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

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

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 Name Southeast Gobi Urban and Border Town Development Project (additional financing)
Project Number 42184-027
Country Mongolia
Project Status Active
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 As of 20 September 2019, the overall project implementation progress was rated 25% against 24% of elapsed implementation period. The cumulative contract award amount was $9.02 million or 45% of the net loan amount, while the cumulative disbursement was $1.6 million or 8% of the net loan amount. Of five procurement packages for construction of WWTPs, the EA (i) has awarded three packages; (ii) had been evaluating the bids for the fourth package, and (iii) has started the bidding for the fifth package. The progress of ongoing civil works contracts complies with the respective implementation schedules. Performance of the EA, contractors and consultants has been satisfactory.
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)

All outputs were achieved under the Grant 0204, except two ongoing outputs to (i) construct and operationalize wastewater collection infrastructure, and (ii) strengthen strategic planning management and cost recovery for wastewater management.

Output: Wastewater collection and treatment infrastructure constructed and operationalized. 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.

As of 20 September 2019, the EA (i) has awarded three civil works contract of $9.9 million for construction of WWTPs in Bulgan, Khenti and Khuvsgul aimags; (ii) had been evaluating the bids for the WWTP in Sukhbaatar; (iii) delivered a bidding document for the fifth package for construction of WWTP in Dundgovi. The progress of ongoing civil works contracts complies with the respective implementation schedules. Performance of the EA, contractors has been satisfactory.

Output: Strategic planning management, and cost recovery for wastewater management. Not yet due. Selection of a national consulting firm for the institutional development and capacity building of water and wastewater operators in the project provincial towns will start in November 2019.

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 Tuul Badarch
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 20 Sep 2019

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 9.03 0.00 45%
Counterpart 1.75 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2018 1.67 0.00 8%

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 (Second Additional Financing): Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jun 2020
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Project Administration Manual Project/Program Administration Manual Oct 2019
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Procurement Plan Procurement Plans Oct 2019
Project Agreement for Loan 3713-MON: Southeast Gobi Urban and Border Town Development Project - Additional Financing (Aimag Government of Dundgovi) Project/Program Agreements Dec 2018
Project Agreement for Loan 3713-MON: Southeast Gobi Urban and Border Town Development Project - Additional Financing (Aimag Government of Khenti) Project/Program Agreements Dec 2018
Project Agreement for Loan 3713-MON: Southeast Gobi Urban and Border Town Development Project - Additional Financing (Aimag Government of Khuvsgul) Project/Program Agreements Dec 2018
Loan Agreement (Ordinary Operations) for Loan 3713-MON: Southeast Gobi Urban and Border Town Development Project - Additional Financing Loan Agreement (Ordinary Resources) Dec 2018
Project Agreement for Loan 3713-MON: Southeast Gobi Urban and Border Town Development Project - Additional Financing (Aimag Government of Sukhbaatar) Project/Program Agreements Dec 2018
Project Agreement for Loan 3713-MON: Southeast Gobi Urban and Border Town Development Project - Additional Financing (Aimag Government of Bulgan) Project/Program Agreements Dec 2018
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Social and Gender Action Plan Gender Action Plans Sep 2018
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Project Administration Manual Project/Program Administration Manual Sep 2018
Southeast Gobi Urban and Border Town Development Project (Additional Financing): Report and Recommendation of the President Reports and Recommendations of the President Sep 2018

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

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
A1.3 WASTEWATER TREATMENT PLANT WITH ANCILLARY SERVICES IN CHINGIS CITY, KHENTII AIMAG Loan 3713 30 Aug 2019 COMFORT IMPEX LLC SONGINO KHAIRKHAN, 12 KHOROO, ULAANBAATAR 17032,TEL: 70114445 MONGOLIA Ministry of Construction and Urban Development CONSTRUCTION 3,364,137.88 3,042,317.13
PACKAGE A1.4:WASTEWATER TREATMENT PLANT WITH ANCILLARY SERVICES IN MURUN CITY, KHUVSGUL AIMAG Loan 3713 13 Jun 2019 JOINT VENTURE OF NABSAN LLC, AND S AND A KHAN-UUL DISTRICT, 2 KHOROO, CHINGGIS AVENUE, NABSAN LLC BUILDING, UB,MONGOLIA MONGOLIA Ministry of Construction and Urban Development CONSTRUCTION 3,421,196.29 3,077,534.86
A1.1: WASTEWATER TREATMENT PLANT WITH ANCILLARY SERVICES IN BULGAN CITY Loan 3713 14 May 2019 JOINT VENTURE OF ZAG AND PRESTIGE CITY TOWER 8/1, 13TH FLOOR SUKHBAATAR DISTRICT, ULAANBAATAR MONGOLIA Ministry of Construction and Urban Development CONSTRUCTION 3,269,146.19 2,922,499.38