Mongolia : Southeast Gobi Urban and Border Town Development Project
The objective of the Project is to maximize benefits from development of mining and border trade activities in the region.
Project Details
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Project Officer
Badarch, Tuul
East Asia Department
Request for information -
Country/Economy
Mongolia -
Modality
-
Sector
- Water and other urban infrastructure and services
Related Projects
Project Name | Southeast Gobi Urban and Border Town Development Project | ||||||||||||||||
Project Number | 42184-022 | ||||||||||||||||
Country / Economy | Mongolia |
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Project Status | Active | ||||||||||||||||
Project Type / Modality of Assistance | Grant Loan Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Inclusive economic growth Regional integration |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Private sector development |
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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 |
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Gender | Effective gender mainstreaming | ||||||||||||||||
Description | The objective of the Project is to maximize benefits from development of mining and border trade activities in the region. | ||||||||||||||||
Project Rationale and Linkage to Country/Regional Strategy | The aimags (provinces) of Omnogovi and Dornogovi (Southeast Gobi) are poised to experience a rapid increase in economic activity as a result of rapid growth in mining and cross-border trade. The influx associated with these economic activities is projected to more than double urban populations in the project towns by 2020. For some soum (district) centers in Southeast Gobi, population is expected to increase by an order of magnitude by 2020. The provision of urban infrastructure and services is currently poor and is not keeping pace with population growth. Many services are either inadequate or absent. There are low levels of access to water supply and sanitation, and smaller urban areas do not have piped networks. Insufficient and unreliable urban services add to business and household costs, damage the urban environment and diminish quality of life, and decrease the attractiveness of towns to further potential investment. Investment and capacity development are required to enable government to expand the coverage and improve the quality and reliability of urban services. Local governments are ill-equipped to meet the joint challenges posed by increased demand for scarce water resources. Maximizing the benefits to existing and future residents of Southeast Gobi from mining investments, trade growth, and associated economic development opportunities depends on effective urban planning, management, and service delivery policies and structures being in place. Strengthening the provision of basic urban services will require institutions and policies that provide incentives for performance while also ensuring affordability. Services are currently provided by utilities that are largely owned by local government, and are delivered at a loss due to unwillingness of local government councils to raise tariffs to cost-recovery levels. This is costly in terms of the resources spent on untargeted subsidies and foregone opportunities to attract private sector expertise and financing. |
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Impact | Economic development and livability in aimag centers (mining and border towns in Southeast Gobi) enhaced. |
Project Outcome | |
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Description of Outcome | Urban governance improved and access to sustainable infrastructure and services expanded in urban places in Southeast Gobi and other aimags. |
Progress Toward Outcome | The project implementation is satisfactory. The project remains consistent with the sector needs and the ADB's strategy and program in Mongolia. The the project impact and outcome remain relevant and are achievable. The project safeguards requirements are being complied with. |
Implementation Progress | |
Description of Project Outputs | 1. Infrastructure services reforms, including perforamance-based contracts for urban services delivery implemented 2. Urban planning and policy making, including master plans for participating towns strengthened. 3. Cross-border cooperation established 4. Water source development, transmission, storage and distribution completed 5. Wastewater collection and treatment infrastructure constructed and operationalized 6. District heating infrastructure constructed and operationalized 7. Surfaced central roads network constructed 8. Improved solid waste collection and disposal enhanced 9. Stormwater drainage infrastructure constructed and operationalized 10. Strategic planning management, and cost recovery for wastewater management strengthened |
Status of Implementation Progress (Outputs, Activities, and Issues) | Output 1. Completed under G0204Package 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. Output 2. Completed under G0204. Urban master plans for four soums have been prepared, approved and handed over to the aimag governments. Women participation in the consultation process has been recorded and reported. Output 3. Completed under G0204. Working group was established by the Government. Output 4. 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). In addition, two water reservoirs with 48m3/d capacity were constructed in Erdenedalai, Dundgovi aimag under Loan 3713. 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). Under the L3388 and L3713, additional 6.3 km water supply pipeline was installed. Output 5. Completed under G0204. Ongoing under L3388 and L3713. In total of 79.4 km sewer pipes have been installed under three projects. As of 20 September 2022, of nine original and two additional WWTPs planned for construction under Loan 3388 and Loan 3713, nine WWTPs constructed and commissioned and two plants will be completed by 31 December 2022. Project supplied sewage vacuum trucks and machinery for five PUSOs under loan 3713 and conducted the training on machine operations and labor safety. Output 6. Completed under Grant 0204. 10.2 km heating supply pipelines were constructed under Grant 0204 by 2016. Loan 31713 financed construction of additional 5.1 km heating supply pipelines in 2020. Output 7. Completed under G0204. 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 towns. Output 8. Completed. 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. Output 9. Completed under G0204. 1.8 km storm drainage was built in accordance with the detailed engineering design. Output 10. Completed under G204. Ongoing under L3388 and L3713. Women participation is recorded and reported. |
