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 05 Dec 2006
PDS Updated as of 26 Aug 2008

Project Name Housing Finance Sector Loan
Country Mongolia
Project/Program Number 32017-013
Status Approved
Geographical Location Mongolia
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 Finance
Subsector Housing Finance
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

Environmental implications under Parts A and B of the Project were reviewed. Based on an assessment of the anticipated environmental impact of the Project, no significant negative effects were identified.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

Direct public involvement has been an ongoing element in the development and design of the Project. During project preparation, local communities were extensively involved in the design of the Project through a series of surveys and focus groups.

During Project Design
During Project Implementation


The main objectives of the Project are to (i) meet the immediate shortage for adequate housing in Mongolia; (ii) contribute to establishing a sustainable, market-based system for the delivery of housing finance to meet the borrowing needs of low and middle income households; (iii) reduce poverty in ger housing areas by providing and upgrading basic infrastructure and services through the HAAP schemes; and (iv) improve the quality of life of low-and middle-income urban households through the provision of affordable housing loans. The proposed Project consists of three parts: Part A, lending to middle- and low-income households through participating commercial banks and intermediaries; Part B, addressing poverty reduction by financing HAAP schemes in ger housing areas; and Part C, establishing effective project management and capacity building to ensure the project are sustained.

Project Rationale and Linkage to Country/Regional Strategy

Over the past three decades, Mongolia has experienced rapid urbanization. Presently, over half of the population resides in urban areas. However, since the end of the socialist era, very little new housing has been built, resulting in a critical shortage of adequate housing in Mongolia and a rapid increase in unserviced ger housing areas surrounding the cities. The access of the poor to urban services and adequate housing continues to be limited. One of the critical factors to increase access to good housing and services, for the poor and for middle-income families, is housing finance, which is not available in Mongolia. By establishing and partially funding a sustainable housing finance system in Mongolia, the proposed Project is the logical next step in developing the housing sector after Mongolia has promulgated the National Housing Strategy, Housing Policy Law, Housing Privatization Law, and the Condominium Law with assistance from earlier Asian Development Bank (ADB) technical assistance (TAs). The lack of long-term finance and past inadequacy of legal framework for property rights has kept Mongolian commercial banks from engaging in lending for housing. Currently, the major sources of housing finance for low- and middle-income households are their own savings and family assets. The access to a housing finance loan release the financial and technical resources of family, friends, and relatives for other activities. When surveyed regarding housing finance, most potential beneficiaries indicated their willingness to contribute at least as much as the loan to the construction or purchase of the house. Further, the results indicate the overwhelming demand to improve housing, mainly by buying or constructing new houses. ADB's involvement in housing in Mongolia is justified by (i) a large demand for adequate housing and shelter, which is essential for survival of the households, particularly for the poor, given the extremes of the Mongolian climate; (ii) the significant health benefits that will accrue from better and improved basic infrastructure; and (iii) the interlinkages between the financial, banking, housing and construction sectors that will be strengthened, and substantial employment opportunities that will be created.

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 Dec 05
Consulting Services
A total of 171 person-months of consulting services (41 of international and 131 of domestic) will be needed for project implementation and capacity building.
Facilities finance by ADB under the Project will be procured in accordance with ADB's Guidelines for Procurement. For procurement of goods and services to be financed by the loan proceeds, MOFE will satisfy the ADB that the procurement procedures they apply are appropriate to the circumstances.
Procurement and Consulting Notices


Concept Clearance
Fact-finding 01 Dec 2000 to 13 Dec 2000
Management Review Meeting 12 Mar 2001
Approval 18 Oct 2001
Last Review Mission


Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 1847 18 Oct 2001 29 Jan 2002 15 May 2002 30 Jun 2007 31 Dec 2007 24 Aug 2008


Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
22 Sep 2014 Loan 1847 0 0 0.00%
Cumulative Disbursements
22 Sep 2014 Loan 1847 11,888 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 1847

Contacts and Update Details

Responsible ADB Officer Sangay Penjor (
Responsible ADB Department East Asia Department
Responsible ADB Divisions Urban and Social Sectors Division, EARD
Executing Agencies Ministry of Finance
Mr. O. Erdembileg


Project Website
List of Project Documents