Mongolia : Western Regional Road Corridor Investment Program - Tranche 1

Project Name

Western Regional Road Corridor Investment Program - Tranche 1

Project Number

41193-015

Country / Economy

• Mongolia

Project Status

Closed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 2847-MON: Western Regional Road Corridor Investment Program - Tranche 1

Source	Amount
Asian Development Fund	US$ 45.00 million

Strategic Agendas

• Inclusive economic growth
• Regional integration

Drivers of Change

• Gender Equity and Mainstreaming

Sector / Subsector

• Transport / Road transport (non-urban)

Gender

Some gender elements

Description

The investment program is the government's top priority road investment after the ADB-financed Regional Road Development Project. A functioning paved road network will help Mongolia to link together its large and poorly connected territory to promote social and economic development. The investment program will provide a vital link to economic opportunities and social services, reduce the high costs of imports, and improve the competitiveness of the region's export products. The physical elements of the investment program include (i) completing the western regional road, which has long been part of Mongolia's national development strategy, (ii) linking small villages and towns to the main corridor to spread the benefits of the investment to regional population centers, and (iii) establishing road maintenance centers to improve asset management and sustainability. Nonphysical components include capacity development in the road subsector, support for local contractors, extensive on-the-job training in project management and implementation, and sector reform initiatives adopted in the road map and implemented through coordination and performance links between the MFF and the parallel TA. The link between the MFF physical investments and the sector road map implementation will provide strong incentives for sector development and reform.

Project Rationale and Linkage to Country/Regional Strategy

The investment program addresses ADB's strategic goals in the transport sector to (i) foster regional integration by reducing transport and logistics costs; (ii) improve sector institutions, management, human capacity, and asset sustainability; and (iii) develop and improve regional and international transport corridors, including the completion of corridor 4a in the CAREC transport program. The investment program objectives are fully consistent with the strategic goals articulated in the country partnership strategy.

Impact

Inclusive economic growth is promoted by enhanced local and regional connectivity.

Project Outcome

Description of Outcome

Transport accessibility within the project area and between countries improved.

Progress Toward Outcome

Output 1 (103.3 km of paved rd constructed between Baga Ulaan Davaa and Mankhan) is complete. Output 2 is complete as the government set up two maintenance center sites and procured a snow removal machine. Procurement of Output 3 (construction of 20 km local access road) started in April 2019, while output 4 on capacity development is complete. The loan will be closed on 31 October 2019.

Implementation Progress

Description of Project Outputs

Road section constructed

Community access road constructed

Road maintenance component

Capacity development program

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

1. Civil works completed.

2. CW2 Must Soum contract awarded and works is progressing well.

3. The executing agency handed over two maintenance centers to the local maintenance company.

4. Completed.

Geographical Location

Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects

Project is environment category A. An environmental management plan has been implemented and monitored during construction to minimize environmental impacts.

Involuntary Resettlement

Project is involuntary resettlement category C and is not expected to invlove any land acquisition nor resettlement.

Indigenous Peoples

Project is indigenous peoples category C and no people that meet ADB's criteria for indigenous people are expected in the project area.

Stakeholder Communication, Participation, and Consultation

During Project Design

Major stakeholders include the Ministry of Roads, Transportation, Construction and Urban Development (MRTCUD), local governments, transport companies, local businesses, and residents. Consultation began during the preparation of the pre-feasibility study. Consultations were carried out in confirming alternative alignments during the (i) environmental impact assessment, and (ii) poverty and social analysis. The local stakeholder consultations and focus group discussions were held to help formulate enhancement measures for local businesses.

During Project Implementation

A stakeholders consultation and participation strategy has been included in the social development action plan to strengthen the consultation and participation process during project implementation. The project implementation unit, with the help of field level staff at local level, have reached out to project households to a) share project information such as project scope, road construction schedules, b) consult the communities, and c) understand community concerns and issues. Community meetings have been undertaken during project implementation.

Contact

Responsible ADB Officer

Miller, Jeffrey M.

Responsible ADB Department

East Asia Department

Responsible ADB Division

EASI, East Asia Department

Executing Agencies

Ministry of Road and Transport Development of Mongolia

Timetable

Concept Clearance

-

Fact Finding

-

MRM

29 Sep 2011

Approval

22 Dec 2011

Last Review Mission

-

Last PDS Update

27 Sep 2019

Funding

Loan 2847-MON