Mongolia: Regional Road Development and Maintenance Project

Sovereign Project | 48186-005

The project will have three outputs. Output 1: Road asset management capacity and implementation improved. Output 2: Road condition improved. Output 3: Road safety improved.

Project Name Regional Road Development and Maintenance Project
Project Number 48186-005
Country / Economy Mongolia
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Loan 3679-MON: Regional Road Development and Maintenance
Ordinary capital resources US$ 60.00 million
TA 9544-MON: Regional Road Development and Maintenance Project
Technical Assistance Special Fund US$ 700,000.00
Grant 0644-MON: Regional Road Development and Maintenance Additional Financing
High Level Technology Fund US$ 1.50 million
Loan 3786-MON: Regional Road Development and Maintenance Additional Financing
Ordinary capital resources US$ 58.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will have three outputs. Output 1: Road asset management capacity and implementation improved. Output 2: Road condition improved. Output 3: Road safety improved.
Project Rationale and Linkage to Country/Regional Strategy Investing in road improvement is particularly important at times of economic difficulty deliver four types of benefits: (i) projects create much-needed employment opportunities to support economic recovery, (ii) better roads reduce road user's travel cost and facilitate access to markets, schools and health facilities and thus make residents more productive, (iii) modest spending on road maintenance saves much more costlier rehabilitation later, and (vi) road safety improvements immediately reduce the social cost of traffic accidents.
Impact

Inclusive economic growth promoted by enhanced local, regional, and international connectivity in Mongolia.

Project Outcome
Description of Outcome

Efficiency and safety of road transport within the project area and between countries improved.

Progress Toward Outcome Civil works contract for 5 lots for Ulaanbaatar-Darkhan road rehabilitation works were awarded in June 2019. The construction supervision consultant was recruited and contract awarded in June 2019. The bidding for Package UA1: Khuiten Valley-Arvaikheer road rehabilitation work been completed and contract wasThe rebidding of the CW1-2 and CW1-4 is completed and contractors are awarded in September 2021. Audited project financial statement accepted and disclosed on 8 Jun 2022. To the Contract agreement for CW1-2, CW1-4, CW1-5 lots, a Variation order for the additional 5 cm of asphalt concrete pavement was issued on 8 July 2022. Within the scope of this Variation, the MRTD and respective Contractor agreed to execute the additional work for increasing the pavement thickness by 5 cm for the CW 1-2 lot 12.42km stretch out of 45.5 km, on the CW 1-4 section 11.3km stretch out of 45.08km, for the CW 1-5 section 15.34km stretch out of 30.53km of road. Bidding process for the additional 5 cm asphalt concrete pavement work for the CW 1-1 and CW 1-3 are being under the pending state. As of 30 August 2022, the project progress is: CW1-1-94.13%; CW1-2-56.82%; CW1-3-94.39%; CW1-4-33.68% and CW1-5-95.54%. UA1:Khuiten Valley and Arvaikheer package is at 76.41%.
Implementation Progress
Description of Project Outputs

