Mongolia : Western Regional Road Corridor Investment Program - Tranche 2
The impact of the Western Regional Road Corridor Investment Program (Tranche-2) will be inclusive economic growth promoted by enhanced local and regional connectivity in the remote western region of Mongolia. The outcome will be improved transport accessibility within the project area and between countries. The outputs of Tranche-2 will be (i) 189.7 kilometers (km) of paved road constructed between Khovd and Ulaanbaishint; (ii) three bridges (0.49 km) and 14.9 km of urban roads rehabilitated in the towns of Khovd and Ulgii; (iii) two road maintenance units established and equipped with staff trained; and (iv) project management, consulting services and capacity development for maintenance planning, civil works, and procurement.
Project Details
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Project Officer
Stapleton, Rebecca
East Asia Department
Request for information -
Country/Economy
Mongolia -
Modality
-
Sector
- Transport
| Project Name | Western Regional Road Corridor Investment Program - Tranche 2 | ||||
| Project Number | 41193-019 | ||||
| Country / Economy | Mongolia |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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| Sector / Subsector | Transport / Road transport (non-urban) |
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| Gender | Some gender elements | ||||
| Description | The impact of the Western Regional Road Corridor Investment Program (Tranche-2) will be inclusive economic growth promoted by enhanced local and regional connectivity in the remote western region of Mongolia. The outcome will be improved transport accessibility within the project area and between countries. The outputs of Tranche-2 will be (i) 189.7 kilometers (km) of paved road constructed between Khovd and Ulaanbaishint; (ii) three bridges (0.49 km) and 14.9 km of urban roads rehabilitated in the towns of Khovd and Ulgii; (iii) two road maintenance units established and equipped with staff trained; and (iv) project management, consulting services and capacity development for maintenance planning, civil works, and procurement. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Mongolia is a large, sparsely populated country located between the People's Republic of China (PRC) to the south, and the Russian Federation to the north. Its large land area, low population density, and severe weather conditions during winter are key challenges for development of the transport network in the country. Paved roads account for just over 5% of the total road network with the majority of roads being dirt tracks. The route of the proposed western regional road corridor, which is part of Asian Highway 4 and is designated Central Asia Regional Economic Cooperation (CAREC) Corridor 4a, runs northsouth from Mongolia's border with the Russian Federation at Ulaanbaishint to its border with the PRC at Yarant, a total distance of about 743 kilometers (km). The Western Regional Road represents an expansion of over 20% of the entire paved road network in Mongolia, which will require a medium to long-term commitment by ADB to assist the government to complete the road corridor. The cost to complete the remaining sections of the Western Regional Road is estimated to be about $260 million. A functioning paved road network will help Mongolia to link together its large and poorly connected territory to promote social and economic development. The MFF modality allows ADB to include the full scope of the road under the program and align ADB's financing with the government's ability to implement the Program. | ||||
| Impact | Inclusive economic growth is promoted by enhanced local and regional connectivity |
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| Project Outcome | |
|---|---|
| Description of Outcome | Transport accessibility within the project area and between countries improved |
| Progress Toward Outcome | Output 1 construction is 100% completed for CW1-1, CW1-2, and CW1-3. CW1-4 was able to commence in 2021 and achieved 85.3% completion. For Output 2, Ulgii bypass Lot CW-1 is 95% complete, lot CW-2 is 60% complete, and lot CW-3 is 78.5% complete. For Output 3, two road maintenance units have been established, equipped, and operationalized. Output 4 activities are ongoing. Loan closing date extended from 8 December 2021 to 31 December 2022. |
| Implementation Progress | |
| Description of Project Outputs | Road section constructed Urban roads and bridges constructed Road maintenance unit established Project management and consulting services |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Output 1 completed. Output 2 is almost complete, while Output 3 for two road maintenance units established, equipped, and operationalized. Output 4 activities ongoing. FY2021 audit report approved and disclosed in ADB website. Loan review mission fielded from 26 August to 2 September 2022. |
| Geographical Location | |
| Safeguard Categories | |
|---|---|
