Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
|PDS Creation Date||06 Dec 2006|
|PDS Updated as of||21 Dec 2006|
|Project Name||Rural Finance|
|Geographical Location||Phase I: Four aimags (provinces) Arhangay, Dundgovi, Dzavhan, and Sukhbaatar.Phase II: nationwide|
|In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.|
|Drivers of Change||–|
|Gender Equity and Mainstreaming Categories||–|
|Type/Modality of Assistance||Approval Number||Source of Funding||Approved Amount (thousand)|
For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories
The potential negative environmental impacts of subprojects that may be financed under the Project were reviewed and found to be easily mitigated.
Consultations with stakeholders were conducted during project preparation.
|During Project Design
|During Project Implementation
|The long-term objective of the Project is to develop a sustainable rural financial system that will contribute to both economic growth and poverty reduction. The Project has two purposes: (i) to increase the availability of and access to savings and credit services in rural areas and among the poor, and (ii) to provide a focal point for rural communities to access information and resources to support economic activities to be financed by SCUs, and satisfy socially related information and training needs. The Project has three components: (i) development of rural SCUs; (ii) establishment of information and resource centers (IRCs); and (iii) capacity building in project management. The Project will initially be implemented on a pilot basis over three years in four aimags (Arhangay, Dundgovi, Dzavhan, and Sukhbaatar) and expanded nationwide during the remaining four years of the Project|
|At present most of the rural population do not have access to formal savings and credit servcies; only about 3 percent have access to credit services from a bank or Government institutions. The financial sector faces many constraints in terms of liquidity and institutional capability, and delivery mechanisms in rural areas cannot satisfy the demand for financial services, particularly for those without collateral, including the poor and small enterprises. The informal sector also provides credit, but at a high cost. Thus alternative formal financial institutions are needed to offer a range of financial services on a sustainable basis. Such institutions must have a strong community focus to overcome existing negative social attitudes to credit and financial institutions which have developed in recent years due to failures in the banking system. The Government recognizes the need to revive the rural sector and sees microfinance playing a pivotal role. The establishment of a national SCU network is regarded as a viable alternative form of financial intermediation in rural areas. An unsupervised savings and credit union movement is emerging in Mongolia upon which a more solid, well-planned expansion of the system can be built. For SCUs to achieve significant outreach and long-term sustainability, the provision of financial services should encompass savings mobilization that provides resources at lower costs than borrowing from commercial sources and is more sustainable than externally funded credit lines that may be available only over a limited time frame. The introduction of incentives in the form of secure deposit facilities and interest rates that provide a real return on deposits will enable a significant volume of these savings to enter the financial system through SCUs. Monetizing the economy and providing local financial intermediation are as much a prerequisite to developing the rural economy as in increasing the supply of credit available to farmers and other rural residents. Establishing low minimum share contributions for SCU membership will also facilitate access to financial services for the rural poor who are effectively excluded from access to alternative savings and credit institutions. The development of an SCU supervision and regulation capability under the Project will offer improved protection for members' shares and savings in SCUs.|
|Description of Outcome
|Progress Towards Outcome
|Description of Project Outputs
|Status of Implementation Progress (Outputs, Activities, and Issues)
|Status of Development Objectives
|Date of First Listing||2006 Dec 06|
A total of 52 person-monthss of consulting, comprising 37 person-months of international and 15 person-months of domestic consulting services, will be provided. Consultants will be selected and engaged through a firm in accordance with ADB's Guidelines on the Use of Consultants and other procedures acceptable to ADB for the selection and engagement of domestic consultants. Advance action for recruitment of consultants will be taken.
All procurement under the Project will be carried out by the PMU in accordance with ADB's Guidelines for Procurement. Each supply contract for vehicles and equipment (other than minor equipment or materials) estimated to cost the equivalent of $500,000 or less will be awarded through international shopping. Contracts for minor equipment of materials estimated to cost $100,000 equivalent or less may be procured through direct purchase procedures.
|Procurement and Consulting Notices
|Concept Clearance||26 Dec 1994|
|Fact-finding||10 Mar 2001 to 23 Mar 2001|
|Management Review Meeting||30 Apr 2001|
|Approval||25 Oct 2001|
|Last Review Mission||–|
|Loan 1848||25 Oct 2001||29 Jan 2002||29 Jul 2002||30 Jun 2009||–||09 Nov 2007|
|Date||Approval Number||ADB (US$ thousand)||Others (US$ thousand)||Net Percentage|
|Cumulative Contract Awards|
|24 Oct 2014||Loan 1848||929||0||96.00%|
|24 Oct 2014||Loan 1848||966||0||100.00%|
Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.
|Sector||Social||Financial||Economic||Others||Safeguards||Project Financial Statements|
|Responsible ADB Officer||Yuebin Zhang (email@example.com)|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Divisions||Public Mgt, Financial Sector and Regional Coop Division, EARD|
Ministry of Finance
|List of Project Documents||http://www.adb.org/projects/28201-013/documents|