Mongolia and ADB
ADB’s support to Mongolia focuses on inclusive, climate-conscious development, and improving infrastructure to help diversify the economy and build resilience.
The twin shocks of the Russian invasion of Ukraine and the border closure with the People’s Republic of China (PRC) due to the coronavirus disease (COVID-19) caused significant stress on Mongolia’s economy in 2022. Conditions began to improve during the second half of the year as border restrictions eased, allowing for increased exports of mineral products to the PRC. Growth in 2022 was 4.8% compared to 1.6% in 2021 and –4.6% in 2020. Mongolia’s ongoing economic recovery remains vulnerable to shocks, though the economy is transitioning to a post-pandemic expansion.
The Asian Development Bank (ADB) is a key source of external finance for Mongolia. ADB has provided $308.5 million on average annually from 2017 to 2022. ADB’s assistance is aligned with Mongolia’s New Recovery Policy and Vision-2050.
To date, ADB has committed 357 public sector loans, grants, and technical assistance totaling $3.7 billion to Mongolia. Cumulative loan and grant disbursements to Mongolia amount to $2.91 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds. ADB’s ongoing sovereign portfolio in Mongolia includes 40 loans worth $1.37 billion.
ADB, through its countercyclical support facility, provided $100 million in emergency assistance for Mongolia in 2022. The support helped the government to weather adverse social and economic impacts especially for poor and vulnerable groups, including women and girls.
ADB committed $30 million to support livestock production in 20 soums (districts) of Mongolia. The project will help protect herders against climate change impacts and increase the quality of livestock products. ADB also committed $38 million for a project supporting sustainable tourism and conservation in two national parks, which will help boost the tourism-related skills and income of more than 16,000 residents
ADB approved an $18 million private sector loan to support food security and job creation in Mongolia. The proceeds will be used as additional working capital support for Ulaanbaatar Flour to procure 60,000 tons of wheat directly from 6,000 local farmers. It will also provide financing for the construction of new warehouses, additional quick-service restaurants, and maintenance capital expenditures.
The Japan Fund for Prosperous and Resilient Asia and the Pacific provided a $2-million grant to increase efficient and renewable energy heating systems in remote areas in Mongolia. The project will help design, procure, and install more sustainable heating systems in hospitals in soum centers
Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Mongolia as of 31 December 2022 was $47.37 million representing 0.37% of ADB’s total private sector portfolio.
Operational challenges. Projects in Mongolia face challenges such as delayed implementation due to inadequate project readiness, limited construction season due to weather conditions, weak institutional capacity of implementing agencies in project management, price escalation of construction materials due to inflation, shortages of construction materials due to supply bottlenecks, and poor performance of contractors.
ADB will continue to improve project implementation by ensuring that more projects are design- and procurement- ready at the approval stage. In 2022, ADB approved the Small Expenditure Financing Facility for $20 million to finance activities that support project readiness and strengthen implementation of infrastructure projects. To strengthen the capacity of implementing agencies, ADB supports ongoing capacity building training. ADB closely monitors overall project implementation and adopts remedial measures on a case-by- case basis.
ADB, the Asian Development Bank Institute, and the ADB–PRC Regional Knowledge Sharing Initiative organized the East Asia Forum where experts shared the region’s progress in providing innovative and sustainable solutions to decarbonization.
ADB conducted research and analysis on the experiences, needs, and aspirations of young people in the Bayankhoshuu and Selbe areas to engage local youth on the future of Mongolia’s urban areas. The study covered issues such as non-income poverty dimensions, gender inequalities, and employment prospects.
As part of its gender equity support to Mongolia, ADB published the working paper Impact of Gender Inequality on Long-Term Economic Growth in Mongolia.
ADB also published papers on the regulation of medicines and health-care financing reform including results, lessons learned, and future directions to support health sector reform in Mongolia.
ADB Projects in Mongolia Project data sheets for loans, grants, TAs
Number of Shares Held
1,596 (0.02% of total shares)
40,710 (0.31% of total membership, 0.47% of total regional membership)
*Overall capital subscription
*Paid-in capital subscription
* United States dollar figures are valued at rate as of 31 December 2022.
ADB Governor: Javkhlan Bold
ADB Alternate Governor: Lkhagvasuren Byadran
ADB Director: Noor Ahmed (Pakistan)
ADB Alternate Director: Justine Sicat (Philippines)
ADB Director’s Advisors: Ronald Ray San Juan (Philippines) and Erdenetuya Darinchuluun (Mongolia)
Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.
Cumulative cofinancing commitments in Mongolia:
In 2022, Mongolia received $100 million loan cofinancing from the Asian Infrastructure Investment Bank for the Weathering Exogenous Shocks Program, and a total of $4 million grant cofinancing from the Japan Fund for Prosperous and Resilient Asia and the Pacific for the Sustainable Tourism Development – Phase 2 and the Renewable Heating Demonstration in Remote Areas projects.
ADB’s country partnership strategy, 2021–2024 for Mongolia supports sovereign and nonsovereign investments, policy reforms, capacity building, and knowledge solutions to help Mongolia recover from the COVID-19 crisis and lay resilient foundations for inclusive, sustainable growth. ADB will focus on three strategic priorities: (i) fostering inclusive social development and economic opportunity; (ii) climate-resilient infrastructure to drive competitiveness and diversification; and (iii) resilience for sustainable, green, and climate-conscious development. ADB also has five thematic priorities: gender equality; digital transformation; private sector participation including public–private partnerships (PPPs); institutional capacity and governance; and civil society engagement. ADB will explore more opportunities in private sector operations and PPPs. It will expand its nonsovereign operations including support for financial institutions, renewable energy, small- and medium-sized enterprises, food processing, and agribusinesses.
Mongolia Resident Mission
Country Director: Pavit Ramachandran
Asian Development Bank
Shangri-La Office, Level 18, Shangri-La Centre,
19A Olympic Street, Sukhbaatar District-1,
Ulaanbaatar 14241, Mongolia
Tel: +976 11 313440 / 323507 / 329836
Fax: +976 11 311795
Ministry of Finance
Government Building No. 2 S. Danzan’s Street
5/1 Ulaanbaatar 15160, Mongolia
Tel: +976 51 267468
Fax: +976 51 260247
ADB has approved a $448 million investment program to support green and inclusive development of Mongolia’s aimags (provinces) and soums (subprovinces).
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