Mongolia : Regional Road Development and Maintenance Project
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 Details
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Project Officer
Enkh-Ulzii Bayarsaikhan
East Asia Department
Request for information -
Country/Economy
Mongolia -
Modality
-
Sector
- Transport
| Project Name | Regional Road Development and Maintenance Project | ||||||||||||||||
| Project Number | 48186-005 | ||||||||||||||||
| Country / Economy | Mongolia |
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| Project Status | Active | ||||||||||||||||
| Project Type / Modality of Assistance | Grant Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Transport / Road transport (non-urban) |
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| Gender | 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. |
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| 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 | 18 May 2023 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 1.50 | 18 May 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 | 18 May 2023 | 55.00 | 0.00 | 92% |
| Counterpart | 0.60 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 May 2023 | 44.32 | 0.00 | 74% |
| 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 | 18 May 2023 | 44.82 | 0.00 | 77% |
| Counterpart | 0.60 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 May 2023 | 32.18 | 0.00 | 55% |
| 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 | 18 May 2023 | 598,858.61 |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Partly satisfactory | Partly satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
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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
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ADB-Supported Road Development to Help Spur Growth in Mongolia
ADB's Board of Directors has approved a $60 million loan to help improve and rehabilitate 311 km of road corridors in Mongolia, which will help facilitate economic cooperation and trade, as well as inclusive growth.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | 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 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
| Title | Document Type | Document Date |
|---|---|---|
| Regional Road Development and Maintenance Project: Procurement Plan | Procurement Plans | Jun 2023 |