makes up only 0.3 percent of the country’s territory. 90 percent of schools and universities, 86 percent of commerce and service, 81 percent of deposits, and 76 percent of registered private entities are centralized in the capital, which currently produces 65 percent of the country’s GDP.

Current situation of traffic congestion:
Ulaanbaatar residents spend an average of 2.4 hours a day and 35 days a year in traffic jams, resulting in lost opportunity costs of MNT 11.8 trillion over the last 10 years.


Objective 4.1. Improvement in the quality and standards of public transportation in the capital city of Ulaanbaatar, introduction of new types of high-capacity public transportation services, expansion and upgrading of the network of roads and road facilities, the establishment of multi-level intersections, increased accessibility, and reduction of traffic congestion.
4.1.1Development, expansion, and upgrading of the main road network to reduce traffic congestion in Ulaanbaatar.The traffic congestion index to decrease by 15-20 percent, improving road capacity by 35 percent.
4.1.2Establishment of an integrated and intelligent traffic management and control system.A real-time traffic information system will be established for use in traffic policy and planning, integrated monitoring, and regulation.
4.1.3Introduction of new high-capacity public transportation technologies to improve the quality and standards of public transportation with wider access.30 percent increase in public transport passengers in comparison to 2020, reducing the number of vehicles on road by 50-60 thousand.
4.1.4Improved legal framework and tax incentives for companies that have taken measures to reduce traffic congestion.Legislation to provide tax breaks to companies that have taken steps to reduce traffic congestion.
4.1.5Construction of a "Shine Toirog Zam" network with multi-level intersections connecting the sub-centers of the capital city of Ulaanbaatar.A total of 71.5 km long "Shine Toirog Zam" network with 11 multi-level intersections will be established, reducing the traffic congestion index by 15-20 percent.
Objective 4.2. Development of new residential areas, satellite cities, free economic zones, and decentralization activities, including a comprehensive policy on supporting citizens and businesses migrating from Ulaanbaatar to rural areas.
4.2.1Construction of sub-centers and basic infrastructure for decentralizing the capital city of Ulaanbaatar.Complete development of sub-centers funded by foreign loans and grants, and establishment of additional sub-centers and community centers.
4.2.2Acceleration of the development of new residential areas, free economic zones, and satellite citiesPreparations and planning for intensifying the development of new residential areas, free economic zones, and satellite cities.
4.2.3Acceleration of the construction of new cities and free economic zones in the Khushig ValleyGeneral development plans, feasibility studies, and designs for new satellite cities and free economic zones will be developed, and the first phase of engineering networks will be built.
4.2.4Provision of budgetary and financial support to citizens and businesses relocating from Ulaanbaatar to rural areas.Reduced migration to Ulaanbaatar.
4.2.5Creation of a legal environment to provide soft loans to small and medium enterprises that employ local migrants.The necessary legal environment for providing soft loans to small and medium enterprises that employ local migrants will be set up.
4.2.6Establishment of engineering infrastructure to localize production, services, and centralization of the population in rural areas.More production and services, job creation in rural areas, resulting in reduced migration.
4.2.7Support on the provision of housing with engineering infrastructure for citizens, households, and employees relocated and resettled to rural areas following the partial master plan.Decentralization of population and reduced traffic concentration in Ulaanbaatar city because of the development of urban and rural areas under the regional development policy and the partial master plan.
4.2.8Policy support to the local business environment, restocking of urban migrants, and other small agricultural businesses.Support from the government to the resettlement of urban migrants and other small agricultural businesses.
4.2.9Establishment of local logistics centers based on food, raw materials, farming, agriculture, and construction materials production.Local logistics centers will be established to produce food, raw materials, crops, agriculture, and construction materials, as well as a cold transportation chain system.
4.2.10Decentralization of some universities by diversifying them into respective specialties and relocating them to satellite towns and rural areas.Relocation of some universities to satellite cities and rural areas.
Objective 4.3. Development of provincial capital as independent cities and create financial and economic opportunities for local administrations to generate their budget revenues.
4.3.1Development of cities and settlements in the Gobi region based on the pillar center of the Khangai region and large mines within the framework of balancing urban and rural development.The Khangai Regional Pillar Center, the General Development Plan of Erdenet, the capital of Orkhon province, and the General Development Plan of Khan Bogd, Tsogttsetsii, and Gurvantes soums of Umnugovi province will be developed and implemented.
4.3.2Centralized management of the operation and maintenance of engineering infrastructure in soums and provision of comprehensive and hassle-free services to customers.A full range of public services will be provided.
4.3.3Ensuring reliable and normal operation of engineering networks.Better use of engineering infrastructure supply networks and reduced operating costs.
Objective 4.4. Supporting sustainable growth of livestock and agricultural production for domestic food demand and increasing export share based on the regional economic development policy.
4.4.1Policy support for forage and medicinal plants, greenhouse farming, and fish farming.Additional plantation of orchards in 3,500 hectares, development of agroforestry in 450 locations, and a 120-hectare crop protection zone. Increased interest in environmentally friendly businesses, such as fodder crops, medicinal plants, greenhouses, and fish farming.


