fbpx 42322-023: Additional Financing of Food and Nutrition Social Welfare Project | Asian Development Bank

Mongolia: Additional Financing of Food and Nutrition Social Welfare Project

Sovereign (Public) Project | 42322-023 Status: Active

ADB is helping Mongolia improve the efficiency of its social welfare and insurance services, which include food assistance. The project provides additional financing to scale up social welfare reforms, improve the delivery of social insurance services, and modernize the social protection sector.

Project Details

Project Officer
Itgel Lonjid East Asia Department Request for information
Country
  • Mongolia
Modality
  • Loan
  • Technical Assistance
Sector
  • Health
 
Project Name Additional Financing of Food and Nutrition Social Welfare Project
Project Number 42322-023
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3086-MON: Food and Nutrition Social Welfare Program and Project - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
TA 8544-MON: Supporting Social Protection Reforms
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Health / Health insurance and subsidized health programs

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The original program ($9 million ADF) included the design and implementation of a food stamp program as part of the social welfare system. The original project ($3 million ADF) improved targeting and prepared strategies to reform social welfare. The additional financing will scale up the original project by pursuing the reforms initiated to date in social welfare. Social welfare benefits will be further consolidated to reduce the complexity of the system and increase its effectiveness. The use of proxy means testing to identify poor households will be expanded to apply to other social welfare benefits. The additional financing will also support an expansion in the scope of the original project by improving social insurance services. The additional financing meets the three criteria for priority consideration set out in OM H5/BP para.11: (i) the project is performing well; (ii) there is a high degree of project readiness to implement the additional financing; and (iii) developing social welfare and insurance services that are effective, efficient, transparent, and user-centered is highly innovative in the context of Mongolia and could have a demonstration effect for other sectors.
Project Rationale and Linkage to Country/Regional Strategy

The Asian Development Bank (ADB) approved the original program and project grants in 2008, which were designed to improve access to food by vulnerable and poor households through a targeted food stamp program and strengthened social welfare systems. The government has requested ADB's consideration of additional financing to continue reforming social welfare and strengthen social insurance services.

The Food and Nutrition Social Welfare Program and Project (FNSWPP) were designed as an immediate response to the 2008 food and fuel crisis and a step in reforming the social welfare system. The program included the design and implementation of a food stamp program as an integral part of social welfare assistance to address the needs of the most vulnerable population. The project supported the implementation of the food stamp program through the introduction of an innovative poverty targeting method in Mongolia, and prepared a package of reform of social welfare strategies.

Mongolia's promising economic outlook and the prospect of increased labor participation in the formal sector justify the increased focus on social insurance. However in Mongolia, high economic growth coexists with large numbers of vulnerable and poor populations requiring a continuous focus on social welfare. In July 2012, the newly elected government published the Government Action Plan (2012 *2016), which aimed at introducing new and transparent financial services and advanced information technology tools in the social welfare and insurance sector. The intention of the government is to address the dissatisfaction of the users with insurance and social welfare services, and the lack of transparency in the way social insurance and welfare services are provided to beneficiaries.

The Ministry of Population Development and Social Protection (MPDSP) includes two attached agencies, the Social Insurance General Office (SIGO) in charge of managing 5 social insurance funds, and the General Office for Social Welfare Services (GOSWS) in charge of social welfare benefit management. SIGO and GOSWS are fairly decentralized with their 30 branch offices in all 21 aimags (province) and 9 districts of Ulaanbaatar, and services offered in all 352 soums (administrative subdivision of the aimag) of the country. The MPDSP also includes the National Children Authority and the Public Service Office of People with Disabilities. SIGO and GOSWS staff suffer from a lack of automated procedures for reporting, poor connectivity to automate social services at the soum and aimag levels, and a multitude of databases which complicates data management, analysis and reporting.

