Mongolia: Ulaanbaatar Urban Services and Ger Areas Development Investment Program
The Asian Development Bank is working with Mongolia to improve the lives of people living the country’s ger areas, or traditional tent communities. The program is providing and improving infrastructure and services in a variety of ways. This includes improving access to banking, lending and other financial facilities; upgrading transport systems; improving land use planning; upgrading water supply and waste water systems; and improving heating systems.
East Asia Department
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- Water and other urban infrastructure and services
|Project Name||Ulaanbaatar Urban Services and Ger Areas Development Investment Program|
|Country / Economy||Mongolia
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Water and other urban infrastructure and services / Water and other urban infrastructure and services
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
The program approach aims to initiate a redevelopment process in ger areas. Improving infrastructure within the ger area subcenters and connectivity with the city core center is critical for inclusiveness and important to facilitate the movement of people and goods, develop urban corridors, and create clusters of subcenters. Better urban planning combined with a network of infrastructure along priority roads will initiate a structural change of subcenter urban fabric. This will (i) improve residents' access to basic urban services, public space, and socioeconomic facilities; (ii) support local economic development; (iii) allow residents and businesses to take advantage of urban economies; and (iv) provide better housing options. The changes in land use and higher urban density will improve water, sanitation, and heating services delivery.
Road map. Based on government and Municipality of Ulaanbaatar (MUB) priorities to redevelop ger areas, the road map for the program will support the MUB in establishing a network of well-developed subcenters to provide jobs, housing, and economic opportunities with reduced soil and air pollution. It comprises sequenced investments, municipal reforms, and capacity building (policy, planning, and monitoring), with four strategic objectives: (i) expand roads and basic urban services (water, sewerage, and heating) within subcenters and improve connectivity to initiate land use transformation; (ii) increase economic and public services through investments in socioeconomic facilities to meet population needs, increase urban functions, and encourage job creation; (iii) increase service provider efficiency by improving water supply, sewerage, and heating service operations; and (iv) strengthen institutions and capacity by improving urban planning and subcenter development, community awareness, participation and empowerment, service provider operations and management, and program implementation capacity.
Strategic context and sector policy. In February 2013, Parliament approved the Adjustments to the Ulaanbaatar City Urban Development Master Plan 2020 and Development Directions 2030. The master plan produced two important outcomes: (i) integration of ger area development into the city master plan, and (ii) acknowledgement of the value and function of ger area subcenters as key elements of future city growth. The MUB is developing the Ger Area Development Program and established a Ger Area Development Agency, supervised by the vice mayor in charge of urban development and investment. On 30 May 2013, the city council resolution No.10/38 endorsed the program, subcenter locations under project 1, and coordination of the investment program with the city master plan. The MUB proposed a special purpose development vehicle (subcenter redevelopment authority) to facilitate, supervise, and coordinate the redevelopment process of the selected subcenters. In addition, the Ministry of Economic Development's Street Project is to improve road conditions in Ulaanbaatar and includes a ger area component. The National Development Strategy and the New Reconstruction Midterm Program (2008 2016) constitute the national framework for program implementation. The program is consistent with the Asian Development Bank (ADB) country partnership strategy, 2012 2016 for Mongolia; ADB's Strategy 2020 priorities, including environmental sustainability and private sector development; as well as the core themes of green, competitive, and inclusive cities of ADB's Urban Operational Plan.
Policy dialogue and capacity development. To supplement the strong policy framework, policy dialogue and capacity development will focus (i) in communities, on community participation, awareness, and empowerment, including design and implementation of the social and gender action plan; and establishment of community development councils (CDCs) and small- and medium-sized enterprise (SME) development councils (SDCs); (ii) in subcenters, on subcenter upgrading, including technical guidance for preparing and implementing local development plans, urban zoning regulation and construction standards, and a development framework with a transparent mechanism to regulate land redevelopment insuring current residents are integrated in the redevelopment plan; and (iii) in the city, on the master plan through ongoing ADB technical assistance to strengthen urban planning capacity. Capacity development for water and wastewater utilities will target (i) improving the MUB and USUG management contract, (ii) defining a clearer tariff road map, and (iii) providing technical support to the Water and Sewerage Regulatory Commission. For heating, the focus will be to ensure financial sustainability and capacity of new and existing heating facilities operators in the selected subcenters and to strengthen provisions in management contracts.
Financing modality. An MFF is the proposed financing modality to promote a long-term partnership between ADB, the government, and the MUB to facilitate the development of sustainable, inclusive, and livable ger areas. The MFF will support the policy framework for the redevelopment of ger areas, and provide opportunities for constructive dialogue and capacity development on city planning, policy reforms, and physical and nonphysical investments. It will generate critical mass, predictability, and continuity for basic urban services provision in ger areas, and enable ADB to better respond to MUB needs.