Geographical Location | Dalandzadgad, Gurvantes, Saynshand, Tsogttsetsiy, Zamiin Uud |
Safeguard Categories | |
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Environment | B |
Involuntary Resettlement | B |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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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 | |
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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 $1 million will be procured using NCB procedures. The selection and engagement of contractors will be subject to ADB approval. Before commencement of NCB procurement, ADB and the Borrower will review the Borrower's procurement procedures to ensure consistency with ADB requirements. Any necessary modifications or clarifications to the Borrower's procedures will be documented in the procurement plan. Any internationally tendered equipment packages will include the necessary technical support for ensuring proper installation, testing, commissioning, and training of operational staff as part of the related contracts. In accordance with ADB requirements, foreign contractors may participate in bidding for NCB contracts. |
Responsible ADB Officer | Badarch, Tuul |
Responsible ADB Department | East Asia Department |
Responsible ADB Division | Mongolia Resident Mission |
Executing Agencies |
Ministry of Construction and Urban Development Ministry of Roads, Transportation, Construction and Urban Development |
Timetable | |
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Concept Clearance | 13 Nov 2009 |
Fact Finding | 09 Nov 2009 to 26 Nov 2009 |
MRM | 29 Jan 2010 |
Approval | 19 Apr 2010 |
Last Review Mission | - |
PDS Creation Date | 13 Apr 2010 |
Last PDS Update | 24 Sep 2022 |
Grant 0204-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
19 Apr 2010 | 07 Jun 2010 | 30 Jul 2010 | 31 May 2015 | 30 Nov 2019 | 26 Mar 2020 |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 21.90 | Cumulative Contract Awards | |||
ADB | 15.00 | 08 May 2023 | 14.99 | 0.00 | 100% |
Counterpart | 6.90 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 08 May 2023 | 14.99 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3388-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
22 Apr 2016 | 28 Apr 2016 | 05 Jul 2016 | 30 Jun 2020 | 31 Dec 2022 | - |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 21.17 | Cumulative Contract Awards | |||
ADB | 19.43 | 08 May 2023 | 18.87 | 0.00 | 97% |
Counterpart | 1.74 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 08 May 2023 | 19.53 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3713-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
26 Sep 2018 | 20 Dec 2018 | 18 Feb 2019 | 30 Jun 2022 | 30 Jun 2023 | - |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 21.75 | Cumulative Contract Awards | |||
ADB | 20.00 | 08 May 2023 | 18.09 | 0.00 | 90% |
Counterpart | 1.75 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 08 May 2023 | 18.40 | 0.00 | 92% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
TA 9100-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
22 Apr 2016 | 09 Nov 2016 | 09 Nov 2016 | 31 Oct 2018 | 30 Oct 2020 | 31 Jan 2021 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
0.00 | 1,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,000,000.00 | 08 May 2023 | 943,214.92 |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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Related Publications
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Urban Services for Mongolia's Booming Border Towns
Rapid growth in mining and cross-border trade is putting a strain on existing infrastructure in Mongolia's South Gobi region. The Government with ADB support is now working to improve urban infrastructure and services.ADB Opens a New Wastewater Treatment Plant in Arvaikheer, Mongolia
ADB and the Uvurkhangai Provincial Government of Mongolia today inaugurated a new wastewater treatment plant in the provincial capital Arvaikheer.ADB Expands Wastewater Project to 5 Additional Mongolia Aimags
ADB's Board of Directors has approved $20 million in additional loan financing to expand the scope of an ongoing wastewater treatment project to an extra five fast-growing aimag (province) centers of Mongolia.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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Environmental monitoring specialist | Individual - Consulting | Closed | ||
Labor safety training specialist | Individual - Consulting | Closed | ||
Chemist / Microbiologist | Individual - Consulting | Closed | ||
INSTITUTIONAL DEVELOPMENT AND CAPACITY BUILDING | Firm - Consulting | Closed |
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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PACKAGE B2:INSTITUTIONAL DEVELOPMENT AND CAPACITY BUILDING FOR PUSOS | Loan 3713 | 23 Mar 2021 | JV OF SETSEN BILGUUN LLC AND IKH MYANG INJINE | TEL: 99108481 EMAIL: [email protected] MONGOLIA | Ministry of Construction and Urban Development | 449,922.00 | 449,922.00 |
A1.2.2: WASTEWATER TREATMENT PLANT AND ANCILLARY S ERVICES IN SAINSHAND SOUM, DORNOGOVI AIMAG | Loan 3388 | 11 Mar 2021 | COMFORT IMPEX LLC | MONGOLIA MONGOLIA MONGOLIA | Ministry of Construction and Urban Development | 2,229,940.62 | 2,010,406.28 |
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 | 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 | 3,102,416.99 | 2,798,566.36 |
Procurement Plan
Title | Document Type | Document Date |
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Southeast Gobi Urban and Border Town Development Project (Additional Financing): Procurement Plan | Procurement Plans | Sep 2022 |
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Procurement Plan | Procurement Plans | Dec 2020 |
Southeast Gobi Urban and Border Town Development Project: Procurement Plan | Procurement Plans | Jun 2018 |