The Asian Development Bank (ADB) has signed a grant agreement worth 3 million U.S. dollars with the Mongolian government to improve food waste recycling here in local communities, the bank said on Wednesday.

"Discarded food waste sullies the city and can be unhealthy for the people living here. Implemented jointly with the government, the grant will help improve the living conditions in Ulan Bator by introducing participatory food waste recycling practices," said Pavit Ramachandran, ADB country director for Mongolia.

Around 1.2 million tons of solid waste is generated annually in Ulan Bator, but less than 20 percent of them is recycled. Food waste is typically dumped in formal or informal landfills, according to the ADB.