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Mongolia and ADB

Building on a 3-decade partnership and a new country partnership strategy, ADB will help Mongolia recover from the COVID-19 pandemic and progress toward sustainable and inclusive development.

ADB's Work in Mongolia

Mongolia’s gross domestic product expanded by 1.4% in 2021, after a difficult year in 2020. Employment has been under pressure because of the prolonged adverse impacts of the coronavirus disease (COVID-19) pandemic. The Government of Mongolia introduced new policy measures o address COVID-19 in February 2021 with a total budget of over $3.5 billion.

ADB launched a new country partnership strategy for Mongolia in 2021, which aims to aid economic recovery and help lay foundations for long-term inclusive and sustainable growth. ADB will focus on fostering equitable social development and economic opportunities, investing in climate-resilient infrastructure, driving economic competitiveness and diversification, and promoting sustainable and green development.

To date, ADB has committed 341 public sector loans, grants, and technical assistance totaling $3.6 billion to Mongolia. Cumulative loan and grant disbursements to Mongolia amount to $2.65 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 43 loans and 1 grant worth $1.4 billion. For 2021, ADB committed $211.16 million to Mongolia’s COVID-19 pandemic response, supporting vaccine procurement, strengthening health care systems, and bolstering social welfare support.

ADB committed $73 million to mitigate the socioeconomic impacts of the pandemic on poor and vulnerable groups, topping up monthly cash grants to 1.2 million children for an additional 6 months. Through a $40 million loan under the Asia Pacific Vaccine Access Facility, of which $21 million was in cofinancing from the Asian Infrastructure Investment Bank, ADB is supporting Mongolia to secure COVID-19 vaccines. A complementary $5 million grant from the Japan Fund for Poverty Reduction (JFPR)2 will improve testing and support effective vaccine delivery. A $100 million policy-based loan will strengthen Mongolia’s health sector and ensure the availability of critical medicines and emergency supplies.

ADB is also increasing support to address domestic violence in Mongolia through an additional grant financing of $1 million for an ongoing project financed by JFPR to expand immediate response services and income assistance to domestic violence survivors.

To preserve Mongolia’s pasturelands, ADB approved a $30 million loan to make livestock production systems in central Mongolia more resilient to climate change. ADB will also help implement a $1 million technical assistance grant financed by JFPR to strengthen Mongolia’s food safety and traceability system.

To support the readiness and strengthen the implementation of major infrastructure projects proposed for 2022 to 2024, ADB has committed a $20 million loan for a small expenditure financing facility.

ADB’s $30 million loan (along with JFPR’s $2 million grant cofinancing) for the second phase of a sustainable tourism project in Mongolia will strengthen local tourism planning and development in three aimags (provinces) of western Mongolia.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Mongolia as of 31 December 2021 was $56.72 million representing 0.4% of ADB’s total private sector portfolio.

Operational challenges. Despite macroeconomic stability prior to the COVID-19 pandemic, Mongolia remains vulnerable to shocks. The economic base needs to be broadened and diversified. Small and medium-sized enterprises can stimulate diversification and ensure more inclusive growth, particularly in developing value chains for Mongolia’s unique agricultural resources. This requires expanded access to finance, infrastructure investment, and regional integration to improve connectivity and access to external markets. Developing a more skilled workforce and enhancing the quality of life in urban areas will be critical. Policy reforms and institutional strengthening will be needed to improve the inclusiveness and efficiency of social service delivery. Rapid urbanization, a poorly regulated mining sector, and the impacts of climate change are causing significant environmental degradation, and these issues must be addressed.

ADB Membership

Joined 1976

Shareholding and Voting Power

Number of Shares Held
1,596 (0.02% of total shares)

Votes
40,710 (0.31% of total membership, 0.47% of total regional membership)

*Overall capital subscription
$22.34 million

*Paid-in capital subscription
$1.12 million

* United States dollar figures are valued at rate as of 31 December 2021.


ADB Governor: Javkhlan Bold
ADB Alternate Governor: Lkhagvasuren Byadran
ADB Director: Noor Ahmed (Pakistan)
ADB Alternate Director: Paul Dominguez (Philippines)

Financing Partnerships

Financing partnerships enable ADB’s partner governments or their agencies, multilateral institutions, and private organizations to participate in ADB projects. The additional funds may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Mongolia:

  • Sovereign cofinancing: $540.72 million for 50 investment projects and $62.25 million for 69 technical assistance projects since 1994
  • Nonsovereign cofinancing: $188.75 million for 4 investment projects since 2004

In 2021, Mongolia received a $21 million loan cofinancing from the Asian Infrastructure Investment Bank for the Support for COVID-19 Vaccine Delivery in Mongolia under the Asia Pacific Vaccine Access Facility, and a total of $6 million grant cofinancing from the JFPR for 2 investment projects. 

Knowledge Work

ADB marked the 30th anniversary of its partnership with Mongolia through a series of knowledge-sharing activities including the launching of a new book, Moving Forward Together, which provides a historical account of ADB’s intervention in Mongolia’s development in the last 30 years.

ADB supports gender equity in Mongolia, and published a brief on Boosting Mongolia’s Long-Term Economic Growth through More Equal Labor Force Participation between Men and Women. ADB also launched a video on cyber harassment of girls in Mongolia.

To capture support in the health sector reform in Mongolia including results, lessons learned, and future directions, ADB started publishing a working paper series. The first two papers focus on primary health care and hospital rationalization.

Future Directions

The ADB Board approved a new country partnership strategy, 2021–2024 for Mongolia. This is the most ambitious strategy yet between ADB and Mongolia, and it will aid recovery from the COVID-19 pandemic and help lay foundations for longer-term inclusive and sustainable growth. ADB will focus on fostering equitable social development and economic opportunities, investing in climate-resilient infrastructure, driving economic competitiveness and diversification, and promoting sustainable and green development. ADB will use sovereign and nonsovereign assistance, and knowledge initiatives to achieve these goals. The bank will work with the government to provide people with the needed skills to fulfill their potential and help shape a diversified, environmentally responsible, and socially equitable economy. ADB will also boost its cofinancing partnerships, providing additional resources and knowledge to address Mongolia’s most pressing development issues.

This article was originally published in the ADB and Mongolia: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Contacts

Mongolia Resident Mission
Established: 2001
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
 Email
  www.facebook.com/ADBMongolia

Ministry of Finance
Government Building No. 2 S. Danzan’s Street
5/1 Ulaanbaatar 15160, Mongolia
  Tel: +976 51 267468
  Fax: +976 51 260247

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