Social welfare. Social welfare has undergone major reforms over the last 10 years with ADB support, but key issues such as fiscal sustainability and impact of welfare benefits still need to be addressed through the consolidation of social welfare benefits. Social welfare includes an excessive number of benefits (more than 60), which lack proper targeting and are overlapping. The absence of an effective centrally operated management information system in GOSWS leads to duplication of benefits, limited analysis, and other inefficiencies. Progress made in reforming social welfare since 2009 include the introduction of proxy means testing (PMT) to target the poor, cancellation of several universal benefits, the introduction of the food stamp program as the first poverty-targeted benefit in Mongolia, and passage of an amended Social Welfare Law in January 2012 that legalized the reforms. Advocacy, effective public communication, and capacity development will be needed to overcome the inherent resistance to rationalizing social entitlements.

Social insurance. SIGO manages five social insurance funds, namely the (i) pension fund; (ii) unemployment fund; (ii) health insurance fund; (iv) benefits fund (sickness, maternal, and funeral grants); and (v) IAOD insurance fund (industrial accidents, occupational diseases). Population coverage of each fund varies. All funds are subsidized by the government, and the pension and health insurance funds are contributory funds. The MPDSP has initiated pension reform, which covered about 850,000 people at the end of 2012, to shift from a single layer contributory system to a multilayer pension system encouraging private sector involvement. The health insurance system, covering up to 98% of the population, is undergoing reforms including better governance, more managerial autonomy, and increased health services purchasing capacity. As social insurance will become more important in the future due to increased employment and to address inequalities, it is timely to update the social security sector strategy to develop a consensus on the way forward to 2020.

GOSWS and SIGO information technology systems. These systems show a contrasting picture in terms of information technology (IT) processes, software, hardware, and networks. The current approach to strictly separate IT systems for GOSWS and SIGO is inefficient. These IT environments can complement each other and IT solutions could be implemented in a coordinated way to increase efficiency and cross support, including maintenance. SIGO is using an outdated system, which cannot support current international accounting standards requirements for the public sector. The social welfare IT system requires upgrading, which is planned under a World Bank technical assistance. The processes for both GOSWS and SIGO need to become transparent and stakeholder-centric. Current client-server software applications need to be upgraded to web-based interfaces to increase the transparency of IT processes.

Reporting and data analytics (business intelligence) lack automated processes in SIGO, GOSWS, and at the ministry level resulting in considerable manual efforts to produce regular reports and answering to ad hoc requests from higher authorities about social welfare and insurance performances. The current security and backup processes in SIGO and GOSWS are deficient. Almost none of the offices use proper licenses for the software in use. Open source free software need to be used whenever possible. Both SIGO and GOSWS seem adequately staffed but given the planned IT improvements, the human resources capacity needs to be reassessed. There is a need to acquire additional IT hardware (computer, server, digital storage) at central level, aimags, districts, and soum level but this needs to be supported by proper IT budget allocation to implement effective maintenance, depreciation, and replacement policies. Currently about 50% of the soums are connected through an internet network. Government together with private parties are working on extending network connectivity to remote soums. Bandwidth, which seems sufficient for SIGO at present, will need to be reassessed in light of the planned requirements of the IT system in the future.

The additional financing is considered to meet the four eligibility criteria for additional financing set out in OM H5/BP para. 4: (i) ADB reviewed the original project in February 2013 and confirmed the satisfactory performance of the original project and no significant changes in approaches and methodologies are envisioned. Accordingly the original project remains technically feasible, economically viable, and financially sound; (ii) the government accords high priority to the original project as proposed to be expanded through the additional financing. Additional financing will be crucial in meeting a key reform included in the Government Action Plan (2012- 2016) to deliver social protection services to citizens efficiently and without any red tape, as acknowledged by the government's request for additional financing; (iii) the revised project outcome will continue improving social welfare services started under the original project and extend to social insurance services while the output

