AKIPRESS.COM - The Future of Mongolia's Housing 2024 forum took place in Ulaanbaatar on October 28.

The forum was jointly organized by the Ministry of Urban Planning, Construction and Housing (MUPCH), the World Bank, and the Ministry of Family, Labor, and Social Protection.

The participants discussed multi-faceted housing solutions suitable for Mongolia, the replanning of Ger districts, the plan and design of green and disaster-resistant and affordable housing, and the sustainable, accessible and effective housing financing.

Mortgage loan sources will be increased to 1.2 trillion tugriks next year, Minister of Urban Planning, Construction, and Housing Batsuuri Jamba said at the forum. The mortgage loan sources will be added gradually and 60,000 households will be provided with loans, of which more than 50% is planned to be granted to households in rural areas. Apartments for 150,000 households are anticipated to be commissioned next four years, according to the Minister.

"We intend to create a legal environment, that enables households to receive soft loans up to 30 million tugriks, if they make their houses insulated or fully solve the infrastructure. Jointly with the Mongolian Green Finance Corporation, we plan to raise funds for it from international financial sources," noted Minister Batsuuri.

The forum discussion focused on challenges to address housing, possible solutions, and international best practices.

"Everyone knows that corruption related to land is the biggest factor that increases the price of construction. It takes 3-5 months to get permission to start construction and fire permission. First of all, it is necessary to sort out the basic problems and carry out reforms," President of the Mongolian National Construction Association  Bayarsaikhan emphasized.

"Due to the weather conditions in our country, the construction period is short. Construction permitting takes time. Therefore, we are taking measures, including digitalizing construction permit issuance and promoting insurance-based businesses. In countries, insurance companies play a crucial oversight role. We are developing an integrated electronic system that will reduce human intervention in granting permits related to the construction process," Head of the Housing Department of the Ministry of Urban Planning, Construction and Housing E. Batbold noted.

A package of laws related to the construction industry, which includes draft laws on construction, urban development, and national housing is in the process of development and the draft laws are expected to be approved during the autumn session of the Parliament. The draft reflects that around 500-600 billion tugriks would be allocated annually as additional mortgage sources through the National Wealth Fund. About 600 billion tugriks is annually generated from mortgage loan repayments.