Mongolia : Regional Improvement of Border Services

Sovereign Project | 47174-001

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

Project Details

  • Project Officer
    Dalaikhuu, Unurjargal
    Sectors Group
    Request for information
  • Country/Economy
    Mongolia
  • Sector
    • Industry and trade
Project Name Regional Improvement of Border Services
Project Number 47174-001
Country / Economy Mongolia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3387-MON: Regional Improvement of Border Services
Asian Development Fund US$ 27.00 million
Loan 3810-MON: Regional Improvement of Border Services Project (Additional Financing)
Concessional ordinary capital resources lending US$ 27.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Industry and trade / Trade and services

Gender Some gender elements
Description The project will address the core problem of inefficient trade processes through rehabilitation and provision of modern equipment in selected border crossing points, 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 Construction work at Sukhbaatar BCP and Borshoo BCP have been completed and subject to State expertise acceptance. Civil works at Bichigt BCP have commenced as of Q2 2023. Construction works for Altanbulag BCP and its linked road are progressed at 85%-95% as of 20 September 2023.
Implementation Progress
Description of Project Outputs

Facilities and equipment at BCPs upgraded and improved

Communication infrastructure for CAIS improved and MCGA system made interoperable.

Preparatory work for single-window system undertaken

Capacity of relevant border agencies improved

Status of Implementation Progress (Outputs, Activities, and Issues) CAIS functional requirements developed. The consultant's contract has been extended until 1 May 2022 due to the COVID-19 outbreak related delays. "The Capacity Development of users of CAIS" is approved by the MCGA. All required equipment for the upgraded CAIS system have been procured and handed over to MCGA in Q2 2019 and Q3 2021. The "Performance Certificate" certifying the completion and acceptance of work packages carried out under the consulting services were submitted as an attachment to the official letter dated 26 April 2022 issued by the MCGA. Testing and introduction of CAIS system improvements and relevant training are carried out in Custom houses and branches. MCGA system/CAIS will seamlessly exchange information with other government agencies' systems through the government's data exchange platform "Khur" and "E-Mongolia" platform started from Q4 2021. CAIS upgrade work has been completed and the EA's final approval of the consultant's report is pending. It's technically impossible to establish separate lanes for inspection of women traders. Thus, during preparation of the additional financing project it's proposed to merge the target with more implementable and practical target indicator of an Universal Standard Facilities (cater to PWD, elderly, and nursing mothers), which are part of the designs of the BCP facilities. Civil works' contracts are progressing at various levels: (i) rehabilitating the Altanbulag BCP stands at 85%, (ii) construction of Single Stop Service Center at Sukhbaatar BCP is completed, (iii) construction of a shortcut road connecting Altanbulag BCP at 95%, (iv) rehabilitation of Borshoo BCP at 99%, and (v) Borshoo BCP road and utility connection at 100%. A civil work contractor for Bichigt BCP road and utility connection is on board in Q4 2022 and commenced its services in May 2023. Civil work contractor for Bichigt BCP facilities is contracted and construction work has commenced on 17 July 2023. Procurement of needed equipment under 4 packages is ongoing and bids were opened on 23 June 2023. The EA's BEC is reviewing the bids. Consulting firm to (i) provide management advisory service and (ii) assess an existing institutional arrangement to carry out preparatory work for the SEW is completed. The consultant submitted "As is" report; "to-be" report; change management report; cost estimates and technical requirement report. The MCGA and Investment and Trade Agency are appointed as the lead agency of FTSEW system by the order 178 of the Government on 17 May 2023. Since the Government has appointed lead agency for the implementation of SEW, the recruitment of the consulting firm to provide technical consultancy to carry out SEW will be initiated. Terms of reference of the consulting firm to provide technical consultancy to carry out SEW need to be updated. Capacity building needs assessment of all border agencies is being conducted by the Capacity Development Specialist and some trainings have been conducted in 2023.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Implementations of the IEE, EMP and CRVA are on track. Semi-annual Environmental Report for 2023 have been reviewed and uploaded in the ADB website.
Involuntary Resettlement The LARP has been reviewed and accepted by ADB and posted on ADB's website. Semi-annual Social Monitoring Report for 2023 has been posted on the ADB website.
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 is being implemented through close coordination with relevant stakeholders, including government agencies and the private sector. The project team closely coordinates and consults with all stakeholders through series of events organized by the project and by the government. Moreover, public consultations were organized in preparations of the EMP and LARP.
Responsible ADB Officer Dalaikhuu, Unurjargal
Responsible ADB Department Sectors Group
Responsible ADB Division Transport Sector Office (SG-TRA)
Executing Agencies
Ministry of Finance (formerly Ministry of Finance and Economy)
Office of the National Committee for Port Revival
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 27 Sep 2023

