Construction set to start on first highway of Mongolia

The Chinggisland Development Group (CDG) has announced that its bid has been selected for the construction of the first ever highway in Mongolia and construction work will begin in May.

The highway will be 1,000 kilometers in length and the route will be: Altanbulag-Ulaanbaatar-Zamiin Uud. It will be a two-lane highway, with one lane for each direction. The highway will be a European standard Class One road with concrete pavement, and paving will be 70 centimeters thick. The highway will link Asia and Europe and form a goods transport route.

The CDG will begin construction work at several places along the highway’s route at the same time. They plan to construct the highway very quickly, in less than 2.5 years. According to a plan submitted to the Council of Minister of Construction and Urban Planning last week, CDG plans to launch construction in May this year and to complete the road by October 2015.

CDG, which comprises domestic companies such as Magnai Trade, Just, Nasnii Zam, Tsast Impex and Moninjbar, was selected in a bidding process that was initiated before the new government was formed.

The total budget for the construction of the highway is 3.5 billion USD (3.5 million USD per kilometer.) International bonds will fund 70 percent of the road, while the remaining 30 percent will be funded by the CDG. The CDG will own the highway for 25 years after completion of construction and will shift ownership to the government in 2040 in accordance with a concession contract signed with the government. The upcoming government meeting will discuss this matter in detail.

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