The city of Ulaanbaatar plans to transition school lunch preparation and supply to the private sector, dismantling four state-owned enterprises currently involved in the process. This decision aims to address traffic congestion caused by parents transporting children to schools and facilitate the implementation of a “Neighborhood School Project” offering closer school access. The city government will cease direct competition with private businesses in school food services, instead focusing on quality control and standards through the Education Department. Funding for new facilities for the state-owned companies will be halted, with future projects potentially utilizing public-private partnerships. The Property Relations Department will oversee the liquidation of these enterprises and optimize asset management. The shift to private procurement for school and kindergarten food supplies is slated to begin this autumn, while budget allocations of 6.7 billion tugriks for kitchen equipment upgrades between 2025-2026 remain approved, following an expenditure of 1.2 billion tugriks last year and a planned 5.5 billion tugriks this year.