Impact Improved social equity, less poverty, better social risks mitigation and prevention, and improved food security
Project Outcome
Description of Outcome More efficient and transparent delivery of social welfare and insurance services (including support to food consumption), through strengthened policy, systems, and information technology
Progress Toward Outcome The project supports the Ministry of Labor and Social Protection (MLSP), the Social Insurance General Office (SIGO), the Government Office for Labor, Welfare and Services (GOLWS) in enhancing their operation and policy through adoption of information systems based on the innovative technology. A number of consulting services have been recruited to define the technology solutions and many of the IT systems are being developed. The capacity building of the MLPS and its affiliated agencies are also being supported under the project to equip the staff and the management with new skills and information to improve the delivery of the social welfare and insurance services.
Implementation Progress
Description of Project Outputs

Component 1: Design and implementation of a targeted food stamp program

1.1 Innovative targeting approaches for food stamps pilot tested by December 2009

1.2. A mechanism for delivering food stamps is established by June 2009

Component 2: Capacity development and communication strategy for the food stamp program

2.1. Capacity development tools for national and local stakeholders and institutional strengthening designed and implemented by January 2010

2.2. A communication strategy to ensure transparent implementation of the food stamp program developed and implemented by December 2009

Component 3: Strengthening social welfare strategies and systems

3.1. Effective food crisis response by 2010

3.2. IT processes and systems are upgraded to deliver more efficient and transparent social welfare and social insurance services.

3.3. Social welfare reformed and social protection strengthened by 2017

3.4 An early warning and response system to respond to social shocks by October 2011

Status of Implementation Progress (Outputs, Activities, and Issues)

- As a result of the PMT survey conducted in 2017 under the project, the Household Livelihood Integrated Database registered in total 596,994 households or 2,367,085 people. Since 2017 up to September 2019, in total 135,416 households were re-assessed for eligibility of social welfare programs. The web-based information system for PMT survey was developed and implemented by a team of national consultants in January 2018.

- The project assisted the MLSP in updating the Social Protection Sector Strategy which is planned to be approved within 2019. The project also supported the discussion on the proposed amendment to the Social Welfare Law among the central and local social welfare service staff.

- The consultants for capacity building for (i) social insurance, (ii) social welfare services and (iii) family, child and youth development assessed the training needs of each sector, developed the midterm strategies for the human resources development and the training curriculum and modules. Training for trainers were held in September 2019 and the regional training will be held in October 2019.

- The consultants to develop the core information system at the SIGO, have commenced their service from August 2019. It is expected that the system will be operational by the fourth quarter of 2020. The SIGOs reporting will be fully automated as a result if the new information system.

- The Business intelligence (BI) system for MLSP has been developed by a team of national consultants and will become operational in October 2019.

- - The project supports developing the risk-based monitoring and evaluation system in the labor and social protection sector. The system will allow the MLSP to monitor and evaluate the impacts of the sectorial policies, activities, projects and programs, allocation and utilization of funding, and sufficiency and efficiency of human and financial resources. The mechanism will help the MLSP to plan, develop, implement and enhance the policy options and improve the decision-making.

- The project supplied 340 laptops, 150 desktop computers, 475 printers, 523 UPS, storage servers and other items for the SIGO offices at soum, aimag and district levels in 2017.

- The project also provided 540 laptops, 595 printers and 32 copiers and 35 projectors with screens for the GOLWS at soum, aimag and district levels in 2017.

- The other equipment and software were supplied to the MLSP, SIGO and GOLWS for the use of the IT systems to be developed under the project.