Development coordination. In preparing the program, ADB coordinated closely with development partners involved in Ulaanbaatar's urban sector. Three ADB-financed projects will directly support the program: (i) a bus rapid transit line from the city center to Selbe subcenter; (ii) support for housing and micro-, small-, and medium-sized enterprise financing in ger areas targeted by the program; and (iii) capacity development technical assistance to strengthen MUB urban planning capacity.
|Project Rationale and Linkage to Country/Regional Strategy||
In 2012 Ulaanbaatar had a population of 1.3 million. Since the 1990s, it has had limited formal extension of its core, which largely comprises apartment blocks with comprehensive utility services, including dedicated heating, water, and sanitation. However, successive waves of in-migration with ger tents have reshaped the city's geography, with (i) little upgrading or extension of basic urban services; and (ii) government policy, since 2003, to give each citizen about 700 square meters of land. A vast low-density peri-urban area, named ger areas, now extends around the city core, characterized by unplanned settlement of low- and medium-income households with land ownership, unserviced plots, unpaved roads, and poor facilities. The ger area population is estimated at 800,000, representing 60% of Ulaanbaatar or 30% of the country population. Despite their size, ger areas have until recently been considered temporary settlements. However, their official integration in the 2013 city master plan provides the necessary provision to plan the redevelopment of a formal peri-urban area.
Living conditions in ger areas are difficult. Poor sanitation households almost exclusively rely on open pit latrines and poor waste collection have created highly unsanitary living conditions. Air pollution is among the most severe in the world, particularly during winter because of inadequate household heating systems and unpaved roads. Access to water, supplied by kiosks operated by the Ulaanbaatar Water Supply and Sewerage Authority (USUG), is limited. In 2011, most of the 40,000 people migrating to Ulaanbaatar settled in ger areas; by 2022 the population is estimated to grow by 400,000 from in-migration and natural growth. Under current situation, the forecasted population increases is a serious threat to the city environment and the health of the population if the situation is not improved.
Lack of long-term planning, infrastructure investment, and land use regulation in ger areas have resulted in haphazard development, limited availability of space for public facilities, poor access to socioeconomic services, reduced livelihood opportunities, and insecure neighborhoods. The lack of basic urban infrastructure is constraining rational and dynamic urban development, increasing the costs of doing business and of accessing services. The city core where jobs and services are concentrated now has unprecedented congestion. The service gap between the city core and ger areas means ger residents are poorly integrated in the urban economy; it is one of the most urgent and difficult development challenges. While various government and development partner initiatives have significantly improved living conditions in ger areas, approaches have generally focused on specific sectors, failing to design a sustainable vision and provide integrated solutions for the problems of peri-urban development.
Subcenter upgrading. High construction cost, lack of urban planning, and inadequate infrastructure constrain the upgrading of ger areas. These areas are predominately residential with pockets of activity nodes, called subcenters, providing commercial and administrative services. The influence area of a subcenter varies from 30,000 to 100,000 people. Despite the critical function of subcenters in overall spatial and local development, urban services have not been substantially improved. The lack of basic infrastructure limits economic growth and increases negative environmental impacts.
|Impact||Improved living conditions in Ulaanbaatar|
|Description of Outcome||A network of livable, competitive, and inclusive subcenters in Ulaanbaatar's ger (yurt or traditional tents) areas|
|Progress Toward Outcome||Tranche 1 was extended until 31 December 2021. Tranche 2 encountered delays mainly due to (i) lengthy detailed design completion process for the subcenters' infrastructure; and (ii) COVID-19 related impacts on budget and community consultation, and was also extended until 11 December 2023. Tranche 3 was declared effective on 15 Mar 2021. To date, 158 households are connected to water network, and 102 households connected to sewer network. Additionally, 720 households outside of target subcenter (from new heating pipelines from extension to Bayankhoshuu subcenter) are connected to central heating system. Unit production cost of water is MNT1,139 per m3 (reduced by 80.8%). Electricity consumption for water production reduced from 69 kW (2012) to 66 kW in 2019 per m3.|
|Description of Project Outputs||
1. Roads and urban services are expanded within the targeted subcenters and connectivity between subcenters is improved
2. Economic and public services in subcenters are improved
3. Service providers become more efficient
4. Institutions and capacity for urban development, program management, and service delivery are strengthened
4.1 Subcenter development and community engagement
4.2 Operations and management of service providers improved
4.3 Strengthened program implementation capacity
