Regional: Development of Regional Cooperation Programs for Mongolia and the People's Republic of China (Phase 2)

Sovereign Project | 44046-012 Status: Approved


This regional policy and advisory TA is designed to continue ADB's support to PRC-Mongolia cooperation, building on the achievements and recommendations from the first Phase.

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Project Name Development of Regional Cooperation Programs for Mongolia and the People's Republic of China (Phase 2)
Project Number 44046-012
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7618-REG: Development of Regional Cooperation Programs for Mongolia and the People's Republic of China (Phase 2)
Regional Cooperation and Integration Fund US$ 900,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Industry and trade - Trade and services

Transport - Transport policies and institutional development

Gender Equity and Mainstreaming No gender elements
Description This regional policy and advisory TA is designed to continue ADB's support to PRC-Mongolia cooperation, building on the achievements and recommendations from the first Phase.
Project Rationale and Linkage to Country/Regional Strategy

ADB's Long-Term Strategic Framework (Strategy 2020) highlights regional cooperation and integration (RCI) as one of the five core operational areas. In line with this new strategy, ADB will increase its support for RCI-related operations to at least 30% of ADB's total activities.

PRC and Mongolia attach great importance to RCI. Both countries are active participants in various RCI initiatives, including the ADB-led Central Asia Regional Economic Cooperation (CAREC) Program and the United Nations-led Greater Tumen Initiative and Northeast Asia Economic Cooperation Forum. The PRC Country Partnership Strategy (CPS) 2008-2010 identified regional cooperation as one of the four key thrusts of ADB assistance, whereby ADB's RCI programs will be used to enhance regional infrastructure connectivity, facilitate cross-border trade and investment, and promote regional public goods. The Mongolia CPS 2010-2014 also treats regional cooperation as a key cross-cutting theme. Regional cooperation is considered critically important for Mongolia as a land-locked country, as it offers Mongolia an opportunity to strengthen physical and trade links with its neighbors, diversify its economy and realize its growth potential. The CAREC Regional Cooperation Strategy endorses bilateral initiatives which have a broader regional impact. Both PRC and Mongolian governments have requested ADB to support the PRC-Mongolia cooperation.

Since 2007, ADB has been providing technical assistance (RETA 6370) to develop regional cooperation programs between PRC and Mongolia. The RETA has been implemented in line with the broader CAREC objectives and the related sector strategies, but is tailored to address the special needs of the two countries. Initial, but important, achievements have been made, particularly in areas of transport, trade facilitation (customs cooperation and logistics development), and energy. RETA 6370 has come up with a set of key recommendations for further deepening PRC-Mongolia cooperation, which were well-received by the two governments. The two countries have requested ADB to continue to support PRC-Mongolia cooperation. This TA is designed to further deepen cooperation between the two countries, building on the progress achieved so far.

Impact Efficiency of trade between the PRC and Mongolia will be increased.
Project Outcome
Description of Outcome PRC Mongolia cooperation in the priority areas of customs, quarantine, transport, and border-area development will be implemented and deepened
Progress Toward Outcome The coordination between the two governments on regional cooperation has been strengthened. Cooperation in customs and transport have made concrete progress.
Implementation Progress
Description of Project Outputs

1. Deepened PRC-Mongolia customs cooperation

2. Enhanced coordination in border-area development between the PRC and Mongolia

3. Enhanced PRC-Mongolia transport cooperation

4. Launch of a mechanism for cooperation between inspection and quarantine agencies of the PRC and Mongolia

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

The PRC-Mongolia Joint Consultation Workshop on Regional Cooperation was organized in 26-27 May 2011. The two governments reviewed the progress of regional cooperation in the past three years and agreed on priority actions for the 2011 and 2012. A field visit was organized for Mongolian participants to Tianjin Port, which serves as the seaport for Mongolia's international trade. The two governments also agreed to expand the PRC-Mongolia cooperation into the sanitary and phyto-sanitary area.

