Contents. Current situation Policy areas for problem resolution and urban nexus Planned projects for policy implementation Cooperation opportunities

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2 Contents Current situation Policy areas for problem resolution and urban nexus Planned projects for policy implementation Cooperation opportunities

3 Migration effects on current urbanization People In migration Out migration Year Population of Mongolia Population in urban area Rural area 39% Urban area 61% Center of Aimags 30% In Ulaanbaatar city 60% In Darkhan and Erdenet 10% Migration Urbanization Centralization of population

4 Environmental and social vulnerability in Ulaanbaatar Unfiltered smoke of 186,4 thousand households using raw coal burning for their heating 242 thousand Vehicles 20% Power plant 10% Sand and break stone mines Liability of air pollution 1378 middle und small plant 6 % Gas stations Roads through Ger area Ministry of construction and urban development of Mongolia Landfill waste 4

5 Water supply and consumpltion in Ulaanbaatar Water consumption per person per day Average 88 liter/day Ger area 5 liter/day Apartment 211 liter/day 97.3% of families in ger area (total household ) use primitive toilet 38,0% of Ulaanbaatar population live in apartments/houses with engineering infrastructure supply and 62,0% in ger areas without this supply.

6 Challenges and Resolutions Key policy areas aimed to ensure sustainable, broad-based and equitable growth Policy Challenges: Centralization of population, high demand of resources use Disproportionate urban migration Severe pollution Ecological deterioration Lack of social and engineering infrastructure supply Traffic congestion and shortage of energy Lack of resource integration Consummation of UB ground water resources by 2015 No leveraging of interrelated developments Persistent poverty and unemployment Policy areas: Green development concept and mid term program till 2020 and vision on 2030 (under discussion on national parliament) - adjusting population settlement planning and development with natural resources and local capacity Supporting rural development to ease internal migration Developing optimal policies in land management Tackling pollution with encouraging and awarding modern energy efficient, energy zero, energy producing, green technology, green building and smart city concepts including thermo-technically rehabilitated buildings Recycling and reuse of grey water and encouraging efficient and high technologies Efficient use of water: Each building is required to be with water meter Increasing surface/groundwater use ratio from 20/80 to 50/50 Improving infrastructure and expanding housing supply 6

7 Key polices: Green urban development concept Law of Mongolia on Water on Sanitation and Waste Water Treatment National Program for Water approved by the Parliament of Mongolia Development of State Policy on Urban Development and Human Settlement of Master Plan to be approved by the Parliament Decentralizing population density of the capital and equitable growth, development of smart city concepts. 100 soums public utility facilities will be developed within Soum project implementation during : PPP

8 Legal reform Legislations being drafted newly or under revision 1.1. Law on Land 1.2. Law on Land Fee 1. REVISION 1.3. Law on Land Cadastre 1.4. Urban Development Law 1.5. Construction law 2.1. Law on Geodesy and Cartography 2. AMENDMENT 2.2. Law on Land Ownership by the Citizens of Mongolia 2.3. Law on Housing Privatization 1.1. Law on Energy Saving 1.2. Law on Land Expropriation 1.3. Urban Redevelopment Law 3. NEW LEGISLATION 1.4. Law on Urban Green Areas 1.5. Law on Parking Ministry of Construction and Urban Development of Mongolia 1.6. Law on National Geospatial Information Infrastructure 8

9 Major projects in urban development for policy implementation Human Settlement Master Plan ( ) Development of Master Plans for Towns and Settlements to be developed in the vicinity of the strategically important mineral deposits ( ) Revision of Ulaanbaatar Development Master Plan 2020 ( он) Master plan for all provincial centers (2014) Baruun Urt Center Master Plan Gobi Region Tourism Development Plan ( ) 9

