Mongolia : Urban Development Sector Project
The objectives of the Project is to improve the living conditions and the quality of life of the urban population.
The Project follows a sector lending approach and supports sector policies on urban development, including the Government's Action Plan for 2004-2008 and program to provide 40,000 households with opportunities to live in housing with improved basic services. The Project will consist of four components: (i) A: improvement of basic urban services, (ii) B: urban road improvement, (iii) C: small loans for water connections and on-plot facility improvements, and (iv) D: institutional development and training.
Project Details
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Project Officer
Badarch, Tuul
East Asia Department
Request for information -
Country/Economy
Mongolia -
Modality
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Sector
- Transport
Project Name | Urban Development Sector Project | ||||||||
Project Number | 37697-013 | ||||||||
Country / Economy | Mongolia |
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Project Status | Closed | ||||||||
Project Type / Modality of Assistance | Loan |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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Sector / Subsector |
Finance / Inclusive finance Transport / Urban roads and traffic management Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management - Urban water supply |
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Gender | Effective gender mainstreaming | ||||||||
Description | The objectives of the Project is to improve the living conditions and the quality of life of the urban population. The Project follows a sector lending approach and supports sector policies on urban development, including the Government's Action Plan for 2004-2008 and program to provide 40,000 households with opportunities to live in housing with improved basic services. The Project will consist of four components: (i) A: improvement of basic urban services, (ii) B: urban road improvement, (iii) C: small loans for water connections and on-plot facility improvements, and (iv) D: institutional development and training. Project implementation will start with two core subprojects: (i) improvement of the Hailaast road section in Ulaanbaatar; and (ii) water supply, sanitation, and solid waste management in Erdenet. The remaining subprojects will be identified and formulated during project implementation in accordance with rigorous procedures for screening, identification, selection, and appraisal of the subprojects. The Asian Development Bank (ADB) reviewed the two core subprojects and found that they are viable from a technical, institutional, social, financial, economic, and environmental perspective. For each of the remaining subprojects, the Ulaanbaatar municipal government and concerned aimag (province) governments and public urban services organizations (PUSOs) will prepare a feasibility study, including a resettlement plan and environmental impact assessment. For the water supply subcomponent, concerned aimag governments will be required to indicate strong political commitment to implement the tariff reforms to ensure repayment to the Government. |
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Project Rationale and Linkage to Country/Regional Strategy | Mongolia experienced rapid urbanization during the second half of the 20th century, mainly because of rural-to-urban migration. The urban population is now 60% of the national population of 2.56 million. Urban areas in Mongolia present two very different and distinct patterns of residential accommodation: apartment areas and ger (traditional tent) areas. Apartment areas are formally laid out to include permanent housing based on socialist planning practices and featuring multi-family housing surrounded by (vaguely defined) open space. These areas have the benefit of full utility services, including heating and hot water. By contrast, ger areas are typically long strips of large, unserviced plots with wide unpaved roads on one or two sides. Both types of layout are found in virtually all of the country's urban settlements. Following the withdrawal of Soviet support at the start of the 1990s, there has been relatively little extension of apartment areas but ger areas have experienced continued growth in most cities as most in-migrants live in ger areas. Urban areas in Ulaanbaatar are growing rapidly because of substantial population migration from rural areas. The total population in Ulaanbaatar is estimated at over 1 million, including about 80,000 students and 60,000 non-registered residents. Some 60% of the total population lives in ger areas. In 2004, Ulaanbaatar;s road network totaled about 376 kilometers (km), comprising 77 km (20.5%) of national roads, 190 km (50.5%) of city roads, and 109 km (29.0%) of district or municipal roads. Road construction has been increasing slowly by 1.2% per annum for the past 5 years. Most roads in Ulaanbaatar are poorly maintained asphalt or gravel roads. About 288 km of roads in the city need to be reconstructed or rehabilitated. Only 10% of the city roads have drainage systems, which often are clogged with trash. The major issues in the urban development sector in Mongolia are (i) deficiency in the quality of urban infrastructure and services, especially in ger areas; (ii) lack of community participation in the management and operation of urban services; (iii) lack of cost recovery and inadequate financial management in public services; (iv) lack of financial and organizational autonomy of the PUSOs; (v) lack of capacity of local governments, through the PUSOs, to provide and operate urban infrastructure and facilities; (vi) reluctance of the Government to acknowledge the permanent status of gers or hashaas (residential plots); (vii) inadequate urban roads in Ulaanbaatar; (viii) poor management and maintenance of urban roads in Ulaanbaatar; and (ix) health problems and associated economic loss. |