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 31 Dec 2025 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 29.07 Cumulative Contract Awards
ADB 27.00 25 Apr 2024 19.95 0.00 76%
Counterpart 2.07 Cumulative Disbursements
Cofinancing 0.00 25 Apr 2024 18.49 0.00 70%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3810-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Aug 2019 02 Oct 2019 30 Oct 2019 30 Jun 2024 31 Dec 2025 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 29.78 Cumulative Contract Awards
ADB 27.00 25 Apr 2024 15.45 0.00 57%
Counterpart 2.78 Cumulative Disbursements
Cofinancing 0.00 25 Apr 2024 10.72 0.00 40%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating 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
Amendments to Loan Agreements for Loan 3387-MON (Special Operations) and Loan 3810-MON (Ordinary Operations [Concessional]: Regional Improvement of Border Services Project and Regional Improvement of Border Services Project (Additional Financing) Loan Agreement (Ordinary Resources) Feb 2024
Regional Improvement of Border Services: Procurement Plan Procurement Plans Jan 2024
Regional Improvement of Border Services: Audited Project Financial Statements (January-December 2022) Audited Project Financial Statements Jun 2023
Regional Improvement of Border Services: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Jun 2022
Regional Improvement of Border Services: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jun 2021
Regional Improvement of Border Services: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jun 2020
Regional Improvement of Border Services: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Oct 2019
Regional Improvement of Border Services: Updated Project Administration Manual Project/Program Administration Manual Nov 2018
Хилийн үйлчилгээг сайжруулах бүс нутгийн төсөл (RIBS): Төслийн Мэдээллийн Тайлан Translated PDS Sep 2018
Regional Improvement of Border Services: Audited Project Financial Statements (January-December 2017) Audited Project Financial Statements Aug 2018
Amendment to the Loan Agreement (Special Operations) for Loan 3387-MON: Regional Improvement of Border Services Project Agreements Nov 2017
Loan Agreement (Special Operations) for Loan 3387-MON: Regional Improvement of Border Services Project Loan Agreement (Special Operations) Apr 2016
Regional Improvement of Border Services: Report and Recommendation of the President Reports and Recommendations of the President Apr 2016
Regional Improvement of Border Services: Project Administration Manual Project/Program Administration Manual Apr 2016
Regional Improvement of Border Services: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Mar 2016

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
Regional Improvement of Border Services: Social Monitoring Report (January-June 2023) Social Monitoring Reports Jul 2023
Regional Improvement of Border Services: Environmental Monitoring Report (January-June 2023) Environmental Monitoring Reports Jul 2023
Regional Improvement of Border Services: Environmental Monitoring Report (July-December 2022) Environmental Monitoring Reports Dec 2022
Regional Improvement of Border Services Project: Social Monitoring Report (January-June 2021) Social Monitoring Reports Aug 2022
Regional Improvement of Border Services: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Jun 2022
Regional Improvement of Border Services: Social Monitoring Report (July 2020-December 2021) Social Monitoring Reports Dec 2021
Regional Improvement of Border Services Project: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Jun 2021
Regional Improvement of Border Services: Social Monitoring Report (July-December 2020) Social Monitoring Reports Feb 2021
Regional Improvement of Border Services Project: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Dec 2020
Regional Improvement of Border Services Project: Environmental Monitoring Report (January-June 2019) Environmental Monitoring Reports Nov 2020
Regional Improvement of Border Services: Land Acquisition and Resettlement Plan Resettlement Plans Jul 2020
Regional Improvement of Border Services Project: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Jun 2020
Regional Improvement of Border Services Project: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Dec 2019
Regional Improvement of Border Services: Initial Environmental Examination Initial Environmental Examination Sep 2017
Regional Improvement of Border Services: Climate Risk Vulnerability Assessment Environmental Assessment and Measures Aug 2017

