The Project aims to promote regional cooperation and sustainable economic growth in Mongolia. The purpose of the Project is to increase the efficiency and safety of domestic and international transit traffic between the PRC and Russia through Mongolia's north-south road transport corridor. The Project comprises five components: (i) construction of 428 km of a two-lane, asphalt concrete road between Choyr and the PRC border in Zamyn-Uud; (ii) implementation of a cross-border road transport facilitation plan; (iii) improvement of road safety; (iv) implementation of an area development program that includes (a) constructing four access roads totaling 34 km to connect Erdene, Orgon, and Saynshand; (b) establishing a pilot roadside station; (c) training local laborers on road construction and maintenance; and (d) enhancing stakeholder participation; and (v) technical assistance for awareness and prevention of HIV/AIDS and human trafficking on the north-south road corridor.
|Project Name||Regional Road Development Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Regional integration
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Health / Health sector development and reform
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The Project aims to promote regional cooperation and sustainable economic growth in Mongolia. The purpose of the Project is to increase the efficiency and safety of domestic and international transit traffic between the PRC and Russia through Mongolia's north-south road transport corridor. The Project comprises five components: (i) construction of 428 km of a two-lane, asphalt concrete road between Choyr and the PRC border in Zamyn-Uud; (ii) implementation of a cross-border road transport facilitation plan; (iii) improvement of road safety; (iv) implementation of an area development program that includes (a) constructing four access roads totaling 34 km to connect Erdene, Orgon, and Saynshand; (b) establishing a pilot roadside station; (c) training local laborers on road construction and maintenance; and (d) enhancing stakeholder participation; and (v) technical assistance for awareness and prevention of HIV/AIDS and human trafficking on the north-south road corridor.|
|Project Rationale and Linkage to Country/Regional Strategy||
The Project has been accorded high priority by the Government, and will establish the first paved road corridor linking Mongolia with the PRC and Russia to promote regional cooperation in northeast Asia. The Project will also facilitate pro-poor economic growth in the aimags (province) of Govisumber and Dornogovi in souther Mongolia by improving local communities' access to markets, job and business opportunities, and social services.
The Project was listed in the Mongolia: Country Strategy and Program Update (2004-2006).
|Impact||Regional and sustainable economic growth in Mongolia promoted.|
|Description of Outcome||Efficiency and safety of domestic and international transit traffic between the PRC and the Russian Federation through Mongolia's north-south road transport corridor increased|
|Progress Toward Outcome||The Project is in the final implementation stage. Project completion date is proposed to be extended from 30 July 2014 to 31 December 2014.|
|Description of Project Outputs||
1. About 428 km of the asphalt concrete road between Choyr and the PRC border in Zamyn-Uud built
2. Cross-border road transport facilitation plan implemented
3. Road safety improvement component implemented
4. Area development program implemented
5. Program on awareness and prevention of HIV/AIDS and human trafficking on the north-south road corridor implemented
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1. (i)Construction of AR1 and Package B1 covers a 126.75 km road from 35th railway crossing to 18th Khudag of Choyr Saynshand-Zamyn Uud, and a 6.75 km access road to Saynshand Aimag center construction is completed.
(ii) Package NP1 covering a 62.2 km road from 18th Khudag to Km 62.2 to Choyr-Saynshand
Due to the non performance of the contractor, contract was terminated in June 2011. The balance of work for NP1 has been awarded and construction is ongoing.
(iii) Package AR2 covers an 18.25 km access road to Urgun Soum due to the non performance of the contractor, contract was terminated in May 2011. This road section will now be financed by the government.
(iv) Package NP2 covers 62.2 km to Zamyn-Uud of Choir-Sainshand-Zamyn-Uud Road with 61.796 km this section is covered under the supplementary loan and grant for which rebidding was also done and ADB approved the award of contract, construction ongoing.