This objective includes measures to combat climate change. Within this frame, projects complementing the implementation of the Billion Tree movement initiated by the President of Mongolia by 2030 will be carried out.

The government has also promised to initiate a “Blue Horse” national program to irrigate pastures, supply water to the Gobi region, recycle gray water, create lakes and ponds, and rehabilitate dried rivers, springs, and streams.

New Recycling waste plant projects

Source: The Government of Mongolia


Current situation of climate change in Mongolia: In Mongolia, the average annual temperature has risen 2.25°C for the last 80 years, which is twice the world average. It is estimated that 76.8 percent of the country’s territory is affected by desertification and land degradation, while 57 percent of all pastures are degraded.


Objective 5.1. Effective implementation of the “Billion Tree” national movement and creation of a legal environment for supporting citizens, businesses, and organizations to make a significant contribution to mitigating climate change.
5.1.1Effective organization and implementation of tree planting and maintenance within the framework of the detailed strategy and plan within the framework of the "Billion Tree" national movement.More areas with newly planted trees and forests.
Objective 5.2. Protection of water resources, provision of safe drinking water to the population, irrigation of pastures, increased water supply in the Gobi region, reuse of greywater, the establishment of artificial lakes and ponds, and rehabilitation of dried rivers, springs, and streams.
5.2.1Implementation of a policy on protecting and using water resources, providing the population with clean drinking water, improving industrial and agricultural water supply, and saving resources.Increased number of protected riverbeds, water supply sources, and reservoirs built on major rivers, and increase in the proportion of the population provided with drinking water.
5.2.2Development of technical requirements for energy-efficient, greywater reuse for the construction of social service facilities.Social service facilities will be built in accordance with green technology with reduced maintenance costs.
Objective 5.3. Establishment of regional waste recycling plants with advanced environmentally friendly technologies in provinces and in the capital city.
5.3.1Support to waste sorting, reduction, recycling, and economic recycling activities in the capital city and provincial centers, and construction of a waste processing plant.The level of waste recycling will be increased to 27 percent.
Objective 5.4. Preservation of cultural tradition in environmental protection activities in implementing the policy on economic and industrial recovery and defining a model of green development in line with global development trends.
5.4.1Improved environmental monitoring and evaluation to ensure environmental safety and the creation of healthy and safe living conditions for the population.Improved environmental monitoring and evaluation.
5.4.2Implementation of the national objectives on mitigation of climate change, desertification, and land degradation.Areas affected by severe and severe desertification will be maintained without increasing the size of the affected areas.
5.4.3Implementation of environmentally friendly, low emission, energy and water-efficient green projects, and provision of soft loans and incentives.Introduction of green constructions, industries, and technologies that have positive impacts on the environment and are in line with international standards, such as the Paris Agreement and the Sustainable Development Goals.
5.4.4Introduction of a financing system, loans, and incentives to support green growth, and adaptation of clean technology.Increased efficiency of green projects and green loans for citizens, businesses, and organizations.


