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Mongolia
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LOAN: MON 31243-01
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Integrated Development of Basic Urban Services in Provincial Towns Project
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Location
The Project will cover eight provincial capitals in eastern and central Mongolia namely Baruun-urt, Bulgan, Choibalsan, Dalandzagad, Mandalgobi, Onderhaan, Sainshand, Tsetserleg.
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Sector
Water Supply, Sanitation & Waste Management /Integrated
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Initial Listing
23 March 2000
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Most Recent Update
2 February 2007
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Executing Agency(ies)
Ministry of Infrastructure
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
| 5-9 Mar 2001 |
8 Mar-5 Apr 2002 |
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Loan Approval Date
6 August 2002
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Estimated Completion Date
December 2007
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
13.30 |
6.80 |
20.10 |
| Cofinancing |
0.00 |
0.00 |
0.00 |
| Borrower |
0.00 |
3.60 |
3.60 |
| Beneficiaries |
0.00 |
0.00 |
0.00 |
| Others |
0.00 |
2.80 |
2.80 |
| Project/Program Cost |
13.30 |
13.20 |
26.50 |
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OCR |
ADF |
Total |
| Loan Amount |
0.00 |
20.10 |
20.10 |
- Description
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The Project will provide improved and sustainable water supply, sanitation, solid waste management, public bathing, heating and hot water supply facilities in 8 provincial capitals in eastern and central Mongolia. It will support the Government's Regional Development Policy and Action Program and will increase the management capacity of local public urban service organizations (PUSO) in 8 provincial capitals.
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- Thematic Classification
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- Poverty Classification
- Core Poverty Intervention
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- Rationale
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Mongolia's rapid urbanization in the late 20th century has creasted an urban population of 1.4 million people. As the capital Ulaanbaatar, gained primacy in the last decade, it attracted the majority of foreign assistance, to the detriment of balanced urban and regional development. Because of the lack of funds for rehabilitation and periodic maintenance, urban service infrastructure in these towns is seriously dilapidated and in urgent need of repair. The provincial capitals need to improve their service coverage of the towns in their provinces so that they can function as sustainable regional economic centers as well as seasonal shelters for rural population in the hinterlands.
While the incidence of poverty in Ulaanbaatar is only 34%, the incidence of poverty in the eight Project towns is over 50%. Moreover, the formal areas in urban settlements, with fully networked utilities, stand in sharp contrast to the minimal services in informal ger settlements. On the average, 46% of the people in the formal areas have connections to water supply, as opposed to very few in ger areas. Water-borne diseases are more prevalent in informal areas and children in the ger areas are twice as likely to have diarrhea and respiratory infections. High incidence of poverty and poor quality of living standards in the provincial towns strongly suggest that poverty reduction programs should be targeted tot he informal settlements, and that the present imbalance in the provision of urban services should be redressed in favor of the informal ger areas. Accordingly, the Government of Mongolia is seeking to improve the quality of life and protect public health by rehabilitating and extending basic urban services, while strengthening the capacity of local PUSOs to provide and operate these essential services. Following the successful implementation of Loan 1560-MON:Provincial Towns Basic Urban Services Project financed by ADB for five provincial capitals in western Mongolia, the Government is endeavoring to expand covergae to other regions where living conditions and service functions are rapidly deteriorating.
- Objectives and Scope
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The long-term goals of the Project are (i) to promote balanced regional development, and (ii) to improve health and living conditions in provincial capitals. The short-term goals are (i) to improve basic urban services; (ii) to reduce inequality in access to urban services between formal and informal areas; and (iii) to strengthen the operation and management capacities of local Public Urban Service Organizations (PUSOs) in order to achieve sustainable regional development in the 8 provincial capitals of central and eastern of Mongolia.
The Project comprises two parts: Part A - Urban Infrastructure and Equipment and Part B - Project Implementation and Institutional Development.
- Policy Dialogue
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Policy dialogue with the Government covers:
(i) integrating five basic urban subsectors (water,sanitation, solid waste management, public bathhouses, and district heating with hot water supply) under a lcoal PUSO for efficient service delivery;
(ii) corporatizing PUSOs as State-owned limited liability company to operate according to principles of good corporate governance and a business-like entity;
(iii) promoting public-private partnership through forms of joint share-holding and management contracts for service delivery;
(iv) strengthening the financial and management capacity of PUSOs for decentralized basic service delivery;
(v) avoiding increases in real tariffs for the poor living in informal ger areas; and
(vi) promoting full cost recovery including debt services, operation and maintenance costs, through an integrated approach.
- Environment Category:
B
- Environment Impact and Mitigation
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- Social Aspects and Remedies
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- Benefits and Beneficiaries
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All 148,000 residents of the Project towns, representing 11% of the urban population of Mongolia, are expected to benefit from the Project. People living in 8 provinces will indirectly benefit through more sustainable services, access to seasonal shelter, and improved market functions in the provincial capitals. Rural populations are also expected to capture the benefits of improved healting and public baths houses during winter months when they shelter in the Project towns. Residents of the informal settlement areas will have improved access to water and bathing facilities, and are expected to increase their consumption of water as a result of no tariff increases. The Project is expected to provide over 41,000 person-months of income-earning opportunities for unskilled workers locally, and over 5,000 person-monhts of employment for skilled construction workers. The Project will also enhance local capabilities, contributing to Project sustainability, and help the sector institutions operate in a market-based economy.
- Public Consultation
- Arranged by
- Date for Consultation :
- Groups Consulted :
- Beneficiary Participation in Formulation
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- Beneficiary Participation in Implementation
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- Consulting Services
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Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants and other arrangement satisfactory to ADB. A total of 282 person-months of consulting services (38 of international and 244 of domestic) will be required. The consulting inputs will be split into two packages: one for project management, design and supervision, and the other (with individual contracts) for institutional development. The consultants will support the PMO and PIUs and will transfer project management and technical skills to the government staff.
- Procurement
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Procurement of ADB-financed goods and services will be carried out in accordance with the ADB's Guidelines for Procurement and Mongolia's Public Procurement Law. Equipment will be procured by international competitive bidding for contracts above $500,000; international shopping for contracts above $50,000 and up to $500,000; and direct purchase for contracts with a value less than $50,000. Civil works contracts up to $1 million will be awarded through local competitive bidding, except for contracts for the installation of meters and plumbing fixtures, which will be done under force account.
- Contacts
- Bank
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Fei Yue
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Senior Social Sector Economist
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EASS
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Tel. No.:
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(632) 632-6499
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E-mail:
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fyue@adb.org
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- Executing Agency
- Ministry of Infrastructure
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Contact Person
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Mr. Byamba Jigjid, Minister
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Tel. No.
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(976-11) 326-222 / 326-367
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Fax. No.
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(976-11) 311-381
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E-mail
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