The 311km road in the East Asian country will enable resilient, rapid, inclusive and sustainable growth, the bank said in a statement.

Sujata Gupta, the ADB’s director for East Asia transport and communications, said: “Mongolia’s economy slowed down recently with the country’s gross domestic product growth declining from a high of 17.3% in 2011 to 5.1% in 2017.

“Having safe and reliable road networks will help Mongolia foster economic activities through trade and tourism, which will underpin the economic outlook.”

Only about 13.2% of Mongolia’s 48,538km road network is paved, which affects the country’s jobs, trade and connectivity.

The funds and technical assistance, which will also be provided by the bank, will improve the management of roads, including road improvement and maintenance to provide better access to markets and public services, such as schools and hospitals.

“The road improvement project will promote inclusive economic growth through increased trade, as well as boost agriculture, agribusiness, and tourism,” the ADB said.