Managing Urban Expansion in Mongolia

Managing Urban Expansion in Mongolia

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The sustainable development of "ger" areas in Ulaanbaatar, the capital of Mongolia, is one of the critical development issues facing the country. The ger areas host 60% of the population of Ulaanbaatar, and they have expanded 35 times larger than the original center of the city. Provision of basic services (e.g. heating and water supply) is very limited or non-existent in ger areas. The lack of basic public services resulted in air and water pollution as well as serious health risks to residents.
The government tries to control expansion of the city, particularly ger areas, but its policy practices have been inconsistent. These inconsistent actions are, in part, a result of limited awareness and understanding by the general public, as well as by the policy makers, of the public costs of their actions. There is high susceptibility to ad-hoc behaviors that place premiums on short-term private gains over long-term value-creation in public goods. Many supporting mechanisms, including land valuation and taxation, have not yet been developed to create incentives for long-term value creation.
Mongolia: Enhancing Policies and Practices for Ger Area Development in Ulaanbaatar aims at helping policy makers and citizens of Ulaanbaatar to improve their understanding of the consequences of their choices of policies and practices. Specifically, it intends to provide clear cost and benefit implications of three different development paths (central, mid-tier, and fringe gers) for seven sectors (land and housing, water supply, roads and public transport, heating, electricity, solid waste, and social services). The report is a best practice in urban planning exercise which provides useful information that can apply for other big cities.

