Japan to lend Mongolia ¥150 billion for airport expansion

Japan will provide Mongolia with about ¥150 billion in soft loans to expand Chinggis Khaan International Airport in Ulaanbaatar, government officials said Saturday.

The loans are expected to be agreed on between Prime Minister Sanae Takaichi and her Mongolian counterpart, Nyam-Osor Uchral, at a summit Tuesday, when the two governments are also likely to exchange notes, the officials said.

The Mongolian parliament has already approved the loans, while Takaichi’s Cabinet is preparing to make a decision Tuesday.

After the exchange of notes is signed, the government-backed Japan International Cooperation Agency and the Mongolian government will conclude a loan agreement.

Japan has so far provided ¥65.657 billion in loans to develop the airport, which opened in 2021.

But passenger traffic has far exceeded initial projections. The airport’s parking aprons for large aircraft and the terminal building are too small to handle demand.

The two governments have determined that the airport needs to be expanded.

While it has not been decided when construction work will start, a Mongolian official has high expectations for the expansion.

The expanded airport would attract more visitors, the official said, adding that it would be ideal if the construction begins next year.

Sandwiched between Russia and China, Mongolia relies on the airport as a key hub for people-to-people and economic exchanges with Japan and other countries it regards as “third neighbors.”

Through the expansion, the Japanese government aims to strengthen air connectivity and support Mongolia’s independence and resilience.

On Sept. 3, the two countries effectively agreed on the airport expansion at a meeting between Foreign Minister Toshimitsu Motegi and his Mongolian counterpart, Batmunkh Battsetseg.