ADB is helping Mongolia improve hospital services in the capital, Ulaanbaatar, and strengthen the country's drug safety regime. The project will assist in preparing the first hospital development policy for Ulaanbaatar, strengthen medical residency training and postgraduate programs as part of human resource development, set up a drug regulatory authority, and upgrade a drug control laboratory.
|Project Name||Fourth Health Sector Development Project|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Health / Health sector development and reform
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The project will strengthen the hospital sector in Ulaanbaatar and improve drug safety nationwide. It complements previous Asian Development Bank (ADB) development initiatives in the health sector in Mongolia.|
|Project Rationale and Linkage to Country/Regional Strategy||
1. The project will strengthen the hospital sector in Ulaanbaatar and improve drug safety nationwide. The project builds on previous health sector development initiatives to continue reforming the Mongolian health sector, including health care financing, in line with the National Development Strategy and the government's Health Sector Master Plan (2006-2015). ADB's Independent Evaluation Department's (IED) sector recommendations emphasize the need for structural changes in health care delivery by rationalizing excess hospital capacity at the secondary and tertiary level, particularly in Ulaanbaatar. The project is included in the Country Operations Business Plan (2009-2012) and the Country Partnership Strategy (2010-2015, in preparation). The project is in line with Strategy 2020 and the Operational Plan for Health under Strategy 2020 addressing sector governance issues and promoting more efficient allocation of health resources.
2. ADB is the largest external financier providing assistance to the health sector, and plays a pivotal role in assisting the government to formulate and implement health sector reforms. Support from other partners tends to be focused on assisting the government to address particular diseases or to develop certain programs. ADB works in close consultation with other partners, and to improve aid effectiveness, efforts are made to support the implementation of the Health Sector Master Plan. Efforts are underway under the leadership of the Ministry of Health (MOH) and in coordination with other development partners in the sector to gradually evolve towards a more sector-based assistance. Parallel cofinancing with the World Health Organization is confirmed under this project.
3. The hospital sector absorbs the bulk of the MOH budget and is characterized by excessive capacity, inefficiencies, fragmentation, and lack of quality services. Mongolia has moved from a health service based on the Semashko model of poli-clinics and mono-profile specialist hospitals to a focus on primary health care provided by family doctors working in Family Group Practices. Public secondary and tertiary care in Ulaanbaatar is provided by over 50 hospitals. Six mono-profile hospitals managed by MOH provide tertiary and secondary care in cancer, traumatology and orthopedics, psychiatry, dermatology, pediatrics, and maternal and child care. Also, MOH manages three multi-functional hospitals that provide a wide range of secondary and some tertiary services. District hospitals, under the city government of Ulaanbaatar, provide a limited range of services, mainly internal medicine and neurology services. Deficient quality of services at primary level and the weakness of the district hospital system result in patient seeking care at tertiary level where lower level services are provided at higher costs.
4. There is a rapidly growing and poorly regulated private health sector consisting of hospitals, clinics, laboratories, and pharmacies which are primarily concentrated in Ulaanbaatar. Hospital buildings and equipment in the public and private sectors are generally in poor condition. Patients stay too long in hospitals with many inappropriate admissions. The training of specialist medical staff is not up to international good practice and the management of the hospital sector is weak. Increasing investments in the hospital sector are expected as the economic outlook for Mongolia is promising. The challenge is to ensure investments are used efficiently to improve accessibility and service quality.
5. The cost of reforming the hospital sector in Ulaanbaatar is estimated at about $450 million. A central question is how to use the limited budget available to the project in a strategic way to ensure an efficient use of future investments. A vision, a hospital policy, and a clear hospital reform plan for Ulaanbaatar (including legal, regulatory, and institutional reforms; capacity building needs; and potential financing sources) are missing. Decision-makers have little understanding on how to improve hospital sector management, rationalize hospital services, and especially how district hospitals could be turned into multi-profile hospitals.
