On September 29, the Japan International Cooperation Agency (JICA) signed a yen loan agreement (Loan Agreement: L/A) with the Government of Mongolia in Tokyo for the “Genghis Khan International Airport Expansion Project.” The agreement was signed that day by Mendsaikhan Zagdjav, Minister of Finance of Mongolia, and Akihiko Tanaka, President of JICA.
Scenes from the signing ceremony
This project aims to expand the airport—which was constructed with a yen loan and opened in 2021—to further enhance the country’s air connectivity with other nations as the air gateway for this landlocked nation.
Furthermore, since its opening, the airport has served as a symbol of cooperation between Japan and Mongolia—in part because Japanese companies have been involved in its operation—and this project will support its continued development.
The business overview is as follows.
Genghis Khan International Airport Expansion Project
Chinggis Khaan International Airport Expansion Project
・Country Name (Target Region)
Mongolia (Sergelen District, Tuv Province)
・Business Objectives
This project aims to alleviate congestion at Chinggis Khan International Airport, located near the capital city of Ulaanbaatar, and further improve convenience by expanding the airport to meet future growth in air passenger and cargo traffic, thereby contributing to the country’s economic development.
・Business Activities
1) Civil engineering and construction work, equipment maintenance, construction of a new passenger terminal building, taxiways, aprons, parking lots, access road improvements, and expansion of utility infrastructure, etc.
2) Consulting Services
Design, construction supervision, bid support, etc.
3) Construction of the Cargo Terminal Building (CTB) (funded by the Mongolian side) — Design and construction, demolition of the existing CTB, and work related to its relocation
・Loan Amount (Maximum)
158.284 billion yen
・Interest Rates
Main Business: 1.10% Consulting Services: 1.10%
・Redemption Period
40 years (including a 10-year grace period)
・Procurement Terms
Japan Tide
・Implementing Agency
Ministry of Roads and Transportation, Fushigiin Fundi Public Corporation
・ Contributing to the Achievement of the SDGs
Goal 9 (Build the Foundations for Industry and Innovation)
Goal 11 (Sustainable Cities and Communities)
・Schedule for Future Project Implementation (Tentative)
1. Scheduled completion date: December 2033 (the project will be considered complete upon the handover of the facility)
2. Scheduled date for sending invitations to bid for consulting services (detailed design, etc.): October 2026
3. Announcement of the first package for the main construction work through an international competitive bidding process:
Procurement Package Name: Airport Expansion Project Package
Scheduled Date: March 2028
Furthermore, the “Conditions for the Utilization of Japanese Technology (STEP)” (Note 1) apply to this yen loan, and it is anticipated that Japanese companies will utilize their expertise in construction and civil engineering technologies, airport-related equipment, and eco-airport technologies (Note 2), among other areas.
* (Note 1) Abbreviation for “Special Terms for Economic Partnership.” These are the terms and conditions for yen loans established to promote Japan’s “face-to-face aid” through technology transfer to developing countries utilizing Japan’s advanced technology and know-how. The main contract is a Japanese-Tied loan, while subcontracts are General Untied. Furthermore, the main contractor must be either a Japanese company, a subsidiary of a Japanese company located overseas, or a joint venture (JV) between a Japanese company and the borrowing country (with the Japanese company serving as the lead partner). Furthermore, under certain conditions, a joint venture (JV) between a Japanese company and an equity-method affiliate of that Japanese company (with the Japanese company serving as the lead partner) may also serve as the main contractor.
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