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Mongolia: Southeast Gobi Urban and Border Town Development Project —Additional Financing

Sovereign (Public) Project | 42184-024 Status: Active

The additional financing and the administration of the TA grant will scale up and extend the socioeconomic benefits of the project by improving the quality and reliability of wastewater management services in two aimag centers from the current project, and by extending service improvements to two additional prominent and fast-growing aimag centers. The additional financing will also continue to strengthen through the TA, the wastewater management capabilities of aimag public utility service organizations (PUSOs) in both the current and additional project aimag centers.

Project Details

Project Officer
Tuul Badarch East Asia Department Request for information
Country
  • Mongolia
Modality
  • Loan
  • Technical Assistance
Sector
  • Water and other urban infrastructure and services
 
Project Name Southeast Gobi Urban and Border Town Development Project —Additional Financing
Project Number 42184-024
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
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
TA 9100-MON: Management and Reuse of Sewage Sludge from On-Site Sanitation Facilities and Decentralized Wastewater Treatment Plants
Bill and Melinda Gates Foundation US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Water and other urban infrastructure and services / Urban sewerage

Gender Equity and Mainstreaming Some gender elements
Description The additional financing and the administration of the TA grant will scale up and extend the socioeconomic benefits of the project by improving the quality and reliability of wastewater management services in two aimag centers from the current project, and by extending service improvements to two additional prominent and fast-growing aimag centers. The additional financing will also continue to strengthen through the TA, the wastewater management capabilities of aimag public utility service organizations (PUSOs) in both the current and additional project aimag centers.
Project Rationale and Linkage to Country/Regional Strategy

On 19 April 2010, the Asian Development Bank (ADB) approved a grant of $15 million from its Asian Development Fund for the Southeast Gobi Urban and Border Town Development Project, to support the provision of infrastructure and service improvement in urban areas in Southeast Gobi. At the time, the aimags of Dornogovi and Umnugovi were experiencing a rapid increase in economic activity from the expansion of mining operations and the strengthening of trade corridors with the People's Republic of China. This resulted in growth of urban populations, but the aimag centers and key soum centers lacked consummate urban infrastructure and services. The current project's anticipated impact is enhanced economic development and livability in the aimag centers and mining and border towns in Southeast Gobi. The expected outcome is improved urban development and governance, and expanded access to sustainable infrastructure and public utility services in urban places in Southeast Gobi. Key outputs of the current project include urban roads, water supply networks, wastewater and district heating, solid waste collection and disposal systems, and urban service delivery reforms.

The most urgent outputs were identified during the feasibility stage of the current project. The government had planned to build new wastewater treatment plants (WWTPs) in Sainshand and Dalanzadgad, to be financed through the state budget. Due to financial constraints they were not built and the government hence included the WWTPs in the proposed additional financing. The additional financing offers the opportunity of replication to other aimag centers with comparable geographic and economic characteristics and similar wastewater treatment needs. Subsequently, the government added to the scope of the additional financing project the aimag centers of Avairkheer (Uvurkhangai) and Tsetserleg (Arkhangai).

Impact Economic development and livability in aimag centers (mining and border towns in Southeast Gobi) enhanced
Project Outcome
Description of Outcome Improved urban governance and expanded access to sustainable infrastructure and services in urban places in Southeast Gobi
Progress Toward Outcome On 18 June 2019, ADB approved an 18-month extension of the loan closing date from 30 June 2020 to 31 December 2021. As of 20 September 2019, the overall project implementation progress was estimated at 75% against 60% of the elapsed revised implementation period. The cumulative contract award amount was $15.1 million or 81% of the net loan amount, while the cumulative disbursement was $9,9 million or 51% of the net loan amount. The progress of ongoing civil works contracts complies with the respective implementation schedules. Development of safeguards monitoring plans and reports is generally on time. Performance of the EA, contractors and consultants has been satisfactory. All the packages planned under the original procurement plan have been contracted.
Implementation Progress
Description of Project Outputs

