Mongolia: Social Sectors Support Program

Sovereign Project | 43096-013

Summary

The Program will support the fiscal adjustment necessary for Mongolia's economic stabilization program and help to ensure that the budget for social sectors expenditures remains adequate. The Program will protect the poor during the financial crisis by implementing a set of policy measures in the social welfare, health, and education sectors to provide essential social services, and to initiate longer-term reforms to improve the targeting of social assistance and living conditions of the poor, especially in ger areas of Ulaanbaatar.

Latest Project Documents

Project Results

 

23,806

teachers trained with quality or competency standards


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Project Name Social Sectors Support Program
Project Number 43096-013
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0151-MON: Social Sectors Support Program
Asian Development Fund US$ 16.90 million
Loan 2523-MON: Social Sectors Support Program
Asian Development Fund US$ 43.10 million
Loan: Social Sectors Support Program
Japan International Cooperation Agency US$ 30.00 million
TA 7300-MON: Strategic Capacity Development for Social Sectors
Technical Assistance Special Fund US$ 700,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Education - Education sector development
Health - Health care finance - Nutrition
Public sector management - Social protection initiatives
Water and other urban infrastructure and services - Urban policy, institutional and capacity development
Gender Equity and Mainstreaming
Description The Program will support the fiscal adjustment necessary for Mongolia's economic stabilization program and help to ensure that the budget for social sectors expenditures remains adequate. The Program will protect the poor during the financial crisis by implementing a set of policy measures in the social welfare, health, and education sectors to provide essential social services, and to initiate longer-term reforms to improve the targeting of social assistance and living conditions of the poor, especially in ger areas of Ulaanbaatar.
Project Rationale and Linkage to Country/Regional Strategy

The Program will support the fiscal adjustment necessary for Mongolia's economic stabilization program and help to ensure that the budget for social sectors expenditures remains adequate. The Program will protect the poor during the financial crisis by implementing a set of policy measures in the social welfare, health, and education sectors to provide essential social services, and to initiate longer-term reforms to improve the targeting of social assistance and living conditions of the poor, especially in ger areas of Ulaanbaatar.

The global financial and economic crisis has had immediate and very negative fiscal and economic consequences for Mongolia and compromises the Government's capacity to sustain high social spending. The current crisis comes close on the heels of high inflation and severe increases in food prices in 2008, which have weakened the coping capacity of many households in Mongolia, especially those of the poor. With one-third of Mongolia's population living in poverty, unless the Government is able to bring about an orderly adjustment to this external shock, the social consequences will be severe, potentially unwinding the gains of recent years and threatening the attainment of the Millennium Development Goals (MDGs). In close coordination with other development partners and donors, the Program will help the Government to limit social sector expenditure cuts in 2009 and 2010. Lessons from the 1997 1998 Asian financial crises provide clear evidence of the importance of protecting expenditures, in particular for nutrition and health outcomes.

Through specific short-term policy measures, the Program will also help to reduce out-of-pocket expenditures of poor households for health care and increase micronutrient consumption. At the same time, the policy measures will improve the long-term sustainability of social expenditures through better targeting and rationalization of social transfers in the health, health insurance, education, and social welfare sectors.

About 22% of Mongolia's poor are concentrated in Ulaanbaatar. The present crisis provides opportunity to ensure long-term improvements to the living conditions in poor ger areas around the capital city. The Program directly supports government plans to mitigate the effect of the crisis on the poor and supports the country partnership strategy's focus on inclusive social development. The Program is in line with the development agenda of inclusive economic growth in ADB's longterm strategic framework 2008 2020 (Strategy 2020) and ADB's global economic crisis response strategy of striving to rebalance economies and provide support to the poor.

Impact Poverty level and per capita consumption of the poor have not deteriorated after the implementation of the Government's economic stabilization program.
Project Outcome
Description of Outcome Pro-poor funding of priority basic services ensured
Progress Toward Outcome

The program supported the successful implementation of a macroeconomic policy and achieved concrete steps toward broader policy reforms in four sectors through the twelve policy reform areas. Strong follow-up actions greatly enhanced the effectiveness of the program. Through the accompanying TA, the use of the ADB-supported Proxy means testing (PMT), the overarching policy measure that drove the program, has been strengthened as a viable tool for Government targeting of social benefit.

The SSSP is rated effective in achieving its intended outcome. Pro-poor funding of priority basic services in 2010-2011 was ensured and reforms to improve the efficiency of social welfare spending and improve living conditions of the poor were initiated. The Project Completion Report was approved on 13 March 2013.

Implementation Progress
Description of Project Outputs

Component 1: Social Welfare

1.1. Targeting (through means testing) of social welfare assistance improved and social welfare programs consolidated.

1.2: Hospital admissions through an expanded drug discount system for outpatients at FGPs and SHCs reduced.

1.3: Targeting of government subsidies for health insurance contributions through proxy means testing improved.