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
Trade Facilitation Expert Individual - Consulting Closed
Construction Supervision of Bichigt Border Crossing Point Firm - Consulting Closed
PIU Procurement Specialist Individual - Consulting Closed
Capacity Development Specialist Individual - Consulting Closed
PIU Procurement Specialist Individual - Consulting Closed
Environmental Consultant Individual - Consulting Closed
Environmental Consultant Individual - Consulting Closed
3387-MON: Regional Improvement of Border Services Project (G4.2) Invitation for Bids Closed
3387-MON: Regional Improvement of Border Services Project (G4.2) Invitation for Bids Closed
3387-MON: Regional Improvement of Border Services Project Invitation for Bids Closed
Loan 3387-MON: Regional Improvement of Border Services Project [CW3] Invitation for Bids Closed
Management Consultancy Services for Implementation of Foreign Trade Single Electronic Window Firm - Consulting Closed
Technical Consultancy Services for Improvements of Customs Automated Information System Firm - Consulting Closed
CAIS Upgrade: Digital Trade Data Model Specialist Individual - Consulting Closed
Legal and Regulatory Consultant Individual - Consulting Closed
Environmental Consultant Individual - Consulting Closed
CAIS Upgrade: Digital Trade Data Model Specialist Individual - Consulting Closed
Conceptual and detailed engineering design of Altanbulag and Sukhbaatar BCPs and supervision of construction Firm - Consulting Closed
Detailed engineering design of road and parking, and supervision of road construction Firm - Consulting Closed
Legal and Regulatory Consultant Individual - Consulting Closed
ICT advisor Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CW5 Construction of Bichigt Border Crossing Point Road and Utilities Connection Loan 3810 16 Dec 2022 Khurdnii Zam LLC | 6/5 office building, Peace Avenue-71, Bayanzurkh district, 6 khoroo, Ulaanbaatar 13373, Mongolia Ministry of Finance 4,469,670.84 4,060,823.76
PACKAGE G4.2:SECOND PHASE CUSTOMS AUTOMATED INFORM ATION SYSTEM (CAIS) EQUIPMENT UPGRADE Loan 3387 20 Apr 2021 SUMMIT COMPUTER TECHNOLOGY LLC | 18 FLOOR, ICC TOWER, SUKHBAATAR DIST, UL AANBAATAR, TEL:70073535 MONGOLIA Ministry of Finance 2,163,130.00 2,163,130.00
CW3: RENOVATION AND EXTENSION OF ALTANBULAG BORDER CROSSING POINT FACILITIES AND INFRASTRUCTURE Loan 3387 20 Jul 2020 MONCON CONSTRUCTION LLC | TEL: 77112161, 88115882 EMAIL: [email protected] MONGOLIA Ministry of Finance 6,462,298.00 5,967,739.00
