Mongolia to take ¥158.3 billion Japanese loan to expand Chinggis Khaan Airport
The project will add a new passenger terminal, taxiways, aircraft parking and engineering infrastructure, with completion scheduled for December 2033.
Japan to provide ¥158.3 billion loan for Chinggis Khaan Airport expansion
ULAANBAATAR / TOKYO — Mongolia will receive a concessional loan of up to ¥158.284 billion from Japan to expand Chinggis Khaan International Airport, the capital’s main gateway for international air travel. The loan agreement was signed in Tokyo on September 29, 2026, by Mongolian Finance Minister M. Zegdejav and Akihiko Tanaka, president of the Japan International Cooperation Agency (JICA).
The expansion will include construction of a new passenger terminal, additional taxiways and aircraft parking stands, as well as expanded car parking, access roads and engineering infrastructure. The project is scheduled for completion in December 2033. Mongolia will finance the construction of the new cargo terminal itself.
Terms of the Japanese concessional loan
The loan will have a maximum value of ¥158.284 billion, an annual interest rate of 1.1 percent and a repayment period of 40 years, including a 10-year grace period on principal repayments.
Procurement will be tied to Japan, meaning the project will use Japanese tied-procurement arrangements. It will also be implemented under Japan’s STEP (Special Terms for Economic Partnership) scheme, with plans to use Japanese construction and engineering technologies, airport equipment and “Eco-Airport” technologies.
Eco-Airport technologies can incorporate environmental measures into airport infrastructure, including reductions in energy consumption, carbon emissions, water use and waste.
Facilities to be added under the expansion
The central component of the expansion is a new passenger terminal building. The project will also include:
- construction of taxiways;
- expansion of aircraft parking stands;
- additional car parking;
- improvements to access roads to the airport;
- expansion of engineering and public utility infrastructure;
- construction of a new cargo terminal
The design and construction of the new cargo terminal will be financed by Mongolia, while the existing cargo terminal will be demolished and related relocation work carried out.
Existing airport capacity under pressure from rising demand
Chinggis Khaan International Airport opened in July 2021 and was initially built to handle up to 3 million passengers a year. The airport’s current official information lists passenger-handling capacity at 2.3 million.
According to Japan’s Ministry of Foreign Affairs, passenger and cargo volumes have been increasing since the airport opened, making it increasingly difficult for the existing facilities to meet future demand. The expansion is therefore intended both to accommodate rising passenger and cargo traffic and to ease pressure on the airport.
An earlier JICA study estimated that, if tourism and travel demand in Mongolia continue to grow, the number of airport passengers could rise from 1.75 million in 2023 to 5.12 million in 2039. That projection is one of the bases for the project’s long-term demand outlook.
Project implementation schedule
The call for bids for consulting services, including detailed design work, is scheduled to be issued in October 2026.
The first package of international competitive tenders for the main construction works is planned for March 2028.
The expansion is expected to be considered complete in December 2033, once the new facilities enter service.
Under the current schedule, the design and consulting phase will begin in 2026, followed by the main construction works from 2028.
Continuation of Mongolia-Japan aviation cooperation
The expansion of Chinggis Khaan International Airport represents the next stage of cooperation between Mongolia and Japan in the aviation sector.
The existing airport was also built with Japanese concessional financing and opened in 2021. Japan’s Foreign Ministry says four Japanese companies and a joint venture with the Mongolian Government are involved in airport operations, making the facility a symbol of cooperation between the two countries.
The airport expansion was also discussed during a high-level Mongolia-Japan meeting on September 29, 2026. A statement issued after the meeting between Japanese Prime Minister Sanae Takaichi and Mongolian Prime Minister N. Uchral said the two sides highlighted the importance of improving air connectivity between Mongolia and Japan.
Key international connectivity infrastructure for landlocked Mongolia
As a landlocked country, Mongolia relies heavily on air transport for international trade, tourism and business travel. JICA describes the project as one that will improve Mongolia’s air links with other countries and contribute to future economic development.
The expansion is not limited to adding a passenger terminal. It is designed to increase capacity across the airport system, including cargo handling, road connections, aircraft parking and engineering infrastructure.
Mongolia’s aviation sector has expanded its international routes in recent years. According to information from Chinggis Khaan Airport, developments in 2026 included Air China’s first scheduled international flight on the Beijing–Ulaanbaatar route using a C919 aircraft. In September, Mongolia’s airport and seven airports in Japan’s Hokkaido also signed a memorandum of cooperation.
Another major project in Japan-Mongolia economic cooperation
The airport expansion continues Japan’s long-term infrastructure cooperation with Mongolia. While the airport that opened in 2021 was built with Japanese concessional financing, the new expansion will likewise be financed through an official development assistance loan.
According to JICA, the project is aligned with United Nations Sustainable Development Goals 9 and 11, covering industry, innovation and infrastructure and sustainable cities and communities.
Once fully implemented in 2033, the project is expected to increase capacity at Mongolia’s main international air gateway and enable it to handle future growth in passenger and cargo traffic. JICA’s official announcement of September 30 did not specify the exact number of additional passengers the expansion will accommodate. The demand estimate of 5.12 million passengers for 2039 from earlier studies should therefore not be confused with the final capacity of the new project.
Published by Medicaldaily.com