Mongolia : Macroeconomic Advisory Support

Sovereign Project | 50094-001

Mongolia has encountered challenges arising from faltering foreign direct investments, dampening global commodity prices, and weaker external demands. A sharp drop in exports and a protracted plunge in foreign direct investments have inflated pressures on the balance of payments and government finance. The authorities have initiated crisis adjustments in August 2016. The government set up a task force to develop an Economic Stabilization Plan (ESP).

Project Details

  • Project Officer
    Sandagdorj, Bold
    East Asia Department
    Request for information
  • Country/Economy
    Mongolia
  • Sector
    • Public sector management
Project Name Macroeconomic Advisory Support
Project Number 50094-001
Country / Economy Mongolia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9261-MON: Macroeconomic Advisory Support
Technical Assistance Special Fund US$ 1.00 million
TA 9261-MON: Macroeconomic Advisory Support (Supplementary)
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Public sector management / Economic affairs management

Gender No gender elements
Description

Mongolia has encountered challenges arising from faltering foreign direct investments, dampening global commodity prices, and weaker external demands. A sharp drop in exports and a protracted plunge in foreign direct investments have inflated pressures on the balance of payments and government finance. The authorities have initiated crisis adjustments in August 2016. The government set up a task force to develop an Economic Stabilization Plan (ESP).

While the plan is under process for Parliament approval, the government has already announced fiscal consolidation measures, including revenue mobilization through several tax reforms, discontinuation of several quasi fiscal operations, civil servants' salary cuts, and the temporary suspension of new contracts and procurements. On the monetary stance, the monetary authority raised the policy rate to mop up liquidity to protect the currency from potential speculative attacks. The proposed technical assistance aims to provide a timely advisory support for the preparation and implementation of the ESP plan in a flexible manner which allows the government and ADB to respond to merging reform issues in the next few years.

Project Rationale and Linkage to Country/Regional Strategy The proposed technical assistance will take the 'facility type modality, which allows ADB to respond to the government''s emerging needs in the implementation of the ESP through frequent consultations and the use of flexible mechanism to govern proposal submission and consideration.
Impact

Economic policy formulation enhanced and effective implementation of the Emergency Stabilization Plan accomplished.

Project Outcome
Description of Outcome

Core policies supported under the TA adopted and implemented

Progress Toward Outcome The following 18 subprojects have been approved under the TA for implementation, which supported policies in macroeconomic management and development financing: (i) Strengthening Public Investment Policy and Management, (ii) Support to the Tax Working Group, (iii) Developing an Open-economy Bayesian DSGE Model, (iv) Workshop on Private Sector Operations in Mongolia, (v) Supporting the Implementation of Policy Actions for the Social Welfare Support Program Phase II, (vi) Strengthening Alignment of Budget Expenditures with the Government of Mongolia s Medium and Long-term Goals, (vii) Strengthening Alignment of Budget Expenditures with the Government of Mongolia's Medium and Long-term Goals Phase II, (viii) High Level Event on the Sustainable Development Goals in Mongolia, (ix) Project Management and Coordination Consultant, (x) Financial Markets Development in line with the ASEAN+3 Bond Market Initiative, (xi) Enhancing Capacity for the Mineral Sector, (xii) Strengthening Development Cooperation and Capacity, (xiii) Private Sector Opportunities Workshop in Mongolia, (xiv) Introduction of Economic Analysis of Law into Policy Making and Implementation, (xv) Strengthening Alignment of Budget Expenditures with Government of Mongolia's Medium and Long-Term Goals III, (xvi) Implementing FATF Action Plan on AMLCFT, (xvii) Strengthening Management of Development Financing, and (xviii) Monitoring the Effectiveness of the COVID-19 Countercyclical Development Expenditure Program.
Implementation Progress
Description of Project Outputs

1. Core policy issues assessed and recommendations made

2. Capacity development training opportunities for work level staff provided

Status of Implementation Progress (Outputs, Activities, and Issues) The following subprojects have been completed: (i) Support to the Tax Working Group; (ii) Developing an Open-economy Bayesian DSGE Model; (iii) Workshop on Private Sector Operations in Mongolia; (iv) Supporting the Implementation of Policy Actions for the Social Welfare Support Program Phase II; (v) Strengthening Alignment of Budget Expenditures with the Government of Mongolia's Medium and Long-term Goals- High Level Event on the Sustainable Development Goals in Mongolia; and (vi) Strengthening Public Investment Policy and Management. Additionally, advisory services, workshop, legal assistance, and analytical work have been provided across all of the active and completed projects. TA Facilitator was recruited and started the assignment at the Ministry of Finance since Nov 2018 to strengthen the implementation and subproject coherence. The project completion date was extended from 31 December 2019 to 30 June 2021 with additional fund of $500,000 in May 2019. Total of 18 subprojects have been approved under the TA.
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Effective consultations and dialogues with the government, its agencies, and development partners were made during the project design process.
During Project Implementation Consultations have been done with the relevant development partners, and public institutions. Mid-term review of the project implementation was conducted in March 2018.
Business Opportunities
Consulting Services

