Green Public-Private Partnerships for Public Infrastructure in Mongolia

At a Glance

Publication Date January 2016
Format pdf
Country Mongolia
Thematic Areas Green Cities, Sustainable Energy, Cross Cutting

GGGI recently published a report titled, Green Public-Private Partnerships for Public Infrastructure in Mongolia: PPP Model and Technical Guidelines for Green Education Buildings’. This report recommends Public-Private Partnerships (PPP) models and technical guidelines for green and energy efficient public education buildings tailored for Mongolia.

The PPP models provide detailed illustrations and comparable global practices for the contractual modalities through which the Government of Mongolia may effectively engage the private sector in the provision of public education infrastructure and services. The technical guidelines provide initial guidance to the government and various public and private stakeholders in the design and construction of green educational facilities. In the report, validation of various green design options against the baseline model was conducted through simulations in order to assess impacts of green design and technologies recommended in the guidelines. Compared to the baseline model, green options for new education buildings is expected to result in an GHG reduction of 47-67%, O&M savings (including energy costs) of 34-78%, whereas upfront construction costs increase by 13-65%. The recommended green option presents that its incremental costs can be recovered from lower operating costs within 22 years. In conclusion, the report recommends various policy measures in the legal/institutional, operational, and financial aspects in order to better facilitate the use of PPP schemes in the construction of green education buildings.

Increased investment in green infrastructure is an area where government efforts are essential for the transition to the green development model under the National Green Development Policy adopted in 2014 in Mongolia. Mongolia seeks to expand its use of PPP to improve the delivery of public infrastructure services, however, challenges in implementation remain. Since 2015, GGGI has collaborated with the Government of Mongolia in developing and implementing PPP models and technical guidelines for greener, pro-poor PPP applications. This report is the first effort to address policy and investment challenges through close collaboration between the Government of Mongolia and GGGI.

pic 2Building on the work on green infrastructure PPP models, GGGI’s support will focus on helping the Government access low-cost finance for green public buildings and infrastructure projects by designing a financing structure that is most beneficial for Mongolia and enhancing public and private capital flows into the program, in partnership with development partners such as the Asian Development Bank. GGGI is currently working with the Ulaanbaatar City Municipality for designing and preparing pilot PPP projects starting from public education buildings.