10 Key policies: Developing satelite cities Ministry of construction and urban development of Mongolia 10

11 Ulaanbaatar Master Plan -2030

12 Key policies: Ger area redevelopment and infrastructure supply Ulaanbaatar ger area: New planning and redevelopment Water & waste management: Establish new sources of underground & pure water supply, revamp national sanitation facilities and recycling, reusing Efficient National Power Supply: An independent & centralized power source in Ulaanbaatar, in regional pillars and aimags. Unified Power Grid: A new central power grid, introducing renewable energy technology. Aimags to be connected to a unified national power grid. Housing supply: Issue low interest loans with long maturity to low & medium income households 12

13 Key polices: Public utilities and water efficiency Construction of water supply and sewerage system, small-scale waste water treatment plants and water kiosks in ger areas of Ulaanbaatar and aimag centers, connection thereof with centralized pipeline system. Installation of domestic hot water pipelines in residential buildings in aimag centers; Renovation or construction of flood protection damn and culverts in Ulaanbaatar, aimag centers and major towns Approval and application of codes and norms on re-use of grey water in each building; Construction of tunnel system for underground pipeline networks in the sections with most intensive traffic in Ulaanbaatar and aimag centers; Construction of dams in major rivers in order to collected precipitation and use of surface water.

14 Economic incentives for energy efficient green buildings Regulations drafted by joint working group from MGED and MCUD Main principle for economic incentives is based on A and B grade of the building by National Standard. Amount of award will be based on real Energy savings for 5-10 years Coverage is for new buildings, retrofitted buildings and houses and heat sources such as renewable sources.

15 Integrated urban development program by GIZ, Projects targeted on resource efficiency and environmental protection Drafting and formulating laws, norms and standards: Urban Redevelopment Law & updating of Urban Development Law Solar energy, Floor heating and Road maker Improving capacity of technical vocational and educational training Ecological sanitation and improved stoves deliveries Thermo technical retrofitting of prefabricated panel buildings Eco City Berlin sub district planning MOMO project for reconstruction of waste water treatment plant and reduction of water loss.

16 Key polices: ECO CITY Berlin Planning parameter - Professional property Management - A green city - Heat energy consumption of 100kwh/m2/a (Mongolian passive house standard ) The first two model houses demonstrate the functioning of the system. Replicability A Mongolian investor is continuing construction in the ECO CITY Berlin with advisory service of the GTZ program.

17 Key policy: Smart house Building of Ministry of Environment and Green Development Smart and eco house Ministry of construction and urban development of Mongolia 17

18 Key policies: Supporting green technologies List Approval Resolution No.303 of 23 rd August, 2013, Government of Mongolia. Productions and services with 41 type of products named to be exempted from income tax (10%). Law on Customs Special Tax which was amended on the 01 st of January Hybrid engine cars are exempted from the customs special tax. Upto $ special tax is imposed on 10 years of age and above 4500 cubic meter engine cars. 18

19 Key policies: Collaborative project implementation Cooperation mechanism can by applied taking advantage of the government: PPP Private investment in the infrastructure development under concession; FDI to be facilitated with provision of serviced land and tax exemption for building materials (e.g. 0-tariff for wood, equipment and raw materials are to be exempted from customs duties and VAT by Gov Res 193 of 2012) in supply side and access to 8% interest mortgage loans for home buyers in demand side : New town development Residential construction Leasing of equipment for construction material plants. MIK will intermediate mortgage refinancing offering MBSs to potential foreign investors. Foreign Investment Law approved on 03 October 2013 provides for tax stabilization through award of Stabilization Certificate to or Investment Contract with foreign investors. Direct contact or liaison with private land owners/companies for acquisition of land. Other forms of cooperation Ministry of construction and urban development of Mongolia 19

20 Phenomena of things exist in dependence on causes and conditions somewhat as science asserts with no permanent, separate, inherently existing identity Basic Buddhism, Celia Smith

21 Thank You for Your Attention The Ministry of Construction and Urban Development Government Building 12, Barilgachdyn Talbai-3 Ulaanbaatar 15170, Mongolia Tel: (976) , Fax: (976) , The Ministry of Environment and Green Development Government building II, United Nation s street 5/2, Chingeltei district, Ulaanbaatar 15160, Mongolia Tel: (976-11) mganbaa@gmail.com webmaster@mne.gov.mn