42184-027: Southeast Gobi Urban and Border Town Development Project (additional financing) | Asian Development Bank

Mongolia: Southeast Gobi Urban and Border Town Development Project (additional financing)

Sovereign (Public) Project | 42184-027 Status: Approved

On 19 April 2010, the Asian Development Bank (ADB) approved a grant of $15.00 million from its Asian Development Fund for the Southeast Gobi Urban and Border Town Development Project to support the provision of urban infrastructure and service improvement in the fast-growing urban areas of the southeast Gobi. The grant closing date was 31 May 2016. The anticipated impact of the current project was to enhance economic development and livability in the aimag centers, and mining and border towns in Southeast Gobi. The expected outcome of the current project was improved urban development and governance and expanded access to sustainable infrastructure and public utilities services in the Southeast Gobi.

Project Details

Project Officer
Ressano Garcia, Antonio East Asia Department Request for information
Country
  • Mongolia
Sector
  • Water and other urban infrastructure and services
 
Project Name Southeast Gobi Urban and Border Town Development Project (additional financing)
Project Number 42184-027
Country Mongolia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3713-MON: Southeast Gobi Urban and Border Town Development Project (Additional Financing) II
Ordinary capital resources US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services / Urban sewerage

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

On 19 April 2010, the Asian Development Bank (ADB) approved a grant of $15.00 million from its Asian Development Fund for the Southeast Gobi Urban and Border Town Development Project to support the provision of urban infrastructure and service improvement in the fast-growing urban areas of the southeast Gobi. The grant closing date was 31 May 2016. The anticipated impact of the current project was to enhance economic development and livability in the aimag centers, and mining and border towns in Southeast Gobi. The expected outcome of the current project was improved urban development and governance and expanded access to sustainable infrastructure and public utilities services in the Southeast Gobi.

On 22 April 2016, the Asian Development Bank (ADB) approved: (i) a loan of $19.40 million from its Asian Development Fund for additional financing for wastewater treatment plans in four aimag centres; and (ii) the administration of technical assistance (TA) grant of $ 1 million to be provided by the Sanitation Financing Partnership Trust Fund under the Water Financing Partnership Facility for supporting the government in addressing sludge reuse, including implementing a pilot.

The government has requested ADB's consideration of a second additional financing loan to the current project to scale up and extend its socio-economic benefits through improving the quality and reliability of wastewater management services in five additional prominent and fast growing aimag centers in other regions of the country. The additional financing will also continue to strengthen system sustainability through the provision of technical assistance to enhance wastewater management capabilities of the aimag public utility service organizations in the additional project aimag centers.

Project Rationale and Linkage to Country/Regional Strategy In 2016, urbanization in Mongolia reached an estimated 73.6% (2.3 million out of a total population of 3.1 million). The urban economy grew by an estimated annual average rate of over 10% during 2010 2014, and although economic growth slowed to 1.2% in 2016, it rebounded to 5.3% in the first half of 2017. The urban economy now accounts for 68% of total gross domestic product (GDP). However, the urban sector is dominated by the capital city, Ulaanbaatar, which contains almost half the national population, over two-thirds of the urban population, and accounts for 64% of GDP. The project aimags, with an aggregate urban population of about 100,000 represent examples of rapidly growing second tier cities and together make up some 5% of national urban population. Of the project aimags, two (Khentii and Sukhbaatar) have shown above average increases in population and share of the GDP, while in the remaining three (Bulgan, Dundgovi and Khuvsgul) population and GDP have shown growth rates at or slightly below the national average outside Ulaanbaatar.
Impact

Current project (original grant and first additional financing)

Economic development and livability in aimag centers (mining and border towns in Southeast Gobi) enhanced

Overall project

Unchanged

Project Outcome
Description of Outcome

Current project

Urban governance improved and Access to sustainable infrastructure and services expanded in urban places in Southeast Gobi and other aimags

Overall project

Unchanged

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Part A

Current project

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

Overall project

Unchanged

Current project

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

Overall project

Unchanged

Current project

Cross-border cooperation established

Overall project

Unchanged

Part B

Current project

Water source development, transmission, storage, and distribution completed

Overall project

Unchanged

Current project

Wastewater collection and treatment infrastructure constructed and operationalized

Overall project

Unchanged

Current project

District heating infrastructure constructed and operationalized

Overall project

Unchanged

Current project

Surfaced central roads constructed

Overall project

Unchanged

Current project

Solid waste collection and disposal enhanced

Overall project

Unchanged

Current project

Stormwater drainage infrastructure constructed and operationalized

Overall project

Unchanged

Current project

Strategic planning management, and cost recovery for wastewater management strengthened

Overall project

Unchanged

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Baruun-Urt, Bulgan, Chinggis Khaan International Airport, Mandalgovi, Moron
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
Business Opportunities
Consulting Services The project is expected to require a total of 145 person-months of consultancy inputs to support project management and implementation, and to support institutional development and capacity building of the PUSOs. The PMU, on behalf of the executing agency will engage consultants for project management and implementation support through quality- and cost-based selection (QCBS) methods and for capacity building and institutional development through individual consultant selection (ICS) method. All consultants hired under the project and to be financed by ADB will be engaged following ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
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). Contracts for civil works valued at more than $100,000 and less than $5,000,000; and contracts for goods and related services valued at more than $100,000 or less than $2,000,000 will be procured through national competitive bidding procedures (NCB). The NCB will be undertaken in accordance with standard government procedures subject to modifications agreed with ADB. Contract packages for civil works and goods valued at less than $100,000 will be awarded through shopping procedure. Relevant sections of ADB's Anticorruption Policy (1998, as amended to date) will be included in all procurement documents and contracts. Any tendered equipment packages will include the necessary technical support to ensure proper installation, testing, commissioning, and training of operational staff as part of the related contracts. The selection and engagement of contractors for works, goods, and/or consulting services to be financed by ADB loan will be subject to ADB approval.

For procurement of goods and works, the PMU will follow ADB's Procurement Guidelines and undertake procurement in accordance with established commercial practices acceptable to the government and ADB. To be acceptable, the PMU will (i) demonstrate that procedures are appropriate in the circumstances; (ii) ensure that goods and services financed using project funds are purchased with consideration to economy and efficiency at a reasonable price, given time of delivery, quality, and efficiency; and (iii) ensure that goods and services to be financed by project funds are procured from ADB member countries. The PMU is encouraged to procure goods and works through national competitive bidding and shopping, where applicable in the interest of economy and efficiency. The PMU staff are considered to have gained adequate experience in carrying out procurement activities undertaken under the ongoing project.

Responsible ADB Officer Ressano Garcia, Antonio
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
Timetable
Concept Clearance -
Fact Finding 18 Mar 2018 to 24 Mar 2018
MRM 31 Jul 2018
Approval 26 Sep 2018
Last Review Mission -
Last PDS Update 08 Nov 2018

Loan 3713-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2018 - - 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 0.00 0.00 0%
Counterpart 1.75 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2018 0.00 0.00 0%

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Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found