Project Data Sheet

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 29 Nov 2006
PDS Updated as of 16 Jul 2009

Project Name Integrated Development of Basic Urban Services in Provincial Towns Project
Country Mongolia
Project/Program Number 31243-013
Status Approved
Geographical Location The Project will cover eight provincial capitals in eastern and central Mongolia namely Baruun-urt, Bulgan, Choibalsan, Dalandzagad, Mandalgobi, Onderhaan, Sainshand, Tsetserleg.
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.
Sector Water supply and other municipal infrastructure and services
Subsector Urban Sector Development
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)

Safeguard Categories

For more information about the safeguard categories, please see

Environment B

Summary of Environmental and Social Issues

The Project is expected to have a high level of community involvement in design and implementation, and a positive social impact. The improvement in living conditions resutling from the upgrading of basic urban infrastructure and services will conatribute materially to social well-being. In addition to facilitating economic development in the project towns through remedial investment in local infrastructure and services, the Project will significantly reduce poverty in the 8 towns. Improvements in heating, hot water, and sanitaiton systems will also benefit the residents of apartments and public and private organizations through more reliable supply and lower operating and maintenance costs. The Project will be implemented in each provincial town through local contracts that will provide significant employment to local people. Environment benefits will be realized under the Project through efficient wastewater disposal. The project towns generate solid waste with little organic material and, hence, little environmental risk. The Project will help reduce operating costs resulting from the use of aging equipment and outdated practices. The improvements on access to water and reduced water tariffs for residents will avoid the need to produce more raw water over the next two decades.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

The Project was handed over for administration to MNRM effective 17 September 2007. A Mid-Term Review Mission was fielded during 2-19 October 2007 by MNRM jointly with EASS.

During Project Design
During Project Implementation


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.

Project Rationale and Linkage to Country/Regional Strategy

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.

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Nov 29
Consulting Services
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 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.
Procurement and Consulting Notices


Concept Clearance
Fact-finding 08 Mar 2002 to 05 Apr 2002
Management Review Meeting 27 May 2002
Approval 06 Aug 2002
Last Review Mission


Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 1907 06 Aug 2002 05 Sep 2002 25 Nov 2002 30 Jun 2008 31 Dec 2008 18 Nov 2009


Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
16 Sep 2014 Loan 1907 16,267 0 98.00%
Cumulative Disbursements
16 Sep 2014 Loan 1907 16,540 0 100.00%

Status of Covenants

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.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 1907

Contacts and Update Details

Responsible ADB Officer Shane Rosenthal (
Responsible ADB Department East Asia Department
Responsible ADB Divisions Urban and Social Sectors Division, EARD
Executing Agencies Ministry of Infrastructure
Mr. Bat-Erdene


Project Website
List of Project Documents