Japanese ODA Loan to Mongolia

March 28, 2008

The Government of Japan has decided to provide a Japanese ODA Loan of up to 28,807 million yen to the Government of Mongolia for “the New Ulaanbaatar International Airport Construction Project,” with a view to promoting the economic stabilization and development efforts of Mongolia. Notes to this effect were exchanged on March 3 (Mon) in Tokyo between Mr. Masahiko Koumura, Japanese Minister for Foreign Affairs, and Ms. Sanjaasurengiin OYUN, Minister for Foreign Affairs of Mongolia.
Outline and Significance of the Project

With the marketization-led growth of the service industry, increased investment in natural and livestock resources, and other factors as a backdrop, demand for airports in Mongolia, in particular for international airlines, has been rapidly increasing. The conventional Ulaanbaatar Airport cannot deal with the rapidly increasing demand for air services because its geographical situation limits take-off and landing to one direction, and the short runway also limits the models and weights of the airplanes that can take off or land.

The New Ulaanbaatar International Airport Construction Project is intended to contribute to the further economic development of Mongolia, by building a new airport on a site with no geographical restrictions, making it much more convenient to use, introducing a state-of-the-art airport security system that utilizes Japan’s advanced technology and know-how, and raising the credibility and safety of Mongolia’s air transportation.

Loan conditions

(1) Interest rate: 0.20% per annum (0.01% for consulting service)

(2) Repayment period: 40 years (including 10-year grace period)

(3) Procurement method: Japan tied

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