fbpx 41202-012: Capital Markets Development | Asian Development Bank

Mongolia: Capital Markets Development

Sovereign (Public) Project | 41202-012 Status: Closed


Project Details

Project Officer
Shiroishi, Hiroko Uchimura East Asia Department Request for information
  • Mongolia
  • Technical Assistance
  • Finance
Project Name Capital Markets Development
Project Number 41202-012
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7112-MON: Capital Markets Development
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance / Money and capital markets

Gender Equity and Mainstreaming No gender elements
Description TBD
Project Rationale and Linkage to Country/Regional Strategy
Impact The impact of the TA is a more efficient, transparent and robust capital market.
Project Outcome
Description of Outcome The expected outcome of the TA is a deepening of capital market reforms through improved supervisory capacity, legal and regulatory framework, strengthened securities markets and increased investor confidence.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Improved regulatory and supervisory capacity of FRC
Status of Implementation Progress (Outputs, Activities, and Issues)

A review mission was fielded on 14-15 Spetember 2009. The Mission and the EA agreed to: (i) carry out a minor modification of the TOR of ICMSS to remove both the study on financial independence of the FRC abd advice on credit rating agencies in order to provide more resources for developing training modules; (ii) recruit an additional local consultant or extend the contract of the relevant current local consultant to support ICMSS; (iii) and recruit highly qualified local resource persons to support ICMSS by providing local expertise for the preparation of training manuals with the prompt recommendation of candidates by the FRC.

A minor change in project scope and implementation arrangements was approved on 22 October 2009 by Director, EAFM to improve the effectiveness and relevancy of the TA outputs. The revision of the TORs of the International Capital Market Supervision Specialist and National Captail Market Lega, Regulatory and Supervision expert.

A review mission was fielded on 30 November to 11 December 2009. The Mission reviewed the progress of the project and agreed with the EA: (i) establish a task force of the local experts to assist the Supervision Specialist; and (ii) utilize the current contract terms fully and if additional needs for works still exist and contingencies remain sufficient, then discuss the use of the contingencies.

A review mission was fielded on 5 to 10 March. The Mission reviewed the progress of the project and confirmed the smooth progress of the TA. Every component of the TA including regulatory provisions, IT system build-up, and training module development is on track. The Mission and the EA agreed on: (i)extending contract by one month for the international IT expert, the local IT expert, and local supervision expert; and (ii) recruiting a resource person to refine the training manuals provided by the supervision expert so they can be easily understood by the Mongolian market participants.

A workshop on Capital Market Reform in Mongolia was held on June 4, 2010 to disseminate TA's outputs.

The Team Leader (Capital Market, Legal Regulatory Specialist) has submitted the draft final report and for review by the project officer.

The Capital Market, Information System and Infrastructure Specialist and the Capital Market Supervision Specialist have also submitted their draft final report and being reviewed by the project officer.

Upon the request from the EA, further assistance was given for (i) reviewing the Law on Securities that has been revised, after the TA's final review, reflecting comments from market participants; and (ii) organizing additional workshops on strengthening the legal enforcement of the Law on Securities.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Senior officials from the Ministry of Finance, Bank of Mongolia, the Financial Regulatory Commission (FRC), Mongolian Bankers Association, World Bank (WB) and International Monetary Fund were during the TA reconnaisance mission from 25 to 29 February 2008. Among the major issues raised by both government and non-government stakeholders have been the need to strengthen the capital markets during the current period of high liquidity in the economy and to build capacity for the FRC. WB is not implementing any financial sector program for Mongolia in 2008 but the Mongolian Stock Exchange has signed a Memorandum of Understanding with the Korean Stock Exchange to support infrastructure and trading for US$5 million.
During Project Implementation
Business Opportunities
Consulting Services The TA will require 7 person-months of international and 8 person-months of national consulting services. The international consultants will include a Capital Market Supervision and Institutional Investor Specialist (4.5 person-months) and a Capital Market Financial Infrastructure and Information System Specialist (2.5 person-months). The two national consultants will have similar expertise as the international consultants. The experts will be engaged by ADB in accordance with the Guidelines on the Use of Consultants.
Responsible ADB Officer Shiroishi, Hiroko Uchimura
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Financial Regulatory Commission of Mongolia
D. Dugerjav
Government House IY, Baga Toiruu-6,
Concept Clearance 18 Apr 2008
Fact Finding 10 Mar 2008 to 24 Mar 2008
Approval 11 Aug 2008
Last Review Mission -
PDS Creation Date 09 Oct 2009
Last PDS Update 01 Sep 2011

TA 7112-MON

Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Aug 2008 18 Feb 2009 18 Feb 2009 30 Sep 2009 29 Sep 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 100,000.00 0.00 0.00 0.00 600,000.00 11 Aug 2008 421,555.23

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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Title Document Type Document Date
Capital Markets Development TA Completion Reports Aug 2012
Capital Markets Development Technical Assistance Reports Aug 2008

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) 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.

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Contracts Awarded

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Procurement Plan

None currently available.