Three PRC-Mongolia JCC working group meetings have been organized under the TA on 30 May-1 June 2011 in Ulaanbaatar, 22-24 May 2012 in Erlian of PRC and 12-16 November 2013 respectively. The JCC pilot, which was originally introduced in December 2009 in Zamyn-Uud and Erlian, has been expanded to cover 4 pairs of border crossing points. The JCC working group meeting in November 2013 reviewed the progress of the JCC pilot tests since 2009, and concluded that (i) JCC has helped streamline the customs inspection; (ii) use of the harmonized cargo manifests has reduced time and cost for traders and also helped reduce the incidences of customs violations; and (iii) accuracy of data on cross-border road transport has improved. A special JCC working group meeting on e-Manifest was held on 13-15 August 2014, and both sides have agreed on a set of technical specifications of the design of e-Manifest. They further agreed to officially launch the e-Manifest before the end of 2015. ADB will continue to help organize the JCC working group meetings and support the further expansion and deepening of JCC between the two countries.

The TA has supported six training courses for Mongolian customs officers in Shanghai Customs College, which is the Asia-Pacific Regional Training Center designated by World Customs Organization, including two courses in June 2011, two courses in June 2012, and two courses in May 2013 respectively. The key subjects covered by the training include customs risk management, application of modern ICT in customs management, management of special customs zone, etc..

The TA is also helping the two governments establish a bilateral mechanism for dialogues to address various issues related to border area development. Initial focus will be on the border area covering Zamyn-Uud and Erlian which serve as the major gateway for bilateral and transit trade.

The PRC-Mongolia transport working group meetings have been held anually. The amended road transport agreement was signed on 16 June 2011 in Beijing during the official visit of the Mongolian Prime Minister to PRC. A team of PRC and Mongolian national consultants engaged under the TA is preparing operational manuals for implementing the road transport agreements. The working group meetings was organized on 28-29 September 2013 in Hohhot, PRC and 25-26 September 2014 respectively to discuss the details of the manual, which is expected to be finalized before end of 2014. A study tour was organized for Mongolian transport officials to the PRC to learn PRC's experience in national and provincial transport planning and multimodal transport (including logistics) development. Other capacity building activities will also be organized in collaboration with the transport ministries of the two countries. PRC and MON transport officials also conduct a joint field tour of the CAREC corridor 4b on 27-28 September 2014.

ADB is also facilitating dialogues between the inspection and quarantine agencies of the two countries with a view to launch cooperation in sanitary and phytosanitary (SPS) areas.

The TA also provided funding support to the organization of RCI conference held in Kunming of the PRC in March 2012. The conference, the first ever of its kind, brought together about two hundred senior government officials and private sector representatives from ADB's developing member countries to share experience in implementing RCI programs and agree on future priorities in RCI for Asia and the Pacific region.

Due to the latested government changes in MON in second half of 2014, TA implementation had some delay. The completion date of the TA has been extended to 31 December 2015.

Major progress achieved in TA implementation in 2015 include the following: (i) the customs authorities of the two countries agreed to launch e-manifest by November 2015; (ii) a joint case-study of JCC was conducted, supported by international consultant; (iii) the transport agreement operational manual was finanlized, ready for printing and distribution in November; (iv) the PRC and MON transport ministries signed a MOU that will allow Mongolian vehicles to drive to Tianjin and PRC vehicles to drive to Ulaanbaatarthat, providing great facilitation to cross-border transport.

Geographical Location PRC and Mongolia
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The project was designed in response to the request of, and in consultation with the governments of PRC and Mongolia. The actions of the TA are jointly identified by the countries.
During Project Implementation
Business Opportunities
Consulting Services The TA will finance up to 10 person-months of international consulting services and 20 person-months of national consulting services. The consultants will be engaged by ADB as individuals in accordance with the Guidelines on the Use of Consultants (2007, as amended from time to time).
Responsible ADB Officer Yuebin Zhang
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Asian Development Bank
6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Concept Clearance 31 Mar 2010
Fact Finding 17 May 2010 to 21 May 2010
Approval 14 Oct 2010
Last Review Mission -
PDS Creation Date 29 Apr 2010
Last PDS Update 17 Sep 2015

TA 7618-REG

Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Oct 2010 - 14 Oct 2010 31 Dec 2012 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
900,000.00 0.00 0.00 0.00 0.00 0.00 900,000.00 14 Oct 2010 596,949.57

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