MANILA, PHILIPPINES (2 December 2021) — The Asian Development Bank (ADB) has approved a $20 million loan for a small expenditure financing facility (SEFF) that will finance a series of small-scale activities to support the readiness and strengthen the implementation of major infrastructure projects proposed by ADB in Mongolia.

“Delivering a complex portfolio will require a high level of project design readiness, a strong focus on project administration, and in-depth support to the government in managing procurement contracts and projects,” said ADB Principal Infrastructure Specialist Arun Ramamurthy. “This facility will improve the efficiency, sustainability, responsiveness, and readiness of ADB-financed projects in Mongolia.”

Mongolia has sparser basic economic infrastructure than most countries. The government has prioritized infrastructure development to catalyze recovery from the coronavirus disease (COVID-19) pandemic, attract foreign direct investment and private sector participation, and stimulate job creation.

SEFF’s priority sectors will include transport, water and other urban infrastructure and services, agriculture, natural resources, rural development, and energy. Each activity will be linked to ADB’s country partnership strategy for Mongolia, 2021–2024.

The facility will support project preparation, design activities, and institutional strengthening for ADB-financed projects under consideration for 2022 to 2024. This includes Ulaanbaatar traffic management and other transport improvement interventions, energy, export-oriented logistics improvement, management of the agriculture and livestock supply chain, and improvements in regional connectivity projects.

The facility will also support pilot-testing of advanced technologies and management approaches to reduce life-cycle costs such as smart traffic management in Ulaanbaatar, improve service efficiency and quality, and minimize negative environmental and social impacts.

The facility will improve project efficiency and sustainability, building capacity and providing implementation support for new projects, institutional efficiency, governance improvements, preparation of safeguard documents, financial and economic analysis for ensuing projects, and operation and maintenance. The institutional arrangements for the proposed mass transit system in Ulaanbaatar is the first activity planned under the facility.

Total project cost is $21.50 million to 2026, with $1.50 million counterpart financing from the government.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

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