ADB and Mongolia Sign $475M Deal to Boost Health, Education, and Resilience

The agreement marks a major step forward in ADB’s long-standing partnership with Mongolia, focusing on human capital development, economic resilience, and disaster preparedness.

The Asian Development Bank (ADB) and the Government of Mongolia have signed a landmark $475 million Financial Framework Arrangement (FFA) to deepen cooperation in driving inclusive, sustainable, and resilient development across the country. The agreement marks a major step forward in ADB’s long-standing partnership with Mongolia, focusing on human capital development, economic resilience, and disaster preparedness.

The FFA was signed during an official ceremony in Ulaanbaatar by Javkhlan Bold, Minister of Finance and ADB Governor, and Shannon Cowlin, ADB Country Director for Mongolia.

“The Financial Framework Arrangement will streamline project preparation and approval processes so that our partnership can deliver timely and lasting benefits for the people of Mongolia,” said Ms. Cowlin. “Through this arrangement, we will continue supporting projects in health, education, and skills development, as well as initiatives that strengthen disaster resilience.”

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A Comprehensive Framework for Human and Economic Development

Under the agreement, ADB and Mongolia will implement four major projects designed to strengthen essential public services, create inclusive growth opportunities, and reinforce national resilience against economic and environmental challenges.

The initiatives reflect shared priorities under the Government Action Plan 2024–2028 and ADB’s Country Partnership Strategy 2025–2028, both of which aim to promote equitable development, innovation, and climate adaptation.

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1. Modernizing Health Services Across Mongolia

The Provincial Health Service Strengthening and Modernization Project will be a cornerstone of the new framework. It seeks to modernize hospitals, clinics, and diagnostic centers across 17 aimags (provinces) by building climate-resilient and energy-efficient facilities, upgrading equipment, and enhancing service delivery.

Key features include:

• Construction and modernization of regional hospitals and diagnostic centers;

• Introduction of renewable energy and green technologies in healthcare infrastructure;

• Strengthening of national health policies and hospital management systems;

• Upgrading of emergency and intensive care services, including cancer treatment capacity; and

• Development of programs to sustain national health insurance financing.

This project will ensure that more Mongolians, especially in remote provinces, gain access to affordable, high-quality healthcare, while reinforcing the country’s preparedness for future pandemics and natural disasters.

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2. Expanding Education Access and Quality

The second initiative, Additional Financing for the Sustaining Access to and Quality of Education During Economic Difficulties Project, focuses on solving Mongolia’s long-standing challenge of school overcrowding and limited early childhood education infrastructure.

Through the project:

• 40 new schools and kindergartens will be built in Ulaanbaatar and across the provinces;

• More than 10,000 new student seats will be created, eliminating the need for schools to operate in three-shift systems;

• New facilities will adopt inclusive, disaster-resilient, and energy-efficient designs;

• Digital learning tools and pre-primary education materials will be developed; and

• The national digital school repository will be upgraded ahead of the new primary curriculum rollout in 2027.

By investing in early education and modern learning environments, the project will not only reduce inequality but also strengthen the human capital foundation essential for Mongolia’s economic transformation.

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3. Building a Skilled, Future-Ready Workforce

The Developing Skilled Mongolian Workforce for Resilient Economic Growth Project will address labor market mismatches and equip young Mongolians with the skills demanded by the 21st-century economy.

The project will:

• Modernize technical and vocational education and training (TVET) systems;

• Establish a model network of training institutions and modern curricula;

• Strengthen teacher training programs through partnerships with international education and industry leaders; and

• Integrate digital, smart, and green technologies into training programs to prepare youth for emerging industries.

The initiative also seeks to strengthen sector governance, making Mongolia’s education-to-employment ecosystem more adaptive and responsive. It directly supports national goals to diversify the economy beyond mining by nurturing talent for sectors like renewable energy, digital innovation, construction, and advanced manufacturing.

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4. Strengthening Disaster Resilience and Emergency Response

Given Mongolia’s exposure to natural disasters and extreme weather, the Strengthening Mongolia’s Disaster Resilience Capacity Project will play a vital role in protecting communities and ensuring continuity of essential services.

The project will:

• Upgrade the National Emergency Management Agency (NEMA) with modern firefighting vehicles, disaster response equipment, and search-and-rescue tools that meet global standards;

• Establish a comprehensive disaster response training complex for NEMA personnel;

• Enhance the skills and safety protocols of emergency response teams; and

• Build community-level preparedness and response capacity, including local disaster mitigation systems.

This initiative aligns with Mongolia’s national disaster risk management strategy and ADB’s broader climate adaptation agenda, improving both institutional readiness and citizen safety.

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A Strategic Alignment with ADB’s Long-Term Vision

The new $475 million framework demonstrates ADB’s continued commitment to supporting Mongolia’s inclusive economic growth, human development, and climate resilience.

The funding will be delivered through a mix of ordinary capital resources, concessional loans, and grants, enabling flexibility and efficiency in project implementation.

ADB’s engagement under this framework will reinforce the country’s transition toward a green, diversified, and knowledge-based economy, where social investments directly translate into sustainable growth.

“This partnership represents our shared commitment to building a resilient, inclusive Mongolia,” said Minister Javkhlan Bold. “By investing in health, education, and workforce development, we are strengthening the foundation for our people’s prosperity and our nation’s future.”

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Impact and Outlook: Delivering Tangible Benefits for Citizens

Together, the four projects are expected to deliver long-term socio-economic benefits by:

• Improving health outcomes and life expectancy;

• Expanding access to education and digital learning;

• Equipping youth with employable, future-oriented skills; and

• Enhancing national preparedness for disasters and emergencies.

Moreover, the FFA will simplify project preparation and approval, enabling faster disbursement and delivery of results. This efficiency is especially critical for a country with vast geography, dispersed population, and extreme climate conditions, where timely implementation can significantly impact livelihoods.

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A Stronger Partnership for a Sustainable Future

Since joining the ADB in 1991, Mongolia has received more than $3.9 billion in assistance from the institution, covering sectors such as infrastructure, agriculture, energy, and social services.

The new $475 million arrangement deepens this partnership, reaffirming ADB’s role as one of Mongolia’s key development partners and a leading supporter of its Vision 2050 strategy—which aims to transform Mongolia into a resilient, inclusive, and diversified economy.

As ADB continues to align its operations with global commitments such as the Sustainable Development Goals (SDGs) and the Paris Agreement, this latest initiative underscores a shared vision: a healthier, better-educated, and more resilient Mongolia prepared for the challenges and opportunities of the future.