Geographical Location Nation-wide, Arhangay Aymag, Bayan Ologey Aymag, Bayanhongor Aymag, Bulgan Province, Central, Darhan-Uul Aymag, Dunda Gobi Aymag, Dzavhan Aymag, East Gobi Aymag, Eastern, Gobi Altay Amag, Govi-Sumber, Hentiy Aymag, Hobsogol Aymag, Hovd Aymag, Nan go bi Bu, Obor Hangay Aymag, Orhon Aymag, Selenge Aymag, Suhbaatar Aymag, Ulaanbaatar Hot, Uvs Aymag
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No environmental issues are anticipated.
Involuntary Resettlement No resettlement issues are anticipated.
Indigenous Peoples No issues related to indigenous people are anticipated.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with key stakeholders were held during project processing which include focus group discussions with SIGO and GOSWS staff, the ministry staff and management, current project staff and others such as the World Bank who are supporting IT development in the GOSWS.
During Project Implementation Stakeholder communication, participation, and consultation during project implementation are held continuously to ensure the social welfare and insurance services meet stakeholders' (including direct beneficiaries') expectations in terms of timeliness, effectiveness, and transparency.
Responsible ADB Officer Itgel Lonjid
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Ministry of Labor and Social Protection
[email protected]
Government Building-2
United Nations Street-5
Ulaanbaatar-15160,
Ulaanbaatar, Mongolia
Timetable
Concept Clearance 21 Jun 2013
Fact Finding 24 Jun 2013 to 06 Jul 2013
MRM 11 Sep 2013
Approval 10 Dec 2013
Last Review Mission -
Last PDS Update 27 Sep 2019

Loan 3086-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2013 06 Feb 2014 21 Jul 2014 30 Nov 2017 30 Nov 2020 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 23.00 Cumulative Contract Awards
ADB 20.00 10 Dec 2013 12.91 0.00 72%
Counterpart 3.00 Cumulative Disbursements
Cofinancing 0.00 10 Dec 2013 11.23 0.00 62%

TA 8544-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2013 02 Jan 2014 02 Jan 2014 30 May 2017 30 Jun 2019 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 270,000.00 0.00 0.00 0.00 770,000.00 10 Dec 2013 434,830.20

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.

