The ADB implemented an investment program in Ulaanbaatar, Mongolia that aims to promote an inclusive peri-urban development in the ger or lower income areas. Combining spatial and sector approaches, it will introduce sustainable urban services and support the socioeconomic development of urban sub-centers located in ger areas. The proposed program will: (i) support urban governance, livelihood and socioeconomic activities through land use planning, and improved access to financial services; (ii) extend and upgrade appropriate and affordable water supply, wastewater collection, and district heating infrastructures; and (iii) improve the operation and maintenance capacities of service providers, and enable sound institutional and regulatory settings for service delivery. Castalia was hired to advise on the water, sanitation and district heating utilities, by conducting an in-depth review of the current performance, and suggesting reforms that would improve and upgrade the current services.