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Published 03 May 2010
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Managing Urban
Expansion in Mongolia
Takuya KamataBest Practices
James Reichert
in Scenario-Based Tumentsogt Tsevegmid
Yoonhee KimUrban Planning
Brett Sedgewick
THE WORLD BANKMANAGING URBAN
EXPANSION IN MONGOLIAManaging Urban
Expansion in Mongolia
Best Practices in Scenario-Based
Urban Planning
Takuya Kamata
James Reichert
Tumentsogt Tsevegmid
Yoonhee Kim
Brett Sedgewick
THE WORLD BANK
Washington, D.C.© 2010 The International Bank for Reconstruction and Development / The World Bank
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ISBN: 978-0-8213-8314-8
eISBN: 978-0-8213-8315-5
DOI: 10.1596/978-0-8213-8314-8
Library of Congress Cataloging-in-Publication Data
Managing urban expansion in Mongolia : best practices in scenario-based urban planning / Takuya
Kamata ... [et al.].
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-8314-8 -- ISBN 978-0-8213-8315-5 (electronic)
1. City planning--Mongolia--Ulaanbaatar. I. Kamata, Takuya. II. World Bank.
HT169.M652M455 2010
307.1'216095173--dc22
2010013121
Cover photos: Takuya Kamata/World Bank (center); Michael Foley, former World Bank staff/consul-
tant and photographer
Cover design: The Word Express, Inc.Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viii
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Currency, Abbreviations, and Defi nitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Policy Directions and Scenarios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xx
Implications for Planning and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxi
CHAPTER 1. Introduction: Background, Scope, and Methods . . . . . . . . . . . . . . . . . . . . . 1
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Scope and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
CHAPTER 2. Development Context: Governmental, Socioeconomic,
and Local Profi le . . . .5
Government and Administrative Structure in Ger Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Socioeconomic Profi le of Ger Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Current Status and Development Assumptions of Three Ger Areas . . . . . . . . . . . . . . . . . . . . .9
CHAPTER 3. Land and Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Legal, Institutional, and Policy Aspects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
General Household Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Land and Housing in Ger Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Implications of Ger Area Housing Development Options . . . . . . . . . . . . . . . . . . . . . . . . . . .22
CHAPTER 4. Water Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Status of Current Water Supply in Ger Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
City Center Ger (Naran), 11th Khoroo, Bayangol District . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Midtier Ger (Bayankhoshuu), 8th Khoroo, Songino Khairkhan District . . . . . . . . . . . . . . . . . .29
Fringe Ger (Sharhad), 9th Khoroo, Bayanzürkh District . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
CHAPTER 5. Municipal Roads and Public Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Current Status of Roads in City Center, Midtier, and Fringe Gers . . . . . . . . . . . . . . . . . . . . 33
Current Status of Public Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
Options and Challenges for Service Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36VI MANAGING URBAN EXPANSION IN MONGOLIA: BEST PRACTICES IN SCENARIO-BASED URBAN PLANNING
CHAPTER 6. Solid Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
Overview of Current Solid Waste Management in Ger Areas . . . . . . . . . . . . . . . . . . . . . . . . .45
Options for Service Improvements for Solid Waste Management . . . . . . . . . . . . . . . . . . . . . .48
Financial and Economic Implications for Improved Solid Waste Service . . . . . . . . . . . . . . . . .53
CHAPTER 7. Heating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Current Status of Heating in Ger Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Options for Service Improvements and Financial Implications . . . . . . . . . . . . . . . . . . . . . . . . .62
CHAPTER 8. Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
Overview of Current Status of Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
Current Status of Electricity in Ger Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
Options for Service Improvements in Ger Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
Concluding Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
CHAPTER 9. Education and Health Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Current Status of Education and Health Service Provision in Ger Areas . . . . . . . . . . . . . . . . .75
Options for Service Improvements and Financial Implications . . . . . . . . . . . . . . . . . . . . . . . .79
CHAPTER 10. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
Implications for Planning and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
ENDNOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
APPENDIXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
A. Technical Note on the Analysis of the 2008 Household Socioeconomic Survey . . . . . . .91
B. City Center Ger Planning Illustrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92
C. Ulaanbaatar District Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94
D. Distribution and Distances of Water Kiosks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95
E. Plan of Water Supply Pilot Project in Dambadarjaa . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101Foreword
laanbaatar (UB) city strives to become a well-developed capital with a vibrant econ-
omy, a set of advanced land policies, an approach to good management, a plan for
improved housing conditions, a healthy and safe environment, a developed social Ulife, a modern legal framework, a responsive and effi cient public administration that
enables broad participation of the community and the private sector in civil service, and an attrac-
tive tourist destination in Asia.
More than 60 percent of UB’s population still live in peri-urban informal settlements, known as
ger areas, which lack modern infrastructure services such as piped-in water, sanitation, paved roads,
public transportation, and so on. Its social infrastructure (health clinics, schools, and housing and
recreation facilities) also needs to be improved. The unplanned growth of ger areas and the unprec-
edented pace of urbanization bring many challenges, including unemployment, traffi c congestion,
air pollution, and negative environmental impacts.
The recently updated UB City Master Plan suggested the “Compact City” concept, which envi-
sions a densely populated downtown area with a well-developed public transportation system and
improved accessibility to the ger areas. The UB City Master Plan also revealed a need for enormous
fi nancing to realize the envisioned plans and ideas.
I have the pleasure of endorsing the fi ndings of the report titled “Managing Urban Expansion in
Mongolia: Best Practices in Scenario-Based Urban Planning,” which has been developed by the
World Bank on the basis of extensive discussions with the UB Governor’s Offi ce and with agen-
cies and stakeholders. I truly believe that the options for ger area development in UB outlined in
this report will serve as a guiding force for our work with the ger area residents, local communities,
external partners, donors, and other stakeholders.
BAT Ch.
General Manager
Governor’s Offi ce
Capital City of UlaanbaatarPreface
he rapid expansion of Ulaanbaatar, the capital city of Mongolia, is one of the coun-
try’s most critical development issues. Its population has increased by some 70 percent
in the past 20 years and now accounts for 40 percent of the total population of Mon-Tgolia. The total administrative area of the city is now 30 times larger than the origi-
nal built-up areas. Most of the expansion took place in the ger areas: low-income areas where basic
infrastructure services are poor or nonexistent.
The government has developed policy directions—in its recent national and local development
strategies and master plans—to better manage expansion of the ger areas. However, its practices
have been mixed. The ger areas continue to expand today, improvements in urban services are slow,
and the local government’s capacity to respond to these challenges is still limited.
This report provides an analytical framework to assess the viability of various development sce-
narios of the city. It offers cost and benefi t analyses of the choices and tradeoffs relating to housing
and urban services. Policy makers and citizens of the city will be able to see the implications of the
policy choices they make today. The report will serve as a vital instrument for broad public policy
consultations, which are an integral part of the urban development policy dialogue between Mon-
golia and the World Bank.
Arshad Sayed Ede Ijjasz
Country Manager for Mongolia Sector Manager
East Asia and Pacifi c Region Sustainable Development Unit
The World Bank The World Bank