Infrastructure services reforms, including performance-based contracts for urban services delivery, implemented

Urban planning and policy making, including master plans for participating towns, strengthened

Cross-border cooperation established

Water source development, transmission, storage and distribution completed

Wastewater collection infrastructure constructed and operationalized

District heating infrastructure constructed and operationalized

Surfaced central roads constructed

Solid-waste collection and disposal enhanced

Storm water drainage infrastructure constructed and operationalized

Capacity on project management, strategic planning, and accounting systems increased

Status of Implementation Progress (Outputs, Activities, and Issues) All outputs were achieved under the Grant 0204, except the ongoing output to construct and operationalize wastewater collection infrastructure. This output includes construction of modern wastewater treatment facilities to replace inadequate wastewater stabilization pond systems. This will be achieved by building new, effective, and energy-efficient treatment processes with integrated fixed-film activated sludge (IFAS) technology. This system designed by Mongolian engineers is suitable for the cold climate in the project aimag centers and will produce an effluent that meets national and international effluent standards. Of four wastewater treatment plants (WWTP) planned under the original projects cope, construction of one WWTP was completed in November 2018, nine months ahead of the original implementation schedule, and the construction of three WWTPs is ongoing.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environment categorization of the current project and additional financing is B , no unprecedented or irreversible impact on the environment is anticipated. In compliance with ADB's Safeguard Policy Statement (2009), an initial environmental examination and an environmental management plan were prepared for the components to be supported through additional financing. Short-term impacts are anticipated during construction, including dust, noise, and waste generated during earthwork and civil works activities, as well as minor community and occupational health and safety risks. Operation and maintenance training and performance monitoring will minimize operational impacts and risks, and optimize environmental benefits. The project's climate risk is low.
Involuntary Resettlement The additional financing is categorized as C for involuntary resettlement as the project will not cause any direct or indirect, permanent or temporary land acquisition and resettlement impacts. The construction of the WWTPs will be done on state-owned vacant land.
Indigenous Peoples The categorization for indigenous peoples is C. The project will be implemented in urban areas where no specific communities of ethnic minorities or groups are living. All residents will equally benefit from better wastewater treatment service. The ADB policy requirements for indigenous peoples will not be triggered by this project.
Stakeholder Communication, Participation, and Consultation
During Project Design The stakeholder consultation process conducted during the development of the IEE and the DEIAs, demonstrated that all sub-components under the additional project have strong local support. In compliance with ADB's SPS (2009), environmental information related to the project was and/or will be disclosed to affected people as follows: (i) this IEE is disclosed on January 2016 and available on ADB's project website (www.adb.org), and is available for consultation in the PUSOs' and PMU's offices; (ii) the DEIAs will be approved and disclosed by MEGDT; and (iii) annual reports on project's compliance with the EMP as well as the Project Completion Report will be available at www.adb.org.
During Project Implementation During project implementation, affected people will be consulted and informed through formal questionnaire surveys, site visits and informal interviews by the PUSO Support Group and the LIEC. Public meetings will be organized by the PUSO Support Group prior to mid-term mission to present and discuss EMP implementation progress, solicit community opinions and concerns, and agree on required corrective actions. The LIEC will, prior to project completion report (PCR) mission, organize a survey to assess community satisfaction with project implementation, additional financing project outputs, and EMP implementation performance. The results will be documented in the PCR.
Business Opportunities
Procurement All procurement of goods, works and consulting services financed from the ADB loan will be carried out in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Tuul Badarch
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ministry of Construction and Urban Development
Ulaanbaatar 211238
Barilgachdyn Talbai 3 Mongolia
Timetable
Concept Clearance -
Fact Finding 30 Nov 2015 to 04 Dec 2015
MRM -
Approval 22 Apr 2016
Last Review Mission -
Last PDS Update 20 Sep 2019

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 15.13 0.00 78%
Counterpart 1.74 Cumulative Disbursements
Cofinancing 0.00 22 Apr 2016 9.97 0.00 52%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

TA 9100-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Apr 2016 09 Nov 2016 09 Nov 2016 31 Oct 2018 30 Oct 2020 -
Financing Plan/TA Utilization Cumulative Disbursements
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 22 Apr 2016 656,087.70
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - 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.

