Mongolia : Strengthening Institutional Framework and Management Capacity Project
Project Details
-
Project Officer
Van Rijn, Johannes Jacobus Frederik
East Asia Department
Request for information -
Country/Economy
Mongolia -
Modality
-
Sector
- Public sector management
Project Name | Strengthening Institutional Framework and Management Capacity Project | ||||
Project Number | 49409-001 | ||||
Country / Economy | Mongolia |
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Project Status | Closed | ||||
Project Type / Modality of Assistance | Loan |
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Source of Funding / Amount |
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Strategic Agendas | Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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Sector / Subsector | Public sector management / Reforms of state owned enterprises |
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Gender | Some gender elements | ||||
Description | |||||
Project Rationale and Linkage to Country/Regional Strategy | |||||
Impact | Mongolia's state assets effectively managed and utilized to benefit the welfare of Mongolian people |
Project Outcome | |
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Description of Outcome | Fundamental capacity of EM developed for its envisaged development |
Progress Toward Outcome | not applicable |
Implementation Progress | |
Description of Project Outputs | EM's corporate strategy developed EM's functional capability strengthened Capacity to diversify EM's assets-base strengthened |
Status of Implementation Progress (Outputs, Activities, and Issues) | The management consulting firm prepared a report on the institutional assessment for EMGL to hold non-mining assets and identify non-mining investment opportunities in Q4, 2019. The management consulting firm is also providing support for EMGL to establish relations with international investors such as sovereign wealth funds and financial institutions. Financial Management Specialist/Unit Head worked on identifying deficiency in financial management process of the EMGL and prepared a list of potential investors or fund institutions. After working on analysis of parent or investee relationship, the unit's national specialists have developed the uniform financial and accountancy policy for the group company. It was also approved by BOD in December, 2017. The individual consultants provided support to identify, evaluate and prioritize potential assets and projects. Management consulting firm was selected and contract was signed on November 5, 2018. The report on corporate strategy was prepared and submitted to EA by the firm in Q2, 2020. Management consulting firm conducted EMGL's institutional analysis and submitted the final report in Q2, 2020. The final report on corporate roadmap is prepared by the management consulting firm in Q2, 2020. National and international consultants (total 25 in 2016-2020) were engaged to advise and work with the management team and staff of EMGL and its subsidiaries for development and implementation of strategy and policy documents and relevant trainings and workshops have been conducted. As of the end of Q4, 2020, all individual consultants' contracts have ended. Erdenes Asset Management LLC is a wholly owned subsidiary of EMGL established in 2016 with the purpose of attracting institutional investors to invest in large scale projects that are strategically important to Mongolia. It obtained its license to carry out asset management operations from the Financial Regulatory Commission in November 2019 The EA established Investment and Project Financing Division in 2016, which was subsequently expanded to Asset Management Department in 2018. The management consulting firm reviewed the business processes of EMGL and submitted the final report in Q2, 2020. Individual consultants have analyzed business processes at group and individual subsidiary/department level and provided recommendations and associated trainings. ICT Unit has conducted initial analysis on the current state of the EMGL's MIS system and developed the system module requirements to procure. The first version of bidding document developed in line with ADB guidelines was reviewed and endorsed by ADB. EA Working Group (in charge of MIS/ICT system implementation) is established and 2 new consultants for ICT Unit were recruited in Q1/2020. In addition to the PAM specified four modules such as Financial Management, Human Resource Management, Project Management, Supply Chain Management, the EA decided to add Management Operating System module and approved. The EA approved bidding document was submitted to ADB. The recruited HR management specialist/Unit head has developed EMGL's HR strategy requirements. Based on it, the strategy document (2018-2023) was approved by BOD of the EA. November 3 2020, the Ministry of Finance (through a letter of the Cabinet Office) did not agree to a request for a second extension of the project. Project will now close on 15 May 2021. |
Geographical Location | Nation-wide |
Safeguard Categories | |
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Environment | C |
Involuntary Resettlement | C |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | The project is classified as category C for environment, since no adverse environmental impacts are expected from the project. |
Involuntary Resettlement | The project's involuntary resettlement category is C. It will require neither land acquisition nor resettlement. |
Indigenous Peoples | The project is classified as category C for indigenous peoples. |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | - The project is to strengthen Erdenes Mongol's institutional framework and management capacity. - The mission had close discussions with the management and staff of Erdenes Mongol to examine its corporate structure and institutional framework. In addition to a close consultation with the management, the functional capacity of Erdenes Mongol was assessed based on its financial management, procurement, and business practices. |
During Project Implementation | - Strengthening public relations of Erdenes Mongol is included in a part of project activities, which includes improvement in corporate information dissemination to the public, and make communications with stakeholders. |
Business Opportunities | |
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Consulting Services | Since the loan effectiveness, 40 individual consultants were engaged and mobilized, while one audit firm was also engaged last Q3 2019 to assist the borrower, Erdenes Mongol LLC. |
Responsible ADB Officer | Van Rijn, Johannes Jacobus Frederik |
Responsible ADB Department | East Asia Department |
Responsible ADB Division | Public Mgt, Financial Sector and Regional Coop Division, EARD |
Executing Agencies |
Erdenes Mongol LLC |
Timetable | |
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Concept Clearance | 08 Dec 2015 |
Fact Finding | 25 Nov 2015 to 01 Dec 2015 |
MRM | 22 Jan 2016 |
Approval | 31 Mar 2016 |
Last Review Mission | - |
Last PDS Update | 27 Jan 2022 |
Loan 3385-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
31 Mar 2016 | 01 Apr 2016 | 21 Jun 2016 | 31 Oct 2019 | 15 May 2021 | 06 Dec 2021 |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 41.20 | Cumulative Contract Awards | |||
ADB | 35.00 | 05 Jan 2023 | 9.49 | 0.00 | 100% |
Counterpart | 6.20 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 05 Jan 2023 | 9.49 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | - | Unsatisfactory | - | Unsatisfactory |
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
Title | Document Type | Document Date |
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Mongolia: Strengthening Institutional Framework and Management Capacity Project | Validations of Project Completion Reports | Jan 2024 |
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.