Component 2: Health

2.1: Emergency mechanism for purchases of medicines and vaccines in case of acute shortages established.

2.2: Coverage of micronurients fortification for children 6-23 months and pregnant and lactating women expanded.

2.3: Medicard program for the poor (free consultation, tests, and medicines) at primary health care and hospital levels established.

Component 3: Education

3.1: Targeting of secondary level textbook subsidies is improved.

3.2 and 3.3: Quality of education through strengthened teachers in-service training and evaluation system improved.

Component 4: Urban Infrastructure

4.1 and 4.2: Capacity development guidelines for ger district development, and safeguard considerations for the revision and prioritization of the Ulaanbaatar Urban Development Master Plan are in place.

Component 5: Maximize the opportunities for gender impact in design and implementation of the program

Component 6: Firm foundations for change are built through strategic capacity development

Status of Implementation Progress (Outputs, Activities, and Issues) The SSSP supported outputs in 12 policy reform areas (PRAs). The first PRA was the government's arrangement with the IMF, which was a general condition for the program loan. The other 11 PRAs were in the social welfare (3), health (3), education (3), and urban development sectors (2). Nineteen performance targets and/or indicators were set in these PRAs. Policy reform activities under the education and urban development components in PRAs 8 12 were implemented in collaboration with JICA. Program implementation was strongly supported by ADB's TA to support strategic capacity development for the social sectors. All performance targets for the nine policy reform outputs were achieved at program completion. Seventeen of these targets were accomplished well within the target dates, demonstrating the strong commitment of the government to the policy reform measures. The delays in reaching the remaining two performance targets, which were related to the targeting and consolidation of social welfare assistance, were due to reluctance in the parliament to support reforms along this line.
Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultation has been carried out with Government, development partners, and other relevant stakeholders during the preparation of the Program. In addition, the poverty and social analysis is based on a rapid assessment with focus group discussions and key informant interviews carried out in rural soums and urban districts, the qualitative poverty assessment of February 2009, and the analysis of the 2007 2008 National Statistics Office poverty data compiled for the CPA in April 2009.
During Project Implementation
Business Opportunities
Consulting Services Consultants will be recruited under ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) for the recruitment of international and national consultants. ADB will recruit the consultants on an individual basis. Each TA component will require consulting services of up to three individual consultants. A total of 19 person-months of international consultants (6 consultants) and 46 person-months of national consultants (7 consultants) will be needed to support TA activities.
Procurement All equipment and materials will be procured by the MOF in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Ownership will be transferred to the Government after completion of the TA. The equipment and materials procured will include computers, software, printers, and other equipment necessary for the implementation of TA activities.
Responsible ADB Officer Claude Bodart
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Ministry of Social Welfare and Labor T. GandiiUnited Nations Avenue 5
Ulaanbaatar-46
Mongolia
Ministry of FinanceD. Batturbattur_d@mof.gov.mnGovernment Building 2, UN St 5/1, Mongolia 15160
Timetable
Concept Clearance 14 Apr 2009
Fact Finding 06 May 2009 to 10 Mar 2011
MRM 18 May 2009
Approval 24 Jun 2009
Last Review Mission -
PDS Creation Date 15 May 2009
Last PDS Update 27 Mar 2013

Grant 0151-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Jun 2009 26 Jun 2009 15 Jul 2009 31 Dec 2010 31 Mar 2012 30 Sep 2012
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 46.90 Cumulative Contract Awards
ADB 16.90 24 Jun 2009 16.90 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 30.00 24 Jun 2009 16.90 0.00 100%

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.10 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.10 Cumulative Disbursements
Cofinancing 30.00 - 0.00 0.00 %

Loan 2523-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Jun 2009 26 Jun 2009 15 Jul 2009 31 Dec 2010 31 Mar 2012 30 Sep 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 43.10 Cumulative Contract Awards
ADB 43.10 24 Jun 2009 43.87 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 24 Jun 2009 43.87 0.00 100%

TA 7300-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Jun 2009 16 Jul 2009 16 Jul 2009 30 Jun 2011 31 Dec 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 100,000.00 0.00 0.00 0.00 800,000.00 24 Jun 2009 605,206.63
Title Document Type Document Date
Social Sectors Support Program Project/Program Completion Reports Mar 2013
Amendment to the Financing Agreement for Social Sectors Support Program between Mongolia and Asian Development Bank dated 08 February 2012 Financing Agreement Feb 2012
Social Sectors Support Program (Second Tranche) Progress Reports on Tranche Releases Jan 2012
Financing Agreement for Social Sectors Support Program between Mongolia and ADB dated 26 June 2009 Financing Agreement Jun 2009
Social Sectors Support Program Reports and Recommendations of the President Jun 2009
Social Sectors Support Program Design and Monitoring Frameworks May 2009

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Mongolia: Social Sectors Support Program Validations of Project Completion Reports Nov 2014

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