The Khushigt Valley - New Settlement Zone, which is set to be home to 150,000 people by 2040 and become a hub for business, tourism and culture, is part of an effort by the Mongolian Government to develop ‘satellite cities’ around the country’s capital Ulaanbaatar.
The move presents major opportunities for the country's aggregates and cement suppliers.
At the opening ceremony, Baatarsaikhan Ts., president of the Tavan Bogd Group – one of Mongolia’s largest employers – said that the company plans to build a factory in the area, creating 4,000 jobs. The Mongolian Cabinet has also decided to move some government institutions to the Valley.
The development of the Khushigt Valley is a key part of the Mongolian Government’s New Recovery Policy and Vision - 2050 ambition, which aims to transform Mongolia into a leading regional power by the middle of the century through supporting economic development, improving the education system and promoting gender equality.
The Mongolian Government has already committed MNT30bn in this year’s state budget to the project, with this figure set to rise to over MNT200bn next year. Construction is initially focusing on creating new water wells and a 35kw power line.
Mongolian Prime Minister Oyun-Erdene L. commented on the project: “This is just the start of delivering on our ambition, with the Government committed to supporting development in other areas around our capital, upgrading local infrastructure and creating an environment that will attract investment from all over the world.
“With the Bogdkhan railway running around the new settlement area, the Khushigt Valley not only has the ability to become a thriving economic centre but also an independent transportation and logistics hub that will support Mongolia’s growth for decades to come.”
