fbpx 42184-022: Southeast Gobi Urban and Border Town Development Project | Asian Development Bank

Mongolia: Southeast Gobi Urban and Border Town Development Project

Sovereign (Public) Project | 42184-022 Status: Active

ADB is helping Mongolia improve urban infrastructure and services in the booming mining and border towns of Omnogovi and Dornogovi provinces in Southeast Gobi. The project will support reforms in infrastructure services, institutional development, and capacity building.  It will improve water supply and sanitation services, efficiency and coverage of district heating services, and road networks.

 
Project Name Southeast Gobi Urban and Border Town Development Project
Project Number 42184-022
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0204-MON: Southeast Gobi Urban and Border Town Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 15.00 million
Loan 3388-MON: Southeast Gobi Urban and Border Town Development Project Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 19.43 million
Loan 3713-MON: Southeast Gobi Urban and Border Town Development Project (Additional Financing) II
Ordinary capital resources US$ 20.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Energy / Energy utility services

Transport / Urban roads and traffic management

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome Grant 0204 was financially closed on 26 March 2020. The cumulative disbursement stands at 99.9% of the net grant amount and total contract awards at 99.9%. The grant development objectives were relevant and have been achieved. The project received strong support and commitment from the EA and central and local governments thought its implementation. Performance of the EA, contractors, suppliers and consultants was satisfactory.Performance of the Loan 3388, a first additional financing to the Grant 0204, is satisfactory and is in line with the approved project implementation schedule. As of 28 September 2020, the cumulative contract award amount was $16.3 million or 84.0% of the net loan amount, while the cumulative disbursement was $13.5 million or 69.1% of the net loan amount. All procurement packages in the current procurement plan have been awarded. The EA and ADB have discussed the use the loan savings to improve coverage and quality of water supply and wastewater services in soum (province sub-units) centers. Performance of the PMU, consultants and contractors was satisfactory. Loan 3713, second additional financing to the Grant 0204, is satisfactory and is consistent with the approved project implementation schedule. As of 28 September 2020, the cumulative contract award amount was $14.9 million or 72% of the net loan amount and the cumulative disbursement was $9.0 million or 45.0% of the net loan amount. All five national competitive bidding (NCB) packages for construction of wastewater treatment plants (WWTP) in the aimag centers have been awarded. In November 2019, all civil works were suspended until mid-April 2020 due to non-construction winter season. The works were resumed at all construction sites. Performance of the EA, PMU and contractors was satisfactory.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues) Completed under G0204. Ongoing under L3388 and L3713.Completed under G0204.Two WWTPs contructed and operational by Dec 2019.All five procurement packages for construction of WWTPs in aimag centers have been awarded. Civil works are ongoing. ofCompleted. Urban master plans for four soums have been prepared, approved and handed over to the aimag governments.Achieved. Women participation in the consultation process has been recorded and reported.Package A4 consultants provided advisory services to local governments in identifying a suitable PPP transaction mode approach for public utility services organization (PUSO). Due to unavailability of funds to finance a service fee, replacement of replace operating management contract approach with a lease contract for the existing PUSOs has been proposed. The lease contract includes setting tariffs that will recover operational and maintenance costs including depreciation, service quality targets and required investment.Completed.Completed,Completed. In Khanbogd soum, 5 km road was constructed from the source other than the grant (by Oyu Tolgoi), hence at the local government request the project built only 6 km road in the project townsCompleted. Two landfill sites were constructed under the provincial government budget in Tsogtsetsii and Sainshand soums. Hence, project constructed one landfill site in Zamyn-Uud, and, at the government request, built a waste compaction transfer station and supplied additional waste segregation bins, containers and machinery.Completed.Completed under G0204. Total of 39.4 km of water supply pipeline was installed (1.4 km in Dalanzadgad, 6.8km in Sainshand, 13.4km in Zamyn-Uud, 5.7km in Gurvantes, 6.6km in Tsogttsetsii, 5.5km in Khanbogd).Completed under G0204.Completed under G0204. One 1,000 m3 water reservoir and four 100 m3 water reservoirs were constructed (one each in Dalanzadgad and Gurvantes and two in Tsogttsetsii).Completed under G0204. 1.8 km storm drainage was built in accordance with the detailed engineering design.Completed under G204. Women participation recorded and reported.Completed under G0204. Ongoing under L3388 and L3713.Completed under G0204. Ongoing under L3388 and L3713,Completed. Working group is established by the Government.
Geographical Location Dalandzadgad, Gurvantes, Saynshand, Tsogttsetsiy, Zamiin Uud
