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

The financing will support the Gerlug Green Apartments project, a four-tower development containing 252 residential units in Ulaanbaatar’s Khan-Uul District.

The Asian Development Bank has signed a $30 million loan, in Mongolian togrog equivalent, with Tavan Bogd Holdings LLC to build the country's first privately developed residential complex seeking international green certification. The investment will bring more energy-efficient homes to Ulaanbaatar, lower household utility costs and introduce construction practices that use less energy, water and building materials than conventional developments. It also offers a practical response to the environmental pressure created by Mongolia's coal-dependent heating system, especially during the capital's extremely cold winters.

Four Green Towers Will Bring 252 Homes to Ulaanbaatar

The financing will support the Gerlug Green Apartments project, a four-tower development containing 252 residential units in Ulaanbaatar's Khan-Uul District. The complex is being designed to meet the Excellence in Design for Greater Efficiencies, or EDGE, standard, an internationally recognised certification requiring buildings to save at least 20% in energy, water and embodied energy in construction materials when compared with ordinary buildings.

Current plans indicate that Gerlug Green Apartments could achieve energy savings of 34.6%, water savings of 30.6% and an embodied carbon reduction of 38.1%, placing the project well above the minimum requirements for EDGE certification. Advanced insulation will help homes retain heat during winter, while energy-efficient lighting and smart meters will allow residents to better understand and manage their electricity consumption. These features are expected to reduce monthly living expenses while making the buildings more comfortable and environmentally responsible.

Greener Homes Could Reduce Mongolia's Dependence on Coal

Residential buildings in Mongolia consume large amounts of energy, with many households relying on heating supplied by coal-fired systems through the coldest months of the year. Better insulation, efficient lighting and careful use of construction materials can lower the energy required to keep apartments warm, cutting both household costs and the greenhouse gas emissions connected to urban housing. The development will also contribute to Mongolia's national commitment to reduce emissions by 23% by 2030.

ADB Country Director for Mongolia John Juhyun Jeong described the project as an example of sustainable urban development working alongside private investment. He said the complex could set a new standard for energy-efficient housing and demonstrate that environmentally responsible construction can provide commercial value while delivering benefits for residents and the wider community.

A Model the Private Housing Market Can Replicate

ADB has been helping Mongolia identify green-building opportunities and introduce energy-efficient design in public and private developments through its technical assistance programme on Accelerating Climate Action, Innovation and Private Sector Development. This support helped Tavan Bogd Holdings adopt internationally recognised standards for the Gerlug project, giving the company a framework for measuring energy, water and material savings throughout the development process.

Construction is expected to create around 1,800 jobs, with additional opportunities planned for women entering technical professions and internship programmes. Tavan Bogd Group President Baatarsaikhan Tsagaach said private companies have an important role in providing homes that reflect the changing expectations of Mongolian families and create lasting community benefits. Tavan Bogd Holdings, the group's investment holding company, is part of one of Mongolia's largest and most diversified private business groups.

The importance of the project extends beyond its 252 apartments. A successful development could give property companies, investors and homebuyers greater confidence in green construction, encouraging similar projects across Ulaanbaatar and other growing urban areas. Each new energy-efficient building could help reduce pollution, control household expenses and move Mongolia's housing market towards a cleaner and more resilient future.