Mongolia: Establishment of Climate-Resilient Rural Livelihoods

Sovereign Project | 45145-001 Status: Closed

Summary

The Asian Development Bank is working with Mongolia to help herders diversify their incomes and prepare for shocks related to climate change and extreme weather. The project includes working with herders to improve the management of their pastures. It is building or repairing 30 water points for livestock and testing the use of a solar-powered deep engineering well. Herders are being helped to branch out into products such as milk, felt, crop production, baked goods and handicrafts.

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Project Name Establishment of Climate-Resilient Rural Livelihoods
Project Number 45145-001
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 9164-MON: Establishment of Climate Resilient Rural Livelihoods
Japan Fund for Poverty Reduction US$ 2.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Agriculture and Natural Resources - Land-based natural resources management

Gender Equity and Mainstreaming No gender elements
Description

ADB has been assisting in agriculture, natural resources management, and rural development of Mongolia since 1996. This proposed assistance will help herders, the most vulnerable group affected by the climate change to (i) strengthen their preparedness for recurrent dzud, and (ii) rehabilitate and/or improve their livelihoods. Lessons learned from the ongoing JFPR 9124-MON, which are relevant to the proposed assistance, will be incorporated in the design, implementation arrangements, and implementation schedule of the proposed project.

The proposed project will target livelihood improvement of herders, who are largely poor and vulnerable, by ensuring sustainable pasture management, which accounts for about 72.3% of the national land area. It will support the objectives of the National Mongolian Livestock Program 2010 2015, which aims at developing a livestock sector that is resilient to climate change, conductive to social development, and economically viable.

The proposed assistance will promote a holistic approach to sustainable herding and livelihood diversification in candidate project soums, namely, Buutsagaan, Khureemarel, and Dzag in Bayanhongor Aimag. For both activities, smooth formation of HGOs is crucial. Sustainable herding will comprise collective pasture management, water point management, hay preparation, and management of herd sizes through effective marketing. The proposed assistance will also provide HGOs with opportunities for value-added activities, and other income-generating activities to help them diversify their income sources. Income diversification is considered as a means of climate change adaptation by lessening their reliance on the weather-sensitive herding. Adjacent soums are preferred for smooth coordination among soums for pasture management, and thorough monitoring by the project management unit (PMU).

Project Rationale and Linkage to Country/Regional Strategy The proposed JFPR assistance will target livelihood improvement of herders, who are largely poor and vulnerable, by ensuring sustainable pasture management, which accounts for about 72.3% of the national land area. The proposed country partnership strategy for Mongolia 2011 2015 (CPS) continuously positions poverty reduction as a thrust of ADB's assistance to Mongolia. In particular, the CPS acknowledges that herder households, female-headed households, and urban migrants are the major contributors to the high poverty incidence, which has resulted in the widening inequality between urban and rural populations. The CPS also specifies environmental sustainability as one of the five thematic drivers of the development challenge, and stipulates the ADB's assistance in climate change adaptation and sustainable management of natural resources including pasture. This project is designed to fully support the objectives of the National Mongolian Livestock Program 2010 2015, which aims at developing a livestock sector that is resilient to climate change, conductive to social development, and economically viable. The proposed assistance will promote a holistic approach to sustainable herding and livelihood diversification in candidate project soums, namely, Buutsagaan, Khureemarel, and Dzag in Bayanhongor Aimag. For both activities, smooth formation of HGOs is crucial. Sustainable herding will comprise collective pasture management, water point management, hay preparation, and management of herd sizes through effective marketing. The proposed assistance will also provide HGOs with opportunities for value-added activities, and other income-generating activities to help them diversify their income sources. Income diversification is considered as a means of climate change adaptation by lessening their reliance on the weather-sensitive herding. Adjacent soums are preferred for smooth coordination among soums for pasture management, and thorough monitoring by the project management unit.
Impact Sustainable rural livelihoods in Buutsagaan, Dzag, and Khureemaral soums (project soums) in Bayanhongor aimag.

Project Outcome

Description of Outcome Climate-resilience of livestock husbandry sector improved in project soums.
Progress Toward Outcome

The project achieved all outcome target indicators.

Outcome indicator 1: About 70% of pasture in each project soum under herder group pasture management by year 4

Achievement:

- Over 70% of pasture (887,443 ha out of 1,272,800 ha) is under herder group management as end of 2015.

- Of such, 662,264 ha was winter and spring pasture and 225,179 ha was summer pasture.

Outcome indicator 2: About 70% of herder households in each project soum prepare winter fodder or hay.

Achievement:

- Over 80% of herder groups (65 out of 74) comprising 906 herder households prepared 656 tons hay, 630 tons salt-marsh and 132 tons fodder and silage in 2015.

- Natural hay, reserve pasture and fodder crop areas were fenced covering 186 ha (93 fence fields).

- A herder cooperative's proposal to build 50 ton capacity hay and fodder storage house was supported.

- Hay production of 42 herder groups was supported with 15 hay cutters, 30 knapsack and 3 wheeled mowers; fodder production of 8 herder groups was supported with manual seeders; 40 herder groups and 3 herder households with perennial crop seeds and nitrogen fertilizer.

Implementation Progress
Description of Project Outputs

Capacity for sustainable herding improved in project soums.