(v) The MCC funded Package A1 covering 176.4 km road from Choyr to 35th railway crossing - following the termination of original contractor, MCA-Mongolia signed contracts with Halla Engineering and Construction Company (Korea) and Jiangxi Water and Hydropower Construction Co., Ltd (PRC) on 15 February 2012 for constructing Lot 1 (Km0.000-Km90.000) and 2 (Km90.000-Km176.00), respectively. The construction is almost completed.
(vi) PRC-funded 5.6 km main road section from Zamyn-Uud to state border was completed in October 2005.
2. The consultant selection for implementation of this component has failed. The Government proposes to cancell the services.
4. The component is partly implemented in relation to development of access roads.
5. Completed. The Component was funded through a separate $350,000 technical assistance grant and successfully completed in 2007. The Ministry of Health was the executing agency for this TA Project. Final Report was submitted to the EA on 25 September 2007.
|Geographical Location||Ayrag Sum, Choyr, Dalandzadgad, Dalanzadgad Sum, Dzamin-Uud Sum, East Gobi Aymag, Erdene Sum, Govi-Sumber, Orgon, Saynshand, Saynshand Sum, Sumber Sum, Zamiin Uud|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||ADB classifies the Project in environmental category _B sensitive_. The environmental impact assessment (EIA) was undertaken through broad-based public consultations, and the summary was circulated to the Board and made public on the ADB web site on 5 March 2004. The EIA approved by the Ministry of Nature and Environment on 12 May 2004 concludes that the Project will have no major adverse impacts on the environment. The project road alignment, which follows the railway line and crosses steppe and semidesert areas, does not impinge on any existing or planned protected areas and is not expected to affect wildlife migration. Operation of a paved road will improve the environment as it provides an alternative to currently driving through multiple unimproved earth tracks, which has contributed to land degradation. Planting of vegetation at specific locations along the project road will help improve the environment by controlling snow and sand drifts. The Government will implement the mitigating measures proposed in the EIA during project implementation.|
|Involuntary Resettlement||The Project requires no resettlement. Land acquired for the Project and temporary use of land for construction will not involve any removal of structures or affect private landowners. The land acquired for the project road and access roads is state-owned, and is either wasteland or communal grazing land. The area of grazing land lost is insignificant compared with the total area required for grazing. There are adequate government regulations and procedures for transferring the right-of-way to Department of Roads.|
|Indigenous Peoples||The Project will not adversely affect the livelihoods of ethnic minority groups, who include Kazakh, Durvud, and Bayad and account for 3.5% of the population in the project area. These groups do not face discrimination and are not considered vulnerable. The Project will have no significant adverse impacts on the livelihoods of nomadic herders in the project area. Instead, it can help spur the development of the local livestock industry with improved access to markets and growing domestic and regional demands for livestock products.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||During project preparation, consultations were held with the Government, civil society, local communities, and other external aid agencies on major issues such as project alternatives, route alignment, social and environmental impacts, and project benefits for local communities. The consultations revealed a high degree of public support for the Project.|
|During Project Implementation||During implementation, stakeholder participation will focus on (i) support for maximum use of local labor during road construction and for good working conditions, (ii) job creation through business advice and skills development, (iii) development of roadside stations, (iv) implementation of the road safety program, (iv) involvement of households in road maintenance, (v) awareness and prevention of HIV/AIDS and human trafficking, and (vi) community-based environmental enhancement and monitoring. A local nongovernment organization (NGO) will be engaged to facilitate stakeholder participation. The amount of $128,800 equivalent will be allocated for the service.|