6. Mongolia suffers from illegal importation of drugs and circulation of substandard and counterfeit medicines in the market. Drug regulatory functions are fragmented and local drug manufacturers lack compliance with good manufacturing practices. Public information, drug promotion, and post-marketing surveillance are significantly under-developed. The social and economic costs of unsafe drugs sold on the market are high and there is little awareness among decision-makers. Drug safety needs government's interventions as market forces alone will not solve the problem. Mongolia requires investments and technical support as domestic skills in the area of drug safety are scarce.
7. The need to reform the hospital sector has been identified for more than 10 years (with little achievements), although it is clearly reflected in the government's Health Master Plan (2006-2015). The prospects for meaningful health sector reform are greater now than at any time in the past for several reasons. First, public-private partnerships to tap capital and management for the health system are now possible; second, public demand for reform is mounting; and finally, political leaders are starting to recognize the urgency of improving the system. The project will assist Mongolia in preparing future reforms and ensuring decent socio-economic returns of future investments. The project will improve governance in the sector by improving public investment planning, providing decent and efficient hospital services, protecting the population against fake and substandard drugs, and facilitating the public's access to information on hospital performance and drug safety. At the same time, hospital reforms give the government a unique opportunity to establish a public-private collaboration for the benefit of the population. The project will deliver tangible benefits to women by ensuring their active participation in institutional processes to reform the hospital and drug safety sub-sectors.
|Impact||Improved health status of the Mongolian population, including the poor|
|Description of Outcome||Improved health sector efficiency, governance, and drug safety|
|Progress Toward Outcome||
The project assisted the Ministry of Health (MOH) in developing the _Hospital care development policy_ (approved by ministerial order no.55, 2014) and its _Mid-term implementation strategy_ (ministerial order no.181, 2015). The Project also assisted the government in revising the Health Law (approved by parliament in 2016) and developing a new Law on Medical Care and Services (approved by parliament in 2016). Revision of the main legal documents in the health sector will facilitate the implementation of several health sector reform initiatives that aim to increase health sector efficiency, governance and safety. The new laws specify among others (i) semiautonomous status of public hospitals and related changes in institutional, organizational and human resource regulations, (ii) new health sector financing strategy with focus on purchasing of services based on performance of providers, (iii) health human resource related reforms such as reorganization of post-graduate training system, licensing and incentive mechanisms for medical professional.
The project assisted the MOH in improving the drug safety in the country by strengthening drug regulatory functions and upgrading the drug control laboratory to international standards. Concept of establishment of an integrated drug regulatory authority is incorporated in several policy documents: (i) Government Action Plans; and (ii) National Medicines Policy, approved by parliament in October 2014. A Drug Regulatory Unit is operational with 8 staff at the National Center for Health Development. Core regulatory functions of the unit are: (i) registration of medicines and medical devises, (ii) licensing of specialists and providers, (iii) issuance of import and export licenses, (iv) monitoring and reporting adverse drug reactions, (v) monitoring medicines marketing and advertisement, (vi) promoting rational use of medicines, (vii) developing national pharmacopeia and standards. But some functions are still with the General Agency for State Inspection (GASI) such as drug control and control and inspection. The Drug Control laboratory was granted an international accreditation ISO17025 by ANAB/ACLASS in in Dec 2015.
