Mongolia : Macroeconomic Advisory Support
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
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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 |
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Project Status | Closed | ||||||||
Project Type / Modality of Assistance | Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Inclusive economic growth |
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Drivers of Change | Governance and capacity development Knowledge solutions |
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Sector / Subsector | Public sector management / Economic affairs management |
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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. |
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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 | |
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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 | |
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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 | |
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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 | |
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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 | |||||
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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 | |||||||
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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.
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Title | Document Type | Document Date |
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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 |
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Mongolia: Macroeconomic Advisory Support | Validation of Technical Assistance Completion Reports | Nov 2023 |
Related Publications
Title | Document Type | Document Date |
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Bond Market Guide for Mongolia | Reports | Feb 2021 |
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