As of the end of 2020, 13 citizens, 57 companies and organizations in 73 locations in six districts of Ulaanbaatar had signed an agreement with the Ulaanbaatar Road Development Agency to provide paid parking services. However, the National Audit Office reported that there were 131 individuals and businesses that misused their land and provided paid parking services without proper permits.

In other words, there are many citizens and businesses in the city who operate paid parking on unauthorized lands and without concluding a contract with the city administration, evading their duty to pay taxes. More specifically, 47 of such violations were detected in Sukhbaatar District, while 32 were detected in Bayanzurkh District.

In 2019, 75 citizens, businesses and organizations signed a contract to operate parking for 1,772 cars in 75 locations and in 2020, 70 citizens and businesses were authorized to provide parking spaces for 1,597 cars in 73 locations.

According to the Ulaanbaatar City Council’s order, the Ulaanbaatar Road Development Agency has the authority to permit paid parking services on public roads and squares in the city.

In the future, it is necessary to conduct a survey of organizations, citizens and business entities that provide unlicensed parking services on public roads and take appropriate measures in accordance with the regulations, the office stressed.

Under a 2011 resolution of the Ulaanbaatar City Council, businesses and organizations contribute 60 percent of their revenue from paid parking services to the Road Fund. Accordingly, 752.2 million MNT was collected in 2019 and 469.1 million MNT in 2020.

Based on the findings of the audit, the Ulaanbaatar Road Development Agency signed a paid parking service agreement with up to 75 citizens and enterprises between 2016 to 2020.

A 2016 study showed that open parking areas increased because authorities and businesses did not conduct a detailed study on road congestion, urban traffic, designated parking lots and vacant areas and failed to make appropriate decisions. In other words, no research has been conducted to estimate the demand for parking spaces in 2019 and 2020 and to improvements were made to parking services.

Paid parking in public areas are required to be built according to the approved designs. About 73 citizens and 19 or 27.1 percent of the enterprises that signed a contract with the Ulaanbaatar Road Development Agency to provide paid parking services had gotten their parking lot designs approved.