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Impact | Improve the living conditions and quality of life of the urban population in the project towns. |
Project Outcome | |
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Description of Outcome | Upgraded basic urban services, urban roads, and on-plot facilities. |
Progress Toward Outcome | The project is physically completed with all civil works for improvement of basic urban services in aimag and soum centers finished at 18 sites. The project has provided direct benefits to over 293,000 residents in project aimags by expanding water supply, sewerage and heating supply systems, and constructing 12.3 kilometers urban roads in Ulaanbaatar, and thereby increasing access to safe and sustainable public services. 443 households in Erdenet, Arvaikheer, Bayankhongor and Altai towns received small loan facilities to finance housing improvements and connections to the public utility systems constructed under the Project. |
Implementation Progress | |
Description of Project Outputs | 1.1 Water supply facilities 1.2 Sewerage facilities 1.3 Solid waste management facilities 2.1 Roads improvement 3.1 Small loans 4.1 Implementation agency staff trained 4.2 People trained in health and environment |
Status of Implementation Progress (Outputs, Activities, and Issues) | 1.1 Water supply facilities: As of 1-Jul-2015, project constructed and put into operation 138 km of water supply transmission and distribution mains, 12 new water source boreholes, 10 reservoirs of various capacities, pumping stations and water chlorination facilities and constructed, rehabilitated and connected to the piped system in 91 water kiosks. Under the new subprojects identified in 2013-2014, 19.69 of hot water supply mains were built. 1.2 Sewerage facilities: Completed. As of 1-Jul-2015, project constructed and put into operation 28.06 km sewerage pipeline, rehabilitated 2 wastewater treatment plants (WWTP) and constructed 7 new small-scale WWTPs in soum centers. 1.3 Solid waste management facilities: Completed. Solid waste collection trucks and other public utility service equipment and machinery were supplied under the project and handed over to provincial PUSOs in May 2014. 2.1 Roads improvement: Completed. Three road sections (12.3 km) are put into operation in Ulaanbaatar, which have improved access to social services for remote communities, increased efficiency and effectiveness of public and private transport movement, enabled opportunities for new jobs and business, and contribute to reduced dust and air pollution. 3.1 Small loans: Completed. A total of $3.0 million was provided to the PFIs to implement the subproject. As of 1 July 2015, a total of MNT5.4 billion ($2.8 million) was sub-lent to 443 households in Erdenet, Arvaikheer, Bayankhongor and Altai towns. About 203 subloan recipients were women> Small loans were used to finance piped water and sewerage connections, construct heat-efficient houses and to improve housing conditions. 4.1 Implementation agency staff trained: Completed. 4.2 People trained in health and environment: Completed. |
Geographical Location | Altai, Arvayheer, Baruun-Urt, Bayanhongor, Bulgan, Erdenet, Ulan Bator |
Safeguard Categories | |
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Environment | B |
Involuntary Resettlement | B |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | Initial environmental examinations (IEEs) were carried out for the core subprojects in accordance with ADB's Environment Policy (2002) and Environmental Assessment Guidelines. It was determined that the Project will not have significant adverse environmental impacts. The Project will not adversely affect natural resources and will greatly improve community health and living conditions. The Project will reduce environmental pollution. No detrimental effects will be caused on the flora and fauna. On a per capita basis, the Project will decrease the demands on energy resources by replacing truck water tankers with a piped system. Negative environmental impact may occur during construction, but its extent will be minimized by careful design and specification of project construction through mitigation measures identified in the IEE. The adoption of composting toilets will reduce groundwater pollution and, with correct management, will produce organic compost for small farmers. Improvement of the urban roads will reduce dust and noise. The summary IEE includes the environmental assessment and review procedures. Project staff and consultants regularly monitor contractors' compliance with environment action plans. Independent environmental monitoring is in place. Necessary mitigation measures to minimize negative environmental impacts were implemented adequately by civil work contractors' staff responsible for occupational health and safety and environmental issues. No complains or comments were received with regard to the construction of water supply and sewerage systems constructed under the project. |
Involuntary Resettlement | It is anticipated that land acquisition and resettlement will not be very significant and can be avoided for many subprojects. Some houses, gers, and fences will need to be relocated to nearby plots of land. To ensure that ADB policies on involuntary resettlement will be applied and affected people compensated, a resettlement framework has been prepared which sets out (i) the resettlement policy and Mongolian legal framework for land acquisition and resettlement, (ii) compensation standards and entitlements, (iii) procedures for formulating RPs, (iv) implementation arrangements, (v) consultation and participation, (vi) eligibility provision, (vii) a grievance redress mechanism, (viii) monitoring and evaluation, and (ix) provision of the resettlement budget. The PMU will be responsible for overall resettlement management and coordination, internal monitoring, and quarterly reporting to ADB. The PIUs will take primary responsibility for any resettlement consultation, notices, implementation, and timely delivery of entitlements. Because of limited experience with involuntary resettlement, some training and capacity building will be conducted under component D, and it was endorsed by the Government and disclosed to the affected people. |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | |
During Project Implementation | Consultations with stakeholders and project beneficiaries are conducted on a regular basis by the project staff and consultants on the topics of public health and hygiene, gender, labor, resettlement and environmental impact mitigation action plan. |
Business Opportunities | |
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Consulting Services | The Project will require a total of about 195 person-months of international and 82 person-months of national consulting services to support the PMU and PIUs in project implementation and management, feasibility study for the urban road improvement component, detailed design and survey, institutional development, and education and training. The ADB loan will finance 31 person-months of international and 82 person-months of national consultants. The international consultants will have expertise in (i) project management and procurement, (ii) finance and microfinance, (iii) institutional development and financial management, and (iv) sanitation. The national consultants will have expertise in (i) resettlement; (ii) environment; (iii) legal aspects; (iv) database development; (v) financial management; and (vi) construction supervision, feasibility studies for the remaining subprojects under component B, and detailed designs of components A and B. The consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (April 2006, as amended from time to time). All international consultants and the national consultants for project management will be selected and contracted individually. National consultants for feasibility studies and detailed designs will be selected and contracted as firms using ADB's quality- and cost-based selection procedure among short-listed national consulting firms. German development cooperation through DED will provide 144 person-months of long-term international experts in community engineering (2 positions) and community development and training. German development cooperation through GTZ will provide a maximum of 20 person-months of short-term experts. These experts will be assigned at the PMU and the PIUs, and will be guided by and report to the respective PMU and PIU directors. DED and GTZ will select these experts in accordance with their own guidelines. |
Procurement | The procurement of goods and works financed under the loan will be undertaken in accordance with ADB's Procurement Guidelines (April 2006, as amended from time to time). International competitive bidding (ICB) will be applied to supply contracts estimated to cost $500,000 or more. Supply contracts with a value less than $500,000 will follow national competitive bidding (NCB), and those less than $100,000 will follow shopping procedures as reflected by particular circumstances of the contract packages. ICB will be used for civil works contracts valued at $1 million or more. Civil works contracts valued less than $1 million will be procured using NCB procedures. The selection and engagement of contractors will be subject to ADB approval. Before commencement of NCB procurement, ADB and the Borrower will review the Borrower's procurement procedures to ensure consistency with ADB requirements. Any necessary modifications or clarifications to the Borrower's procedures will be documented in the procurement plan. The internationally tendered equipment packages will include the necessary technical support for ensuring proper installation, testing, commissioning, and training of operational staff as part of the related contracts. In accordance with ADB requirements, foreign contractors may participate in bidding for NCB contracts |
Responsible ADB Officer | Badarch, Tuul |
Responsible ADB Department | East Asia Department |
Responsible ADB Division | Mongolia Resident Mission (MNRM) |
Executing Agencies |
Ministry of Construction and Urban Development Ministry of Roads, Transportation, Construction and Urban Development |
Timetable | |
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Concept Clearance | 14 Oct 2005 |
Fact Finding | 21 Mar 2005 to 28 Mar 2005 |
MRM | 14 Aug 2006 |
Approval | 19 Dec 2006 |
Last Review Mission | - |
PDS Creation Date | 19 Jul 2006 |
Last PDS Update | 07 Sep 2015 |
Loan 2301-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
19 Dec 2006 | 27 Aug 2007 | 26 Feb 2008 | 30 Jun 2013 | 01 Jul 2015 | 18 Dec 2015 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 44.23 | Cumulative Contract Awards | |||
ADB | 35.23 | 17 Jun 2022 | 35.03 | 0.00 | 100% |
Counterpart | 9.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 17 Jun 2022 | 35.03 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Partly satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
Title | Document Type | Document Date |
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Mongolia: Urban Development Sector Project | Validations of Project Completion Reports | Oct 2017 |
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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Lack of safe water supply, heating, and sanitation; and poor access roads to schools, markets, and health facilities limit mobility and increase time burdens, particularly for women, in ger areas of two large cities, Ulaanbaatar and Erdenet.
Tenders
Contracts Awarded
Procurement Plan
Title | Document Type | Document Date |
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Urban Development Sector Project | Procurement Plans | Jan 2013 |