Mongolia : Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project
The project supports the improvement of Sanitary and Phytosanitary measures (SPS) in Mongolia in compliance with the World Trade Organization (WTO) Agreement on the Application of SPS measures. The improvement in the SPS system is an essential prerequisite for Mongolia to increase agriculture and food trade and diversify its economy. The project addresses this issue through upgrading of laboratories and inspections facilities, strengthening inspection management systems, and aligning SPS controls and inspections with international standards.
East Asia Department
Request for information
- Industry and trade
|Project Name||Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project|
|Country / Economy||Mongolia
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Industry and trade / Trade and services
|Gender||No gender elements|
|Description||The project supports the improvement of Sanitary and Phytosanitary measures (SPS) in Mongolia in compliance with the World Trade Organization (WTO) Agreement on the Application of SPS measures. The improvement in the SPS system is an essential prerequisite for Mongolia to increase agriculture and food trade and diversify its economy. The project addresses this issue through upgrading of laboratories and inspections facilities, strengthening inspection management systems, and aligning SPS controls and inspections with international standards.|
|Project Rationale and Linkage to Country/Regional Strategy||
Accounting for about 14% of GDP and 28% of the country's employment in 2014, agriculture remains the backbone of the rural economy in Mongolia. Due to its labor-intensive nature, agricultural production is an important source of employment in rural areas. About 85% of the rural population is dependent upon livestock, in particular herders, which account for one third of the country's population, and for whom livestock is the only source of income. Moreover, processing of agricultural products also creates critical employment opportunities for migrants in urban areas.
Expanding and modernizing agriculture is essential to bolster rural incomes and reduce poverty and income inequality in Mongolia. A productive primary sector will also play a catalytic role in diversifying the country's limited sources of growth. Economic diversification stands as Mongolia's biggest medium-term challenge, and is vital for employment generation and to make economic growth sustainable and more inclusive.
With an estimate 52 million head of livestock in a country with 3 million inhabitants, animal husbandry entails great growth potential in Mongolia. The country is well endowed and geographically well located to serve northeast Asian and central Asian markets, where demand for meat and milk is rapidly increasing. However, only about 1.5% of the meat produced is exported. Mongolia's agri-food export potential is hampered by poor standards of SPS measures. For instance, the livestock sector is vulnerable to infectious diseases, which could be better controlled. The incidence of infectious animal and food-borne diseases, such as brucellosis and equine infectious anemia, remains high. This results in Mongolia's trading partners frequently imposing temporary bans on imports of live animals and animal products from Mongolia due to an outbreak of contagious animal diseases.
Strengthening SPS measures in line with international standards while facilitating customs and border crossing procedures is, thus, essential to expand agriculture production to sustain inclusive growth and foster economic diversification in Mongolia.
Increased agrifood trade along CAREC corridors
(CAREC Transport and Trade Facilitation Strategy 2020)
Enhanced economic diversification to make economic growth sustainable and more inclusive
(Government Platform 20122016)
|Description of Outcome||
Improved SPS measures in compliance with the World Trade Organization
|Progress Toward Outcome||Consulting firm to develop SPS IMS is on board. In addition, 5 individual consultants to support the project implementation and the government's initiative to digitalize its state inspection function were recruited. A series of training on SPS measures in compliance with the WTO have conducted in 2021-2022.|
|Description of Project Outputs||
Laboratories and BCP inspection and quarantine facilities upgraded
SPS IMS established
SPS control and inspections aligned with international standards
