The investment program proposes a fundamental paradigm shift and transformative model to promote green territorial development and urban-rural linkages where livable human settlements (aimag [province] and soum [subunit of an aimag] centers) become anchors of green agribusinesses that promote sustainable, resilient, and high carbon sequestration in Mongolia's rangeland. With initial focus on Mongolia's western aimags, the program promotes climate finance and private sector investment mechanisms that are designed for replicability across the country.
|Project Name||Aimags and Soums Green Regional Development Investment Program|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Electricity transmission and distribution
Transport / Urban roads and traffic management
Water and other urban infrastructure and services / Other urban services - Urban housing - Urban policy, institutional and capacity development - Urban solid waste management
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The investment program proposes a fundamental paradigm shift and transformative model to promote green territorial development and urban-rural linkages where livable human settlements (aimag [province] and soum [subunit of an aimag] centers) become anchors of green agribusinesses that promote sustainable, resilient, and high carbon sequestration in Mongolia's rangeland. With initial focus on Mongolia's western aimags, the program promotes climate finance and private sector investment mechanisms that are designed for replicability across the country.|
|Project Rationale and Linkage to Country/Regional Strategy||
The program aims to improve basic urban services and promote the local economy in priority aimag (province) capitals and soum (subunit of an aimag) centers of Mongolia. The geographically targeted and integrated approach of the program will focus on priority regional urban clusters (RUCs) that have the potential to promote a more resilient and diversified economy to deliver inclusive and sustainable growth.
The strong dependency of Mongolia's economy to primary sectors of agriculture and mining makes its economy highly volatile and cyclical because of harsh weather and changing global market prices for commodities. Thus, Mongolia urgently needs economic diversification. The secondary sector, which encompasses manufacturing and construction, has experienced similar volatility over the past 15 years indicating its close links with the mining and other primary sector activities and limited diversification into higher value products for domestic and foreign markets. There are significant untapped potentials in light and green industry, agro-industry, forestry, trade, and tourism which are underdeveloped, and prevent aimag and soum centers from playing a more significant role in job creation, economic diversification, territorial balance, and migration control.
Most infrastructure was built during the Soviet-era from 1925 to 1991. Since then, limited infrastructure improvements to accommodate the demands of the growing population have been made. Urban growth was not controlled by adequate urban planning regulations. The gaps between urban services supply and demand are mainly caused by (i) lack of urban services being extended to informal and unserved peri-urban settlements, (ii) underperforming water production and wastewater treatment systems, and (iii) limited resources dedicated to operations, maintenance, and service delivery. Some efforts to fill the gaps have been made, for example through previous and ongoing Asian Development Bank (ADB)-financed projects, but aimag and soum centers still need financial and technical support to better manage and deliver their infrastructure and urban services gaps.
Current economic difficulties call for immediate action to restore macroeconomic stability and ensure social stability, thus, long-term actions and investments to promote efficient urban development and a robust local economy need to be implemented now. Otherwise, population growth and activity in Ulaanbaatar will continue to be coupled with unexploited local economy and a high dependency on volatile economic activity. Due to slow development, rural areas will not retain its population, thus aggravating the migration to Ulaanbaatar. Disconnection between urban and rural economy will further increase and services in abandoned areas will be less financially viable to sustain. The overall equilibrium of Mongolia will be affected and inequality and poverty will worsen. Further, the situation will be exacerbated due to Mongolia's vulnerability to climate change.
ADB's country partnership strategy for Mongolia, 2017 2020 indicates the necessity to develop a more resilient and diversified economy that can consistently deliver rapid, inclusive, and sustainable growth. To support this, the National Urban Assessment (NUA) for Mongolia has identified priority RUC systems as key assets to catalyze local urban economic growth. Upgrading infrastructure and creating synergies between economic and urban development in the RUCs will increase economies of agglomeration and critical mass, making RUCs a powerful engine of socioeconomic improvement. Tailoring investments and institutional support that are adapted to local needs and potentials of the RUC will (i) address urban services bottlenecks to ensure a livable and non-polluting urban environment, (ii) improve territorial competitiveness and balance the country's territorial development, (iii) decrease the migration to Ulaanbaatar, (iv) improve economic and industrial diversification, (v) improve the country's resilience and adaptability to climate change, (vi) enhance job opportunities created by the interface between urban and rural economies, and (vii) improve the livelihoods of low-income and vulnerable groups.
|Impact||Human development, quality of life, green development, and regional development sustainability achieved|
|Outcome||Green, inclusive, and performing agro-territorial development improved.|
Climate-resilient, low-carbon, and attractive aimag and soum centers developed
Climate-resilient, high-carbon sequestration, and sustainable herding rangeland management implemented
Accessible financing for low-carbon and climate-resilient livestock value chains created (financial intermediation loan component)
Institutional capacity and policies for low-carbon and climate-resilient agro-territorial development strengthened
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Initial categorization for environment is B. An initial environmental examination and an environmental assessment and review framework will be prepared and disclosed on ADB's website in accordance with ADB's Safeguard Policy Statement (2009). A climate risk and vulnerability assessment will be conducted.|
|Involuntary Resettlement||Initial categorization for resettlement is B. A resettlement plan will be prepared for the first tranche and a resettlement framework for the investment program.|
|Indigenous Peoples||Initial categorization for indigenous peoples is C. An initial review of the population in the targeted areas indicated that no ethnic minority community will be affected by the first tranche. The will be confirmed during TA implementation. An indigenous people planning framework will be prepared, if necessary.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Relevant government agencies were consulted in the initial states of project concept and TA preparation. They will be actively involved in the design of the project.|
|During Project Implementation||Relevant government agencies will be involved in implementing the project.|
|Consulting Services||To be determined during project processing.|
|Procurement||To be determined during project processing.|
|Responsible ADB Officer||Heckmann, Arnaud|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Urban and Social Sectors Division, EARD|
|Concept Clearance||12 Sep 2017|
|Fact Finding||21 Oct 2019 to 06 Apr 2020|
|MRM||09 Jun 2021|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2021|
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.
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|Title||Document Type||Document Date|
|Аймгийн болон сумын төвүүдийн бүсчилсэн хөгжлийн хөрөнгө оруулалтын хөтөлбөр : Төслийн МэдээллийнТайлан||Translated PDS||Sep 2017|
|Aimag and Soum Centers Regional Development Investment Program: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Sep 2017|
Safeguard Documents See also: Safeguards
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Evaluation Documents See also: Independent Evaluation
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