On July 7, 2025, Deputy Chairwoman of the State Great Hural (Parliament) Kh. Bulgantuya received the draft resolution of the State Great Hural (Parliament) titled “On Granting Authorization for the Government to Provide Debt Guarantees,” which was submitted by Member of Parliament and Minister of Finance B. Javkhlan and Governor of the Capital City and Mayor of Ulaanbaatar Kh. Nyambaatar.

The draft resolution consists of two provisions. The first provision proposes granting approval for the issuance of a government debt guarantee to the “Capital City Investment Agency,” a Local Government-Owned Enterprise (LGOE), in the 2025 fiscal year, covering up to 85 percent of the principal and interest payments on a loan totaling USD 260.3 million. This is to secure funding for the implementation of the “First Ring Road” project as part of the broader objective to reduce traffic congestion in Ulaanbaatar. The second provision regulates the effective date of the resolution.

Traffic congestion in Ulaanbaatar has significantly worsened, with the number of registered vehicles in the capital increasing by 80 percent over the past decade. On a daily basis, approximately 580,000 to 680,000 vehicles are involved in road traffic, which is nearly double the existing road network's capacity.

In response, officials emphasize that developing a new ring road network to redirect traffic flow around the city center is a key solution to reducing congestion.

Currently, there is no fully integrated ring expressway in Ulaanbaatar, and the main roads intersect in the city center, which contributes to traffic bottlenecks. The construction of a new ring expressway is expected to facilitate direct vehicle movement through the outskirts of the city, thereby significantly easing traffic load in central districts. Research indicates that expanding the road network and introducing new roads could reduce traffic congestion on major streets by an average of 20 percent.

The new ring road is not only intended to regulate traffic within the city but also holds strategic importance for the development of the surrounding metropolitan area and the expansion of the road network. This road will connect the main national and local highways at the outskirts of Ulaanbaatar, thereby reducing through-traffic that currently passes through the city and alleviating traffic congestion caused by local transport moving through city streets.

Specifically, in the planning of the First Ring Road route, connections are included to the road leading northwest toward Darkhan-Uul Province, to the southeast roads toward Nalaikh and Choir, and to the expressway leading south to the new airport in the Khushigiin Khund, the State Great Hural (Parliament), as reported by the Press and Media Department of the State Great Hural.