|Status of Implementation Progress (Outputs, Activities, and Issues)||The consulting firm has organized successfully all training under the Contract within 2021. The training series organized from September to December 2021 covered a total of 49 topics and involved approximately 4000 laboratory specialists (in duplicate counting) from both implementing agencies GASI and GAVS. Procurement of the laboratory equipment is completed and handed over to the project IAs. Animal facility includes disinfection facility. Disinfection facilities are under construction as part of the civil works of the proposed BCP upgrading. Two civil works contractors to build 5 sanitary and phytosanitary laboratories are on board since July 2020. The construction of 4 laboratories are ongoing. The progress rates of the construction works in 4 sites vary from 45% to 90%. The construction works of the Veterinary laboratory in Sainshand soum of Dornogovi aimag are completed and passed the State construction commissioning at the end of September 2022. A number of new equipment was installed and relevant training on new equipment was conducted by the equipment supplier. The new laboratory started to function in a normal working regime. Based on the state expertise approved designs, it is clear that the project would experience cost overrun to construct proposed facilities. Thus, the EA has decided to scale down the size of the animal quarantine facilities to be built in Altanbulag BCP. A civil works contractor to build animal inspection/quarantine facility at Altanbulag BCP has started the construction work in June 2021. The progress rate is 5%. The works completed by the contractor was non-compliance with the quality against the approved DED. The conclusion was duly acknowledged by the employer and the contractor in December 2021. EA and ADB mission agreed to terminate the contract and to re-initiate the bid to complete construction at Altanbulag BCP soonest. Ongoing. Is expected to be completed within the CAIS extension reflecting new circumstances and functions brought by the newly adjoined department. Recruitment of a consulting firm under QCBS method is complete. The contract is signed in November 2021. The IMS blueprint was prepared to be integrated with GASI's 'digital transition' initiative, which aims to digitalize its traditional business processes, to create and analyze big data and to align its services with the government's digital platform "E-Mongolia". According to the Budget Law 2022, the Export, Import, and Border Quarantine and Inspection Department was separated from the GASI and adjoined to the Mongolian Customs General Authority. The contractor and PIU are re-developed the scope of services and TOR for the contract. The contractor has submitted its inception report to MCGA in April 2023. Application for accreditation will be submitted when laboratories are constructed, and equipment installed. Laboratory manuals for testing and sampling techniques in line with the international standards have been developed.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||An initial environmental examination (IEE) report and Environmental Management Plan (EMP) have been updated in Q1 2019 by the Environment specialist in compliance with ADB's Safeguard Policy statement (2009) and the GOM's regulatory framework. Annual Environmental Monitoring Report for 2018-2022 have been uploaded on the ADB's website.|
|Involuntary Resettlement||There will not be any land acquisition. The project is classified as category C for involuntary ressetlement.|
|Indigenous Peoples||The project is classified as category C for indigenous peoples as the project will not directly or indirectly affect ethnic minority communities.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Extensive consultations during project design were undertaken with various ministries and SPS agencies, private sector companies, business associations, meat producers' association, and development partners.|
|During Project Implementation||A project steering committee was established comprising the senior officials from SPS agencies, Ministry of Food and Agriculture, Ministry of Finance, Customs Administration, General Agency for Veterinary Services, and General Authority for Border Protection in order to foster coordination and information exchange. The project team works closely with all relevant stakeholders on ad-hoc basis.|
|Responsible ADB Officer||Dalaikhuu, Unurjargal|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Mongolia Resident Mission (MNRM)|
Office of the Deputy Prime Minister, Mongolia
|Concept Clearance||27 May 2015|
|Fact Finding||25 May 2015 to 29 May 2015|
|MRM||08 Sep 2015|
|Approval||12 Nov 2015|
|Last Review Mission||-|
|Last PDS Update||27 Sep 2023|
|Approval||Signing Date||Effectivity Date||Closing|
|12 Nov 2015||08 Jan 2016||28 Mar 2016||30 Jun 2021||11 Nov 2023||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||16.25||Cumulative Contract Awards|
|ADB||15.00||21 Sep 2023||10.54||0.00||72%|
|Cofinancing||0.00||21 Sep 2023||7.90||0.00||54%|
|Status of Covenants|
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.
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.
