Japanese government to provide 150 billion yen loan for expansion of Mongolia's Genghis Khan International Airport

The Japanese government has decided to provide a 150 billion yen loan for the expansion of Genghis Khan International Airport in Mongolia's capital Ulaanbaatar. A formal agreement is expected to be reached on the 29th during a summit meeting between Prime Minister Sanae Takaichi and Prime Minister Otilal of the country, and the two governments will sign an exchange of notes. This was announced by multiple government officials on the 26th.

On the Mongolian side, it has already been approved by the parliament, and the Japanese government is also proceeding with procedures for a cabinet decision on the 29th. After signing the exchange of notes, the Japan International Cooperation Agency (JICA) and the Mongolian government will conclude a loan agreement.

Japan has provided a total of 65,657 million yen in ODA loans to develop the airport, and it will begin operation in 2021. However, the number of passengers greatly exceeded the initial demand forecast, and the parking lot and terminal building for large aircraft were becoming too small. Both governments judged that maintenance was necessary.

The construction start date will be finalized in the future, but a Mongolian official expressed hope, saying, ``The expansion will attract more people.It would be ideal if we can start construction next year.''

For Mongolia, which is sandwiched between Russia and China, the airport will be an important base for supporting human and economic exchanges with Japan and other "third neighboring countries." Through expansion, the Japanese government hopes to strengthen ``air connectivity'' and support Mongolia's independence and resilience.