Mongolia’s First Private Green Housing Complex Secures $30 Million

The Gerlug Green Apartments project will consist of four residential towers containing 252 homes in the Khan-Uul District of Ulaanbaatar.

Mongolia's housing market is taking a major step toward cleaner and more affordable urban living after the Asian Development Bank signed a $30 million loan, provided in local currency equivalent, with Tavan Bogd Holdings LLC. The funding will support the construction of Gerlug Green Apartments, the country's first privately developed residential complex seeking international green certification, bringing lower household energy use, reduced utility costs and climate-conscious building practices into Ulaanbaatar's fast-growing property sector.

Four Towers Designed for Greener City Living

The Gerlug Green Apartments project will consist of four residential towers containing 252 homes in the Khan-Uul District of Ulaanbaatar. The development is pursuing Excellence in Design for Greater Efficiencies certification, known as EDGE, which requires buildings to deliver savings of at least 20% in energy, water and construction materials compared with conventional properties.

Current designs indicate that the complex could perform well beyond those requirements, achieving estimated energy savings of 34.6%, water savings of 30.6% and a 38.1% reduction in embodied carbon. Advanced insulation will help apartments retain heat during Mongolia's severe winters, while efficient lighting and smart energy meters will give residents greater control over consumption and monthly expenses.

ADB Country Director for Mongolia John Juhyun Jeong described the development as an example of sustainable urban growth and private investment working together, noting that it could set a fresh benchmark for energy-efficient housing while showing developers that environmentally responsible construction can also make commercial sense.

Cutting Energy Costs in a Coal-Dependent Heating System

Residential buildings in Mongolia consume large amounts of energy, particularly during the winter months when temperatures fall sharply, and heating systems rely heavily on coal. Poor insulation and inefficient equipment can increase household costs, place pressure on the electricity and heating networks, and add to the air pollution that affects Ulaanbaatar.

The green features incorporated into Gerlug Green Apartments are expected to reduce this burden by lowering the amount of energy and water needed for everyday living. These improvements will also support Mongolia's national commitment to reduce greenhouse gas emissions by 23% by 2030, giving the project a role that extends beyond its 252 apartments.

ADB has been helping Mongolia identify green building opportunities and introduce energy-efficient design across public and private developments through its technical assistance programme, Accelerating Climate Action, Innovation and Private Sector Development. That support helped Tavan Bogd Holdings adopt internationally recognised building standards for the new complex.

Jobs, Skills and a Model for Future Housing

Construction is expected to generate around 1,800 jobs, creating income opportunities while expanding practical experience in modern green building techniques. The project will also open more technical career and internship opportunities for women, helping broaden participation in professions where female representation can remain limited.

Tavan Bogd Group President Baatarsaikhan Tsagaach said the private sector has an important role in providing homes that respond to the changing expectations of Mongolian families and create lasting benefits for communities. The partnership with ADB reflects the company's commitment to higher residential standards and a housing sector that can better withstand energy and climate pressures.

As Mongolia's first privately developed green-certified residential complex, Gerlug Green Apartments could give other builders a practical model to follow. Its performance will show how stronger insulation, responsible material choices, water-saving systems and smarter energy management can be incorporated into commercially viable housing, encouraging wider adoption of green construction across the country.