Project Name Higher Education Reform Project
Project Number 43007-023
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2766-MON: Higher Education Reform Project
Concessional ordinary capital resources / Asian Development Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Education - Tertiary

Gender Equity and Mainstreaming Gender equity
Description The project will institute needed reforms in higher education (HE) to improve the quality and relevance of HE programs; governance, management, and financing of HE institutions (HEIs) and the entire subsector; and promote equitable access to HE. Project interventions include institutional capacity building, human resources development, provision of learning and research facilities, equipment and materials, consultant services, minor civil works, support for public-private partnerships (PPP), and improvement of the HE policy environment.
Project Rationale and Linkage to Country/Regional Strategy Rapid economic expansion has led to increased demand and supply for HE in Mongolia. The government has emphasized the value of HE as a principal investment option for the country's long-term economic competitiveness. Gross enrollment ratio for HE rose from 27% in 2000 to 47% in 2007, buttressed by the entry of private institutions offering HE in the 1990s. Over 100 HEIs are now in operation but only around 40% of graduates are employed. Persistent rural-urban inequalities also undermine Mongolia's competitiveness in HE. Poverty serves to destabilize children's school performance in rural areas and even if poor households manage to send their children to HEIs in urban areas, there is no guarantee of employability after the graduation. The government's vision is of an effective HE system that can help accelerate sustainable economic development, improve people's livelihood, ensure social equality, and reduce poverty. However, the system is currently constrained by (i) low quality and relevance, (ii) weak governance and management, (iii) inadequate financing, and (iv) limited opportunities in the HE subsector particularly for the poor and those in rural areas.
Impact The project impact will be an increased number of Mongolia's globally competitive higher education graduates responsive to labor market demands.

Project Outcome

Description of Outcome The outcome will be an improved, well-managed, and equitable higher education system. The project primarily involves capacity building of the entire subsector to improve its performance.
Progress Toward Outcome The project closing date has been extended by 18 months from June 2017 to December 2018. The project implementation schedule has been revised, and the MECS has been actively working to implement the project in accordance with the revised implementation schedule.
Implementation Progress
Description of Project Outputs

Quality and relevance of higher education programs improved

Effectiveness of HEIs' management and financing improved

Access to higher education improved.

Status of Implementation Progress (Outputs, Activities, and Issues)

The project has extended financial support to 27 programs to be nationally and internationally accreditation. National Center for Education Accreditation (NCEA) has signed a Twinning Program Agreement with ASIIN e.V., the German accreditation agency. The twinning program has commenced from June 2016.

Application of CDIO standards in three programs in engineering and technology (telecommunications, textile and industrial automation) programs is going on successfully. Series of international and national training have been conducted on timely basis in accordance with the plan. The master trainers have been trained in Singapore. The establishment of CDIO faculty development center and 3 workshops for the selected programs are under the process. The procurement of equipment and items for the CDIO workshops, and renovation of CDIO workshops and faculty development center will be re-advertised in third quarter of 2016.

The IRIM has completed its consulting service on Higher Education Responsiveness to Labor Market (CSHERLB). The team has developed methodology and tools for Graduate Tracer Study, Employers Satisfaction Survey and Labor Market Survey.

The selection of recipients of competitive grants for Partnership of Higher Education Institutions and Industry Training Programs has been concluded in September 2016.

The Consulting Service for Higher Education Reform (CSHER) has been piloting the new governance model at the selected 4 HEIs - the National University of Mongolia, the Health Science University, Otgontenger University and Ider Institute since July 2015. The consulting team has been reporting on its progress to MECSS.

The Gender Working Group that was established in December 2015, working on review of curriculum and code of conduct of HEIs.

Geographical Location

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The simplified environmental management plan was prepared to ensure full mitigation of any environmental impacts of limited civil works such as rehabilitation of existing facilities and libraries under the project.
Involuntary Resettlement No impact on environment and resettlement is anticipated. Neither acquisition of land nor relocation of people is planned.
Indigenous Peoples No negative impacts on indigenous peoples are expected. Targeting approaches under the project will be applied nationwide and benefit indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design The project implementation unit (PIU) was established at the Ministry of Education and Science, the project executing agency, and manages day-to-day project implementation, planning and budgeting, procurement, disbursement, monitoring, supervising, overseeing overall implementation, and reporting to the Government and ADB. Procurement and consulting recruitment will follow ADB Procurement Guidelines (2013, as amended from time to time) and ADB Guidelines on the Use of Consultants (2013, as amended from time to time) respectively.
During Project Implementation The MECS / PIU conducts consultation meetings and workshops with various stakeholders including the higher education institutes, other higher education sector projects in order to coordinate activities and exchanges experience. In addition it conducts thematic consultations workshops with specific audience.

Responsible Staff

Responsible ADB Officer Lonjid, Itgel
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Ministry of Education, Culture, Science & Sports
[email protected]
Government Building-III, Suite # 514, Baga toiruu-44, Sukhbaatar district
Ulaanbaatar, Mongolia


Concept Clearance 10 Aug 2010
Fact Finding 30 Aug 2010 to 14 Sep 2010
Approval 28 Jul 2011
Last Review Mission -
Last PDS Update 26 Sep 2016

LoanĀ 2766-MON

Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Jul 2011 09 Sep 2011 10 Jan 2012 30 Jun 2017 31 Dec 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 22.22 Cumulative Contract Awards
ADB 20.00 28 Jul 2011 10.64 0.00 61%
Counterpart 2.22 Cumulative Disbursements
Cofinancing 0.00 28 Jul 2011 9.14 0.00 52%

This page was generated from on 28 February 2017