Mongolia: Road Sector Capacity Development

Sovereign Project | 43040-012

Summary

After the award of the Oyu Tolgoi copper-gold mining concession in 2009, there are prospects for Mongolia's gross domestic product to triple within 10 years. To proceed on this high-growth track, Mongolia will need massive infrastructure investments. According to Mongolia's National Development Strategy, the road sector is expected to implement a large program of road sector investments in a short time, and then to efficiently manage the new road assets. To assist Mongolia in scaling-up the size and quality of its road network, and in support to its investment projects, the Asian Development Bank (ADB) prepared a sector capacity assessment study in 2010. At government request, ADB approved a small-scale technical assistance to support the government and sector stakeholders to prepare, in a participatory manner, a National Road Sector Capacity Development Roadmap (the Roadmap).

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Project Name Road Sector Capacity Development
Project Number 43040-012
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7844-MON: Road Sector Capacity Development
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector Transport - Road transport (non-urban) - Urban public transport
Gender Equity and Mainstreaming No gender elements
Description

After the award of the Oyu Tolgoi copper-gold mining concession in 2009, there are prospects for Mongolia's gross domestic product to triple within 10 years. To proceed on this high-growth track, Mongolia will need massive infrastructure investments. According to Mongolia's National Development Strategy, the road sector is expected to implement a large program of road sector investments in a short time, and then to efficiently manage the new road assets. To assist Mongolia in scaling-up the size and quality of its road network, and in support to its investment projects, the Asian Development Bank (ADB) prepared a sector capacity assessment study in 2010. At government request, ADB approved a small-scale technical assistance to support the government and sector stakeholders to prepare, in a participatory manner, a National Road Sector Capacity Development Roadmap (the Roadmap).

The government has asked ADB for capacity development technical assistance (CDTA) to assist in the initial implementation of the Roadmap's main capacity development activities and planned reforms. This report is based on the understandings reached with the Government of Mongolia and the mission's observations in the field during the CDTA fact-finding mission fielded in October 2010. The Government of Japan indicated its agreement to finance the CDTA in February 2011. It reflects agreements reached on the impact, outcome, outputs, implementation arrangements, cost, financing arrangements, and terms of reference for consulting services for the CDTA. The design and monitoring framework is in Appendix 1.

Project Rationale and Linkage to Country/Regional Strategy

Mongolia's small and low-quality road network has become a significant constraint to wider development and poverty reduction. Most of the roads connecting landlocked Mongolia to its neighbors are dirt roads. Roads in rural areas are in poor condition, frequently impassable and dangerous, which hampers development of much of Mongolia's territory. Linked to this, the population is rapidly migrating to the capital city, Ulaanbaatar, which provides better economic opportunities. The city's infrastructure has not kept pace with demand. Between 1998 and 2008, Ulaanbaatar's population grew from 660,000 to 1.05 million and the number of vehicles on the roads increased by 150%. As the capacity of the city road network barely expanded, and its quality deteriorated, average traffic speed fell by half.

The government now wishes to address the limitations in the road sector. The country's transport sector strategy and priorities are established in the national development strategy. The government plans to use mining revenues to expand the national paved road network from 2,180 km in 2009 to 5,572 km in 2016, and to construct or rehabilitate 500 km urban roads. This is expected to support mining sector development and enable broad-based economic growth.

Impact Improved road sector performance and governance
Project Outcome
Description of Outcome Increased capacity of road agencies to plan and execute efficient road construction and maintenance
Progress Toward Outcome Project completed.
Implementation Progress
Description of Project Outputs

Output 1: Policy advice on road map implementation, including:

1.1 DOR and UB DOR medium-term institutional development

1.2 Road Fund restructuring and Road Board establishment

1.3 Periodic maintenance program

1.4 Urban road maintenance strategy

1.5 Road research and technology transfer development

Output 2: Capacity building on road map implementation

2.1 Sector institutional restructuring initiated

2.2 Road maintenance management practices enhanced

2.3 Civil works management practices enhanced

2.4 Transport planning practices enhanced

2.5 Sector education and technological development initiated

Status of Implementation Progress (Outputs, Activities, and Issues) Project completed
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

Consulting services will assist the government and other sector stakeholders to review international experience, identify implementation options, and build consensus on preferred implementation options.

The stakeholder working groups that were formed during the preparation of the Roadmap will meet semiannually to review progress. With the assistance of MRTCUD's monitoring and evaluation department and CDTA consultants, they will prepare recommendations to the Implementation Committee.

During Project Implementation Consultation on the development and implementation of the road map
Business Opportunities
Consulting Services

ADB is currently evaluating the proposals received from the shortlisted firms. ADB will engage an international consulting firm in association with a national consulting firm using the full technical proposal procedure.

In selecting this firm, a weight of 90% for quality and 10% for cost will be used, reflecting the strategic importance that the government attaches to the quality of the TA. To facilitate TA implementation, ADB will also engage an individual national project management consultant. All consultants will be engaged by ADB in accordance with its Guidelines on the Use of Consultants (2010, as amended from time to time). The proceeds of the TA will be disbursed in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). Procurement of equipment and software will follow ADB's Procurement Guidelines (2010, as amended from time to time).

Procurement

The TA will be implemented from September 2011 to September 2013. The executing agency will be the MRTCUD. A high-level steering committee will monitor the road map progress, solve major implementation issues, and submit reform proposals to the government. It will be chaired by the deputy prime minister, include high-level representatives of the Ulaanbaatar government and relevant ministries, and meet at least semiannually. At the technical level, an implementation committee will guide and coordinate the road map implementation, facilitate consultants' access to officials, and discuss issues and decide on when to report them to the high-level steering committee. The implementation committee will meet at least quarterly. It will be chaired by the director general, DOR, and include representatives of the MRTCUD, the DOR and UB DOR, the Ministry of Finance and at least one nongovernment professional association. The DOR and UB DOR will have the responsibility to prepare measures under the road map and implement them, acting as

implementing agencies in their respective areas of responsibility.

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 TransportationMr. Rentsendorj ONON, Director General, Road Policy Implementation and Coordination Departmentonon@mrt.gov.mn / www.mrt.gov.mn11 Chinggis Avenue, Sukhbaatar District Ulaanbaatar 14251 Mongolia
Timetable
Concept Clearance 07 Oct 2010
Fact Finding 12 Oct 2010 to 18 Oct 2010
MRM -
Approval 11 Aug 2011
Last Review Mission -
Last PDS Update 27 Mar 2015

TA 7844-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Aug 2011 27 Sep 2011 27 Sep 2011 30 Sep 2013 31 Mar 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 300,000.00 0.00 0.00 0.00 2,300,000.00 11 Aug 2011 1,734,694.03
Title Document Type Document Date
Road Sector Capacity Development: Technical Assistance Completion Report TA Completion Reports Jun 2015
Road Sector Capacity Development Technical Assistance Reports Jul 2011

Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

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