Mongolia continues to face persistently high rates of road traffic fatalities and serious injuries, particularly in rural areas where 82% of national road deaths occur despite most crashes taking place in Ulaanbaatar. In 2023 alone, 551 people died and over 3,000 were injured, with economic losses surpassing 50 billion MNT. These outcomes stem from a combination of behavioral risks, poor road maintenance, limited signage, weak emergency response capacity, and structural gaps in funding and governance. Although Mongolia has demonstrated political commitment—most notably through the establishment of the National Road Safety Council chaired by the Prime Minister—road safety remains insufficiently financed, coordinated, and data-driven. The Road Funds created under the Law on Auto Roads (2017) are underutilized, with toll revenues covering barely 11% of required maintenance, and no dedicated budget program exists within the Ministry of Road and Transportation for road safety activities.

This project aims to address these systemic and persistent challenges by strengthening Mongolia’s institutional capacity to plan, finance, and manage road safety through a comprehensive approach that integrates multiple financing sources and embeds result-based budgeting (RBB) into national and sub-national systems. The project will support the development of road safety investment cases that quantify needs, gaps, economic impacts, and financing options—providing evidence for strategic interventions and pilot revenue-generating tools. It will also embed a dedicated road safety section in the Annual National Development Plan (ANDP), with baselines, KPIs, targets, cost estimates, and financing pathways. These reforms will form the foundation of a more accountable, performance-driven road safety ecosystem where decisions and resource allocations are informed by high-quality data and aligned with national priorities.

Through targeted pilots, the project will improve crash data accuracy, develop climate-informed analysis of road infrastructure risks, and implement interventions in high-risk rural areas including black spot improvements and enhanced emergency response training for drivers, traffic police, paramedics, and health providers. These short-term measures will demonstrate the life-saving potential of strategic investments and build momentum for longer-term systemic reform.

The project aligns strongly with the Global Plan for the Decade of Action for Road Safety (2021–2030), the Safe System Approach, Mongolia’s Government Action Plan (2024–2028), and global SDGs related to health, gender equality, resilient infrastructure, climate action, and partnerships (SDG 3, 5, 11, 13, 17). It also complements ongoing initiatives supported by ADB, the World Bank, and national agencies, addressing critical gaps in financing, data, and institutional coordination.

By the end of the project, Mongolia will have a more resilient and sustainable road safety governance system, with strengthened institutional capacity to generate and manage financing, improved planning and accountability mechanisms, and a replicable model of locally driven interventions. The project will set the foundation for a national shift toward sustained investment, reduced fatalities—particularly in rural areas—and a long-term trajectory toward achieving the national and global target of halving road traffic deaths by 2030.