- Rationale
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Efficient, flexible and market responsive transport services are essential to support the development of domestic and international trade as Mongolia moves towards a market-based economy. To develop efficient transport services, the use of existing transport infrastructure must be optimized and steps taken to prevent its further degradation. The north-south road link interconnecting two border cities, Altanbulag at the border with Russia and Zameen Uud at the PRC boundary, emerged as one of the top priority roads for improvement in the Medium-Term Road Master Plan in view of its importance to support the growing trade with Russia, PRC, and other Asian countries. While the existing railway parallel to this road is suitable for carrying long haul, bulk cargoes, the road link plays an important role primarily for distribution of goods over relatively short distances, particularly high value goods, such as cashmere and semi-processed copper and gold between Ulaanbaatar and other cities along this road. This north-south road link traverses Ulaanbaatar, the capital, whose population is about 630,000 which is more than a quarter of the country's population and contributes over one half of the gross industrial production. It also connects with one of the PRC's national trunk highway corridors at the border, leading to Beijing and Tianjin port, which makes it an important international link for rapidly growing trade with the PRC. About 312-km of the road northwards from Ulaanbaatar to Altanbulag at the border with Russia is currently being improved under the ongoing Roads Development Project, and upgrading of the remaining north-south road link from Ulaanbaatar southwards to Zameen Uud at PRC border is essential for efficient transport of goods and passengers.
- Objectives and Scope
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The objective of the Project is to promote economic and social development through improved efficiency of the road sector by: (i) supporting policy and institutional reforms of the road sector institutions to enhance their capability to respond more effectively to market demands; (ii) upgrading priority sections of the State road network consistent with the plans established in the Medium-Term Road Master Plan, and (iii) developing capacity in local road construction and maintenance. The Project scope includes (i) assistance to strengthen policy and institutional efforts of the Government through advisory technical assistance (ii) civil works for the upgrading of about 200-km of State road between Nalaih and Choir; (iii) consulting services for detailed design and construction supervision, monitoring and evaluation, and capacity development; and (iv) procurement of road maintenance equipment.
- Policy Dialogue
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Keeping in view the progress achieved so far and with a view to strengthening further the sector reform agenda, policy dialogue during loan processing will focus on the following issues: (i) improving policy and regulatory framework, (ii) institutional strengthening of DOR; (iii) improving road funding and cost recovery; (iv) encouraging privatization and private sector participation in road maintenance and development; (v) introduction of the new design and construction standards; and (vi) capacity development.
- Environment Category:
B
- Environment Impact and Mitigation
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An initial environmental examination (IEE) was carried out in accordance with the Bank's Environmental Assessment Requirements, and Environmental Guidelines for Selected Infrastructure Projects. As for the ongoing Roads Development Project, the IEE for the proposed Project has indicated that there will be no significant adverse environmental impacts because the Project involves improvement of a road along an existing alignment and will not require major land acquisition for rights-of-way. Appropriate mitigation measures will be incorporated in the design of the Project to cover things such as adequate drainage systems, erosion prevention solutions, provisions for traffic management requirements, and planting of trees where appropriate.
- Social Aspects and Remedies
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A social analysis was conducted indicating that no resettlement will be needed, and that the Project has no particular impact on vulnerable groups. The social impact of the Project will be monitored and evaluated through the monitoring and evaluation system.
- Benefits and Beneficiaries
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The quantified benefit of the Project is savings in vehicle operating costs for normal and generated traffic on part of the north-south road link. The economic internal rate of return is estimated at 17.2 percent. Various categories of road users will benefit from the Project. Business in cities in the Project area will have cheaper access to the market and the capital city, in particular. Farmers and tradesmen will have better access to markets. Local people will enjoy better access for social communications like schools, hospitals, and communications center.
- Public Consultation
- Arranged by Borrower
- Date for Consultation : March to December 1998
- Groups Consulted : Public consultation was undertaken during the course of the social analysis using the participatory approach. Local key-persons and households were interviewed in selected towns and villages along the Project road to assess the perception of the beneficiaries of the Project as to their current problems and needs in the Project area.
- Beneficiary Participation in Formulation
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Beneficiary participation in Project formulation was encouraged during the course of the social analysis using the participatory aproach. Local key-persons and households were interviewed in selected towns and villages along the Project road to identify current problems as perceived by people in the Project area and to address such problems in the Project design.
- Beneficiary Participation in Implementation
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As the Project is expected to impact on socioeconomic conditions in the Project area through improved transport services, there is a requirement for the collection and analysis of socioeconomic data, necessitating the participation of relevant local governments and local enterprises.
- Consulting Services
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About 288 person-months of consulting services for detailed design, construction supervision, capacity development, and monitoring and evaluation, comprising 48 person-months of international consulting services and 240 person-months of domestic consulting services, are required to implement the Project. The consultants will be engaged in accordance with the Bank's Guidelines on the Use of Consultants and other arrangements satisfactory to the Bank for the engagement of domestic consultants. Advance recruitment action was approved in May 1999 to expedite Project implementation.
- Procurement
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Procurement proposed for Bank financing under the Project will include civil works for road improvement works and road maintenance and workshop equipment. All procurement to be financed under the Bank loan will be carried out in accordance with the Bank's Guidelines for Procurement.
- Contacts
- Bank
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Makoto Ojiro
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Principal Transport Economist
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EATC
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Tel. No.:
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(632) 632-6259
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E-mail:
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mojiro@adb.org
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- Executing Agency
- Department of Roads
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Contact Person
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Mr. Sodyn Ochirbat, Director General
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Tel. No.
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976-1-325-426
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Fax. No.
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976-1-320-920
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