ADB Loan to Erdenes Mongol Will Support Economic Diversification Drive
ADB has approved a $35 million loan to help Erdenes Mongol LLC, strengthen its management and investment capacities, allowing it to more effectively support the country’s drive for economic diversification.
Tenders
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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CS-02 MANAGEMENT CONSULTING FIRM | Loan 3385 | 07 Dec 2018 | BDO AUDIT LLC (MONGOLIA) | ULAANBAATAR, MONGOLIA MONGOLIA | Erdenes Mongol LLC | 2,310,140.80 | 2,310,140.80 |
BUSINESS ADVISOR (Research and Development) | Loan 3385 | 31 Jan 2019 | ESMEDEKH LKHANAAJAV | ULAANBAATAR, MONGOLIA MONGOLIA | Erdenes Mongol LLC | 249,600.00 | 249,600.00 |
CS-09-03 TECHNICAL AND FINANCIAL ADVISOR (BUSINESS MANAGEMENT FOR ADVISORY GROUP) | Loan 3385 | 12 Nov 2019 | MINESIGHT PTY LTD. (DAVID PRIOR) | LEVEL 6 AUSTRALIA PLACE, 15-17 WILLIAM STREET, PERTH, AUSTRALIA 6000 AUSTRALIA | Erdenes Mongol LLC | 119,995.00 | 119,995.00 |
SUPPLY CHAIN MANAGEMENT SPECIALIST/UNIT HEAD | Loan 3385 | 08 Nov 2017 | STEVEN BERNARD RYAN | UNITED STATES OF AMERICA UNITED STATES | Erdenes-MGL, LLC | 260,640.00 | 260,640.00 |
TECHNICAL AND FINANCIAL ADVISOR (CORPORATE AND OPERATION STRATEGY) | Loan 3385 | 12 Oct 2017 | ROHANNA DAVID | UNITED STATES OF AMERICA UNITED STATES | Erdenes-MGL, LLC | 258,600.00 | 258,600.00 |
TECHNICAL AND FINANCIAL ADVISOR (TAX & TRANSFER PRICING) | Loan 3385 | 05 Sep 2017 | DLA PIPER UK LLP (SHEE BOON LAW) | NEW ZEALAND NEW ZEALAND | Erdenes-MGL, LLC | 423,400.00 | 423,400.00 |
Bazarsuren Batjargal Executive Operation Management Specialist | Loan 3385 | 26 Jun 2017 | Bazarsuren Batjargal | Ulaanbaatar, Mongolia | Erdenes-MGL, LLC | 294,900.00 | 294,900.00 |
Human Resource Management Specialist/Unit Head | Loan 6008 | 19 May 2017 | AARC Consultancy Ltd.(Himanshu Naharas) | Dublin, Ireland | Erdenes-MGL, LLC | 358,842.00 | 358,842.00 |
Business Management Specialist | Loan 3385 | 17 May 2017 | Sarangua Davaadorj | Ulaanbaatar, Mongolia | Erdenes-MGL, LLC | 232,491.00 | 232,491.00 |
Information and Communication Technologies Specialist (3 March 2017 to 2 Sept 2018) | Loan 3385 | 31 Mar 2017 | Jargalsaikhan Tamir | Ulaanbaatar, Mongolia | Erdenes-MGL, LLC | 221,150.00 | — |
Paul Weiffenbach Business Advisor for Legal Issue | Loan 3385 | 31 Mar 2017 | Paul Weiffenbach | Ulanbaatar Mongolia | Erdenes-MGL, LLC | 436,200.00 | — |
Financial Management Specialist/Unit Head | Loan 3385 | 11 Apr 2017 | Alexander Michael Jurshevski | Toronto Canada | Erdenes-MGL, LLC | 387,000.00 | — |
Business Management Specialist | Loan 3385 | 17 May 2017 | Sarangua Davaadorj | Ulaanbaatar, Mongolia | Erdenes-MGL, LLC | 232,491.00 | — |
Human Resource Management Specialist/Unit Head | Loan 3385 | 19 May 2017 | AARC Consultancy Ltd. (Himanshu Naharas) | Dublin Ireland | Erdenes-MGL, LLC | 358,842.00 | — |
Procurement Plan
Title | Document Type | Document Date |
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Erdenes Mongol LLC Strengthening Institutional Framework and Management Capacity Project: Procurement Plan | Procurement Plans | Feb 2016 |