VZCZCXRO9602 
RR RUEHLMC RUEHVK 
DE RUEHUM #0262/01 1550736 
ZNR UUUUU ZZH 
R 030736Z JUN 08 
FM AMEMBASSY ULAANBAATAR 
TO RUEHC/SECSTATE WASHDC 2221 
INFO RUEHBJ/AMEMBASSY BEIJING 6193 
RUEHMO/AMEMBASSY MOSCOW 2282 
RUEHRL/AMEMBASSY BERLIN 0119 
RUEHFR/AMEMBASSY PARIS 0078 
RUEHUL/AMEMBASSY SEOUL 3391 
RUEHKO/AMEMBASSY TOKYO 3065 
RUEHML/AMEMBASSY MANILA 1775 
RUEHLO/AMEMBASSY LONDON 0314 
RUEHBK/AMEMBASSY BANGKOK 1829 
RUEHSH/AMCONSUL SHENYANG 0533 
RUEHVK/AMCONSUL VLADIVOSTOK 0299 
RUEATRS/DEPT OF TREASURY WASHINGTON DC 
RHMFIUU/DEPT OF ENERGY WASHINGTON DC 
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC 
RHMFIUU/HQ EPA WASHINGTON DC 0057 
RUEKJCS/SECDEF WASHINGTON DC 
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000262 
 
SIPDIS 
 
STATE FOR EAP/CM, EAP/EX, MED, and OES 
STATE PASS USTR FOR WINELAND 
 
E.O. 12958: N/A 
TAGS: SENV PREL EAID PGOV MG
SUBJECT: A BAD AIR DAY: ULAANBAATAR STRUGGLES TO BREATHE AS AIR 
POLLUTION WORSENS 
 
REF: 07 ULAANBAATAR 704 
 
¶1. SUMMARY: Residents of Ulaanbaatar suffer from air pollution that 
is among the world's worst - comparable in airborne particulate 
matter to Beijing or Cairo. Much of the problem stems from 
garbage-burning and dust from coal-burning stoves at the city's 
rapidly growing ger districts. Heating and electrical power plants 
as well as motor vehicles also foul the air. On April 10, the 
Government of Mongolia (GOM) and donor organizations met to discuss 
progress in combating Ulaanbaatar's worsening pollution crisis. The 
problem is not merely environmental; in 2006, the social and 
financial costs of pollution totaled over US$171.3 million -- 6% of 
GDP). Donor and GOM programs have focused on getting ger (yurt in 
Russian) residents to use low-pollutant fuels; encouraging apartment 
and ger dwellers to embrace more efficient insulation methods; and 
replacing antiquated heaters with more efficient heating appliances. 
Other programs have focused on paving more roads and maintaining 
them better; increasing green spaces with the city; and encouraging 
better private-sector energy performance. It is too early to say 
whether such programs will prove successful in the long run. END 
SUMMARY. 
 
¶2. The World Bank and Mongolia's Ministry of Fuel and Energy held an 
Air Pollution Management workshop in Ulaanbaatar, April 10, to 
coordinate central and UB City Government initiatives and policies 
on air quality improvement. The participants also discussed options 
and issues to ensure sustainable-policy outcomes, shared views and 
experiences, and heard an update on donor-supported programs. 
 
UB'S AIR AS POLLUTED AS BEIJING'S AND CAIRO'S 
--------------------------------------------- 
 
¶3. On average, the fine particulate matter (PM10) concentration in 
Ulaanbaatar's air is 150, making the Mongolian capital one of the 
world's most polluted cities. UB's PM10 is equivalent to levels 
found in Beijing and Cairo, three times higher than Mumbai, and five 
times higher than New York or Washington DC. Ulaanbaatar's PM10 is 
estimated to be between two times higher in summer and 12 times 
higher in winter than the minimum acceptable standards. (Note: In 
winter, lingering smoke generated by ger districts shrouds parts of 
UB, including the neighborhood surrounding the Embassy. Visibility 
is often reduced to a 20-50 meters End Note.) The primary sources 
of air pollution in UB are the mushrooming ger districts, where dust 
from ubiquitous coal-burning stoves, garbage burning and other 
activities make up about 50% of the city's pollution. Power plants, 
motor vehicles and other sources account for the rest. Today, UB is 
home to ten times as many cars as in 1980; few of these cars have 
emission control systems. Making air-quality worse are dust storms, 
a booming construction market, a dearth of green areas and a 
shortage of paved roads. 
 