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as environmental category B. Initial environmental examinations (IEEs) were carried out for all of the part B activities in accordance with ADB's Safeguard Policy Statement. In accordance with ADB's information and disclosure and consultation requirements, these subprojects and the potential environmental impacts were presented and discussed at stakeholder meetings and focus group discussions. Key environmental impacts during construction are largely temporary in nature, and include dust, gaseous emissions, noise, and some public inconvenience. Operational impacts might include gaseous emissions, contamination of water supply, improper treatment and disposal of sludge, or escape of leachate. The extent of these impacts will be mitigated with measures identified in the IEEs including careful project management and contractor compliance during construction with an environmental management plan integral to the contract documents. Key mitigation measures during operation are securing an adequate operational budget, implementing reforms to service institutions under the project, and developing (under the project) operation and maintenance (O&M) manuals for (i) water supply and wastewater management; (ii) solid waste management; and (iii) district heating that incorporate the conditions stipulated in the environmental permit, if necessary, and the proposed mitigation measures specified in the environmental management plan (EMP). The recipient's institutional capacity to manage environmental risks is limited, with a single trained full-time environmental staff member working at the aimag level and a single untrained environmental inspector covering all environmental matters in each soum. Aimag and soum environmental management and monitoring capacity will be strengthened with capacity development and training under part A, and the PIUs will be staffed and assisted with technical specialists and qualified consultants including environmental management specialists. The project will greatly improve community health and living conditions, reduce environmental pollution, and decrease per capita demand for energy resources by improving the efficiency of urban services. Priority infrastructure investments in solid-waste management will reduce groundwater pollution, and improved urban roads will reduce dust and noise. EMPs, including the Grievance Redress Mechanism (GRM), will be refined during the detailed design stage using a consultation process with affected persons and closely consulting project stakeholders. An environmental safeguard specialist will ensure revised IEEs and EMPs during detailed engineering design.The environmental monitoring report for 2012 was submitted to ADB in February 2013. The EA has recruited a local consulting company to undertake the environmental impact assessment of the project. The Mongolian version of the report was submitted to the Ministry in Q1 2013. The report will be submitted to ADB in Q4 2013 which is under translation into English.
Involuntary Resettlement It is anticipated that land acquisition and resettlement will not be significant and can be avoided for most activities. Some houses, gers, and fences will need to be relocated to nearby plots only in the proposed roads improvement priority infrastructure investment in Hanbogd. In accordance with ADB's Safeguard Policy Statement, a land acquisition and resettlement plan (LARP) has been prepared. To provide a framework for unanticipated land acquisition and resettlement as a result of changes in project sites prior to implementation, a land acquisition and resettlement framework (LARF) has also been prepared. The LARF sets out (i) the resettlement policy and Mongolian legal framework for land acquisition and resettlement, (ii) compensation standards and entitlements, (iii) implementation arrangements, (iv) consultation and participation, (v) eligibility provision, (vi) a grievance redress mechanism, (vii) monitoring and evaluation, and (viii) provision of the resettlement budget. The PIUs will be responsible for overall resettlement management and coordination, internal monitoring, and quarterly reporting to ADB. The PIUs will also take primary responsibility for resettlement consultation, notices, implementation, and timely delivery of entitlements. Because of limited experience with involuntary resettlement, training and capacity building will be conducted under part A. The PMU will review the remaining activities under part B before the award of the civil works contracts to ensure there are no involuntary resettlement effects that would require compensation and other assistance. If impacts are identified and cannot be avoided in other project activities, a LARP will be prepared in accordance with the provisions of the LARF and submitted to ADB. The Project's national resettlement consultant conducted a series of training sessions for the PMU and design contractors on ADB resettlement guidelines, and cooperated with design consultants to reduce the scope of involuntary resettlement. A land acquisition and resettlement plan for project sites will be finalized by Q4 2013.
Indigenous Peoples No indigenous peoples are living in the project area.
Stakeholder Communication, Participation, and Consultation
During Project Design The Project was developed with extensive consultation with stakeholders, including central and local governemnts, population of project aimags and soums, private sector and NGOs.
During Project Implementation Consultation meetings are organized on a regular basis with central and local government, communities and mining companies in urban planning of project towns and in designing infrastructure.
Business Opportunities
Consulting Services