Road asset management capacity and implementation improved

Road condition improved

Road safety improved

Due diligence reports for project preparation prepared

Status of Implementation Progress (Outputs, Activities, and Issues) Ongoing.The cabinet of Mongolia approved the Road Fund Regulation in August 2019.Completed. Under the project piggy-bagcked TRTA, the international consulting firm (Roughton International) organized a training for RTDC, Ministry of Road and Transport Development and other project stakeholders.Under the project piggy backed TRTA, the international consulting firm (Roughton International) was engaged and submitted a final report. The TA is (i) reviewing the road law implementation procedures for identifying gaps and improvements; (ii) studying the national road fund revenue generation methods and the level of road fees or charges; and (iii) assessing the road sector organizational capacity and road maintenance companies. The TRTA was closed effective from December 2021.Completed. Under the project piggy-bagcked TRTA, the international consulting firm (Roughton International) was engaged and submitted a final report. Data is collected at the Road Transport Development Center (RTDC) and the assignment of Roughton International was completed.The Executing Agency established the Project Implementation Unit in January 2019. And the Project Implementation Unit's organization was restructured in April 2020 by the decree of the Minister of Finance. The previous project coordinator was resigned and reselected effective fromOctober 2021. The Project's Imprest accounts have been opened. The disbursement to the contractors of Ulaanbaatar-Darkhan road construction, Khuiten Valley Arvaikheer package and the Consultant is going accordingly.Ongoing. Contractors have been selected and contracted for the maintenance work of Ulaanbaatar-Darkhan road, and the construction work is still ongoing. The construction works for the Lots CW1-1, CW1-3 and CW1-5 are ongoing with over 90% progress as of 31 May 2022, and construction of Lot CW1-2 and CW1-4 planned to be completed by October 2023. Procurement and bidding process for the Darkhan-Altanbulag has been cancelled and waiting for the re-advertisement and Khuiten Valley-Arvaikheer road section rehabilitation work is completed and awarded the contract. Disbursement for the contractor are proceeding without problems.ongoingongoingOngoing. The construction work is still ongoing for the maintenance of Ulaanbaatar-Darkhan road section, the current process is 59.12%. But due to the COVID-19 global pandemic, the process has been slow. In addition the termination of contracts for Lot CW1-2 and CW1-4 have affected the overall progress. The re-advertisement of CW1-2 and CW1-4 is completed and the contractors are awarded in September 2021. To the Contract agreement for CW1-2, CW1-4, CW1-5 lots, a Variation order for the additional 5 cm of asphalt concrete pavement was issued on 8 July 2022. Within the scope of this Variation, the MRTD and respective Contractors agreed to execute the additional work for increasing the pavement thickness by 5 cm for the CW 1-2 lot 12.42km stretch out of 45.5 km, on the CW 1-4 section 11.3km stretch out of 45.08km, for the CW 1-5 section 15.34km stretch out of 30.53km of road. Package for additional 5 cm asphalt concrete pavement under CW 1-1 and CW 1-3 was announced, a quotation was not received. CW1-1, CW1-3 and CW1-5 progress is 94.13%, 94.39%, and 95.54% respectively. CW1-2 progress is 56.82%, CW1-4 progress reaches 33.68%, Khuiten Valley and Arvaikheer package is at 76.41%.Upon the complete accomplishment of the project previous Class IV 2-lane road will be upgraded to Class I-4 Lane road.
Geographical Location Nation-wide, Mongolia
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Environment (category B). The project was classified as a Category B in February 2019, undertaken by the ADB requiring an Initial Environmental Examination (IEE). The Environmental Management Plan (EMP) was developed as a part of the IEE in February 2019. The PIU has an environmental safeguard and social development officer since 4 October 2021. As required by the 'Regulation on preparing, reviewing and approving environmental management plan each contractor of three active construction lots (CW 1-2, CW1-4, CW1-5) prepared annual environmental management plan for the 2022 construction season. Following requirements stated in the Project Administration Manual and as per the instructions given by the 'Committee on improving, monitoring and evaluation of the implementation of the Ulaanbaatar-Darkhan Road Construction on 12th April 2022 meeting, the citizens' council of the 4 soums, including Bornuur (Tuv), Baynachandmani (Tuv), Bayangol (Selenge) and Khongor (Darkhan-Uul) selected 4 people to undertake the role of 'Local outreach officer . Detailed guidance was provided for the public outreach officers, including the GRM, grievance receiving forms and other required recommendations. The grievance redress mechanism was implemented by providing a grievance hotline and responsible personnel. There were no environment-related complaints raised by the local community during the contsruction period.
Involuntary Resettlement Involuntary resettlement (category B). For output 2, a due diligence report has been prepared, confirming that there are no land acquisition or resettlement imparequirements cts as all the related works are limited to the existing ROW. All construction related impacts will be mitigated by the contractor. A resettlement framework is prepared in accordance with the SPS 2009 and national laws and regulations to guide the preparation of resettlement plans and to ensure project impacts remain within category B if not C. The resettlement framework was posted on the ADB website on 9 June 2017. The MRTD is committed to implement the resettlement framework and prepare resettlement plan, when required. The GRM has been agreed with the MRTD and is included in the social development and gender action plan (SDGAP) and resettlement framework.
Indigenous Peoples Indigenous peoples (category C). Based on due diligence, there are no ethnic minorities affected by the project. The three project aimags do not include any separate ethnic minority within the definition of the SPS 2009.
Stakeholder Communication, Participation, and Consultation
During Project Design The consultation and participation strategy will ensure timely information to the project affected communities and all relevant agencies. Consultation and participation will include organizing public meetings and focus groups with affected communities.
During Project Implementation The executing agency and the implementing agency, with support of the Project implementation unit, consulting team, undertakes consultations with key stakeholders.
Responsible ADB Officer Enkh-Ulzii Bayarsaikhan
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Ministry of Road and Transport Development of Mongolia
Timetable
Concept Clearance 19 Dec 2014
Fact Finding 01 May 2017 to 09 May 2017
MRM 07 Jul 2017
Approval 29 Jun 2018
Last Review Mission -
Last PDS Update 30 Sep 2022

Grant 0644-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 May 2019 02 Oct 2019 05 Nov 2019 30 Sep 2026 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.50 Cumulative Contract Awards
ADB 0.00 26 Jan 2023 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.50 26 Jan 2023 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory Partly satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Loan 3679-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 23 Jul 2018 21 Aug 2018 30 Jun 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 60.60 Cumulative Contract Awards
ADB 60.00 26 Jan 2023 54.86 0.00 91%
Counterpart 0.60 Cumulative Disbursements
Cofinancing 0.00 26 Jan 2023 43.10 0.00 72%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory Partly satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Loan 3786-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 May 2019 02 Oct 2019 05 Nov 2019 30 Sep 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 59.10 Cumulative Contract Awards
ADB 58.50 26 Jan 2023 44.82 0.00 77%
Counterpart 0.60 Cumulative Disbursements
Cofinancing 0.00 26 Jan 2023 31.08 0.00 53%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory Partly satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

