Mongolia: Western Regional Road Corridor Development Project - Phase I

Sovereign Project | 39265-022


ADB is helping build a road that will link Mongolia’s western region with the People's Republic of China and the Russian Federation. The Western Regional Road Corridor will span nearly 750 kilometers and become part of the Asian Highway Network. The first phase of the project will improve the Yarant-Hovd city road, create road maintenance units, improve road safety, and provide skills training.

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Project Name Western Regional Road Corridor Development Project - Phase I
Project Number 39265-022
Country Mongolia
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0107-MON: Western Regional Road Corridor Development Project - Phase I
Asian Development Fund US$ 37.60 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The impact of the Project will be the promotion of regional transport of freight and passengers via the Western Road Corridor and increased economic development and regional trade. The outcome of the Project will be an efficient and safe regional transport route developed in the Western Region of Mongolia to link Xinjiang Autonomous Region in the PRC and Siberia Province of the Russian Federation through Hovd and Bayan-Olgiy aimags of Western Mongolia. As part of Asian Highway 4, the road will help link Mongolia to the rest of Asia.
Project Rationale and Linkage to Country/Regional Strategy The proposed road corridor will strengthen Mongolia's transport links to the PRC and the Russian Federation as well as other countries in the region. The Project supports ADB's strategy for Mongolia, which focuses on promoting sustainable economic growth and social development by allowing for more market integration and movement of people, resulting in broader economic growth and reducing geographic isolation, thereby reducing poverty. The Project also supports ADB's strategy for the Central Asian region, which is designed to (i) secure access to profitable markets in large neighboring countries for exports from the Central Asian republics; and (ii) reduce transaction costs and facilitate transit and transport across the region. The Project also supports Mongolia's priority development plan of building roads for the Asian Highway under the national development strategy, which is based on the Millennium Development Goals.
Impact Promotion of regional transport via the Western Road Regional Corridor and increased economic development and regional trade
Project Outcome
Description of Outcome An efficient and safe regional transport route is developed in the western region to link Mongolia with the Xinjiang Uygur Autonomous Region in the People's Republic of China and Siberia in the Russian Federation.
Progress Toward Outcome ----
Implementation Progress
Description of Project Outputs

1. Improved Yarant-Hovd city road.

2. Established and equipped road maintenance centers.

3. Improved road safety.

4. Community development.

5. Capacity development for MRTCUD.

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

Overall progress is about 97.76%

Equipment being procured

Road safety improvements were included in the detailed design and are being monitored by the supervision consultants during implementation.

Yet to start

3.2 person months of overseas training have been completed.

Geographical Location Western Region of Mongolia
Safeguard Categories
Environment A
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project will have some negative and positive, and direct and indirect environmental impacts on physical, ecological and socio-economic environment during road construction and operation phases. Temporary environmental impacts are anticipated during construction, though they will be minimized by proper planning, good engineering design and implementation of the proposed mitigation measures and monitoring programs and will not pose any threat to the environment.
Involuntary Resettlement No household will lose land; houses; agricultural plots; crops; trees; fixed assets; business; incomes and livelihoods; or access to facilities, services, or natural resources.
Indigenous Peoples No adverse impacts or significant changes to their livelihoods or culture are anticipated.
Stakeholder Communication, Participation, and Consultation
During Project Design More than 6,200 people were consulted during project preparation through public meetings and socioeconomic surveys. Various stakeholders participated in the consultation process, such as central and local government officials, environmental experts, social workers, teachers, doctors, herders, business persons, and road users. Active participation from women in public meetings has confirmed during the fact-finding mission. These processes have enabled: (i) increased awareness and local support, (ii) expressions of opinions and concerns on social and environmental aspects, (iii) relevant suggestions for western region and local road designs (e.g., road alignments and access roads) and future road projects, and (vi) indentification of potential community development projects.
During Project Implementation Stakeholder participation for the purposes of information sharing and consultation is ongoing during project implementation.
Business Opportunities
Consulting Services The Project will finance 92.5 person-months of international consulting services: 16 for detailed design and 72 for construction supervision and 4.5 for other services. The detailed design period is anticipated to begin in the first quarter of 2008 and last for the entire year. The construction supervision consulting services will be required from the middle of the second quarter of 2009 and extend through the completion of the road defects liability period at the end of the first quarter of 2013. The Government will finance consulting services for detailed design, while ADB will finance the construction supervision consulting services. ADB-financed consultants will be recruited using quality- and cost-based selection (80% technical and 20% financial weighting) and full technical proposal, in accordance with ADB's Guidelines on the Use of Consultants (2007. as amended from time to time).
Procurement Goods and works financed by the ADB grant will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Civil works for the project road will be procured through international competitive bidding. Equipment will also be procured through national competitive bidding.
Responsible ADB Officer Cai Li
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
Ministry of Road and Transportation
11 Chinggis Avenue, Sukhbaatar District
Ulaanbaatar 14251
Min of Roads, Transportation, Const. & Urb Devt
K Gantumur
Barilgachdiin Talbai 3, Chingeltei Duureg, Ulaanbaatar 15170, Mongolia
Concept Clearance 04 Sep 2006
Fact Finding 26 May 2007 to 04 Jun 2007
MRM 14 Aug 2007
Approval 26 Feb 2008
Last Review Mission -
PDS Creation Date 19 Feb 2008
Last PDS Update 23 Sep 2015

Grant 0107-MON

Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Feb 2008 18 Apr 2008 22 May 2008 31 Oct 2012 01 Dec 2015 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 112.22 Cumulative Contract Awards
ADB 37.60 26 Feb 2008 37.34 0.00 99%
Counterpart 74.62 Cumulative Disbursements
Cofinancing 0.00 26 Feb 2008 32.84 0.00 87%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - Satisfactory Satisfactory - Satisfactory

Evaluation Documents

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