ULAN BATOR, May 25 (Xinhua) -- The Mongolian capital and the World Bank signed a memorandum of understanding here on Wednesday on jointly strengthening capital investment planning in Ulaanbaatar and financial sustainability of its public transport.
Ulaanbaatar's Vice Mayor in charge of infrastructure P. Bayarkhuu said:"Capital investment planning is a critical part of municipal management. Ulaanbaatar hopes that improved capital investment planning will enable city officials to better identify, and plan investment projects based on long-term needs, budget availability, and development priorities."
The municipality expects that the partnership with the World Bank will help the city reduce expenditures and, through increased public engagement, improve transparency.
Moreover, Ulaanbaatar will carry out a comprehensive diagnostic assessment of the public transport sector and develop a medium-term strategy for financial sustainability, based on analysis of alternative public transport plans, the memorandum said.
The assessment will improve the quality of public transport services, increase cost-efficiency, and reduce subsidies for public transport,which is currently increasing rapidly.
"A more transparent and harmonized process for capital investment planning can help cities improve coordination among implementing agencies so they get the most out of their projects," said James Anderson, World Bank Country Manager for Mongolia.
"Similarly, the city needs to develop a strategy to provide public transport service in a financially sustainable way. Given the current fiscal constraints, both of these challenges are becoming increasingly important," he added.
The partnership will be carried out under a technical assistance program funded by the World Bank's Public Private Infrastructure Advisory Facility (PPIAF).
The World Bank's Global Practice Team for Transport has also been working closely with the city government to lay the groundwork for improvement of the public transport sector.