TA 9544-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 01 Aug 2018 01 Aug 2018 31 Jan 2021 31 Jul 2021 29 Nov 2021
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 0.00 0.00 0.00 0.00 700,000.00 26 Jan 2023 598,858.61
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory Partly 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 Road Development and Maintenance Project: Procurement Plan Procurement Plans Jan 2023
Regional Road Development and Maintenance Project: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Jun 2022
Regional Road Development and Maintenance Project: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Jun 2021
Regional Road Development and Maintenance Project: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements Jun 2020
Regional Road Development and Maintenance Project: Project Administration Manual Project/Program Administration Manual May 2020
Loan Agreement (Ordinary Operations) for Loan 3679-MON: Regional Road Development and Maintenance Project Loan Agreement (Ordinary Resources) Jul 2018
Regional Road Development and Maintenance Project: Report and Recommendation of the President Reports and Recommendations of the President Jun 2018
Regional Road Development and Maintenance Project: Gender Action Plan Gender Action Plans Jun 2018
Regional Road Development and Maintenance Project: Project Administration Manual Project/Program Administration Manual Jun 2018
Regional Road Development and Maintenance Project: Technical Assistance Report Technical Assistance Reports Jun 2018
Бүс нутгийн авто замыг хөгжүүлэх, засвар арчлалтын төсөл: Төслийн МэдээллийнТайлан Translated PDS Mar 2017

