The package includes two loans, one concessional for $9.05m and one from the bank’s ordinary capital resources of $9.45m, and a technical assistance grant of $400,000.
Both loans will have a 25-year term with a grace period of five years.
The project includes the construction of a new wastewater treatment plant in Darkhan with a base operating capacity of 16,000 cubic meters per day.
About 1,800m of dilapidated sewer pipes will be replaced apart from the refurbishment of two existing pumping stations.
The technical assistance grant will be used to reinforce the institutional, managerial, and operational capacity of Darkhan’s water and wastewater services.
ADB said over 45,000 residents of the urban population, currently connected to the sewer system, will directly benefit from the improved facilities.
An additional 17, 000 more residents are anticipated to be connected to the system by 2020 after the completion of the new facilities and upgrades.
The project, which is slated to be completed by the end of 2018, is expected to improve the environment of the Kharaa River and public health via enhanced water quality and reduced risks from waterborne diseases.
ADB urban development specialist Stefan Rau said: "The project will help reduce poverty and contribute to a more balanced national urban system and stronger urban-rural relationships by supporting urban and industrial development of a second tier city in Mongolia."
Image: The ADB has approved loan assistance of $18.5m to improve the wastewater infrastructure and services in Darkhan, Mongolia. Photo: Courtesy of Toa55/FreeDigitalPhotos.net.
