The tramway project in Ulaanbaatar, initially conceived to alleviate traffic congestion as part of a larger 24-project urban development plan, has been indefinitely suspended. The first line was planned to run from Sukhbaatar Square to Zunжин, with a Russian company expressing interest in construction. The estimated total cost for both phases of the project reached 2.7 trillion Mongolian togrog. A tender for the second phase, from the National Archives to Sukhbaatar Square, was announced in March 2024 with an EPC (Engineering, Procurement, and Construction) model, but was postponed to May 13th due to requests for extensions from potential bidders. During a recent City Council meeting, it was revealed that the tender process has now been halted. Officials cite the failure to complete the selection process by May 31st, leading to budget reallocation under state economy laws, as the reason for the suspension, raising concerns about wasted funds already allocated to preliminary work and design.