PRIME MINISTER REPORTS ON PROGRESS OF GER AREA RE-PLANNING

Ulaanbaatar /MONTSAME/ Prime Minister U.Khurelsukh affirmed the continuation of Housing Mortgage Program in order to intensify conversion of ger areas into apartment towns during his report to Parliament on January 5. The Prime Minister’s report addressed the progress of ger area re-planning and Government policy regarding the issue. The Prime Minister began his report with mentions of existing policy documents and plans covering ger area re-planning such as the 2016-2020 Action Plan of the Cabinet, medium term program ‘New Development’ adopted in 2010, the Capital City General Development Plan -2020 and Development Direction- 2030, adopted in 2013, and the National Programme on Reduction of Air and Environmental Pollution, adopted in 2017. While emphasizing the priority the Cabinet attaches to the National Program, the Prime Minister touched upon ongoing projects and programs aiming to reduce air pollution by increasing apartments. As of today, apartments for about 80 thousand households are under construction in Ulaanbaatar, 30 thousand apartments of which are already commissioned. About 30 percent of these apartments have been sold. Despite of high apartment demand, apartments are not attainable to the population due to loan requirements by banks and low buying capacity, which is why the Cabinet sees it proper to increase the reach of the Housing Mortgage Program, carried out by the Bank of Mongolia and the Ministry of Construction and Urban Development. The Housing Mortgage Loan has an annual interest of 8 percent. After discontinuation of the Mongol Bank’s financing of the Program due to the Extended Fund Facility program, the Housing Mortgage Program still continued in 2017 with the financial sources from the State Budget and a loan repayment by the Mongol Bank. In 2018, the Program will be financed by MNT 120 billion budget from the Government and MNT 180 billion loan repayment from the Mongol Bank. The adoption of a Law on Pension Reserve Fund in 2016 enabled the issuance of a housing mortgage loan with 5 percent interest rate for apartments included in the ger area re-planning zones. To conclude his report, Prime Minister U.Khurelsukh reconfirmed the Cabinet’s goal to increase apartments by means of continuing the Housing Mortgage Program on a wider scope, implementing a ‘Green House’ model project, continuing the 1000-Apartment Programs in provinces and Rental Apartment Program, and opting for tunneling pipeline installation method in the construction of apartments in cities and towns. Kh.Aminaa