To improve governance, the government is taking wider measures for e-governance initiatives. The Government of Mongolia has set a goal to reduce the number of government licenses, signatures, and contracts issued to businesses by 50 percent in 2024, which will drastically reduce the human factor in civil services.

Mongolia is also actively working to reduce the bureaucracy of the civil service through digitizing them. E-Mongolia system, which was first introduced during the Covid-19 pandemic, brought online public services to Mongolians. As of 2022, more than 800 public services of over 70 government agencies had been digitalized, and the system was used over 20.7 million times. As a result of these efforts, Mongolia rose 18 places to reach 74th place in the United Nations Digital Governance Index.

The policy also includes a step-by-step approach to improving the efficiency and governance of state-owned enterprises, which have been discussed for many years but have yet to materialize and to bring them under direct public scrutiny.

Mongolia scores low on the Corruption Perceptions Index, which the government perceives is substandard. The upcoming reform seeks to tighten penalties for corruption and official misconduct, monitor excess incomes of public officials, and align income tax returns with tax payments.


Projects to identify optimal government structures that are friendly to citizens, the private sector, and investors, and to digitize public services.

Current situation of corruption in Mongolia: In 2022, Mongolia scored 33/100 and ranked 116th out of 180 in Transparency International’s Corruption Perceptions Index.