|Description of Project Outputs||
Component 1: Strengthened Hospital Services in Ulaanbaatar
1.1. Hospital development policy and strategic plan for Ulaanbaatar
1.2. A hospital capital investment planning system is established and operational
1.3. A demonstration multifunctional general hospital established in Songinohairkhan district
1.4. Increased hospital governance
Component 2: Strengthened Human Resource Development
2.1. Strengthened postgraduate specialist structure and residency programs
2.2. Hospital management module integrated in a local training institution
Component 3: Strengthened Drug Safety Regime
3.1. A drug regulatory authority established
3.2. Strengthened drug regulatory functions
3.3. Upgraded drug control laboratory, including accreditation system
3.4. Implementation of good manufacturing practice (GMP)
11. Strengthened post-marketing surveillance and adverse drug reaction monitoring
12. Strengthened drug safety governance function at MOH
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The Project aims to turn the Songinokhairkhan district hospital (SDH) of UB city into a multifunctional general hospital to implement the government's hospital development policy. The new demonstration general hospital will be a district-level hospital with 200 beds including an intensive care unit. The hospital will provide inpatient and outpatient care in the seven basic medical specialties (internal medicine, obstetrics, gynaecology, paediatrics, and general surgery), traditional medicine, neurology, infectious diseases and dental care, as well as the first-level emergency care including simple traumatology care for a 150,000 population. The concept design and functional plan of the new hospital is prepared by SIMED (Netherland) in 2015. The Junglim Architect (Republic of Korea) has prepared architectural drawings, which were approved in October 2015. The bid for the construction of the new hospital is awarded to Vamed Engineering (Austria) in May 2017. Construction works started from August 2017. The project also assisted the MOH to develop the _Songinokhairkhan District Hospital Establishment Plan_ that will guide the implementation of the establishment of the new SDH. The plan was approved by the UB city Vice-Mayor in March 2016. The project started the training of medical staff for the new SDH. In total 39 medical doctors in 17 specialty areas and 123 nurses in 11 clinical areas are undergoing the training.
The Project aims to strengthen the postgraduate specialist training structure. The project consultants (i) developed the draft institutional regulatory framework, which describes the roles and functions of institutions involved in postgraduate training planning, accreditation and training, and (ii) provided policy recommendations to advance the current system. Some of the policy recommendations were reflected in the revised Health Law (2016) and the new Law on Medical Care and Services (2016). These recommendations include (i) establishing a regulatory agency/institution under MOH that will be responsible for all regulatory functions on postgraduate specialist training (these functions were previously split between the health and education ministries and training institutions), such as planning, selection of training institutions/hospitals, financing, monitoring and evaluation of training quality, and examination and licensing of the graduates; (ii) refining the status of clinical residents as of the host hospitals' employees; and (iii) defining funding sources and financing mechanisms.
The Project is assisted the MOH to upgrade the residency training programs and curricula in four clinical areas (internal medicine, general surgery, obstetrics-gynaecology and paediatrics) and nursing up to international standards. The approved training curricula are being piloted at the MNMSU. The new residency training curricula have substantial differences in terms of content, training structure, funding mechanism, duration, and requirements for the training institutions, trainers and trainees. MOH is piloting the new curricula in the residency training for the new SDH. To support the new curricula, the Project translated core textbooks. The postgraduate training curricula for nurses were also revised with a strong emphasis on in-service training in the hospital.
The Project supported the School of Public Health, Association of Public Health Specialists and Management Academia to organize two trainings for senior and middle level hospital managers in 2014 and 2015. A total of 50 managers have been trained as planned under the Project. However, institutionalization of the hospital management training, is not in place yet.
The project assisted the MOH in development of the National Medicines Policy (approved by parliament in October 2014) and the Implementation Plan of the National Medicines Policy for 2015-2018. Project consultants also contributed to development of the draft revision of the Law on Medicines and Medical Devises that addresses core reform issues of the National Medicines Policy on (i) establishment of a drug regulatory authority, (ii) strengthening regulatory functions to improve coordination and quality. The concept paper of the revision of the law revision was approved by the Cabinet in May 2015.
A Drug Regulatory Unit is operational with 8 staff at the National Center for Health Development. Core regulatory functions of the unit are: (i) registration of medicines and medical devises, (ii) licensing of specialists and providers, (iii) issuance of import and export licenses, (iv) monitoring and reporting adverse drug reactions, (v) monitoring medicines marketing and advertisement, (vi) promoting rational use of medicines, (vii) developing national pharmacopeia and standards. But some functions are still with the General Agency for State Inspection (GASI) such as drug control and control and inspection.
The Project assisted the government to upgrade the Drug Control Laboratory (DCL) to meet international accreditation standards ISO-17025. The DCL was awarded an international accreditation by ANSI-ASQ National Accreditation Board (ANAB-ACLASS) of USA in December 2015.