| Environment | A |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Project 2 has been classified under environment category A. The EIA was prepared and disclosed in compliance with ADBs Safeguard Policy Statement (2009). The main potential environmental impacts concern wildlife migration and livestock movements. To address these impacts, the EMP for project 2 includes a wildlife movement study and consultation with local herders to establish crossing locations and implement measures to ensure safe crossings along the project road. The government will be required to implement the EMP, and experience demonstrates that it has sufficient institutional capacity. Assuming effective implementation of the mitigation measures and monitoring requirements as outlined in the plan, project 2 is not expected to have significant adverse environmental impacts. |
| Involuntary Resettlement | Project 2 has been classified category C for involuntary resettlement because it follows the existing alignment within state owned land and no impact on any individual, household, assets, or livelihood is anticipated. The urban roads and bridges are existing ones and, since improvements through the project will be confined to rehabilitation, there will not be any involuntary resettlement impacts. A resettlement framework for the investment program was prepared as a precautionary measure, endorsed by the MRT, and disclosed on ADBs website on 7 October 2011. |
| Indigenous Peoples | Project 2 has been classified under indigenous peoples category C as the ethnic minorities in the project area are well integrated in the society and are represented in the government on the provincial and national levels. A comprehensive SDAP will be prepared to address potential negative social impacts and enhance benefits for all the communities within the project area. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The PIU with support of supervision consultants is undertaking consultations with key stakeholders. Communication with stakeholders is managed by the PIU social and environmental monitoring specialist with the support of three soum-level community outreach officers. Soum-level staff ensure that local stakeholders are consulted, that information on the project is disseminated, and that questions and complaints are addressed quickly and effectively. |
| During Project Implementation | Consultations with stakeholders is ongoing during project implementation. Community outreach officers will assist the PIU in providing project related information to the local people and the local government. The Officers will also assist in resolving project related complaints received. |
| Business Opportunities | |
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| Consulting Services | All consulting services to be financed under the MFF will be procured in accordance with ADB Guidelines on the Use of Consultants (2013, as amended from time to time). |
| Procurement | All works and goods to be financed under the MFF will be procured in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). |
| Responsible ADB Officer | Stapleton, Rebecca |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | EASI |
| Executing Agencies |
Ministry of Road and Transport Development of Mongolia |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | - |
| Approval | 14 May 2014 |
| Last Review Mission | - |
| Last PDS Update | 19 Sep 2022 |
Loan 3129-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 14 May 2014 | 02 Jun 2014 | 31 Aug 2014 | 30 Jun 2019 | 31 Dec 2023 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 125.00 | Cumulative Contract Awards | |||
| ADB | 125.00 | 05 Jun 2023 | 112.59 | 0.00 | 90% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 05 Jun 2023 | 110.20 | 0.00 | 88% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Partly satisfactory | Satisfactory | Satisfactory | 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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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.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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Western Mongolia's Road to Development
A highway linking Mongolia to neighboring Russia and the People's Republic of China is bringing development, jobs, and social services to the country's remote western regions.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| 3129-MON: Western Regional Road Corridor Investment Program – Tranche 2 (CW1-4) | Invitation for Bids | Closed | ||
| L3129-MON: Western Regional Road Corridor Investment Program, Tranche 2 [CW1-4] | Invitation for Bids | Closed | ||
| MON: Western Regional Road Corridor Investment Program (Tranche 2) | Advance Notice | Archived |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| ULGII BYPASS LOT CW1 | Loan 3129 | 05 May 2020 | KHOTGOR ZAM LLC | MONGOLIA MONGOLIA | Ministry of Road and Transport Development | 2,018,178.46 | 2,002,172.20 |
| ULGII BYPASS LOT CW2 | Loan 3129 | 05 May 2020 | HKB INTERNATIONAL HOLDING LLC | MONGOLIA MONGOLIA | Ministry of Road and Transport Development | 2,577,931.92 | 2,556,696.47 |
| ULGII BYPASS LOT CW3 | Loan 3129 | 05 May 2020 | HKB INTERNATIONAL HOLDING LLC | MONGOLIA MONGOLIA | Ministry of Road and Transport Development | 3,586,527.61 | 3,556,983.96 |
| CW-2, ROAD CONSTRUCTION OF 20.3 KM IN MUST SOUM | Loan 3129 | 14 Dec 2018 | KHOTGOT ZAM, LLC | MONGOLIA MONGOLIA | Ministry of Road and Transport Development | 3,472,866.11 | 553,785.85 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Western Regional Road Corridor Investment Program - Tranche 2: Procurement Plan | Procurement Plans | Jan 2023 |