The Asian Development Bank (ADB) has signed a US$30 million loan with Tavan Bogd Holdings LLC to finance the construction of Mongolia’s first green-certified residential complex developed by the private sector. The loan will help expand sustainable housing, reduce energy costs and greenhouse gas emissions, and introduce internationally recognised green building standards to the local residential market.

“This project shows how sustainable urban development and private sector investment can work hand in hand,” said ADB country director for Mongolia John Juhyun Jeong. “By supporting this landmark development, ADB is helping establish a new benchmark for energy-efficient housing, while demonstrating that green construction can deliver both environmental and commercial benefits."

The financing will support the Gerlug Green Apartments project, a four-tower residential development in Ulaanbaatar’s Khan-Uul District comprising 252 units. The complex is targeting Excellence in Design for Greater Efficiencies (EDGE) certification, an international green building standard requiring at least 20% savings in energy, water and materials compared with conventional buildings.

According to ADB, the Gerlug Green Apartments project is expected to achieve 34.6% energy savings, 30.6% water savings and 38.1% embodied carbon reduction, substantially exceeding the EDGE standard threshold.

Residential buildings in Mongolia are energy-intensive, relying heavily on coal-fired heating during the winter season. ADB said the project’s green features, including advanced insulation, energy-efficient lighting and smart energy meters, will lower energy costs and contribute to the country’s 23% emissions reduction target by 2030.

The construction phase is anticipated to create around 1,800 jobs, while expanding opportunities for women in technical professions and internships. As Mongolia’s first privately developed green-certified residential complex, it is expected to establish a replicable model for green housing and encourage wider adoption of energy-efficient building measures across the country.

Image: Tavan Bogd Holdings LLC (via ADB)