Mongolia: Regional Improvement of Border Services

Sovereign Project | 47174-001 Status: Active

Summary

The project will address the core problem of inefficient trade processes through rehabilitation and provision of modern equipment in Altanbulag border crossing point, upgrading the Customs Automated Information System and preparatory work for the establishment of a single window system.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Regional Improvement of Border Services
Project Number 47174-001
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3387-MON: Regional Improvement of Border Services
Concessional ordinary capital resources / Asian Development Fund US$ 27.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Industry and trade - Trade and services

Gender Equity and Mainstreaming Some gender elements
Description The project will address the core problem of inefficient trade processes through rehabilitation and provision of modern equipment in Altanbulag border crossing point, upgrading the Customs Automated Information System and preparatory work for the establishment of a single window system.
Project Rationale and Linkage to Country/Regional Strategy

Located between the People's Republic of China (PRC) and the Russian Federation, Mongolia is one of the most sparsely populated countries in the world. As a vast land-locked country (1.5 million square kilometers) regional economic cooperation and trade is critical to promote inclusive economic growth. Geography adds dramatically to the development challenges facing Mongolia resulting in high trade transaction costs.

International trade has always been important for Mongolian economy given its abundance of natural resources and its agricultural sector. In recent years, much progress has been made to liberalize trade regimes and conclude free trade agreements with trading partners like Japan, which would help Mongolia boost exports. However, market access alone is not a sufficient condition for harnessing the benefits of trade for development. Poor trade facilitation significantly reduces Mongolia's competitiveness in global markets. Therefore, improving connectivity and cross-border cooperation will address these high costs.

Mongolia is a member of the CAREC program. Under the framework of CAREC, the Transport and Trade Facilitation Strategy 2020 focuses on the development of six CAREC corridors through infrastructure investments and trade facilitation initiatives to improve the movement of goods and people through and across these corridors. In addition, the National Road Action Plan is aimed at improving transport services, reducing vehicle operations costs and providing regional links to connect Mongolia to the neighboring foreign sea ports.

Impact Trade and competitiveness increased

Project Outcome

Description of Outcome Cost and time of compliance with trade procedures reduced
Progress Toward Outcome The progress toward outcome will be assessed on annual basis
Implementation Progress
Description of Project Outputs

Facilities and equipment at BCPs upgraded and improved

Communication infrastructure for CAIS improved and GACT systems made interoperable

Preparatory work for single-window system undertaken

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

The project steering committee and project implementation unit were established by the EA.

The investment under Output 1 will be focused on upgrading Altanbulag border crossing point facilities and inspection equipment.

Recruitment of consulting services to be engaged for implementation of Outputs 2 and 3 will be from Q2, 2017.

Geographical Location

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects Some civil works may be needed for improvement of border crossing points (BCPs).
Involuntary Resettlement None
Indigenous Peoples None
Stakeholder Communication, Participation, and Consultation
During Project Design Project was designed in close consultation with relevant stakeholders, including government agencies responsible for regulating international trade, the trade community and the private sector.
During Project Implementation The project will be implemented through close coordination with relevant stakeholders, including government agencies and the private sector.

Responsible Staff

Responsible ADB Officer Dalaikhuu, Unurjargal
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Ministry of Finance
Ministry of Finance
[email protected]
Government Building-2
Negdsen Undestnii gudamj-5/1
Ulaanbaatar-210646, Mongolia

Timetable

Concept Clearance 04 Mar 2016
Fact Finding 01 Feb 2016 to 05 Feb 2016
MRM 11 Mar 2016
Approval 22 Apr 2016
Last Review Mission -
Last PDS Update 30 Mar 2017

Loan 3387-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Apr 2016 28 Apr 2016 11 Jul 2016 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 29.07 Cumulative Contract Awards
ADB 27.00 22 Apr 2016 0.02 0.00 0%
Counterpart 2.07 Cumulative Disbursements
Cofinancing 0.00 22 Apr 2016 0.69 0.00 3%

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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