PROJECT

Projects

Summary of Investment Information

Project Number

51771

Company Name

Mongolian Railway JSC

Date SPI Disclosed

Apr 2, 2026

Country

Mongolia

Region

East Asia and the Pacific

Projected Board Date

May 15, 2026

Environmental Category

B - Limited

Status

Hold

Last Updated Date

Jun 19, 2026

Department

Regional Industry - INF Asia & Pac

Industry

Infrastructure

Sector

Rail Transportation

Project Description

Mongolian Railway JSC (MTZ or the Company) is a wholly state-owned rail company established in 2008 to develop, own, and operate state-funded rail assets in Mongolia. It is one of the two public rail carriers in the country and a pivotal player in the national railway sector. MTZ operates several freight rail lines with a total length of over 650 km.

IFC is considering financing the construction of the Bagakhangai-Khushig Valley branch railway (the Project), which is a greenfield 87.7 km single-track railway branching off from the Bagakhangai station on the Trans-Mongolia Railway and terminating at Khushig Valley.

The Project is designed to divert rail freight from central Ulaanbaatar, with subsequent phases supporting relocation of city-based logistics to a new multimodal hub at Khushig Valley and completion of a full rail bypass. The Project is expected to reduce urban congestion, improve urban air quality, and enhance logistics efficiency and competitiveness, thus improving the overall liveability of the capital city.

Associated Advisory Engagement

IFC aims to support knowledge, innovation, and capacity building for MTZ by providing upstream/advisory services on corporate governance enhancement, market assessments on logistics, legal and regulatory assessments, and E&S support.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation