Mongolia: Government Bond Market Development

Sovereign Project | 45522-001 Status: Closed


Latest Project Documents

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.

Project Name Government Bond Market Development
Project Number 45522-001
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7971-MON: Government Bond Market Development
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 500,000.00
Financial Sector Development Partnership Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Finance sector development - Money and capital markets

Gender Equity and Mainstreaming Some gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

The following activities were completed:


" Inception meetings with MOF office, Deputy Minister, Head of Debt Management and Treasury Department;

" Meetings with other stakeholders;

" Identification of activities that need to be carried out under the TORs of the Team Leader

" Request for government bond auction data, legal and regulatory documents on government bond issuance and secondary markets, earlier studies on Mongolian government bond auction system, etc.

" Review of current government bond auction system including payment and settlement system;

" Review of the CBB auction system of the Bank of Mongolia

" Preparation of Inception Report.


" Reviewing the current government bond auction system including legal, regulatory frameworks and market conditions

- Collecting materials on the current government bond auction system and

- platform in Mongolia

- Collecting data of government bond auction in Mongolia

- Reviewing the legal and regulatory frameworks

" Study on international best practices of government bond auction system

- Study on the case where MOF delegates bond auction administration

- responsibilities to the central bank and accordingly the central bank runs

- its own auction platform

- Study on the case where MOF or its agency runs its own auction platform

- (internally developed or third party vendor platform) and undertakes all

- the government bond issuance processes

- Study on the necessity of legal and regulatory changes in each of these

- alternatives

" Organizing a workshop or seminar

- Presentation on other country cases for international best practice


" Comparative analysis of auction system

- Analysis on pros and cons of central bank administering system and MOF administering system

- Identification of necessary organizational capacity, legal and regulatory amendment issues, and payment and settle arrangement issues

" Comparative analysis of auction platforms

- Analysis on strengths and weaknesses of auction platform alternatives such as the current Bank of Mongolia bond auction platform and Bloomberg government bond auction platform

- Identification of the required features as well as the desirable features of the new bond auction platform that Mongolian government will adopt

" Upgrade of auction platform hardware and software

- Upgrade of the auction platform hardware and software once the auction system and platform is selected by the Mongolian government

- Support on the procurement of new auction software and related services from a globally renowned service provider if procurement is necessary

" Submission of Interim report

- Preparation of interim report based upon the project outcomes and submission of the report by December, 2012

- First draft of final report is being prepared and circulated for comments

- Final workshop for dissemination of the final report is scheduled on November 2014.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

In preparation: discussion with the Ministry of Finance expected in mid-March, 2011.

Reconnaissance mission was conducted in March 14. The MOF and the BOM expressed their interest in having ADB assistance for the development of the government bond market. They requested that ADB provide assistance in such issues as (i) facilitating the longer term issuance; (ii) developing the yield curve; (iii) strengthening institutional investors; and (iv) establishing the primary dealer system. (17 March 2011)

During Project Implementation

Business Opportunities

Consulting Services The TA will engage three international consultants for 20 person-months and three national consultants for 20 person-months. The government bond market expert will be the team leader. Consultants will be engaged by ADB in accordance with its Guidelines on the Use of Consultants (2010, as amended from time to time).
Procurement Equipment will be procured in accordance with ADB's procurement guidelines.

Responsible Staff

Responsible ADB Officer Seung Min Lee
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Ministry of Finance
Government Building-2
Negdsen Undestnii gudamj-5/1
Ulaanbaatar-210646, Mongolia


Concept Clearance 15 Jul 2011
Fact Finding 27 Jun 2011 to 01 Jul 2011
Approval -
Last Review Mission -
Last PDS Update 29 Sep 2014

TA 7971-MON

Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2011 30 Jan 2012 30 Jan 2012 31 Dec 2013 31 Dec 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,000,000.00 0.00 0.00 0.00 0.00 1,000,000.00 14 Dec 2011 774,955.29

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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.