Mongolia : Supporting Micro, Small, and Medium-sized Enterprises in the Ger Areas of Ulaanbaatar during COVID-19 Crisis
The transaction technical assistance (TA) will (i) assess capacity, needs, and opportunities for micro, small, and medium-sized enterprises (MSMEs) to access finance; (ii) organize and conduct gender-responsive capacity building workshops and trainings; (iii) provide equipment to develop and expand business opportunities for MSMEs.
The TA will not result to a change in the design and monitoring framework of the ongoing multitranche financing facility (MFF) for the Ulaanbaatar Urban Services and Ger Areas Development Investment Program and its tranches. The TA will enhance the quality of outputs without any change to the targeted results indicators. In particular, it will facilitate the delivery of outputs 2 and 4 under the MFF program.
Project Details
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Project Officer
Chen, Jinqiang
Sectors Group
Request for information -
Country/Economy
Mongolia -
Sector
- Industry and trade
Related Projects
Project Name | Supporting Micro, Small, and Medium-sized Enterprises in the Ger Areas of Ulaanbaatar during COVID-19 Crisis | ||||
Project Number | 45007-012 | ||||
Country / Economy | Mongolia |
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Project Status | Active | ||||
Project Type / Modality of Assistance | Technical Assistance |
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Source of Funding / Amount |
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Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP4: Making cities more livable OP6: Strengthening governance and institutional capacity |
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Sector / Subsector | Industry and trade / Small and medium enterprise development |
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Gender | Effective gender mainstreaming | ||||
Description | The transaction technical assistance (TA) will (i) assess capacity, needs, and opportunities for micro, small, and medium-sized enterprises (MSMEs) to access finance; (ii) organize and conduct gender-responsive capacity building workshops and trainings; (iii) provide equipment to develop and expand business opportunities for MSMEs. The TA will not result to a change in the design and monitoring framework of the ongoing multitranche financing facility (MFF) for the Ulaanbaatar Urban Services and Ger Areas Development Investment Program and its tranches. The TA will enhance the quality of outputs without any change to the targeted results indicators. In particular, it will facilitate the delivery of outputs 2 and 4 under the MFF program. |
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Project Rationale and Linkage to Country/Regional Strategy | The government has undertaken various measures to improve access to finance for MSMEs. For example, a small and medium-sized enterprise (SME) development agency has been established for the implementation of SME policies, and promoting better targeted and more transparent funding to SMEs. In addition, the government has launched other measures such as establishment of the credit guarantee and employment creation funds to improve MSMEs' access to finance, and initiated training programs and advisory services for MSMEs capacity building. However, it is reported that the benefits of these support measures have not yet effectively reached the MSMEs nor have these measures been efficient and effective to MSMEs' development. International institutions also have worked closely with the government and provided support targeting at MSMEs. For example, the Asian Development Bank (ADB) has recently provided three loans to improve the availability of financing with longer tenor to MSMEs through financial institutions. Pandemic impacts. The outbreak of the coronavirus disease (COVID-19) has negatively impacted Mongolian businesses, particularly MSMEs. A survey conducted by ADB's East Asia Department between April and May 2020 among MSMEs in Ulaanbaatar and nine other provinces, indicates that COVID-19 pandemic has disproportionally impacted MSMEs in Mongolia compared to the larger businesses, with the MSMEs in urban areas having been negatively affected to a higher degree. Smaller and informal businesses face key challenges due to the COVID-19 pandemic travel restrictions and lockdowns, including cash shortages, difficulties in making investment and financing decisions, and difficulties in paying employees, resulting in layoffs. Since MSMEs generate about 70% of employment in Mongolia, disruption in their businesses can lead to losses of income for households relying heavily on wages and personal businesses, intensifying the impact of COVID-19 on households, especially from poor and vulnerable populations. In response, the government has brought forward a series of economic stimulus measures to accelerate the post COVID-19 recovery, some of which are relevant to MSMEs. Providing timely support to MSMEs is therefore critical for not only reducing income inequality and unemployment, enhancing social stability, and strengthening private sector; but also aligning with the government's initiatives to accelerate the post COVID-19 recovery and improve social resilience. Improving financial literacy of MSMEs, providing information on concessional financing, and providing equipment for business development and expansion are identified as key, yet low-hanging fruits for MSMEs development. In addition, as the upgrading of Selbe and Bayankhoshuu subcenters under tranche 1 is almost complete, new business opportunities will be created to attract and accommodate influx of population. With the support from this transaction TA, MSMEs are expected to quickly seize those emerging opportunities and play a vital role in maintaining a robust function of subcenters by providing services to residents and creating economies in the post COVID-19 recovery period. In the long run, this TA is expected to make MSMEs adaptive and prepared for the wider transformation and urbanization of ger areas, including all subcenters under the other tranches of the MFF program, synergizing with existing and future urban development work. |
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Impact |
Project Outcome | |
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Description of Outcome | |
Progress Toward Outcome | |
Implementation Progress | |
Description of Project Outputs | |
Status of Implementation Progress (Outputs, Activities, and Issues) | |
Geographical Location | Ulaanbaatar |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | |
Involuntary Resettlement | |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | During project design, the TA team held close consultation with the program management office of the MFF for the Ulaanbaatar Urban Services and Ger Areas Development Investment Program. |
During Project Implementation | During project implementation, the TA team will maintain close coordination with relevant stakeholders and ensure the quality of deliverables and their relevance to the ongoing MFF program. |
Business Opportunities | |
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Consulting Services | A consulting firm was engaged to carry out TA implementation activities in accordance with ADB Procurement Policy (2017, as amended from time to time) and its associated procurement staff instructions. |
Procurement | Procurement of goods shall be undertaken by the consultant recruited under the TA and shall be carried out in accordance with the ADB Procurement Policy (2017, as amended from time to time) and its associated procurement staff instructions. |
Responsible ADB Officer | Chen, Jinqiang |
Responsible ADB Department | Sectors Group |
Responsible ADB Division | Water and Urban Development Sector Office (SG-WUD) |
Executing Agencies |
Ulaanbaatar Municipal Government |
Timetable | |
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Concept Clearance | - |
Fact Finding | - |
MRM | - |
Approval | 11 Feb 2021 |
Last Review Mission | - |
Last PDS Update | 18 Sep 2023 |
TA 6715-MON
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
11 Feb 2021 | - | 11 Feb 2021 | 28 Feb 2022 | 28 Feb 2023 | - |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
300,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 300,000.00 | 16 Sep 2023 | 280,500.80 |
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 |
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Supporting Micro, Small, and Medium-sized Enterprises in the Ger Areas of Ulaanbaatar during COVID-19 Crisis: Technical Assistance Report | Technical Assistance Reports | Feb 2021 |
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.
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.
Empowering MSMEs during the COVID-19 Crisis in Mongolia
COVID-19 hit Mongolia's economy hard, especially micro, small, and medium-sized enterprises. ADB's technical assistance project empowered MSMEs in the Ger Areas of Ulaanbaatar to build their businesses and make them more resilient to economic shocks.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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MSME Development Consulting Firm | Firm - Consulting | Closed |
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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Capacity Development | Technical Assistance 6715 | 20 May 2021 | B.F.A.S LLC (MONGOLIA) in association with Independent Research Institute of Mongolia (MONGOLIA) | Jamyan Street 2, Chandmani Center, Suite Ulaanbaatar 1420 Mongolia | Ulaanbaatar Municipal Government | 285,000.00 | — |
Procurement Plan
None currently available.