Standing committees approve USD 15 million loan to fight pollution
The Standing Committees on Budget and on Economics held a joint meeting on Monday to discuss a proposed agreement between the Government of Mongolia and the World Bank’s International Development Association (IDA) to reduce air pollution in Ulaanbaatar.
The committees approved the agreement, under which the government will borrow USD 15 million from the IDA to implement anti-pollution programs. The terms of the loan are 1.25 percent interest over 25 years.
The money will be used in part to pay for energy-efficient stoves in ger district households and to connect ger districts to a central-heating system. Some MPs questioned the need for the loan, since the Millennium Challenge Fund (MCF) is already implementing an energy-efficient stove project.
Deputy Mayor D.Ganbold explained that the MCF will only implement the project for the next two or three years, and their stoves can only heat an area of 30 to 35 square meters. The IDA project will supply larger stoves, and could ultimately reduce air pollution by 80 to 90 percent, according to some estimates.
D.Zagdjav said developing the ger districts would be a better way to reduce air pollution than simply supplying energy-efficient stoves.
D.Ganbold noted that the “New Creation” plan passed by Parliament calls for the construction of 100,000 apartments by 2016. Altogether, there were 180,000 households in ger districts in 2011, and that number is expected to reach 200,000 this year. He said that, if migration from the countryside to Ulaanbaatar continues to increase, even more apartments will need to be built.
The committees approved the agreement, under which the government will borrow USD 15 million from the IDA to implement anti-pollution programs. The terms of the loan are 1.25 percent interest over 25 years.
The money will be used in part to pay for energy-efficient stoves in ger district households and to connect ger districts to a central-heating system. Some MPs questioned the need for the loan, since the Millennium Challenge Fund (MCF) is already implementing an energy-efficient stove project.
Deputy Mayor D.Ganbold explained that the MCF will only implement the project for the next two or three years, and their stoves can only heat an area of 30 to 35 square meters. The IDA project will supply larger stoves, and could ultimately reduce air pollution by 80 to 90 percent, according to some estimates.
D.Zagdjav said developing the ger districts would be a better way to reduce air pollution than simply supplying energy-efficient stoves.
D.Ganbold noted that the “New Creation” plan passed by Parliament calls for the construction of 100,000 apartments by 2016. Altogether, there were 180,000 households in ger districts in 2011, and that number is expected to reach 200,000 this year. He said that, if migration from the countryside to Ulaanbaatar continues to increase, even more apartments will need to be built.
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