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Mongolia: Fourth Health Sector Development Project - Additional Financing

Sovereign (Public) Project | 41243-024 Status: Approved

The government of Mongolia requested additional financing for G0236/L2932-MON: Fourth Health Sector Development Project to complete the establishment of Songinokhairkhan District Hospital (SDH) through addressing cost overruns. The cost overruns were caused by changes in the government construction standards and requirements, underestimation of the cost of certain construction items, and overall inflation due to implementation delays. The proposed additional financing does not involve any scaling-up or modification to the original design of the SDH.

Project Details

Project Officer
Altantuya Jigjidsuren East Asia Department Request for information
Country
  • Mongolia
Sector
  • Health
 
Project Name Fourth Health Sector Development Project - Additional Financing
Project Number 41243-024
Country Mongolia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3802-MON: Fourth Health Sector Development Project - Additional Financing
Ordinary capital resources US$ 16.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Health / Health sector development and reform

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The government of Mongolia requested additional financing for G0236/L2932-MON: Fourth Health Sector Development Project to complete the establishment of Songinokhairkhan District Hospital (SDH) through addressing cost overruns. The cost overruns were caused by changes in the government construction standards and requirements, underestimation of the cost of certain construction items, and overall inflation due to implementation delays. The proposed additional financing does not involve any scaling-up or modification to the original design of the SDH.
Project Rationale and Linkage to Country/Regional Strategy

The ongoing project is performing well as it meets all the criteria including (i) the project is rated on track under the project performance system; (ii) the review of safeguards compliance confirms that the project has no safeguards policy compliance issues and that each safeguard covenant item is being complied with; (iii) delivery of expected outputs is rated successful (component 1 is completed except the construction of the SDH, component 2 is 95% completed, and component 3 was fully completed in 2015); and (iv) management of risks is rated successful as all the risks included in the Risk Assessment and Risk Management Plan have been managed successfully.

ADB is confident that the SDH construction can be completed as planned by 30 January 2020. Vamed Engineering GmbH (Austria) executes the construction works under a strict FIDIC contract with MOH. Ulaanbaatar City Investment Department and Junglim Architecture Co., Ltd (Republic of Korea) perform the role of the Engineer at the satisfaction of MOH and ADB.

The additional financing and the overall project are in line with the State Policy on Health, 2017 2026 to improve the accessibility and quality of hospital services. These are also aligned with ADB's Strategy 2030; country partnership strategy for Mongolia, 2017 2020; and Operational Plan for Health, 2015 2020.

The impact, outcome and outputs of the overall project will remain unchanged from the ones of the ongoing project.

Impact Health status of Mongolians improved
Project Outcome
Description of Outcome Improved health status of the Mongolian population, including the poor
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Component 1: Strengthened Hospital Services in Ulaanbaatar: A hospital capital planning system established and operational
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Ulaanbaatar
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Altantuya Jigjidsuren
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Ministry of Health (formerly Ministry of Health and Sports)
[email protected]
1st Floor, Government Building VIII
Olympic Street 2, Ulaanbaatar
Mongolia
Timetable
Concept Clearance 17 Dec 2018
Fact Finding 18 Feb 2019 to 22 Feb 2019
MRM 10 May 2019
Approval 12 Jul 2019
Last Review Mission -
Last PDS Update 31 Jul 2019

Loan 3802-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Jul 2019 - - 30 Jun 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 16.16 Cumulative Contract Awards
ADB 16.00 12 Jul 2019 0.00 0.00 0%
Counterpart 0.16 Cumulative Disbursements
Cofinancing 0.00 12 Jul 2019 0.00 0.00 0%

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.