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Mayor Nyambaatar: An International Open Tender for the Construction of a Metro Will Be Announced This Month www.montsame.mn
The capital has initiated the construction of a high-capacity metro in Ulaanbaatar. The Governor of the Capital City, and the Mayor of Ulaanbaatar, Nyambaatar Khishgee, presented this development to journalists yesterday.
The Mayor, in his address, highlighted that the metro construction project has commenced, following recent government discussions and resolution on financing. The capital city itself will bear 100 percent of the budget. Additionally, in the event of a need to guarantee construction performance, the government will issue a partial guarantee.
A meeting of the Governor's Council of the capital is scheduled to discuss the construction. In the upcoming weeks, the budget will be presented at the meeting of the Citizens Representative Khural of the Capital, with subsequent approval of the budget.
The city of Ulaanbaatar collects USD 100-200 million in tax revenue in the state budget. According to this government's resolution, it has been decided that the revenue collected by the capital city can be used to finance the metro project.
Based on a preliminary feasibility study, the metro project has an estimated budget of USD 1.3 billion. The capital city anticipates raising an average of USD 200 million annually through its budget revenues for project financing. The Mayor provided further clarification on the project.
- So, does it mean that the feasibility study for building the metro is ready? Is it a new one, or is it based on the feasibility study previously done by JICA?
- The idea of having the first metro in the capital was discussed in the mid-1980s, and the then urban development management and the scientists and experts of the former Soviet Union jointly drilled 5 large boreholes in the center of Ulaanbaatar and conducted the first analysis.
Since then, discussions have been ongoing since 2005, and the first basic research was carried out until 2013. In 2011, South Korea's "Soosung Engineering" company made the first preliminary feasibility study, and then, by combining the collected analysis and data, in 2013, Japan's international cooperation organization JICA made the preliminary feasibility study that we have now.
According to this feasibility study, the construction of a one-line metro in Ulaanbaatar, along with the depot, is planned to be approximately 18.3 km long horizontally from Tolgoit to Amgalan. Of this, a feasibility study is planned for 6.6 km in the central part of the capital to go underground, and the remaining parts will have a pillar-based bridge structure.
- What preparations have started now?
- Within this month, an international open tender will be announced for the selection of the consultant to manage the project and the contractor. Negotiations will commence with the selected companies and institutions. The finalization of how many years the project will take and at what cost, will be based on the outcomes of the open tenders.
Furthermore, the feasibility study mentions the pre-sale of some immovable assets of the capital during the project's implementation. This preliminary estimate is aimed at financing the metro project by utilizing our internal resources.
In the future, with funding from 2025-2028, the capital's treasury will conduct calculations and research on several scenarios to advance the metro project. Currently, over MNT 300 billion per year is allocated for public transport subsidies in the capital. There are plans to conduct calculations and studies on how to make efficient investments with the funds provided in this manner.
Published Date:2024-01-10
