Narrative description of Project:
While the Zamyn-Uud free zone was established around 18 years ago, it has not become fully operational despite its strategic location and investment incentives. There is also a need for clear regulations for the operations and maintenance of the zone in order to instill business confidence in long-term investments. The Zamyn-Uud Free Zone
Governor’s Office (ZUFZGO) faces institutional and staff capacity constraints and there is a need for better coordination among border agencies to improve trade transactions.
In June 2020, the Asian Development Bank (ADB) approved the L3936-MON: Developing the Economic Cooperation Zone Project (51410-001) for Mongolia. The Government of Mongolia (GOM) and Asian Development Bank (ADB) signed the loan agreement on 2 July 2020 to implement the project. The Ministry of Economy and Development as Executing Agency (the Client) and the Ministry of Construction and Urban Development (MCUD) and Zamyn-Uud Free Zone Governor’s Office as implementing agencies are responsible for the implementation of the ADB-financed project.
The project will serve as a catalyst for diversifying Mongolia’s economy, integrating it into regional and global value chains, and increasing employment opportunities for the country’s people. The project will generate economic and employment activities in Zamyn-Uud through (i) construction and operation of infrastructure and facilities in the free zone, (ii) promotion of sustainable operations and management of the free zone, and (iii) establishment of a port of entry system within the free zone.