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

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
Develop and Implement Dynamic Reporting System for GOLWS Firm - Consulting Closed 04 Aug 2017 02 Sep 2017
Develop and Implement Centralized Helpdesk for All IT-Related Issues Firm - Consulting Closed 03 Jan 2018 01 Feb 2018
Training Needs Assessment, Training, Workshops and Other Participatory Activities for Family, Child, Youth Sector Employees Firm - Consulting Closed 31 Jul 2018 29 Aug 2018
Updating the Population Development, Employment and Social Protection Strategy Firm - Consulting Closed 02 Aug 2018 31 Aug 2018
Training Needs Assessment, Workshops and Other Participatory Activities for Social Welfare Sector Employees Firm - Consulting Closed 17 Aug 2018 15 Sep 2018
Digitizing Social Insurance General Office’s Archive Firm - Consulting Closed 22 Aug 2018 20 Sep 2018
IT Architect for Social Insurance Individual - Consulting Closed 23 Sep 2018 06 Oct 2018
Training Needs Assessment, Workshops and Other Participatory Activities for Social Insurance Sector Employees Firm - Consulting Closed 19 Oct 2018 17 Nov 2018
Consultancy Service for Creating Risk-Based Monitoring and Evaluation System in the Sector of Labor and Social Protection Firm - Consulting Closed 29 Oct 2018 27 Nov 2018
Develop and Implement SIGO’s Information System Firm - Consulting Closed 04 Jan 2019 02 Feb 2019
Develop and Implement Dynamic Reporting System for GOLWS Firm - Consulting Closed 26 Apr 2019 25 May 2019
Business Intelligence System Administrator and Developer Individual - Consulting Closed 09 May 2019 22 May 2019
Social Welfare and Employment Policy Consultant Individual - Consulting Closed 11 May 2019 17 May 2019
Business Intelligence Database Administrator and Developer Individual - Consulting Closed 08 Oct 2019 21 Oct 2019
System Analyst for Social Welfare Information System Individual - Consulting Closed 21 Oct 2019 27 Oct 2019
Business Analyst for Social Welfare Information System Individual - Consulting Closed 21 Oct 2019 27 Oct 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 8544 27 Jan 2015 Training and Technology Transfer (New Zealand) Level 9, 111 The Terrace, 005 Wellington, New Zealand Ministry of Population Development and Social Protection 425,000.00
Financial Consulting Firm, CS-N12/17, Inter Audit LLC Loan 3086 29 Jun 2017 Inter Audit Llc Apt 130, Rentalon LLC Building, Ikh Toir Uu Street-15, UB, Mongolia Ministry of Labor and Social Protection Consulting Services 119,850.00 119,850.00
CONSULTING SERVICE FOR PUBLIC COMMUNICATION SUPPORT Loan 3086 09 Aug 2017 MAGIC JET LLC BAYANGOL DISTRICT, 2ND KHOROOLOL, 65-89, ULAANBAATAR, MONGOLIA MONGOLIA Ministry of Labor and Social Protection Consulting Services 748,093.00 748,093.00
SUPPLY OF HARDWARE AND SOFTWARE FOR BUSINESS INTEL LIGENCE AND DATA ANALYTICS Loan 3086 16 Mar 2018 SUMMIT COMPUTER TECHNOLOGY LLC PC MALL STORE, UNIVERSITY ST, SUHKBAATAR DISTRICT, ULAANBAATAR, MONGOLIA MONGOLIA Ministry of Labor and Social Protection SUPPLY OF GOODS 1,301,709.00 1,301,709.00
Capacity Development Technical Assistance 8544 05 Nov 2018 Erdem Partners(MONGOLIA) Bayanzurkh District 26th khoroo, Hunnu S lding-426 Suite 36 Ulaanbaatar Mongolia Ministry of Labor and Social Protection Consulting Services 202,000.00
ENGAGEMENT OF CONSULTING FIRM FOR TRAINING NEEDS ASSESSMENT, TRAINING, WORKSHOPS AND OTHER PARTICIP ATORY ACTIVITIES FOR FAMILY, CHILD & YOUTH SECTOR Loan 3086 25 Feb 2019 GREEN INITIATIVE NGO ULAANBAATAR MONGOLIA Ministry of Labor and Social Protection CONSULTANCY 161,040.00 161,040.00
ENGAGEMENT OF CONSULTING FIRM FOR ASSIGNMENT OF TRAINING NEEDS ASSESSMENT, WORKSHOPS AND OTHER PARTICIPATORY ACTIVITIES FOR SOCIAL INSURANCE EMPLOYEE Loan 3086 28 Mar 2019 FEDERATION OF MONGOLIAN HUMAN RESOURCE ODGEREL TUMURTOGOO 99056096 ULAANBAATAR MONGOLIA Ministry of Labor and Social Protection CONSULTANCY 179,914.00 179,914.00
ENGAGEMENT OF CONSULTING FIRM TO CARRY OUT THE TRAINING NEEDS ASSESSMENT, WORKSHOPS AND OTHER PARTICIPATORY ACTIVITIES FOR SOCIAL WELFARE SECTOR EM Loan 3086 28 Mar 2019 CENTER FOR MONGOLIAN NATIONAL BATNASAN TSAGAANLAM, 99081165 MONGOLIA MONGOLIA Ministry of Labor and Social Protection CONSULTANCY 144,402.25 144,402.25
ENGAGEMENT OF CONSULTING FIRM FOR DIGITIZING SOCIA L INSURANCE GENERAL OFFICE'S ARCHIVE; Loan 3086 02 May 2019 IT ZONE LLC CENTRAL TOWER, SUKHBAATAR DISTRICT KHOROO 8, ULAANBAATAR MONGOLIA Ministry of Labor and Social Protection CONSULTANCY 571,391.00 571,391.00
DEVELOP AND IMPLEMENT SIGO'S INFORMATION SYSTEM Loan 3086 02 Aug 2019 IT ZONE LLC ULAAN BATAAR MONGOLIA MONGOLIA Ministry of Labor and Social Protection CONSULTANCY 979,723.80 979,723.80