Ulaanbaatar/MONTSAME/. Within the framework of ‘Vision-2050’
long-term development policy and ‘Urban and Rural Policy’ of the government’s
New Revival Policy, an objective of decentralization of Ulaanbaatar and
establishment of satellite cities and new residential areas has been set. In
this context, the engineering infrastructure work of ‘Khushigt Valley – New
Settlement Zone’ commenced last Friday, August 12. Prime Minister L.
Oyun-Erdene and parliament members attended the opening ceremony. 

The Prime Minister stated, “Today, we are starting the
construction of a new city in the Khushigt Valley and a diversified economic
zone within the framework of the ‘New Revival Policy’. The government will
further support new settlement areas in Darkhan-Uul, Orkhon, Umnugobi, Uvurkhangai
aimags, and Baganuur and Nalaikh districts of the capital, solve the
infrastructure problems and create a legal framework to attract private sectors
and international investment. The Khushigt Valley development has the
potential to be not only a new residential area, but also a special economic
zone and an independent transportation and logistics hub. The Bogdkhan railway
runs around the new settlement area, and the development projects are

Mongolia has not built a new city since 1980. After 40
years, the planning of a new city is in the process. As part of the
infrastructure construction for the new residential area, the construction of
water and electricity supply sources has started.

During the ceremony, Minister of Construction and Urban
Development B. Munkhbaatar noted, “The plan of the new residential area
was finalized and approved, with the issuance of technical solution, budget and
investment. This year, due to the construction plan, more than MNT30 billion has
been included in the state budget. Accordingly, the construction of an
engineering network from five water wells in south to the airport is starting.
Also, the construction of the 35 kW power transmission line has started today.
To speed up the project implementation, the government is planning to allocate
more than MNT200 billion in the next year’s state budget in phases.” 

As a representative of the private sector, President of Tavan Bogd
Group Ts. Baatarsaikhan said, “I am confident that enterprises will
support and participate in the development of the new residential area. Our
company plans to build a factory in this area and create 4,000 jobs.” 

It is planned that, in the first turn, 35 thousand people
will be settled in the new settlement area of ​​the Khushigt Valley. By 2040, it
will be the region, where 150,000 people have settled, and business, tourism,
transportation, logistics, production and services have developed along with highly
active administrative, culture, education, health, and economic activities.

At the cabinet meeting dated August 10, 2022, as part of the
decentralization of Ulaanbaatar, a decision was made to move some government
institutions to Khushigt Valley.