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
PDS Updated as of 20 Jul 2014

Project Name Higher Education Reform Project
Country Mongolia
Project/Program Number 43007-023
Status Approved
Geographical Location
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 Education
Subsector Tertiary
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories Gender equity as a theme

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2766Asian Development Fund20,000
Counterpart 2,220
TOTAL US$ 22,220

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Issues

Environmental Aspects
The simplified environmental management plan was prepared to ensure full mitigation of any environmental impacts of limited civil works such as rehabilitation of existing laboratories and libraries supported by the project.
Involuntary Resettlement
No significant impact on environment and resettlement is anticipated. Neither acquisition of land nor relocation of people is planned.
Indigenous Peoples
No negative impacts on indigenous peoples are expected. Targeting approaches under the project will be applied nationwide and benefit indigenous peoples.

Stakeholder Communication, Participation and Consultation

During Project Design
The project implementation unit (PIU) has been established at the Ministry of Education and Science, the project executing agency, and manages day-to-day project implementation, planning and budgeting, procurement, disbursement, monitoring, supervising, overseeing overall implementation, and reporting to the Government and ADB. Procurement and consulting recruitment will follow ADB Procurement Guidelines (2013, as amended from time to time) and ADB Guidelines on the Use of Consultants (2013, as amended from time to time) respectively.
During Project Implementation
The PIU conducts consultation meetings and workshops with various stakeholders including the higher eductaion institutes, to introduce the project objectives and solicit ideas for better project implementation and coordination, in addition to thematic consultation workshops with specific audience.

Description

The project will institute needed reforms in higher education (HE) to improve the quality and relevance of HE programs; governance, management, and financing of HE institutions (HEIs) and the entire subsector; and promote equitable access to HE. Project interventions include institutional capacity building, human resources development, provision of learning and research facilities, equipment and materials, consultant services, minor civil works, support for public-private partnerships (PPP), and improvement of the HE policy environment.

Project Rationale and Linkage to Country/Regional Strategy

Rapid economic expansion has led to increased demand and supply for HE in Mongolia. The government has emphasized the value of HE as a principal investment option for the country s long-term economic competitiveness. Gross enrollment ratio for HE rose from 27% in 2000 to 47% in 2007, buttressed by the entry of private institutions offering HE in the 1990s. Over 100 HEIs are now in operation but only around 40% of graduates are employed. Persistent rural-urban inequalities also undermine Mongolia s competitiveness in HE. Poverty serves to destabilize children s school performance in rural areas and even if poor households manage to send their children to HEIs in urban areas, there is no guarantee of employability after the graduation. The government's vision is of an effective HE system that can help accelerate sustainable economic development, improve people's livelihood, ensure social equality, and reduce poverty. However, the system is currently constrained by (i) low quality and relevance, (ii) weak governance and management, (iii) inadequate financing, and (iv) limited opportunities in the HE subsector particularly for the poor and those in rural areas.

Development Impact

The project impact will be an increased number of Mongolia's globally competitive higher education graduates responsive to labor market demands.

Project Outcome

Description of Outcome
The outcome will be an improved, well-managed, and equitable higher education system. The project primarily involves capacity building of the entire subsector to improve its performance.
Progress Towards Outcome
The project review mission was conducted in December 2013. The mission assessed that the project implementation for the initial two years has been significantly slow. Despite the delays, the MEDS is confident that the project will have steady progress in 2014 since the project objectives and activities are in line with the government higher education reform strategy, adopted in May 2013, which calls for major reforms in public higher education institutes and the entire subsector.

Outputs and Implementation Progress

Description of Project Outputs
Quality and relevance of higher education programs improved Effectiveness of HEIs' management and financing improved Access to higher education improved.
Status of Implementation Progress (Outputs, Activities, and Issues)
None of the project outputs has been completed; however, the EA has been organizing consultation workshops with various stakeholders to introduce the higher education reform initiatives to be supported by the project. In addition, it also organized number of training and study tours in the country and overseas as preparation for implementation of the project outputs. Based on the recommendations of the international Human Resource specialist, the EA is developing a Human Resource Development Master Plan (HR plan) to be supported by the project, which will be eventually approved by MEDS and ADB. Roughly 44% of loan funds are committed for capacity building activities under the project, so development of a good HR plan is crucial for bringing the project implementation on track.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement
Procurement and Consulting Notices
http://www.adb.org/projects/43007-023/business-opportunities

Timetable

Concept Clearance 10 Aug 2010
Fact-finding 30 Aug 2010 to 14 Sep 2010
Management Review Meeting 08 Feb 2011
Approval 28 Jul 2011
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 2766 28 Jul 2011 09 Sep 2011 10 Jan 2012 30 Jun 2017

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
18 Sep 2014 Loan 2766 1,078 0 6.00%
Cumulative Disbursements
18 Sep 2014 Loan 2766 2,308 0 12.00%

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 2766

Contacts and Update Details

Responsible ADB Officer Itgel Lonjid (ilonjid@adb.org)
Responsible ADB Department East Asia Department
Responsible ADB Divisions Mongolia Resident Mission
Executing Agencies

Links

Project Website http://www.adb.org/projects/43007-023/main
List of Project Documents http://www.adb.org/projects/43007-023/documents