|Consulting Services||The Project will provide 1,158 person-months of consulting services (177.5 international and 980.5 domestic) to assist in implementation. Among these, 161 (international) and 884 (domestic) person-months will be required for detailed design, construction supervision, support for project management, and monitoring and evaluation activities. The services will be provided by consulting firms with experience in detailed design and implementation of road projects of similar nature and size. In addition, 4 (international) and 80 (domestic) person-months will be provided through a local NGO to help implement the area development component. The services required cover (i) continued stakeholder participation process, (ii) monitoring of social safeguards, (iii) training for small enterprise and skills development, and (iv) support for vulnerable groups. For the road safety improvement component, an international consultant and a domestic consultant will be engaged for 2 person-weeks each to jointly audit road safety aspects of the detailed design of the Project. An international consultant will also be engaged for 2 person-months to train traffic police officers on traffic regulations and enforcement. Further, an international consulting firm will provide 10 (international) and 16 (domestic) person-months of consulting services to assist in implementing the cross-border road transport facilitation plan. The Government will finance consulting services for detailed design, while ADB will finance the remaining consulting services. ADB-financed consultants will be recruited according to the Quality- and Cost-based Selection method of ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for selecting and engaging domestic consultants.|
|Procurement||Procurement of goods and services to be financed out of the proposed ADB loan will be carried according to ADB's Guidelines for Procurement and the Public Procurement Law of Mongolia. Civil works for the project road (including the two access roads to Saynshand and vegetation planting) are the access road from Orgon are divided into four contract packages to be procured through international competitive bidding, or according to relevant bilateral agreements. Civil works for access roads from Erdene and the provision of safety features on the Altanbulag-Ulaanbaatar road section will be procured following local competitive bidding procedures acceptable to ADB. Patrol vehicles equipped with breath analyzers and portable speed monitoring equipment, two-way communication radios, and a vehicle weight mat will be procured following direct purchase or local competitive bidding procedures. Advance procurement action for civil works has been approved. Advance action will be undertaken according to ADB's Guidelines for Procurement up to, but will not include, the signing of contracts. It will cover (i) short listing and selecting a consulting firm for construction supervision, (ii) prequalifying contractors, and (iii) tendering and bid evaluation. The Government was advised that ADB's approval of advance action does not commit ADB to finance the Project.|
|Responsible ADB Officer||Cai, Li|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Transport and Communications Division, EARD|
Department of Roads
Mr. K Gantumur
|Concept Clearance||07 Mar 2004|
|Fact Finding||26 Jan 2004 to 03 Feb 2004|
|MRM||14 Apr 2004|
|Approval||22 Jul 2004|
|Last Review Mission||-|
|PDS Creation Date||24 Nov 2006|
|Last PDS Update||06 Oct 2014|
|Approval||Signing Date||Effectivity Date||Closing|
|22 Jul 2004||26 Jan 2005||01 Jul 2005||01 Jan 2010||31 Dec 2014||29 May 2015|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||85.23||Cumulative Contract Awards|
|ADB||42.51||22 Jul 2004||41.69||0.00||96%|
|Cofinancing||27.08||22 Jul 2004||43.59||0.00||100%|
|Status of Covenants|
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 Public Communications Policy (PCP) 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|
|Regional Road Development Project: Project Completion Report||Project/Program Completion Reports||Aug 2015|
|Regional Road Development Project and Regional Road Development Project - Supplementary||Project Procurement-Related Reviews||Oct 2013|
|Regional Road Development Project||Procurement Plans||Jan 2012|
|Regional Road Development Project - Using Surplus Loan Proceeds||Loan Change in Scope, Amount, and Implementation Arrangements||Feb 2007|
|Regional Road Development Project||Reports and Recommendations of the President||Jun 2004|
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.
|Title||Document Type||Document Date|
|Regional Road Development Project: Environmental Monitoring Report (November 2013)||Environmental Monitoring Reports||Nov 2013|
|Regional Road Development Project: Environmental Monitoring Report (July 2013)||Environmental Monitoring Reports||Jul 2013|
|Regional Road Development Project: Environmental Monitoring Report (July-December 2012)||Environmental Monitoring Reports||Jun 2013|
|Regional Road Development Project||Summary Environmental Impact Assessments||Mar 2004|
Evaluation Documents See also: Independent Evaluation
None currently available.
The Public Communications Policy (PCP) 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.
In Mongolia, Efforts Underway to Prevent HIV/AIDSADB is pushing for the amendment of the AIDS law to include HIV prevention in the workplace. This will facilitate government budget allocation for HIV prevention activities to curb an impending epidemic in Mongolia.