Mongolia: Regional Road Development Project - Supplementary

Sovereign Project | 35377-023

Summary

The Project will assist the Government in achieving the objectives of the Initial Project by financing cost overruns related to the following Parts of the Initial Project:

Part A Initial Project Road: (a) The construction of the remaining sixty-two (62) kilometers (km) of the two-lane road section of about four hundred thirty (430) km from Choyr to the border near Zamyn-Uud; (b) The price adjustment for the contracts related to the construction of the road sections from (i) 35th Railway Crossing to 18th Khudag, and (ii) 18th Khudag to 62.2 km mile post.

Part D Area Development: (a) The price adjustment for contract related to the construction of the access road to Urgun Soum.

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Project Name Regional Road Development Project - Supplementary
Project Number 35377-023
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0199-MON: Regional Road Development Project - Supplementary
Asian Development Fund US$ 16.00 million
Loan 2621-MON: Regional Road Development Project - Supplementary
Asian Development Fund US$ 8.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description

The Project will assist the Government in achieving the objectives of the Initial Project by financing cost overruns related to the following Parts of the Initial Project:

Part A Initial Project Road: (a) The construction of the remaining sixty-two (62) kilometers (km) of the two-lane road section of about four hundred thirty (430) km from Choyr to the border near Zamyn-Uud; (b) The price adjustment for the contracts related to the construction of the road sections from (i) 35th Railway Crossing to 18th Khudag, and (ii) 18th Khudag to 62.2 km mile post.

Part D Area Development: (a) The price adjustment for contract related to the construction of the access road to Urgun Soum.

Project Rationale and Linkage to Country/Regional Strategy

The project would complement ADB's previous support for paving road sections along part of the north-south corridor linking Altanbulag at the Russian Federation border with

Ulaanbaatar, the capital of Mongolia, by extending the road corridor south to the border with the PRC. It would complete the first modern highway between Mongolia's economic centers and its main trading partners, and thereby significantly increase the country's capacity to access external markets and further develop its economy and reduce poverty.

Impact Regional and sustainable economic growth in Mongolia promoted
Project Outcome
Description of Outcome Efficiency and safety of domestic and international transit traffic between the PRC and the Russian Federation through Mongolia's north-south road transport corridor increased
Progress Toward Outcome ---
Implementation Progress
Description of Project Outputs

1. About 428 km of the asphalt concrete road between Choyr and the PRC border in Zamyn-Uud built

2. Cross-border road transport facilitation plan implemented

3. Road safety improvement component implemented

4. Area development program implemented

5. Program on awareness and prevention of HIV/AIDS and human trafficking on the north-south road corridor implemented

Status of Implementation Progress (Outputs, Activities, and Issues)

NP2 civil works completed

The cross-border facilitation plan is being implemented by the Government via alternative arrangements without involving consulting services envisaged under this component

Installed May 2014 and operational by 12 August 2014

Vehicle weight control on the project road introduced by 12 August 2014

Not implemented

Two patrol vehicles equipped with breathe analyzers and speed monitoring equipment were procured. The patrol vehicles and breathe analyzers were handed over to the Traffic Police in December 2013 and the spped detector was handed over in January 2014

Training was not conducted as the existing training of police was sufficient

Construction completed and opened to traffic.

Construction of AR1 completed. AR2 is expected to be completed by 30 June 2015 using government funding

Training was provided to 60 local workers of which 40 semi-skilled equipment operators in May 2007

Services cancelled

Implemented under the TA.

Implemented under the TA

Implemented under the TA

Implemented under the TA

Geographical Location Mongolia
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The original loan is classified as environmental category B. The environmental impact assessment (EIA) was undertaken through broad-based public consultations, and the summary EIA was circulated to the Board and made public on the ADB website on 5 March 2004. The EIA was approved by the Ministry of Nature and Environment on 12 May 2004 and concluded that the project will have no major adverse impacts on the environment. As there has been no change in scope or design, the approved EIA is still applicable. There will be no additional environmental impacts apart from those identified in the approved EIA. During project implementation, the government will continue to implement the mitigating measures stipulated in the EIA.
Involuntary Resettlement Social aspects remain unchanged from the original loan. The land to be acquired for the project and temporary use of land for construction will not involve any removal of structures or affect private landowners. The land is state owned, and is waste land. The project remains category C for involuntary resettlement and for indigenous peoples safeguard aspects.
Indigenous Peoples The project will not affect any ethnic minority groups.
Stakeholder Communication, Participation, and Consultation
During Project Design During the initial project preparation, consultations were held with the Government, civil society, local communities, and other external aid agencies on major issues such as project alternatives, route alignment, social and environmental impacts, and project benefits for local communities. The consultations revealed a high degree of public support for the Project. Stakeholder participation and consultation will continue during project implementation under the area development component.
During Project Implementation Stakeholder participation will commence after additional financial arrangements for the construction of all road sections of the main road have been finalized. A consulting firm will be recruited to help the government to continue the stakeholder participation process providing training for small enterprises, skills development, and support for vulnerable groups. Consultations will start in April 2010 and stakeholder participation discussions will be conducted on an intermittent basis until the end of 2010.
Business Opportunities
Consulting Services Consultants have been recruited in line with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) under the main Loan 2087 MON. The Government has financed consultants for detailed design engineering. ADB financed consultants for construction supervision.
Procurement All procurement to be financed under ADB supplementary financing assistance will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time).
Responsible ADB Officer Cai Li
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
Min of Roads, Transportation, Const. & Urb Devt15170 Barilgachdyn Talbai
3 Chingeltei District
Ulaanbaatar, Mongolia
Timetable
Concept Clearance 27 Aug 2009
Fact Finding 24 Aug 2009 to 28 Aug 2009
MRM 28 Aug 2009
Approval 30 Mar 2010
Last Review Mission -
Last PDS Update 27 Mar 2015

Grant 0199-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Mar 2010 14 Apr 2010 16 Jun 2010 30 Jun 2013 31 Dec 2014 30 Mar 2015
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 16.00 Cumulative Contract Awards
ADB 16.00 30 Mar 2010 16.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 30 Mar 2010 16.00 0.00 100%

Loan 2621-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Mar 2010 14 Apr 2010 16 Jun 2010 30 Jun 2013 31 Dec 2014 31 Jul 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 8.00 Cumulative Contract Awards
ADB 8.00 30 Mar 2010 7.34 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 30 Mar 2010 7.34 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Safeguard Documents

See also: Safeguards

Evaluation Documents

See also: Independent Evaluation

No documents found.


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