Water points established and managed in project soums.

Income generation diversified in project soums.

Effective project management established.

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

The project achieved target indicators for all outputs.

Output 1 indicator 1: By year 2, a model winter livestock shelter is established in each project soum.

Achievement: Winter and spring livestock shelters of 67 herder groups, total 112, were established / rehabilitated in the soums with assistance of the project. Additional 225 livestock shelters were constructed and rehabilitated with herders own resources.

Output 1 indicator 2: By year 2, model fodder production is demonstrated in each project soum

Achievement: see Achievement for Outcome indicator 2.

Output 1 indicator 3: By year 3, about 70% of herder households in each project soum join herder groups.

Achievement: Seventy four herder groups of 1020 member households were established comprising 75.7% of total herder households of project soums.

Twelve herder cooperatives of 599 individual members were established comprising 20.3% of all herders of the soums.

Output 1 indicator 4: By year 3, about 70% of herder groups in each project soum establish pasture use agreements with their respective soum governors.

Achievement: Sixty seven herder groups of the soums, which comprise about 80% of the total households in the project soums, established pasture use agreements with respective Soum Governors.

Output 1 indicator 5: Pasture management plan prepared for each project soum.

Achievement:

- Herder groups prepared pasture use plans with the project support annually (for 2013 till 2015) and for three years (for 2016 till 2018).

- Pasture use plans of the herder groups were accepted by Bagh General Assemblies and endorsed by Soum Governors.

- Pasture use plans and draft maps of 13 baghs of 3 soums were prepared based on 67 herder group pasture use plans for 2016.

- Data of 2100 points of livestock shelters and water points were put into GIS database. Pasture monitoring survey was conducted in 110 points of pasture of the soums, EOTAP final users' workshop was conducted for 40 persons.

Output 2 indicator 1: By year 3, at least 30 water points constructed and/or rehabilitated in the project soums.

Achievement:

- Total 51 deep wells were established / rehabilitated and accepted by the Aimag Well Hand-Over Committee between 2013 and 2015. For all deep wells water use agreements were signed with respective Soum Governors. In addition, 44 shallow wells were established and 17 spring heads were protected in the soums. 7 shallow wells operated with renewable energy were established. One deep well in the permafrost areas was established and equipped with solar energy equipment.

Output 2 indicator 2: By year 3, all herder groups provided with new or rehabilitated water points enter into water use agreements with their respective soum governors.

Achievement: see Achievement of Output 2 indicator 2.

Output 3 indicator: By year 4, 50% of herder households in each project soum belong to herder groups directly and indirectly involved in supplementary income-generating activities.

Achievement:

- Seventy two percent of herder groups (53 out of 74) participated directly and eighty six percent (64 out of 74) participated indirectly in project-supported income-generating activities.

- Business proposals of 11 herder cooperatives and 35 herder groups were funded with MNT665,727,620 for dairy, bakery, vegetable and fodder growing, breeding livestock, tailoring, hairdresser's, shoe and tyre repair and livestock-originated raw material preparation.

- Business initiatives of herder groups and herder cooperatives were advised and developed into business proposals which was assessed for potential environmental impacts and screened by soum working groups and aimag committee.

Output 4 indicator: Policy briefs on sustainable livestock and pasture management are prepared and disseminated.

Achievement: Policy briefs on sustainable livestock and pasture management prepared. Project pasture expert contributed to draft a pasture law.

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects Environmental assessment report was prepared. The Environmental Specialist, as part of the mid-term review, did a field site visit and reviewed project documents for compliance with environmental safeguards. The project accomplished the compliance with environmental aspects including safeguards.
Involuntary Resettlement No land acquisition or resettlement was necessary.
Indigenous Peoples According to preminary finding in Bayanhongor, project aimag, no groups are present that qualify as IP under ADB's SPS. The project soums in Bayanhongor is composed almost exclusively of Khalkh.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with those stakeholders were ensured throughout project processing and implementation. The project was designed to cover all herders of project soums primarily for the effective soum-wide pasture management.
During Project Implementation The project was completed on 13 June 2016 as scheduled. Grant closing date was 5 September 2016.

Responsible Staff

Responsible ADB Officer Ueda, Takeshi
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Ministry of Food, Agriculture, and Light Industry (MOFALI)
Strategic Planning and Policy Department
MOFALI, Peace Avenue, Ulaanbaatar, Mongolia
Ministry of Industry and Agriculture
Ulaanbaatar
Mongolia

Timetable

Concept Clearance 20 Jul 2011
Fact Finding 03 Jun 2011 to 07 Jun 2011
MRM -
Approval 08 Jun 2012
Last Review Mission -
Last PDS Update 27 Oct 2016

Grant 9164-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Jun 2012 13 Jun 2012 13 Jun 2012 13 Dec 2016 - 30 Aug 2016
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.86 Cumulative Contract Awards
ADB 0.00 08 Jun 2012 0.00 2.49 100%
Counterpart 0.36 Cumulative Disbursements
Cofinancing 2.50 08 Jun 2012 0.00 2.49 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

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.

Title Document Type Document Date
Establishment of Climate-Resilient Rural Livelihoods Initial Environmental Examination Dec 2011

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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