Mongolia : Strengthening Institutional Framework and Management Capacity Project

Sovereign Project | 49409-001

Project Name Strengthening Institutional Framework and Management Capacity Project
Project Number 49409-001
Country / Economy Mongolia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3385-MON: Strengthening Institutional Framework and Management Capacity Project
Ordinary capital resources US$ 35.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Public sector management / Reforms of state owned enterprises

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
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
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
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
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
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
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
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
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.

Title Document Type Document Date
Strengthening Institutional Framework and Management Capacity Project: Completion Report Project/Program Completion Reports Dec 2022
Strengthening Institutional Framework and Management Capacity Project: Erdenes Mongol LLC Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Apr 2022
Strengthening Institutional Framework and Management Capacity Project: Erdenes Mongol LLC Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jun 2021
Strengthening Institutional Framework and Management Capacity Project: Erdenes Mongol LLC Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements May 2020
Strengthening Institutional Framework and Management Capacity Project: Erdenes Mongol LLC Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Dec 2019
Strengthening Institutional Framework and Management Capacity Project: Erdenes Mongol LLC Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Jun 2018
Strengthening Institutional Framework and Management Capacity Project - Erdenes Mongol LLC: Audited Project Financial Statements (For Year Ended 31 December 2016) Audited Project Financial Statements Oct 2017
Guarantee Agreement for Loan 3385-MON: Erdenes Mongol LLC Strengthening Institutional Framework and Management Capacity Project Guarantee Agreements Jun 2016
Loan Agreement (Ordinary Operations) for Loan 3385-MON: Erdenes Mongol LLC Strengthening Institutional Framework and Management Capacity Project Loan Agreement (Ordinary Resources) Apr 2016
Erdenes Mongol LLC Strengthening Institutional Framework and Management Capacity Project: Project Administration Manual Project/Program Administration Manual Mar 2016
Засаглал, менежментийн чадавхийг бэхжүүлэх төсөл: Төслийн МэдээллийнТайлан Translated PDS Mar 2016
Erdenes Mongol LLC Strengthening Institutional Framework and Management Capacity Project: Report and Recommendation of the President Reports and Recommendations of the President Mar 2016
Erdenes Mongol LLC Strengthening Institutional Framework and Management Capacity Project: Procurement Plan Procurement Plans Feb 2016

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
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.

Tenders

Tender Title Type Status Posting Date Deadline
Procurement Specialist (PIU 2nd position) Individual - Consulting Closed
Institutional Coordination and Translation Specialist (Maternity Replacement) Individual - Consulting Closed
ICT Support Unit: Financial Management Specialist Individual - Consulting Closed
ICT Specialist/ Head of ICT Support Unit Individual - Consulting Closed
ICT Support Unit: Project Management Specialist Individual - Consulting Closed
Compliance specialist Individual - Consulting Closed
Technical and Financial Adviser (Energy and Power Project) Advisory Group Individual - Consulting Closed
Technical Adviser (Business Management) for Advisory Group Individual - Consulting Closed
Internal control specialist Individual - Consulting Closed
Business Adviser for Advisory Group Individual - Consulting Closed
Procurement Specialist Individual - Consulting Closed
Project Management Specialist Individual - Consulting Closed
Business Advisor (Research and Development) for Advisory Group Individual - Consulting Closed
PIU - Financial management specialist Individual - Consulting Closed
Communication Specialist for Institutional Coordination Individual - Consulting Closed
Training/Career Development and HR Specialist / Human Resource Management Unit Individual - Consulting Closed
Compensation and Human Resource Specialist / Human Resource Management Unit Individual - Consulting Closed
Technical adviser (Corporate and Operation Strategy) - Advisory group Individual - Consulting Closed
Financial Management Firm Firm - Consulting Closed
ICT Support Unit: ICT Specialist (HR Management) Individual - Consulting Closed
Accounting and Treasury Management Policy Specialist Individual - Consulting Closed
Financial Reporting Specialist Individual - Consulting Closed
Management Consulting Firm Firm - Consulting Closed
Technical & Financial Adviser (Tax & Transfer pricing) Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
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