|Status of Implementation Progress (Outputs, Activities, and Issues)||Achievement to date are as follows: sewerage collector mains 8.5 km and rehabilitation of 0.5 km collector main are completed; ongoing works for 16.4 km water supply network, 13.5 km sewer network; 12.7 km extension of water supply main; 6.4 km heating supply main extension is completed; ongoing works for 1 heating facility progress 78.63% complete; heating network pipes 9.9 km completed; 60m, 30m, and 24m bridges; 8.2 km power supply cable; 5.4 km telecommunication cable works are completed; 7.66 ha landscaping progress 82.96% completed; 2 social facilities completed under Tranche 1 are fully staffed and operational; water supply network pumping system is improved with total of 7 pumps renewed; 4 under Tranche 1; distribution system is fully optimized with newly installed 30 new flow metering control points and 43 km of optic fiber cables; operation control center with SCADA system is fully upgraded and operational; USUG can now control more than 70 control and metering points; 8 khoroo level CDCs (3 in Selbe and 5 in Bayankhoshuu) with 48% women active participation and 3 SDC with 61.1% women active participation, fully functioning with their charters and action plans; and subcenter development plan including redevelopment process was prepared, with 58% women participants completed in 2018. Based on the installed trunk infrastructure capacity LDPs are being updated further development of subcenter. The subcenter development program which will be an umbrella document for subcenters development is under preparation and will be approved by MUB by Q3 2021.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The environmental safeguard category for Project 1 is B--- anticipated impacts from infrastructure components are site-specific and reversible, are not unprecedented in scale, and mitigation measures can be easily designed. An initial environmental examination for Project 1, and an environment assessment and review framework for the entire investment program were prepared and disclosed on ADB's website in accordance with ADB's Safeguard Policy Statement (2009).|
|Involuntary Resettlement||A land acquisition and resettlement framework for the investment program as a whole and resettlement plans for individual subprojects were prepared and disclosed on ADB's website. In view of the preliminary analysis which indicated significant land acquisition and involuntary resettlement, the involuntary resettlement category for Project 1 is A. During PPTA, efforts were made to minimize resettlement.|
|Indigenous Peoples||The categorization for indigenous peoples is _C_. The review of the subcenters done by TA 7591 indicated that the population in the project area does not include communities that could be treated as indigenous peoples under the ADB''s Safeguard Policy Statement (2009).|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultation with initial stakeholders included ger area residents, private and public services, service providers in the subcenters, local government, Ulaanbaatar Municipal Government, public utilities (i.e., USUG and heating companies). The PPTA conducted a poverty and social analysis and addressed social safeguards. A socioeconomic survey, affordability survey, stakeholder workshops, focus group discussions, and key informant interviews were also conducted during the PPTA.|
|During Project Implementation||Relevant sections of the Facility Administration Manual such as social action plan, gender action plan, resettlement plan, environmental management plan, and stakeholder communication strategy provide information on stakeholder communication, participation, and consultation for the investment program.|
|Consulting Services||The investment program will include a program management facility under which consulting firm will assist MUB in overseeing program development, implementation, and management. Consulting firm specializing in engineering and urban services operation will be engaged to develop the capacity of service providers in compliance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).|
|Procurement||All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).|
|Responsible ADB Officer||Heckmann, Arnaud|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Urban and Social Sectors Division, EARD|
|Concept Clearance||14 Dec 2011|
|Fact Finding||20 Jun 2013 to 03 Jul 2013|
|MRM||02 Sep 2013|
|Approval||12 Dec 2013|
|Last Review Mission||-|
|Last PDS Update||27 Sep 2021|
MFF Facility Concept 0078-MON
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||160.00||Cumulative Contract Awards|
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.
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|Title||Document Type||Document Date|
|Ulaanbaatar Urban Services and Ger Areas Development Investment Program: Periodic Financing Request 1||Periodic Financing Request Reports||Dec 2013|
|Framework Financing Agreement for Ulaanbaatar Urban Services and Ger Areas Development Investment Program||Framework Financing Agreement||Dec 2013|
|Ulaanbaatar Urban Services and Ger Areas Development Investment Program||Facility Administration Manual||Nov 2013|
|Ulaanbaatar Urban Services and Ger Areas Development Investment Program: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2013|
|Ulaanbaatar Urban Services and Ger Areas Development Investment Program: Gender Action Plan for Project 1||Gender Action Plans||Nov 2013|
|Ulaanbaatar Urban Services and Ger Areas Development Investment Program: Procurement Plan||Procurement Plans||Nov 2013|
|Ulaanbaatar Urban Services and Ger Areas Development Investment Program||Initial Poverty and Social Analysis||Dec 2011|
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.
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.
|Tender Title||Type||Status||Posting Date||Deadline|
|EIB 83097: Ulaanbaatar Urban Services and Ger Areas Development Investment Program: Tranche 1 [WSC16A]||Invitation for Bids||Closed||26 Apr 2019||06 Jun 2019|
|Detailed Design and Construction Supervision of Affordable Housing Pilot Project in Selbe Subcenter||Firm - Consulting||Closed||26 Apr 2018||08 Jun 2018|
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Ulaanbaatar Urban Services and Ger Areas Development Investment Program: Procurement Plan||Procurement Plans||Nov 2013|