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 (Additional Financing): Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Sep 2019
Зүүн өмнөд говийн хот байгуулалт, хилийн ойролцоо суурин газрын хөгжил төслийн нэмэлт санхүүжилт: Төслийн Мэдээллийн Тайлан Translated PDS Sep 2018
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Audited Project Financial Statements (5 July 2016-December 2017) Audited Project Financial Statements Sep 2018
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Procurement Plan Procurement Plans Jul 2018
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
Project Agreement for Loan 3388-MON: Southeast Gobi Urban and Border Town Development Project (Additional Financing) - Dornogobi 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): Project Administration Manual Project/Program Administration Manual 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

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
Public Communications and Development Specialist Individual - Consulting Closed 04 Dec 2018 10 Dec 2018
Research Institute (Laboratory)-Laboratory Testing and Pilot Test Operations Firm - Consulting Closed 27 Nov 2018 11 Dec 2018
Project Management Advisor Individual - Consulting Closed 21 Sep 2018 27 Sep 2018
Financial Economist Individual - Consulting Closed 12 Jun 2018 25 Jun 2018
Sainshand WWTP detailed design revisions and design of the 4.4 km sewerage pipeline in Sainshand Firm - Consulting Closed 01 Aug 2017 30 Aug 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
A 1.1 WASTEWATER TREATMENT PLANT AND ANCILLARY SER VICES IN ARKHANGAI AIMAG Loan 3388 25 Jun 2018 JOINT VENTURE OF CHMM LLC ENTA MOHENDISHLIK THE OFFICE BUILDING CHMM LCC, KHAN-UUL D ISTRICT, AJILCHDIIN GUDAMJ, TEL:70280199 MONGOLIA Ministry of Construction and Urban Development CONSTRUCTION 3,360,041.00 3,001,769.00
A1.4 WASTEWATER TREATMENT PLANT AND ANCILLARY SERV ICES IN UVURKHANGAI AIMAG Loan 3388 06 Mar 2018 COMFORT IMPEX LLC SONGINO KHAIRKHAN DISTRICT 12 KHOROO TEL:70114445, [email protected] MONGOLIA Ministry of Construction and Urban Development CONSTRUCTION 4,088,614.00 3,640,592.00
WASTEWATER TREATMENT PLANT AND ANCILIARY SERVICES IN UMNUGOBI AIMAG Loan 3388 27 Dec 2017 NAB LLC SUKHBAATAR DISTRICT, ERKHUU STREET 31, ORIENT CENTER, 14190 POB-30 MONGOLIA Ministry of Construction and Urban Development CONSTRUCTION 3,520,067.00 3,065,405.00
CONTRACT FOR CONSULTANT'S SERVICES, CONTRACT NO.B2 : INSTITUTIONAL DEVELOPMENT AND CAPACITY BUILDING Loan 3388 15 Sep 2017 MTU LLC (LEAD MEMBER) 20 PUMA, 56/2, JUULCHIN STREET, POST COD E 151702,CHINGELTEI,ULAANBAATAR,MONGOLIA MONGOLIA Ministry of Construction and Urban Development 370,247.00 370,247.00
Package B.1: Project Management, Procurement and Supervision Support. Project Safeguards and Quality Assurance Monitoring and Evaluation Support Loan 3388 30 Jun 2017 Easen International LLC #321, Building 5, #500 Jinan Road, Hong Kong District, Shanghai, China, People's Rep. of Ministry of Construction and Urban Development Consulting Services 745,400.00 745,400.00