ADB Approves $60M for Ulaanbaatar’s First BRT System to Cut Traffic and Emissions

“The new BRT will be the first system of its kind in Ulaanbaatar, offering passengers a high-quality public transport service,” said Shannon Cowlin, ADB Country Director for Mongolia.

The Asian Development Bank (ADB) has approved a $60 million loan to support Mongolia’s efforts to modernize urban mobility in Ulaanbaatar through the construction of the city’s first-ever bus rapid transit (BRT) corridor. The assistance package also includes a $500,000 grant from the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), reflecting strong alignment with the region’s climate priorities.

A Major Step Toward Cleaner, Faster, and More Efficient Transport

“The new BRT will be the first system of its kind in Ulaanbaatar, offering passengers a high-quality public transport service,” said Shannon Cowlin, ADB Country Director for Mongolia.

“We hope it will encourage a shift from private vehicles to public transport, easing congestion, supporting economic activity, and reducing air pollutant emissions.”

The project comes as the city struggles with fast-rising vehicle numbers, severe traffic congestion, and diminishing transport efficiency. Ulaanbaatar’s afternoon peak-hour traffic slows public buses to under 10 km/hour, creating:

• Lost productivity

• Increased travel times

• Poor reliability of public transport

• Higher greenhouse gas and pollutant emissions, due to the dominance of diesel-powered buses

What the BRT System Will Deliver

The Ulaanbaatar Transport Improvement Project will design and construct a modern BRT corridor featuring:

• Median-aligned dedicated bus lanes to avoid mixed traffic delays

• Off-board fare collection for faster boarding

• Universally accessible stations for people with disabilities and the elderly

• Traffic signal priority at intersections to reduce delays

• Improved streetscapes, including bike lanes and pedestrian facilities

• Infrastructure aligned with international best practices in urban mobility

The new BRT is expected to:

• Improve travel reliability and speed for commuters

• Act as the backbone of an upgraded public transport system

• Reduce private car dependency

• Decrease carbon and particulate emissions

• Enhance safety and the quality of the urban environment

Supporting Mongolia’s Climate and Development Goals

The BRT initiative reinforces:

• ADB’s Country Partnership Strategy for Mongolia (2025–2028), which prioritizes sustainable, inclusive, and climate-resilient urban development

• Mongolia’s Nationally Determined Contribution (NDC) under the UN Framework Convention on Climate Change, which commits to reducing greenhouse gas emissions by 22.7% by 2030 under a business-as-usual trajectory

By promoting cleaner transport and reducing congestion, the project will make a meaningful contribution to Mongolia’s climate targets.

Why Ulaanbaatar Needs the BRT Now

Ulaanbaatar—home to nearly half of Mongolia’s population—faces chronic mobility challenges:

• Rapid urbanization

• Increasing vehicle ownership

• Limited road capacity

• Outdated traffic management systems

• High levels of air pollution, especially in winter

The BRT corridor will become a transformational investment, supporting long-term improvements in mobility, air quality, and economic productivity.

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Looking Ahead: A More Sustainable Urban Future

With ADB’s support, Ulaanbaatar is set to join global cities that have successfully adopted BRT systems as cost-effective, high-impact solutions for:

• Reducing emissions

• Improving transport efficiency

• Encouraging sustainable urban growth

• Enhancing access to jobs, services, and education

The BRT project represents a major milestone in Mongolia’s effort to build climate-smart infrastructure, strengthen urban resilience, and improve quality of life for millions of residents.