RESPIRATORY DISTRESS RIFE 
------------------------- 
 
¶4. According to the World Bank, the financial and social costs of 
air pollution are very high, reportedly totaling over US$171.3 
million (6% of GDP) in 2006. Social costs include mortality (US$57 
million); chronic bronchitis (US$58 million); respiratory hospital 
admissions (US$354,900); asthma attacks (US$575,065); emergency room 
visits (US$ 207,623); restricted activity days (US$14, 932,750); 
lower respiratory illness in children (US$156,156); and other 
respiratory ailments (US$ 39 million). The Ministry of Health 
reports that respiratory diseases have ranked first amongdiseases 
over the past 4-5 years, indicating the effect of air pollution on 
people's health. 
 
DIVERSE VIEWS ON REMEDIES 
---------------------------- 
 
¶5. Technical experts, politicians and government officials, among 
others, often have differing views on sustainable approaches to the 
air pollution problem. The World Bank has funded studies and 
research that suggest the best options include better housing; 
switching to low-pollutant fuels; more efficient insulation for 
apartments and gers; more efficient heating appliances; more and 
better maintained roads; increased green areas in the city; and 
better private-sector performance (solid waste, district heating). 
 
GREATER DONOR INTEREST 
---------------------- 
 
¶6. Donor interest has increased since 2007 (see reftel), and new 
programs to reduce air pollution are under development. The World 
Bank has mobilized about $1 million in technical assistance (TA) to 
address air pollution; about $350,000 was spent this year, 43 
percent of which was executed by the GOM. There are also several 
other donor projects already underway or in development. The Asian 
Development Bank is involved in a US$2 million Ger Insulation Fund. 
The German Government is funding the thermo-insulation of pre-cast 
Soviet-style apartment blocks; the installation of energy meters; 
the development of solar-heating systems for schools and hospitals; 
and work to make power plants more energy-efficient. JICA intends 
to build highway bridges over some roads to reduce 
vehicle-exhaust-based air pollution. The World Health Organization 
(WHO) is studying the health effects of pollution within households. 
 
 
¶7. Three GOM resolutions allocate more than 50 billion Tugriks 
(roughly $43 million)to the state budget between 2007 and 2010 for 
improving the legal environment to combat air pollution, expanding 
infrastructure, building a new thermal power plant and other 
measures. (The latter includes introducing electric heaters, 
building new energy-efficient apartment complexes to house 
ger-district families, and developing semi-coke briquette 
production. Others include improving fuel quality, paving roads 
that link the central city and ger districts, building capacity of 
air quality offices, encouraging the insulation of gers, and 
implementing these projects.) (Note: The ruling Mongolian People's 
Revolutionary Party sacked the previous UB mayor for ostensibly for 
failing to make progress on the city's pollution problem. End 
Note.) 
 
ARE SMOKELESS FUELS THE ANSWER? 
------------------------------- 
 
¶8. The GOM is promoting the production and supply of environmentally 
friendly smokeless fuel, such as semi-coke briquette and gas, to 
counter ground-level air pollution emitted from household stoves and 
heat-only boilers. Government Resolution #14 intensifies 
experiments to produce semi-coke briquettes and to establish a 
semi-coke briquette plant built at the state-owned combined heating 
and power plant (CHP) Number II. The resolution also encourages 
private-sector participation in developing a briquette industry 
through tax breaks. Plans include establishing a sales network for 
delivering semi-coke briquettes to consumers, and educating 
consumers on the benefits of using semi-coke briquettes. The price 
for one ton of semi-coke briquettes is expected to reach 
30,000-40,000 Tugriks ($25-$34), compared to one ton of raw coal 
which costs between 40,000 and 80,000 Tugriks depending on the 
market. 
 
¶9. A recent World Bank survey indicated that almost 60% of 
respondents would buy briquettes only if the costs are similar to 
raw coal; over 40% said they would buy briquettes in the future 
because they are less polluting; and 95% indicated that they think 
the ultimate solution to fighting pollution from ger districts is to 
move ger residents into apartment housing. 
 
Minton