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|CS3 SPS Inspection management system||Loan 3313||03 Jan 2022||Interactive LLC | 109, Information Technology Park, Baga Toiruu-49, Sukhbaatar district, Ulaanbaatar, Mongolia||Office of the Deputy Prime Minister, Mongolia||325,231.79||325,231.79|
|GASI QUARANTINE FACILITIES AND EQUIPMENT (ALTANBULAG AND ZAMYN-UUD) PLUS CLIENT'S & AUTHOR'S CONSTRUCTION SUPERVISION;||Loan 3313||11 Dec 2020||JV OF GANZOSON CONSTRUCTION LLC & KHOMIIN TAL | SBD, KHOROO 8, CITY TOWER, FLOOR 15 ROOM 1504, ULAANBAATAR MONGOLIA||Office of the Deputy Prime Minister, Mongolia||2,214,349.22||2,214,349.22|
|LOT 2: SOUTHERN LABORATORIES (DORNOGOBI GAVS AND Z AMIIN-UUD BCP GASI LABORATORIES UNDER PACKAGE NO. CW1: GASI AND GAVS LABORATORIES||Loan 3313||22 Jul 2020||JV OF UGUUMURUN SHAND LLC AND BSOFT LLC | 10-45, 13 KHOROOLOL, KHOROO 18, BZD DIST RICT, ULAANBAATAR MONGOLIA||Office of the Deputy Prime Minister, Mongolia||1,385,949.17||1,373,522.68|
|LOT 1: NORTHERN LABORATORIES (SELENGE GAVS, DARKHA N AND ALTANBULAG BCP GASI LABORATORIES)||Loan 3313||17 Jul 2020||GREEN RESOURCE CONSTRUCTION LLC | 111-10, ALTAN ORD COMPLEX, SUN RD STREET KHOROO 25, BZD, ULAANBAATAR MONGOLIA||Office of the Deputy Prime Minister, Mongolia||2,008,122.00||1,988,830.51|
|LOT 1A: LABORATORY SOPHISTICATED INSTRUMENTS||Loan 3313||17 Jul 2020||MEDIMPEX INTERNATIONAL LLC | UNION BLDG, BLOCK B, 13F 1302, SUN RD 62 UNESCO ST, SBD, ULAANBAATAR MONGOLIA||Office of the Deputy Prime Minister, Mongolia||2,061,535.00||2,061,535.00|
|ENGAGEMENT OF THE CONSULTING FIRM FOR HARMONIZING METHODOLOGY AND CONTROL SYSTEM STANDARDS, PREPARAT ION OF SOP AND TRAINING.||Loan 3313||11 Mar 2020||THE BRITISH STANDARDS INSTITUTION | 389 CHISWICK HIGH ROAD, LONDON W4 4AL, UNITED KINGDOM UNITED KINGDOM||Office of the Deputy Prime Minister, Mongolia||410,231.00||410,231.00|
|ENGAGEMENT OF CONSULTING FIRM FOR CONCEPTUAL DESIGN, DED, TECH.SPECIFICATIONS OF EQUIPMENT, BID DOCS & SUPERVISION OF GASI QUARANTINE FACILTIES.||Loan 3313||31 Jan 2019||KHATANBAATAR LLC | KHATANBAATAR BUILDING, SEOUL STR. 45/4 BAYANGOL DISTRICT, ULAANBAATAR MONGOLIA||Office of the Deputy Prime Minister, Mongolia||168,490.00||168,490.00|
|CONCEPTUAL DESIGN, DETAILED ENGINEERING DESIGN AND CONSTRUCTION SUPERVISION OF INSPECTION AND VETERIN ARY DIAGNOSTIC LABORATORIES.||Loan 3313||05 Nov 2018||TATAKH KHUCH LLC | GRAND PLAZA, ROOM 1305, PEACE AVENUE, BAYANGOL DISTRICT, UB MONGOLIA||Office of the Deputy Prime Minister, Mongolia||318,153.00||289,230.00|
|Title||Document Type||Document Date|
|Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Procurement Plan||Procurement Plans||Jan 2023|