The Project aimed to improve quality of GMP inspection and provided technical assistance to local pharmaceutical manufacturers to obtain GMP certification. The assistance include recommendations based on international experience, capacity building activities, upgrading of existing standards and regulations, and independent expert opinion in regard to GMP inspection. Currently two local pharmaceutical companies have obtained the GMP certification.
The Project also assisted the MOH in adapting WHO standard indicators for assessing pharmaceutical systems. The review of a good governance of the pharmaceutical sector using WHO Good Governance Medicines Framework process was done in 2015. The MOH included pharmaceutical sector indicators in its annual publication _Health Indicators_ since 2014.
|Geographical Location||Ulan Bator|
|Summary of Environmental and Social Aspects|
An environmental assessment has been carried out in accordance with the Mongolia regulatory framework and ADB's Safeguard Policy Statement (2009). A consolidated initial environmental examination (IEE) report was prepared, which assesses and addresses the environmental implications of the rehabilitation and expansion of the Songinohairkhan District Hospital and the New Central Laboratory. The consolidated IEE summarizes the findings of the New Central Laboratory Environmental Impact Assessment (EIA) and the Songinohairkhan District Hospital Initial Environmental Examination (IEE), and a due diligence review of project associated facilities. Potential adverse impacts during the construction and operation phase include limited standard construction impacts; and occupational and community health and safety issues, especially the unsafe collection, storage, treatment, and disposal of medical and chemical hazardous waste. The possible adverse environmental impacts will be prevented or minimized to acceptable levels, through the implementation of the environmental management plan (EMP) that includes adequate mitigation and monitoring arrangements. Following up the Inception mission, project national environmental consultant had reviewed the Environmental Management Plan (EMP) of the project and updated relevant sections based on mission recommendations and results of situation analysis and submitted to ADB in June.
The environmental assessment process achieved significant value added by (i) catalyzing, through policy dialog with MNET and GASI, the development of an EIA for the project's associated new central laboratory building; (ii) developing comprehensive management systems for the collection, storage, and treatment of medical and hazardous chemical waste; and (iii) developing a substantial consolidated IEE report which defines environmental mitigation measures, monitoring requirements, institutional responsibilities, and training and capacity building requirements.
The Grievance Redress Mechanism (GRM) guidelines were developed in accordance with recommendations and templates provided by the ADB environmental specialist and submitted to ADB on 9 June and received feedbacks and incorporated them into the guidelines. GRM section of EMP was also revised.
|Involuntary Resettlement||No involuntary resettlement effects are foreseen and the project is classified as a category C project. The upgrading of the facilities of the multifunctional hospital will be on existing government land and will not affect local residents or residential buildings. A resettlement plan and framework are therefore not required. Should there be any change in scope or other changes with unanticipated resettlement impacts during project implementation, land acquisition and resettlement activities will be implemented in accordance with ADB's Safeguard Policy Statement.|
|Indigenous Peoples||The project will not have any negative impact on indigenous peoples and is therefore classified as a category C project. No further actions are therefore required.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations with key stakeholders were held during project preparation including focus groups with beneficiaries such as local community member and hospital patients, in-depth interviews with family general practice doctors, hospital directors, and specialist doctors in Ulaanbaatar. The first series of consultations investigated current access to health services and medical drugs by the poor, and the findings are included in the poverty and social analysis section above. The second round of interviews and focus groups were held with hospital doctors and inpatients to solicit their views, suggestions, and recommendations regarding the proposed project design to establish a multifunctional hospital and a drug regulatory body. The multifunctional hospital will involve establishing new patterns of service delivery which will be complex and there may be risks associated with it. For this reason effective ways of defining and measuring the quality of hospital care will be established and systems will be put place to redress poor quality service should it arise.|
