Presented by the MOEF, Republic of Korea 2018/19 KSP Policy Consultation Report Mongolia Development of Smart Aero-city adjacent to the New Ulaanbaatar International Airport (NUBIA) in Mongolia Government Publications Registration Number 11-1051000-000961-01 2018/19 KSP Policy Consultation Report Mongolia Development of Smart Aero-city adjacent to the New Ulaanbaatar International Airport (NUBIA) in Mongolia 2018/19 KSP Policy Consultation Report Project Title Development of Smart Aero-City adjacent to the New Ulaanbaatar International Airport (NUBIA) in Mongolia Prepared for The Government of Mongolia In Cooperation with Ministry of Construction and Urban Development (MCUD) Supported by Ministry of Economy and Finance (MOEF), Republic of Korea Korea Development Institute, KDI Prepared by Dohwa Engineering Co., LTD Young Jin Advisory Group Project Directors Sanghoon Ahn, Executive Director, Center for International Development (CID), KDI Youngsun Koh, Executive Director, ‌Global Knowledge Exchange & Development Center, Former Executive Director, CID, KDI Project Managers Chang Jae Lee, Visiting Senior Fellow, CID, KDI Project Officers Jun Hee Kim, Senior Research Associate, Division of Policy Consultation, CID, KDI Eun Jung Lee, Dohwa Engineeing Joo Hyun Kim, Dohwa Engineering Senior Advisor Seok Dong Kim, Former Chairman of Financial Services Commission Principal Investigator Sung Rae Kang, Dohwa Engineering Authors Chapter 1. Sung Rae Kang, Dohwa Engineering Mun Gyu Lee, Young&Jin Accounting Byeong jin Choi, Young&Jin Accounting Dr. Otgonbaatar, Mongolian Urban Development Research Institute Chapter 2. Kwang Box Park, Dohwa Engineering Ho Kyoung Song, Dohwa Engineering Kwang Young Choi, Dohwa Engineering Chapter 3. Jung Wook Kim, Young&Jin Accounting Ji Yong Jung, Young&Jin Accounting Emile Frémont, M.A.D Urban English Editor Korea Institute of Culture and Arts Translation (KICAT) Government Publications Registration Number 11-1051000-000961-01 ISBN 979-11-5932-474-1 979-11-5932-438-3 (set) Copyright ⓒ 2019 by Ministry of Economy and Finance, Republic of Korea 2018/19 KSP Policy Consultation Report Development of Smart Aero-city adjacent to the New Ulaanbaatar International Airport (NUBIA) in Mongolia Preface Since its launch in 2004, the Knowledge Sharing Program (KSP) has provided a platform for knowledge sharing and mutual learning between Korea and 76 partner countries. It has facilitated the expansion of economic and political cooperation between Korea and the partner countries, contributing to an active policy dialogue for both parties to disseminate their own development experience and gain benefit from the mutual learning. KSP focuses on customized solutions for each partner country’s economic, social, and administrative settings, fostering and strengthening its policymaking capacity and global networks for development cooperation. The 2018/19 KSP with Mongolia II was conducted by the Korea Development Institute (KDI), Dohwa Engineering and Young Jin Advisory Group to establish a policy research institute in the urban development sector of Paraguay. The project began with the request of the Ministry of Construction and Urban Development (MCUD), Mongolia. The Mongolian government is currently planning to build a new city with multiple functions, including logistics, distribution, industry, entertainment, and housing, in Khushig Valley, an area near the now-completed New Ulaanbaatar International Airport. Through the development of NUBIA Aero-City, we intend to promote different industries, trading, and investments in Mongolia by connecting the airport with surrounding cities. Based on Korea’s experience, the KSP project in Mongolia (2018/19 KSP with Mongolia II) has analyzed the development conditions of the new airport in Ulaanbaatar, Mongolia, and proposed a plan to promote the NUBIA Aero-City project. The cooperation between experts of Korea’s urban planning and real estate development and officials of Mongolia’s Ministry of Construction and Urban Development has been well accomplished, and it can be assessed that the search for deeper research and policy alternatives has been faithfully carried out. In particular, local government officials, including the MCUD, the Municipality of Ulaanbaatar (MUB), and the Ulaanbaatar Urban Development Corporation (UBDC), have continued to show their active interests and opinions on the KSP project, which allowed specific policy proposals to be drawn. Through the KSP project, a cooperative relationship with the Mongolian government is expected to expand significantly for the future, which can be seen as an achievement that is consistent with the purpose of the KSP project. Through this KSP project, the implementation, management, and development procedures of the Incheon Free Economic Zone were identified and derived possible implications and timing for Mongolia while the major anchor functions needed for the development of NUBIA Aero-City were presented. Policy suggestions were also made on specific methods for the promotion of the project for reviewing areas where public-private joint investment is possible, predicting the real estate demands, and financing plans at each stage. The analysis of Mongolia’s urban development project and institutional conditions has been written in collaboration with Mongolian experts, and it can be assessed that the process of seeking future tasks presented a practical way to help through continuous discussions with Korean researchers. I extend my profound gratitude to Mr. Kang, Sungrae, the principal investigator, and his research team for their hard work and dedication to the successful completion of the 2018/19 KSP with Mongolia II. We also sincerely appreciate the continuous support and contribution from Mr. Gunbold Baatar, director general of the MCUD, Mongolia. Lastly, we send out special thanks to the Government of Mongolia, including MUB, and all the advisers and consultants for their continued interest and support for the establishment of the policy recommendation for developing NUBIA Aero-city. In return for their dedication to the research, we promise our extended support and cooperation in the future. Chang-Min You Vice President Dohwa Engineering Co., LTD. Contents 2018/19 KSP with Mongolia ······································································································014 Executive Summary ····················································································································020 Chapter 1 Anaylysis on Development Conditions Summary ····································································································································025 1. Introduction ····························································································································027 2. Analysis on Development Conditions ····················································································028 2.1. Physical Conditions of the Project Site ··········································································028 2.2. Socio-Economic Conditions of Mongolia ·······································································033 2.3. Institutional Framework of Urban Development in Mongolia ·····································036 2.4. Urban Development Projects of Mongolia ····································································043 2.5. Comprehensive Analysis ·································································································047 3. Korean Experience of Urban Development: IFEZ ·································································038 3.1. Outline of IFEZ ·················································································································038 3.2. Development Plan ···········································································································051 4. Policy Recommendations ·······································································································057 4.1. Legislative Arrangement to Integrate Development and Management ·····················057 4.2. Dedicated Administrative Body ······················································································058 4.3. Collaborative Institutional Framework ··········································································059 References ··································································································································061 Appendix ·····································································································································062 Chapter 2 Review of The Existing Master Plan Summary ····································································································································073 1. Introduction ····························································································································075 2. Review of The Existing Master Plan ·······················································································077 2.1. Analysis of Geographic Location ····················································································077 2.2. Review of Related Plans ··································································································078 2.3. Review of Master Plan Concept ······················································································081 2.4. Review