46024-001: Developing a Conducive Environment for Public-Private Partnerships | Asian Development Bank

Mongolia: Developing a Conducive Environment for Public-Private Partnerships

Sovereign (Public) Project | 46024-001 Status: Closed

Project Details

Project Officer
Zhang, Yuebin East Asia Department Request for information
  • Mongolia
  • Technical Assistance
  • Public sector management
Project Name Developing a Conducive Environment for Public-Private Partnerships
Project Number 46024-001
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8236-MON: Developing a Conducive Environment for Public-Private Partnerships
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Public sector management / Public expenditure and fiscal management

Gender Equity and Mainstreaming
Project Rationale and Linkage to Country/Regional Strategy
Impact Delivery of improved public services to poorly serviced populations
Project Outcome
Description of Outcome Stronger human resource base and institutional, legal, and regulatory framework for PPPs
Progress Toward Outcome Implementation is completed and the TA has achieved the target outcome.
Implementation Progress
Description of Project Outputs

Recommendations to strengthen the legal and regulatory framework for PPPs

Integration of PPP planning with the public investment planning process

Capacity development of MED staff in PPP preparation and implementation

Pre-screening of priority PPPs

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

National and international consultants have been recruited and mobilized. Planning of implementation was led by the implementing agency in close cooperation with consultants nearing the completion of their engagement under 'Public-Private Partnership Development' (TA 7577-MON).

The TA supported a successful public-private partnership (PPP) workshop on 15 May 2013. It was attended by around 50 participants from central and line agencies of the national government, Ulaan Bataar (UB) Municipal Government, and representatives of the finance sector and the media. It provided a good opportunity to discuss core issues facing PPPs and to understand the priorities and capacity of government agencies. Consensus was evident on the potential of PPPs and recognition they bring with them new challenges.

The Mongolian version of the PPP Manual was launched on 19 February 2014.

PPP Partners's meeting supported by the TA were held in Ulaanbaatar on 21 February 2014, 26 September 2014, and 17 March 2015.

Project-related activities had been deferred pending Cabinet's approval of a revised concession list. The list was approved in early 2014 and project-related activities are now commencing. The initial focus was on education and health PPPs.

The first education PPPs were signed in February 2015, with the TA providing background support for project preparation. The PPPs will cover 72 kindergarten and primary school complexes in Ulaanbaatar, 30 of which are to start construction in 2015 with the remaining 42 to start construction in 2016. The private partner will be responsible for financing, construction, maintenance, and the installation and maintenance of most equipment (e.g., desks and chairs, information technology) and some support services (e.g., cleaning, security). The projects are a build-transfer-lease type PPPs.

The TA has played an active role in the assessment of required improvements to the legal and regulatory environment, including improvements to Mongolia's 2010 Concession Law, and the development of capacity in PPPs.

Parliament ministers and PPP staff participated in an international worskhop in Korea in February 2015, organized by ADB and the PIMAC PPP unit, Korea. The study tour helped build awareness among key decisions makers of the changes required to strengthen the enabling environment for PPPs.

The TA has supported the pre-screening and initial preparation of school concessions and PPPs in the health sector. A concession for 72 kindergarten and primary school complexes 2015, with an investment of $140 million, was completed in February drawing on upstream advise from ADB staff and TA consultants (e.g., advise on generic PPP models for schools).

Minor amendments to the Concession Law and associated regulations have been prepared with the TA's support, and dialogue has been supported on improvements to the budgeting for PPPs which resulted in the submission of proposed legislative amendments to the cabinet. Guidance has been provided on potential improvements to public investment planning for PPPs.

Numerous general and sector-specific PPPs workshops and training events have been held for central and line agencies, the private sector, potential financiers, and development partners, and bi-annual PPP Partners' meetings have been supported by the TA. Knowledge products on key issues have been drafted.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The Ministry of Economic Development was actively engaged in TA preparation. The National Academy of Governance and Ulaanbaatar City Government were also consulted during project preparation.
During Project Implementation The responsibilities of the central government's PPP Unit within Innovation and PPP Department of the Ministry of Economic Development were transferred to Invest Mongolia in January 2015. The central PPP unit has actively guided TA implementation throughout. Consultation with other relevant agencies of the central and local level governments and stakeholders was undertaken throughout the project.
Responsible ADB Officer Zhang, Yuebin
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Ministry of Economic Development
Government Building-2
United Nation's Street-5/1
Ulaanbaatar-15160 Mongolia
Concept Clearance 29 Oct 2012
Fact Finding 19 Nov 2012 to 23 Nov 2012
Approval 03 Dec 2012
Last Review Mission -
Last PDS Update 31 Mar 2016

TA 8236-MON

Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2012 28 Dec 2012 28 Dec 2012 30 Dec 2014 30 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 03 Dec 2012 687,532.11

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