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
3679 MON: Regional Road Development and Maintenance Project (CW1-2 & CW1-4) Invitation for Bids Closed 21 Jan 2021 05 Mar 2021
3679-MON: Regional Road Development and Maintenance Project (DA1) Invitation for Bids Closed 04 Dec 2020 04 Jan 2021
3786-MON: Regional Road Development and Maintenance Project-Additional Financing (UAI) Invitation for Bids Closed 28 Oct 2020 08 Dec 2020
L3679-MON: Regional Road Development and Maintenance Project Invitation for Bids Closed 07 Aug 2020 07 Sep 2020
L3679-MON: Regional Road Development and Maintenance Project and 3786-MON: Regional Road Development and Maintenance Project-Additional Financing Invitation for Bids Closed 21 Feb 2020 03 Apr 2020
L3679-MON: Regional Road Development and Maintenance Project (Phase 1) and P48186-MON: Regional Road Development and Maintenance Project-Additional Financing (Phase 2) [ZTHYa/201902104] Invitation for Bids Closed 21 Mar 2019 02 May 2019
Construction Supervision Consulting Services Firm - Consulting Closed 29 Oct 2018 27 Nov 2018
Road Fund and Expressway Operation and Maintenance Individual - Consulting Closed 26 Oct 2018 04 Nov 2018
National Coordinator Individual - Consulting Closed 16 Jun 2018 25 Jun 2018
Policy advice and capacity building on road maintenance and asset management Firm - Consulting Closed 14 Jun 2018 20 Jul 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CW1-2: CW1-2: 45.5 km Road Section from North of Khar Modot Pass to Urikhan Loan 3679 06 Dec 2021 Arj Capital LLC | 5th Floor, M plaza, Sambuu Street, 5 Khoroo, Chingeltei District Ministry of Road and Transport Development 18,276,407.00 3,192,380.93
CW1-4: 45.08 km Road Section from Sumber Intersection to Tsaidam Valley Loan 3679 06 Dec 2021 China Geo-Engineering Corporation | BUILDING 2, YARD 92, XIANGXHAN SOUTH, ROAD HAIDIAN DISTRICT, BEIJING, CHINA Ministry of Road and Transport Development 14,885,747.62 14,885,747.62
CW1-2: 45.5 km Road Section from North of Khar Modot Pass to Urikhan Loan 3786 06 Dec 2021 Arj Capital LLC | 5th floor, M plaza, Sambuu Street, 5th Khoroo, Chingeltei district, Ulaanbaatar, Mongolia Ministry of Road and Transport Development 18,276,407.00 15,084,026.07
PACKAGE UA1:KHUITEN VALLEY TO ARVAIKHEER ROAD (57. 56 KM) REHABILITATION AND PERFORMANCE BASED MAINTE NANCE WORK Loan 3786 08 Apr 2021 HKB INTERNATIONAL HOLDING LLC | ULAANBAATAR CITY, KHAN UUL DISTRICT CHINGGIS AVENUE TEL:9761135261 MONGOLIA Ministry of Road and Transport Development 13,978,999.00 13,978,999.00
SIGNED CONTRACT FOR CW1-5, RECONSTRUCTION OF ROUTE ULAANBAATAR-DARKHAN ROAD:30.53KM ROAD SECTION FRO M TSAIDAM VALLEY TO DARKHAN ROUNDABOUT Loan 3786 03 Feb 2020 CHINA GEO-ENGINEERING CORPORATION | DAN DISTRICT, BEIJING, PEOPLE'S REPUBLIC OF CHINA CHINA,PEOPLE'SREP.OF Ministry of Road and Transport Development 9,834,336.56 6,232,186.98
SIGNED CONTRACT FOR CW1-3 RECONSTRUCTION OF ROUTE ULAANBAATAR-DARKHAN ROAD:45.74KM ROAD SECTION FROM URIKHAN TO SUMBER INTERSECTION Loan 3786 03 Feb 2020 GUIZHOU HIGHWAY ENGINEERING GROUP CO. LTD | YANG,PEOPLE'S REPUBLIC OF CHINA CHINA,PEOPLE'SREP.OF Ministry of Road and Transport Development 14,491,347.09 8,985,665.60
SIGNED CONTRACT FOR CW1-3 RECONSTRUCTION OF ROUTE ULAANBAATAR-DARKHAN ROAD: 45.74 KM ROAD SECTION FROM URIKHAN TO SUMBER INTERSECTION Loan 3679 25 Jun 2019 GUIZHOU HIGHWAY ENGINEERING GROUP CO. LTD. | SANQIAO, GUIYANG CHINA,PEOPLE'SREP.OF Ministry of Road and Transport Development 14,491,347.09 2,898,269.42
SIGNED CONTRACT FOR CW1-2, RECONSTRUCTION OF ROUTE ULAANBAATAR-DARKHAN ROAD:45.5 KM ROAD SECTION FROM NORTH OF KHAR MODO PASS TO URIKHAN Loan 3679 25 Jun 2019 CHINA STATE CONSTRUCTION XINJIANG | 239 QINGNIAN ROAD, TIANSHAN DISTRICT URUMQI CHINA,PEOPLE'SREP.OF Ministry of Road and Transport Development 13,777,743.90 13,777,743.90
SIGNED CONTRACT FOR CW1-1, RECONSTRUCTION OF ROUTE ULANBAATAR-DARKHAN ROAD:37.26 KM ROAD SECTION FROM DEPARTING WEST PROVINCE TO NORTH KHAR MODOT PASS Loan 3679 25 Jun 2019 HEILONGJIANG JINYI ROAD AND BRIDGE CO. LTD. | XIANGFAND DISTRICT, HARBIN CITY, CHINA CHINA,PEOPLE'SREP.OF Ministry of Road and Transport Development 13,064,749.90 13,064,749.90
SIGNED CONTRACT FOR CW1-4, RECONSTRUCTION OF ROUTE ULAANBAATAR-DARKHAN ROAD: 45.08 KM ROAD SECTION FROM SUMBER INTERSECTION TO TSAIDAM VALLEY Loan 3679 25 Jun 2019 CHINA STATE CONSTRUCTION XINJIANG | 239 QINGNIAN ROAD, TIANSHAN DISTRICT URUMQI CHINA,PEOPLE'SREP.OF Ministry of Road and Transport Development 11,710,750.58 11,710,750.58
SIGNED CONTRACT FOR CW1-5, RECONSTRUCTIO OF ROUTE ULAANBAATAR-DARKHAN ROAD: 30.53 KM ROAD SECTION FROM TSAIDAM VALLEY TO DARKHAN ROUNDABOUT Loan 3679 25 Jun 2019 CHINA GEO-ENGINEERING CORPORATION | BUILDING 2, YARD 92, XIANGXHAN SOUTH ROAD HAIDIAN DISTRICT, BEIJING CHINA,PEOPLE'SREP.OF Ministry of Road and Transport Development 9,834,336.56 1,966,867.31
SIGNED CONTRACT FOR CONSTRUCTION SUPERVISION CONSULTING SERVICES Loan 3679 10 Jun 2019 INTERCONTINENTAL CONSULTANTS & TECHNOCRATS | A-8,GREEN PARK,NEW DELHI- 1100016 INDIA INDIA Ministry of Road and Transport Development 4,350,550.00 4,350,550.00
Capacity Development Technical Assistance 9544 25 Mar 2019 ROUGHTON INTERNATIONAL LIMITED, UK (UNITED KINGDOM) in association with Training & Technology Transfer Ltd. (NEW ZEALAND) | A2 Omega Park, Electron Way Chandlers Fo Hampshire SO534SE United Kingdom CP: RICHARD WOTTON/[email protected] Ministry of Road and Transport Development 500,000.00

Procurement Plan