Mongolia: Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project

Sovereign Project | 46315-001

The Asian Development Bank is working with Mongolia to strengthen food safety and animal and plant health standards. The project is helping to realize the country’s vast potential for agri-food exports to neighboring countries.

Project Details

  • Project Officer
    Dalaikhuu, Unurjargal
    East Asia Department
    Request for information
  • Country/Economy
    Mongolia
  • Modality
    • Loan
  • Sector
    • Industry and trade
Project Name Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project
Project Number 46315-001
Country / Economy Mongolia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3313-MON: Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project
Asian Development Fund US$ 15.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Industry and trade / Trade and services

Gender Equity and Mainstreaming 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.

Impact

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)

Project Outcome
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.
Implementation Progress
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)

Two civil works contractors to build 5 sanitary and phytosanitary laboratories are on board since July 2020. The construction of 5 laboratories are progressing slow with some delays. The progress rates of the construction works in 5 sites vary from 35% to 100%. Procurement of the laboratory equipment is completed and handed over to the project IAs. Animal and plant quarantine facilities includes disinfection facility. Disinfection facilities are under construction as part of the civil works of the proposed BCP upgrading. A civil works contractor to build animal inspection/quarantine facility at Altanbulag BCP has started the construction work in June 2021 but the progress rate is only 5%. The works completed by the contractor was non-compliance with the quality against the approved DED, therefor the EA has issued a notification to contract termination.

The training series on SPS measures 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. Laboratory manuals for testing and sampling techniques in line with the international standards have been developed.Application for accreditation will be submitted when laboratories are constructed.

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. Development of IMS is expected to be completed within the CAIS extension reflecting new circumstances and functions brought by the newly adjoined department.

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
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 Safeguards Monitoring Report for 2018-2021 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
Executing Agencies
Office of the Deputy Prime Minister, Mongolia
Timetable
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 30 Sep 2022

Loan 3313-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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 24 Jan 2023 10.43 0.00 72%
Counterpart 1.25 Cumulative Disbursements
Cofinancing 0.00 24 Jan 2023 7.45 0.00 51%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

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.

Title Document Type Document Date
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Procurement Plan Procurement Plans Jan 2023
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Jun 2022
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jun 2021
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jul 2020
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Aug 2019
Ургамал, малын эрүүл ахуй, хүнсний аюулгүй байдлыг хангах арга хэрэгслийг сайжруулах төсөл: Төслийн Мэдээллийн Тайлан Translated PDS Sep 2018
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Audited Project Financial Statements (1 January-31 December 2017) Audited Project Financial Statements Sep 2018
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Feb 2016
Loan Agreement (Special Operations) for Loan 3313-MON: Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project Loan Agreement (Special Operations) Jan 2016
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Report and Recommendation of the President Reports and Recommendations of the President Oct 2015
Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project: Project Administration Manual Project/Program Administration Manual Sep 2015

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.


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.

Tenders

Tender Title Type Status Posting Date Deadline
Legal Specialist Individual - Consulting Closed 25 Apr 2021 08 May 2021
Digital Transformation Specialist Individual - Consulting Closed 25 Apr 2021 08 May 2021
Strategic Policy and Planning Specialist Individual - Consulting Closed 25 Apr 2021 08 May 2021
Development Policy and Research Specialist Individual - Consulting Closed 25 Apr 2021 08 May 2021
Business Analyst Individual - Consulting Closed 25 Apr 2021 08 May 2021
Environment Specialist Individual - Consulting Closed 30 Mar 2021 15 Apr 2021
SPS INSPECTION MANAGEMENT SYSTEM Firm - Consulting Closed 23 Jan 2021 21 Feb 2021
ICT Specialist (Software Developer) Individual - Consulting Closed 05 Feb 2020 18 Feb 2020
ICT Specialist (Software Developer) Individual - Consulting Closed 05 Feb 2020 18 Feb 2020
Loan 3313-MON: Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project (G1-Lot1: Lot1a and Lot1b) Invitation for Bids Closed 24 Dec 2019 05 Feb 2020
Loan 3313-MON: Regional Upgrades of Sanitary and Phytosanitary Measures for Trade Project (G1) Invitation for Bids Closed 22 Jul 2019 05 Sep 2019
HARMONIZING METHODOLOGY AND CONTROL SYSTEM STANDARDS, PREPARATION OF STANDARD OPERATING PROCEDURES AND TRAINING Firm - Consulting Closed 17 Jul 2019 15 Aug 2019
Environment Specialist Individual - Consulting Closed 04 Oct 2018 17 Oct 2018
SPS specialist Individual - Consulting Closed 11 Aug 2018 24 Aug 2018
Conceptual design, detailed engineering design, technical specifications of equipment, bid documents of General Agency for Specialized Inspection (GASI) quarantine facilities Firm - Consulting Closed 26 Jul 2018 24 Aug 2018
ISO Compliance Specialist Individual - Consulting Closed 07 Mar 2018 20 Mar 2018
ENTERPRISE ARCHITECT Individual - Consulting Closed 07 Feb 2018 20 Feb 2018
Conceptual design, detailed engineering design, technical specifications of equipment, bid documents and supervision of General Agency for Specialized Inspection quarantine facilities Firm - Consulting Closed 21 Dec 2017 19 Jan 2018
SPS Specialist Individual - Consulting Closed 20 Dec 2017 04 Jan 2018
Conceptual design, detailed engineering design and construction supervision of inspection and veterinary diagnostic laboratories Firm - Consulting Closed 03 Oct 2017 01 Nov 2017
BUSINESS PROCESS ANALYST Individual - Consulting Closed 23 Aug 2017 05 Sep 2017
BUSINESS PROCESS ANALYST Individual - Consulting Closed 23 Aug 2017 05 Sep 2017

Contracts Awarded

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