Consultants will be selected and engaged using ADB's quality- and cost-based selection procedures, consultant qualification selection, and/or individual consultant selection procedures The Project will require a total of about 80 person-months of international and 350 person-months of national consulting services to support: (i) the PMU and PIUs in project implementation and management; (ii) development of structure plans for all project towns; (iii) an improved institutional and incentive framework for urban service delivery; (iv) improved local government capacity for urban planning, land management system planning, operations and maintenance; (v) enhanced cost recovery from services through metering and tariff reform; and (vi) improved local government revenues and financial management through the establishment of predictable recurrent financing and performance-based contracting and private sector participation. The ADB grant will finance 80 person-months of international and 350 person-months of national consultants.

The international consultants will have expertise in: (i) project management and procurement - including performance-based contracting; (ii) urban and regional planning; (iii) financial management; (iv) institutional and organizational development; and (v) capacity building and training. The national consultants will have expertise in: (i) water and wastewater engineering; (ii) resettlement; (iii) environmental management; (iv) legal aspects; (v) database development; (vi) financial management; and (vii) construction supervision and engineering design.

Procurement Procurement financed from the ADB grant will be carried out in accordance with ADB's Procurement Guidelines (February 2007, as amended from time to time). International competitive bidding (ICB) will be applied to supply contracts estimated to cost $500,000 or more. Supply contracts with a value less than $500,000 will follow national competitive bidding (NCB), and those less than $100,000 will follow shopping procedures as reflected by particular circumstances of the contract packages. ICB will be used for civil works contracts valued at $1 million or more. Civil works contracts valued less than $1 million will be procured using NCB procedures. The selection and engagement of contractors will be subject to ADB approval. Before commencement of NCB procurement, ADB and the Borrower will review the Borrower's procurement procedures to ensure consistency with ADB requirements. Any necessary modifications or clarifications to the Borrower's procedures will be documented in the procurement plan. Any internationally tendered equipment packages will include the necessary technical support for ensuring proper installation, testing, commissioning, and training of operational staff as part of the related contracts. In accordance with ADB requirements, foreign contractors may participate in bidding for NCB contracts.
Responsible ADB Officer Badarch, Tuul
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Ministry of Construction and Urban Development
Ulaanbaatar 211238
Barilgachdyn Talbai 3 Mongolia
Ministry of Roads, Transportation, Construction and Urban Development
J. Bat-Erdene
Ministry of Road, Transporation, Construction and Urban Development
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
PDS Creation Date 13 Apr 2010
Last PDS Update 28 Sep 2020

Grant 0204-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Apr 2010 07 Jun 2010 30 Jul 2010 31 May 2015 30 Nov 2019 26 Mar 2020
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 21.90 Cumulative Contract Awards
ADB 15.00 19 Apr 2010 14.99 0.00 100%
Counterpart 6.90 Cumulative Disbursements
Cofinancing 0.00 19 Apr 2010 14.99 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory Satisfactory Unsatisfactory Satisfactory - Unsatisfactory

Loan 3388-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Apr 2016 28 Apr 2016 05 Jul 2016 30 Jun 2020 31 Dec 2021 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 21.17 Cumulative Contract Awards
ADB 19.43 22 Apr 2016 16.46 0.00 84%
Counterpart 1.74 Cumulative Disbursements
Cofinancing 0.00 22 Apr 2016 13.51 0.00 69%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory Satisfactory Unsatisfactory Satisfactory - Unsatisfactory