PACKAGE CS3.3: MANAGEMENT CONSULTANCY SERVICES FOR IMPLEMENTATION OF FOREIGN TRADE SINGLE ELECTRONIC WINDOW Loan 3387 28 May 2020 PRICEWATERHOUSECOOPERS PVT. LTD | 8-2-624/A/1, FOURTH FLOOR ROAD NO.10, BA NJARA HILLS, HYDETABAD 500 034, INDIA INDIA Ministry of Finance 349,983.00 349,983.00
PACKAGE CS1/2: SUPERVISION OF ROAD CONSTRUCTION Loan 3387 06 Jan 2020 MONGOLIAN CONSTRUCTION PROJECT CONSULTANT | ULAANBAATAR, MONGOLIA MONGOLIA Ministry of Finance 215,000.00 215,000.00
PACKAGE CS2/2: CONSTRUCTION SUPERVISION OF ALTANBU LAG AND AND SUKHBAATAR BORDER CROSSING POINT FACIL ITIES AND DETAILED ENGINEERING DESIGN OF BCP Loan 3387 06 Jan 2020 TATAKH KHUCH LLC | ULAANBAATAR, MONGOLIA MONGOLIA Ministry of Finance 532,560.00 532,560.00
SUPPLY OF FIRST PHASE CAIS EQUIPMENT UPGRADE Loan 3387 20 Mar 2019 BODI ELECTRONICS LLC | SB DISTRICT, KHOROO 1, CHINGGIS AVENUE, PARK PLACE R901, ULAANBAATAR MONGOLIA Ministry of Finance 1,026,057.41 932,602.17
CW1:CONSTRUCTION OF DUAL CARRIAGE ROAD,ADDITIONAL ROADS AND PARKING AT ALTANBULAG BORDER CROSSING POINT OF SELENGE AIMAG Loan 3387 10 Oct 2019 HKB INTERNATIONAL HOLDING LLC | KHAN UUL DISTRICT, 2 KHOROO, HKB COMPANY BUILDING, ULAANBAATAR.TEL 976 11 345261 MONGOLIA Ministry of Finance 4,524,622.80 4,070,444.79
CW2: CONSTRUCTION OF SUKHBAATAR BORDER CROSSING POINT SINGLE STOP SERVICE CENTER BUILDING Loan 3387 18 Nov 2019 JOINT VENTURE OF SAIN CONSTRUCTION LLC AND | BAYANZURKH DISTRICT, 1 KHOROO, TOKIO STR EET, BLDG 6/5 TEL: 976 11 456886 MONGOLIA Ministry of Finance 1,695,536.76 1,540,082.18
ENGAGEMENT OF TECHNICAL CONSULTANCY SERVICES FOR IMPROVEMENT OF KAIS FROM 13 JUNE 2019 TO 13 JUNE 2020. Loan 3387 18 Jun 2019 JV OF ASTVISION LLC AND OCHIR CONSULTING LTD. | SUITE 904, GALAXY TOWER, MAHATMA GANDI STR, 15TH KHOROO, KHAN-UUL DISTRICT MONGOLIA Ministry of Finance 874,946.23 795,405.66
ENGAGEMENT OF CONSULTING FIRM FOR CONCEPTUAL AND DETAILED ENGINEERING DESIGN OF ALTANBULAG & SUKH- BAATAR BCPS FROM 6 AUG 2018 TO 19 FEB 2019(6.5 M) Loan 3387 24 Aug 2018 TATAKH KHUCH LLC | GRAND PLAZA, 13F, ROOM 1305, PEACE AVENUE, BAYANGOL DISTRICT, ULAANBAATAR MONGOLIA Ministry of Finance 469,960.00 469,960.00
ENGAGEMENT OF CONSULTING FIRM FOR DETAILED ENGINEE RING DESIGN OF ROAD AND PARKING FROM 6 AUG 2018 TO 12 JANUARY 2019 (5 MONTHS 5 DAYS); Loan 3387 24 Aug 2018 MCPCGR LLC (MON.CONSTR.PROJECT CONSULT.GROUP) | 5/1 B.DORJ STREET, BZ OFFICE CENTER BZ DISTRICT, ULAANBAATAR MONGOLIA Ministry of Finance 138,350.00 138,350.00
ICT ADVISOR Loan 3387 12 Dec 2017 LAURO VIVES | GEVITY CONSULTING INC, 350, 375 WATER ST VANCOUVER BC, CANADA V6B 5C6 CANADA Ministry of Finance 183,367.00 183,367.00

Procurement Plan

Title Document Type Document Date
Regional Improvement of Border Services: Procurement Plan Procurement Plans Jan 2024