41193-015: Western Regional Road Corridor Development Program - Tranche I | Asian Development Bank

Mongolia: Western Regional Road Corridor Development Program - Tranche I

Sovereign (Public) Project | 41193-015 Status: Active

ADB is supporting a road project along a transport corridor that links Mongolia to the Russian Federation in the north and People's Republic of China in the south. The program will construct over 290 kilometers of roads and improve connecting local roads in Mongolia’s remote western region, build and equip road maintenance units, and provide training and capacity development.

Project Details

Project Officer
Nishimura, Masahiro East Asia Department Request for information
  • Mongolia
  • Loan
  • Transport
Project Name Western Regional Road Corridor Development Program - Tranche I
Project Number 41193-015
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2847-MON: Western Regional Road Corridor Development Program - Tranche I
concessional ordinary capital resources lending / 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 Equity and Mainstreaming 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 Construction of main road corridor is complete, and the road is open to traffic. Some other activities are ongoing.
Implementation Progress
Description of Project Outputs

1. Road section constructed

2. Community access road constructed

3. Road maintenance component

4. Capacity development program

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

1. Construction of 103.3km road from Baga Ulaan Davaa to Mankhan Soum completed.

2. Access road to Must Soum is being prepared.

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

4. At least 10 procurement and contract management staff received on-the-job training.

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.
Responsible ADB Officer Nishimura, Masahiro
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
Ministry of Road and Transportation
[email protected]
11 Chinggis Avenue, Sukhbaatar District
Ulaanbaatar 14251 Mongolia
Concept Clearance -
Fact Finding -
MRM 29 Sep 2011
Approval 22 Dec 2011
Last Review Mission -
Last PDS Update 25 Sep 2017

Loan 2847-MON

Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2011 20 Mar 2012 03 May 2012 30 Jun 2017 30 Jun 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 72.08 Cumulative Contract Awards
ADB 45.00 22 Dec 2011 39.97 0.00 96%
Counterpart 27.09 Cumulative Disbursements
Cofinancing 0.00 22 Dec 2011 40.03 0.00 96%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

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.

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Procurement Plan