Loan 3713-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2018 20 Dec 2018 18 Feb 2019 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 21.75 Cumulative Contract Awards
ADB 20.00 26 Sep 2018 15.06 0.00 75%
Counterpart 1.75 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2018 9.06 0.00 45%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory Satisfactory Unsatisfactory Satisfactory - Unsatisfactory

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Southeast Gobi Urban and Border Town Development Project: Audited Project Financial Statements (1 January 2019-26 March 2020) Audited Project Financial Statements May 2020
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Procurement Plan Procurement Plans Apr 2020
Southeast Gobi Urban and Border Town Development Project: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Aug 2019
Southeast Gobi Urban and Border Town Development Project: Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Sep 2018
Southeast Gobi Urban and Border Town Development Project: Procurement Plan Procurement Plans Jun 2018
Project Agreement for Loan 3388-MON: Southeast Gobi Urban and Border Town Development Project (Additional Financing) - Dornogobi Project/Program Agreements May 2016
Project Agreement for Loan 3388-MON: Southeast Gobi Urban and Border Town Development Project (Additional Financing) - Umnugobi Project/Program Agreements May 2016
Project Agreement for Loan 3388-MON: Southeast Gobi Urban and Border Town Development Project (Additional Financing) - Uvurkhangai Project/Program Agreements May 2016
Project Agreement for Loan 3388-MON: Southeast Gobi Urban and Border Town Development Project (Additional Financing) - Arkhangai Project/Program Agreements May 2016
Loan Agreement (Special Operations) for Loan 3388-MON: Southeast Gobi Urban and Border Town Development Project (Additional Financing) Loan Agreement (Special Operations) Apr 2016
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Report and Recommendation of the President Reports and Recommendations of the President Apr 2016
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Project Administration Manual Project/Program Administration Manual Apr 2016
Southeast Gobi Urban and Border Town Development Project Project/Program Administration Manual Feb 2011
Grant Agreement for Southeast Gobi Urban and Border Town Development Project between Mongolia and Asian Development Bank dated 07 Jun 2010 Grant Agreement Jun 2010
Project Agreement for Southeast Gobi Urban and Border Town Development Project between Asian Development Bank and Aimag Government of Omnogovi and Aimag Government of Dornogovi dated 07 Jun 2010 Project/Program Agreements Jun 2010
Southeast Gobi Urban and Border Town Development Project Reports and Recommendations of the President Mar 2010
Southeast Gobi Urban and Border Town Development Project and Mainstreaming Managing for Development Results in Investment Planning and Public Funds Management: Final Report Consultants' Reports Nov 2009

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.


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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Chemist / Microbiologist Individual - Consulting Closed 25 Sep 2020 02 Oct 2020
INSTITUTIONAL DEVELOPMENT AND CAPACITY BUILDING Firm - Consulting Closed 21 Feb 2020 04 Apr 2020

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSULTING SERVICES FOR PROVISION OF ENGINEERING DESIGNS CONTRACT DOCUMENTATION PREPARARTION AND Grant 0204 29 Jan 2020 HANKUK ENGINEERING CONSULTANTS ANYANG MEGAVALLEY BLDG 801 799 GWAN YANG-DONG ANYANG CITY 431-767 KOREA REPUBLIC OF Ministry of Construction and Urban Development 936,660.99
A1.2 DUNDGOVI WWTP AND ANCILLARY SERVICES Loan 3713 30 Dec 2019 JV SAIN CONSTRUCTION LLC & SAN LLC TOKYO STREET 6/5, KHOROO 1, BAYANZURKH DISTRICT, ULAANBAATAR MONGOLIA Ministry of Construction and Urban Development CONSTRUCTION 3,074,142.61 2,777,089.63
SUKHBAATARWWTP AND ANCILLARY SERVICES Loan 3713 30 Dec 2019 JV KHURD JSC& HENAN BAIHUI SUKHBAATAR STR.71, KHOROO 6 CHINGELTEI DISTRICT, ULAANBAATAR MONGOLIA Ministry of Construction and Urban Development CONSTRUCTION 3,102,416.99 2,798,566.36