The TA will engage experts with inputs equivalent to 20 person-months of international consultants, 20 person-months of national consultants, and 15 resource persons for workshops and seminars.

Consultants will be recruited individually following ADB's Guidelines on Use of Consultants.

Responsible ADB Officer Sandagdorj, Bold
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission (MNRM)
Executing Agencies
Ministry of Finance (formerly Ministry of Finance and Economy)
Timetable
Concept Clearance 11 Nov 2016
Fact Finding 28 Sep 2016 to 07 Oct 2016
MRM -
Approval 08 Dec 2016
Last Review Mission -
Last PDS Update 29 Mar 2021

TA 9261-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2016 30 Dec 2016 30 Dec 2016 31 Dec 2018 30 Jun 2021 30 Aug 2021
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 0.00 0.00 0.00 0.00 1,500,000.00 17 Jun 2022 1,056,372.67

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
Macroeconomic Advisory Support: Technical Assistance Completion Report TA Completion Reports Aug 2022
Macroeconomic Advisory Support: Technical Assistance Report Technical Assistance Reports Dec 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.

None currently available.


Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Mongolia: Macroeconomic Advisory Support Validation of Technical Assistance Completion Reports Nov 2023

Related Publications

Title Document Type Document Date
Bond Market Guide for Mongolia Reports Feb 2021

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
Consultant to conduct Rapid Impact Assessment of the COVID-19 Rapid Response Program for MSMEs Individual - Consulting Closed
Gender Specialist Individual - Consulting Closed
Macroeconomic Advisory Support--Countercyclical Development Expenditure Plan (National) Individual - Consulting Closed
National Consultant 3 (Junior) Individual - Consulting Closed
National Consultant 1 (Senior) Individual - Consulting Closed
National Consultant 2 Individual - Consulting Closed
Economic Analysis of Law Individual - Consulting Closed
Macroeconomic Advisory Support_Development Cooperation Consultant Individual - Consulting Closed
Implementing FATF Action Plan on AMLCFT Individual - Consulting Closed
Macroeconomic Advisory Support_Bond Market Development Individual - Consulting Closed
Macroeconomic Advisory Support_Bond Market Subproject Individual - Consulting Closed
National Consultant 2 on Mongolian Bond Market Guide Individual - Consulting Closed
Mining Expert on Enhancing Capacity for Mineral Sector Individual - Consulting Closed
Development Cooperation Consultant Individual - Consulting Closed
Development Cooperation Assistant Individual - Consulting Closed
International Consultant/Technical Advisor on Enhancing Capacity for Mineral Sector Individual - Consulting Closed
National Consultant 1 on Mongolian Bond Market Guide Individual - Consulting Closed
IT expert 2 on Public Investment Policy and Management Subproject Individual - Consulting Closed
IT expert 1 on Public Investment Policy and Management Subproject Individual - Consulting Closed
Macroeconomic Advisory Support_Project Management and Coordination Consultant Individual - Consulting Closed
Project Facilitator/Project Management Specialist Individual - Consulting Closed
National Budget Expert_MOH Subproject Individual - Consulting Closed
International Budget Expert_MOH Subproject Individual - Consulting Closed
Public Investment Legal Specialist for the Subproject_Strengthening Public Investment Policy and Management Individual - Consulting Closed
Public Investment Policy Specialist for the Subproject_Strengthening Public Investment Policy and Management Individual - Consulting Closed
DSGE Modelling Specialist - Developing an open economy Bayesian DSGE model Individual - Consulting Closed
Legal specialist on the Subproject for Supporting Implementation of Policy Actions for the Social Welfare Support Program Phase II Individual - Consulting Closed
DSGE Model Development Team Leader/Senior Specialist Individual - Consulting Closed
Macroeconomic Advisory Support Subproject Individual - Consulting Closed
Public Investment Legal Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.