Mongolia : Ulaanbaatar Urban Services and Ger Areas Development Investment Program
The program aims to initiate an urban redevelopment process in ger areas. Improving infrastructure within the ger area subcenters and connectivity with the city core center is critical for inclusiveness and mobility of people and creating clusters of urban subcenters. Better urban planning and development of infrastructure along priority roads will initiate a structural change of subcenter urban fabric. This will (i) improve residents' access to basic urban services, public space, and socioeconomic facilities; (ii) support local economic development; (iii) allow residents and businesses to take advantage of urban economies; and (iv) provide better housing options. The changes in land use and higher urban density will improve water, sanitation, and heating services delivery.
Project Details
-
Project Officer
Mamatkulov, Raushanbek
Sectors Group
Request for information -
Country/Economy
Mongolia -
Modality
-
Sector
- Water and other urban infrastructure and services
Related Projects
Project Name | Ulaanbaatar Urban Services and Ger Areas Development Investment Program | ||||||
Project Number | 45007-003 | ||||||
Country / Economy | Mongolia |
||||||
Project Status | Active | ||||||
Project Type / Modality of Assistance | Grant Loan |
||||||
Source of Funding / Amount |
|
||||||
Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
||||||
Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Private sector development |
||||||
Sector / Subsector | Water and other urban infrastructure and services / |
||||||
Gender | Effective gender mainstreaming | ||||||
Description | The program aims to initiate an urban redevelopment process in ger areas. Improving infrastructure within the ger area subcenters and connectivity with the city core center is critical for inclusiveness and mobility of people and creating clusters of urban subcenters. Better urban planning and development of infrastructure along priority roads will initiate a structural change of subcenter urban fabric. This will (i) improve residents' access to basic urban services, public space, and socioeconomic facilities; (ii) support local economic development; (iii) allow residents and businesses to take advantage of urban economies; and (iv) provide better housing options. The changes in land use and higher urban density will improve water, sanitation, and heating services delivery. | ||||||
Project Rationale and Linkage to Country/Regional Strategy | In 2012 Ulaanbaatar had a population of 1.3 million. Since the 1990s, it has had limited formal extension of its core, which largely comprises apartment blocks with comprehensive utility services, including dedicated heating, water, and sanitation. However, successive waves of in-migration with ger tents have reshaped the city's geography, with (i) little upgrading or extension of basic urban services; and (ii) government policy, since 2003, to give each citizen about 700 square meters of land. A vast low-density peri-urban area, named ger areas, now extends around the city core, characterized by unplanned settlement of low- and medium-income households with land ownership, unserviced plots, unpaved roads, and poor facilities. The ger area population is estimated at 800,000, representing 60% of Ulaanbaatar or 30% of the country population. Despite their size, ger areas have until recently been considered temporary settlements. However, their official integration in the 2013 city master plan provides the necessary provision to plan the redevelopment of a formal peri-urban area. Living conditions in ger areas are difficult. Poor sanitationhouseholds almost exclusively rely on open pit latrinesand poor waste collection have created highly unsanitary living conditions. Air pollution is among the most severe in the world, particularly during winter because of inadequate household heating systems and unpaved roads. Access to water, supplied by kiosks operated by the Ulaanbaatar Water Supply and Sewerage Authority (USUG), is limited. In 2011, most of the 40,000 people migrating to Ulaanbaatar settled in ger areas; by 2022 the population is estimated to grow by 400,000 from in-migration and natural growth. Under current situation, the forecasted population increases is a serious threat to the city environment and the health of the population if the situation is not improved. Lack of long-term planning, infrastructure investment, and land use regulation in ger areas have resulted in haphazard development, limited availability of space for public facilities, poor access to socioeconomic services, reduced livelihood opportunities, and insecure neighborhoods. The lack of basic urban infrastructure is constraining rational and dynamic urban development, increasing the costs of doing business and of accessing services. The city core where jobs and services are concentrated now has unprecedented congestion. The service gap between the city core and ger areas means ger residents are poorly integrated in the urban economy; it is one of the most urgent and difficult development challenges. While various government and development partner initiatives have significantly improved living conditions in ger areas, approaches have generally focused on specific sectors, failing to design a sustainable vision and provide integrated solutions for the problems of peri-urban development. Subcenter upgrading. High construction cost, lack of urban planning, and inadequate infrastructure constrain the upgrading of ger areas. These areas are predominately residential with pockets of activity nodes, called subcenters, providing commercial and administrative services. The influence area of a subcenter varies from 30,000 to 100,000 people. Despite the critical function of subcenters in overall spatial and local development, urban services have not been substantially improved. The lack of basic infrastructure limits economic growth and increases negative environmental impacts. |
||||||
Impact | Improved living conditions in Ulaanbaatar |
Project Outcome | |
---|---|
Description of Outcome | A network of livable, competitive, and inclusive subcenters in Ulaanbaatar's ger (yurt or traditional tents) areas |
Progress Toward Outcome | The availability period for the MFF program has been approved for extension until 11 Dec 2026. Tranche 1 closed on 31 December 2021, and its financial closing will be processed once the arbitration issue with one civil works contractor has been resolved. The loan closing date of tranches 2 and 3 were also extended up to 11 Dec 2026 and all procurement activities are being closely monitored so that all works will be completed within the revised closing date. Three of the four outcome indicators are achieved to date: density of targeted subcenters is 134 person per hectare, the number of establishments increased by 41.9% against 30% target, and the unit production of water has been reduced. One outcome indicator has been partially achieved: percent of population with improved access to water, sanitation, and heating increased to 50%. |
Implementation Progress | |
Description of Project Outputs | 1. Roads and urban services are expanded within the targeted subcenters and connectivity between subcenters is improved 2. Economic and public services in subcenters are improved 3. Service providers become more efficient 4. Institutions and capacity for urban development, program management, and service delivery are strengthened 4.1 Subcenter development and community engagement 4.2 Operations and management of service providers improved 4.3 Strengthened program implementation capacity |
Status of Implementation Progress (Outputs, Activities, and Issues) | Implementation of tranches 2 and 3 slowed considerably due to the loss of the 2020-2022 construction seasons because of the following reasons: (i) seven periods of strict lockdowns and five periods of quarantine related to COVID-19; (ii) constricted and extremely slow cross-border trade because of prolonged restrictions at the People's Republic of China (PRC)-Mongolia border brought about by the PRC's zero-COVID-19 policy and the associated supply chain disruption; the Russian invasion of Ukraine, which further delayed imports of equipment from Europe; (iii) substantial price escalation and overruns in the costs of civil works and goods, which resulted in bidders being reluctant to bid for packages under the project, with multiple cases of rebidding; and (iv) substantial delays in mobilizing MUB counterpart financing because of the slowing economy and the resulting sharp reduction of state budget revenues. |
Geographical Location |
Summary of Environmental and Social Aspects | |
---|---|
Environmental Aspects | The environmental safeguard category for Project 1 is B. Anticipated impacts from infrastructure components are site-specific and reversible, are not unprecedented in scale, and mitigation measures can be easily designed. An initial environmental examination for Project 1, and an environment assessment and review framework for the entire investment program were prepared and disclosed on ADB's website in accordance with ADB's Safeguard Policy Statement (2009). |
Involuntary Resettlement | A land acquisition and resettlement framework for the investment program as a whole and resettlement plans for individual subprojects were prepared and disclosed on ADB's website. In view of the preliminary analysis which indicated significant land acquisition and involuntary resettlement, the involuntary resettlement category for Project 1 is A. During PPTA, efforts were made to minimize resettlement. |
Indigenous Peoples | The categorization for indigenous peoples is C. The review of the subcenters done by TA 7591 indicated that the population in the project area does not include communities that could be treated as indigenous peoples under the ADB's Safeguard Policy Statement (2009). |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | Consultation with initial stakeholders included ger area residents, private and public services, service providers in the subcenters, local government, Ulaanbaatar Municipal Government, public utilities (i.e., USUG and heating companies). The PPTA conducted a poverty and social analysis and addressed social safeguards. A socioeconomic survey, affordability survey, stakeholder workshops, focus group discussions, and key informant interviews were also conducted during the PPTA. |
During Project Implementation | Relevant sections of the Facility Administration Manual such as social action plan, gender action plan, resettlement plan, environmental management plan, and stakeholder communication strategy provide information on stakeholder communication, participation, and consultation for the investment program. |
Business Opportunities | |
---|---|
Consulting Services | The investment program will include a program management facility under which consulting firm will assist MUB in overseeing program development, implementation, and management. Consulting firm specializing in engineering and urban services operation will be engaged to develop the capacity of service providers in compliance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). |
Procurement | All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). |
Responsible ADB Officer | Mamatkulov, Raushanbek |
Responsible ADB Department | Sectors Group |
Responsible ADB Division | Water and Urban Development Sector Office (SG-WUD) |
Timetable | |
---|---|
Concept Clearance | 14 Dec 2011 |
Fact Finding | 20 Jun 2013 to 03 Jul 2013 |
MRM | 02 Sep 2013 |
Approval | 12 Dec 2013 |
Last Review Mission | - |
Last PDS Update | 26 Mar 2024 |
MFF Facility Concept 0078-MON
Financing Plan | Loan Utilization | ||||
---|---|---|---|---|---|
Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 160.00 | Cumulative Contract Awards | |||
ADB | 160.00 | - | 0.00 | 0.00 | % |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | - | 0.00 | 0.00 | % |
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 Access to Information Policy (AIP) 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.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) 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.
-
Building Livelihoods in Mongolia's Underserved Urban Areas
See the impact and visit the beneficiaries of an ADB-assisted livelihood and area improvement project who are empowered in Mongolia’s ger areas after being adversely affected by involuntary resettlement.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
---|---|---|---|---|
Detailed Design and Construction Supervision of Affordable Housing Pilot Project in Selbe Subcenter | Firm - Consulting | Closed | ||
EIB 83097: Ulaanbaatar Urban Services and Ger Areas Development Investment Program: Tranche 1 [WSC16A] | Invitation for Bids | Closed |
Contracts Awarded
Procurement Plan
Title | Document Type | Document Date |
---|---|---|
Ulaanbaatar Urban Services and Ger Areas Development Investment Program: Procurement Plan | Procurement Plans | Nov 2013 |