Mongolia: Fostering Value-Added Activities in Western Mongolia

Sovereign (Public) Project | 49192-001

The proposed TA will support private sector development in the rural-based, western region. The TA will strengthen coordination between the three aimags of the western region with a focus on improving access to export markets. It will also improve the capacity for investment and market analysis among businesses, aimag authorities, and other stakeholders. It was included in COBP.

Project Details

  • Project Officer
    Enkhbold, Enerelt
    East Asia Department
    Request for information
  • Country
    Mongolia
  • Modality
    • Technical Assistance
  • Sector
    • Agriculture, natural resources and rural development
Project Name Fostering Value-Added Activities in Western Mongolia
Project Number 49192-001
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9066-MON: Fostering Value-added Activities in Western Mongolia
Technical Assistance Special Fund US$ 815,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Public sector management / Economic affairs management

Gender Equity and Mainstreaming Some gender elements
Description The proposed TA will support private sector development in the rural-based, western region. The TA will strengthen coordination between the three aimags of the western region with a focus on improving access to export markets. It will also improve the capacity for investment and market analysis among businesses, aimag authorities, and other stakeholders. It was included in COBP.
Project Rationale and Linkage to Country/Regional Strategy A large expansion in mining has underpinned rapid economic growth in Mongolia, with gross domestic product (GDP) rising at an average rate of 12% per annum from 2011 to 2014. But mining is capital-intensive and employs less than 4% of the workforce, and the economy is now overly vulnerable to downturns in mining investment and in energy and mineral prices. Agriculture remains the single largest source of employment and employs one third of the workforce while it generates one sixth of GDP. To achieve inclusive growth, it is important to balance the promotion of mining with efforts to develop agriculture and other competitive non-mining sectors. Economic diversification will help reduce the vulnerability of the economy and sustain employment creation. Yet Mongolia's rural economy is constrained by a lack of experience in private sector development, low penetration of business and technical skills, and trade restrictions.
Impact Economic diversification in agriculture and other nonmining industries in western Mongolia enhanced.
Project Outcome
Description of Outcome The outcome will be enhanced readiness for value-added activities in private sector development in the three western aimags. Performance will be assessed by the submission of a strategy for private sector development to local aimag governments for their endorsement by 2017.
Progress Toward Outcome

The TA delivered all the TA outputs. The project team and EA organized the final workshop involving all five western aimags in December 2018. The EA endorsed (i) Western Mongolia competitiveness assessment report in November 2017; and (ii) institutional readiness assessment report in November 2017, supported by the TA.

Local chambers of commerce endorsed (iii) 5 investment and market analyses reports in January 2018.

The IAs and ADB organized the first regional forum in Khovd aimag on 25 October 2016; the second forum in Bayan-Ulgii aimag in March 2017; and the third one in Uvs aimag in June 2017. The final PSD forum will be held in Govi-Altai aimag on 4 October 2018.

The project team organized the fourth Western Mongolia private sector development regional forum in Govi-Altai aimag on 4 October 2018. The main purpose of the forum was to present the findings of the demand and production capacity survey and the draft regional private sector development strategy. 55 participants, including the Cabinet Secretariat, the executing agency for the project (EA), implementing agencies, the five western aimags, National Development Agency, the Mongolian National Chamber of Commerce and Industry, and local chambers of commerce, attended the forum.

The draft strategy highlights the following three priorities:

(i) Improved governance. In order to enhance the efficiency and inclusiveness of aimag-level public administration, in each aimag a public and private sector council (PPSC) comprised of five members from both public and private sectors and one member from the local chamber of commerce and Industry), is intended to be established. The regional council will also be established. The PPSC will help local governments improve the legal environment, thereby increase economic competitiveness, and strengthen the business risk management, and promote information access by the public and private sector.

(ii) Strengthened capacity of local private sector. Proposed operations under this priority aim to ensure proper use of resources, optimize business development (value chain, cluster development), correctly identify priority businesses, promote innovation and new technology, and enhance product quality and safety.

(iii) Adequate infrastructure. To further promote agricultural parks, industrial zones, and tourism clusters, each aimag needs to develop appropriate transportation system and logistics, adequate supplies of electricity and heat, and sufficient development of water supply and irrigation.

" The EA informed the Mission that this is the first private sector development strategy based on empirical evidence. They expressed their interest to implement a similar project in Eastern Mongolia.

Implementation Progress
Description of Project Outputs

1. The three western aimags' economic competitiveness assessed

2. The aimags' labor market, capacity, and institutional readiness assessed

3. Robust investment and market analyses for selected projects in priority sectors prepared

Coordination and information sharing to encourage economic cooperation among the three western aimags strengthened

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

Completed. Local chambers of commerce endorsed 5 investment and market analyses reports in January 2018.

Completed. The summary of the market analysis was submitted to the EA in December 2017

Completed. The Cabinet Secretariat endorsed Western Mongolia competitiveness assessment report in November 2017

Completed. The EA endorsed Western Mongolia institutional readiness assessment report in November 2017, supported by the TA.

Geographical Location Khovd, Olgii, Uvs Aymag
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design During the fact-finding mission, the Cabinet Secretariat, local aimag governments, aimag chambers of commerce, and private sector participants were consulted on the project design.
During Project Implementation ADB met with the EA and IAs as part of the inception mission which was carried out on 2-20 May 2016. The TA team carried out a field mission in Bayan-Ulgii, Uvs and Khovd and met with local chambers of commerce and potential private sector participants on 24 Oct - 4 Nov 2016.
Responsible ADB Officer Enkhbold, Enerelt
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Cabinet Secretariat
Ulaanbaatar, Mongolia
Timetable
Concept Clearance 04 Oct 2015
Fact Finding 05 May 2015 to 15 May 2015
MRM -
Approval 16 Dec 2015
Last Review Mission -
Last PDS Update 08 Feb 2019

TA 9066-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Dec 2015 16 Feb 2016 16 Feb 2016 31 Dec 2017 31 Dec 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
815,000.00 0.00 50,000.00 0.00 0.00 0.00 865,000.00 07 Sep 2021 617,094.71

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.


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.

None currently available.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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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.

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Tenders

Tender Title Type Status Posting Date Deadline
Technical Specialist (Tourism) Individual - Consulting Closed 26 Jul 2018 01 Aug 2018
Capacity Building and Business Development Specialist Individual - Consulting Closed 23 Mar 2018 29 Mar 2018
Technical Specialist (Rural Input-Output Analysis) Individual - Consulting Closed 01 Mar 2018 07 Mar 2018
Livestock specialist Individual - Consulting Closed 13 Feb 2018 19 Feb 2018

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.