Objective 6.1. Digitalization of public services and anti-bureaucracy actions.
6.1.1Step up the efforts of the “digital nation” initiative, improve public information infrastructure, replace paper-based activities with digital solutions, abolish requirements of information about citizens and entities that can be obtained online from public platforms, and improve access to and the number of electronic public services. Adapt to electronic signatures in stages.Increase the number of services on an integrated public service system E-Mongolia, which was launched on October 1, 2020, and is currently providing 563 of 57 government organizations, to 1,000 and create conditions for allowing e-contracts and prompt access to public services.
6.1.2Reorganize the database of other organizations that compile spatial data and information into a single standard, introduce "One Map" for government policy planning and decision-making through geoportals, and "Open Map" for the public and businesses nationwide.An open electronic system based on spatial data infrastructure will be developed.
6.1.3Introduce an integrated address system.A unified addressing system will be effective nationwide.
6.1.4Development of an integrated system of 3D and 4D designs of land and real estate registration, valuation, tax, and payment system based on artificial intelligence, blockchain, and geographic information systems in accordance with international standardsData of over 500,000 buildings registered in the land cadaster database will be readjusted. A database with a unified system of 3D and 4D designs of land and real estate registration, valuation, tax, and payment will be set up. A joint database of public and private organizations will be established for inter-sectoral coherence.
6.1.5Transferring of 1: 1000 scale topographic maps and underground maps of urban centers to the ITRF2020 coordinate.2,400 Class B networks will be established during theITRF2020, AA Class networks will be transferred, and new 1: 1000 digital topographic maps will be carried out in 21 provinces, 330 soums, and Ulaanbaatar.
6.1.6Establishment of an electronic land exchange within the jurisdiction of the state administrative organization responsible for land issues, the establishment of a land development fund for a certain percentage of the land exchange's activities, and putting the land into economic circulation.An e-land exchange will be set up under the state administrative body in charge of land issues, and a national land fund will be established to centralize the land and real estate market by introducing an integrated land system.
Objective 6.2. Comprehensive analysis, assessments, and review on government structure and organization for optimization, and transfer some functions of the government to the private sector and professional associations.
6.2.1A step-by-step study on government functions that can be transferred to a professional association in each sector.Some government functions will be passed onto the private sector and professional associations, expanding opportunities for public-private partnerships, and shrinking the civil service for efficiency.
Objective 6.3. Sorting the overlaps in state inspections, suspending scheduled inspections, and reducing the number of licenses and specifications required by government agencies.
6.3.1Improving the transparency and efficiency of government operations, elimination of government bureaucracy, support to businesses by halving the number of licenses and permits, and digitalization of license issuance.Individuals and legal entities will be free to engage in business activities other than those prohibited by law or require a permit in accordance with the law.
6.3.2Enabling prompt issuance of licensing on the basis of auctions, tenders, professional inspections, with the exception of land, minerals, oil, explosives, blasting, banking, finance, customs, national payment system, media, nuclear energy, telecommunications, tobacco, and alcohol production, payment licenses. Extension of licenses will also be issued promptly with the same terms of the first issuance if the issuer complied with the requirements of the license.A favorable environment for doing business.
6.3.3Establishment and maintenance of an electronic database of licenses.A favorable business environment will be created with improved transparency and openness.
6.3.4Reduce the number of scheduled inspections with the exception of the Bank of Mongolia, the Financial Regulatory Commission, and in areas other than taxes, customs, social and health insurances, and implement risk-based and supervised government inspections.In order to reduce the negative impact of the Covid-19 pandemic on the economy and increase economic efficiency, scheduled inspections will not be carried out for a certain period as specified in the Law on State Inspection. Unscheduled inspections shall be carried out in case of direct or indirect damage to human life, health or the environment. This will reduce government bureaucracy and help save time and money.
6.3.5Remove restrictions to the number of foreign workers to be hired by the private sector, and a 50 percent reduction to job fees imposed by law.Layout the legal environment that enables importing labor force that is unavailable in the domestic market.
Objective 6.4. Improving the efficiency and governance of state-owned enterprises and bringing them under direct public scrutiny.
6.4.1Early promotion of civil servants working in areas other than in Ulaanbaatar city if they meet 50% of the special requirements set by the Civil Service Law;Decentralization in the capital city and more supply of workforce in rural areas.
6.4.2Complete the transition to a three-year contract with suppliers and service providers to agree on prices and other conditions for the purchase of goods, works, and services with state and local funds, remove unnecessary restrictions on bidders, and make the bidding process transparent, open, and expeditious.The bidding process will be easier and more accessible if the unnecessary restrictions imposed on bidders are removed and certain types of contracts can be concluded directly for 3 years.
6.4.3Preferences to bidder in the procurement of goods and services of a state or locally owned company operating in a local area other than the capital city or has a tax cluster.Support to small and medium enterprises, services, and start-ups, and increased local employment.
6.4.4Improve the effectiveness of the pre-trial settlement mechanism, non-judicial debt settlement, and facilitate the process of resolving cases and disputes in court by citizens and traders.Citizens and legal entities will be able to resolve their debts and receivables without the involvement of courts and court decision enforcement agencies.
6.4.5Preventing competition between the state and the private sector, but only in strategically important sectors, for the implementation of large projects of economic and social development, and in areas where the state regulates prices and tariffs, the private sector cannot operate alone, and in the public interest. State-owned enterprises will be established for necessary purposes only with limited intervention in the management of business activities, influence, and will make business decisions free from political influence. Measures will be taken to improve the governance of state-owned legal entities and will gradually transition into a joint-stock company.Improved governance, transparency, and profitability of state-owned and partly state-owned companies.
Objective 6.5. Strengthen penalties for corruption and official misconduct.
6.5.1Strengthen penalties for corruption and official misconductTighter policies to the Chapter 22 of the Criminal Code, which criminalizes corruption.
Objective 6.6. Exclude from the Financial Action Task Force (FATF) list of countries with a lack of strategies to combat money laundering and terrorist financing (gray and blacklist), the European Union’s “List of Non-Tax Cooperation Regions”, as well as preventing credit-rating downgrade.
6.6.1Comply with the international standard /40 guidelines/ of the list of countries with a lack of strategies to combat money laundering and terrorist financing /gray and blacklist/ set by the Financial Action Task Force /FATF/, and prevent inclusion in the European Union's "List of Non-Cooperative Regions".Ensuring Mongolia's economic stability, increasing foreign and domestic investment, and avoiding the list of countries that lack strategic strategies to combat money laundering and terrorist financing from the Financial Action Task Force (FATF).
6.6.2Take measures to improve Mongolia's credit rating.Prevent downgrading of credit rating from the current levels set by Moody's (B3, stable), Fitch Ratings, and S&P (B, stable).


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