|During Project Implementation||The Project has contracted two local NGOs (_Monconsult_ LLC and _Shagdui_ LLC) to implement the project consultation and participation activities and to foster community participation and involvement. Monconsult has been implementing the community awareness program to raise awareness among community of focus on ongoing hospital reform and drug safety issues and ensure community participation for the monitoring and feedback purposes in Songinokhairkhan district. The program trained 64 outreach workers composed of district social workers and organized three open-day events. Shagdui has developed (i) information, education and communication (IEC) materials on drug safety and hospital care policy that were approved by the Public Health Institute on September 2016; and (ii) prepared the draft communication strategy and action plans for hospital policy reform and drug safety which are awaiting the MOH approval. The public awareness campaign and outreach program started from Q2 2017.|
|Consulting Services||The Recipient is responsible for selecting, engaging, and supervising Consultants engaged under the loans and grants funded by ADB. All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (April 2010, as amended from time to time).|
|Procurement||All procurement of goods and works will be undertaken in accordance with the Asian Development Bank's (ADB) Procurement Guidelines (2010, as amended from time to time). International competitive bidding (ICB) will be applied to goods contracts estimated to cost $2,000,000 or more and works contracts estimated to cost $5,000,000 or more. Goods contracts with values less than $2,000,000 and works contracts with values less than $5,000,000 will follow national competitive bidding (NCB). Works and goods contracts with values less than $100,000 will be procured using ADB's shopping procedure. NCB procurement will be carried out on the basis of NCB procedures, in accordance with the Mongolian Procurement Law, subject to modifications agreed with ADB. Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB's Procurement Guidelines. The internationally tendered equipment packages will include the necessary technical support for ensuring proper installation, testing, commissioning, and training of operational staff as part of the related contracts. In accordance with ADB requirements, foreign contractors may participate in bidding for NCB contracts. For NCB, the first draft English language of the procurement documents (prequalification, bidding documents, draft contract) should be submitted for ADB approval regardless of the estimated contract amount. Subsequent procurement are subject to post review. All ICB contracts are subject to prior review. Prior review and approval of ADB of the procurement documents (prequalification, bidding, contract) is required.|
|Responsible ADB Officer||Jigjidsuren, Altantuya|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Mongolia Resident Mission|
Ministry of Health (formerly Ministry of Health and Sports)
1st Floor, Government Building VIII
Olympic Street 2, Ulaanbaatar
|Concept Clearance||04 Jun 2010|
|Fact Finding||18 May 2010 to 20 May 2010|
|MRM||03 Sep 2010|
|Approval||29 Nov 2010|
|Last Review Mission||-|
|PDS Creation Date||19 Oct 2010|
|Last PDS Update||22 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|29 Nov 2010||10 Dec 2010||03 Mar 2011||31 Dec 2016||31 Dec 2020||-|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||17.70||Cumulative Contract Awards|
|ADB||14.00||29 Nov 2010||8.83||0.00||63%|
|Cofinancing||0.00||29 Nov 2010||5.44||0.00||39%|
|Status of Covenants|
|Approval||Signing Date||Effectivity Date||Closing|
|05 Nov 2012||07 Feb 2013||14 Jun 2013||31 Dec 2016||31 Dec 2020||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||27.00||Cumulative Contract Awards|
|ADB||25.00||05 Nov 2012||21.18||0.00||92%|
|Cofinancing||0.00||05 Nov 2012||3.32||0.00||14%|
|Status of Covenants|
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.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
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.
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.
|Title||Document Type||Document Date|
|Fourth Health Sector Development Project: Annual Progress Report on Environmental Management Plan (December 2013-March 2015)||Environmental Monitoring Reports||Mar 2015|
|Fourth Health Sector Development Project: Annual Progress Report on Environmental Management Plan (March 2011-June 2012)||Environmental Monitoring Reports||Jul 2014|
|Fourth Health Sector Development Project: Environmental Monitoring Report (November 2013)||Environmental Monitoring Reports||Nov 2013|
|Fourth Health Sector Development (Additional Financing)||Initial Environmental Examination||Aug 2012|
|Fourth Health Sector Development Project||Initial Environmental Examination||Nov 2010|
|Fourth Health Sector Development Project: Initial Environmental Examination||Initial Environmental Examination||Nov 2010|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) 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.
No tenders for this project were found.
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Fourth Health Sector Development Project: Procurement Plan||Procurement Plans||Jan 2017|
|Fourth Health Sector Development Project - Additional Financing||Procurement Plans||Jun 2015|