fbpx 51192-001: Inner Mongolia Sustainable Cross-Border Development Investment Program | Asian Development Bank

China, People's Republic of: Inner Mongolia Sustainable Cross-Border Development Investment Program

Sovereign (Public) Project | 51192-001 Status: Active

The investment program will promote sustainable development of cross-border areas and mutually beneficial regional cooperation and integration between Inner Mongolia Autonomous Region (IMAR) of the People's Republic of China (PRC) and Mongolia. The program will improve economic inclusion, ecosystems, and crucial services in the five IMAR border crossing point (BCP) communities and surrounding areas on both sides of the 3,200 kilometer (km) PRC-Mongolia, which lags in economic and social development. The program will enhance infrastructure at key BCPs, related services including health services, and living conditions by improving environment and waste management systems. Expanded financial and business support to small and medium-sized enterprises in border regions will spur local income growth. Establishment of an agricultural value chain will enhance livelihoods on both sides of the frontier.

Project Details

Project Officer
Karimova, Zulfia K. East Asia Department Request for information
Country
  • China, People's Republic of
Sector
  • Industry and trade
 
Project Name Inner Mongolia Sustainable Cross-Border Development Investment Program
Project Number 51192-001
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0108-PRC: Inner Mongolia Sustainable Cross-Border Development Investment Program
Ordinary capital resources US$ 420.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Partnerships
Private sector development
Sector / Subsector

Industry and trade / Trade and services

Water and other urban infrastructure and services / Other urban services

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The investment program will promote sustainable development of cross-border areas and mutually beneficial regional cooperation and integration between Inner Mongolia Autonomous Region (IMAR) of the People's Republic of China (PRC) and Mongolia. The program will improve economic inclusion, ecosystems, and crucial services in the five IMAR border crossing point (BCP) communities and surrounding areas on both sides of the 3,200 kilometer (km) PRC-Mongolia, which lags in economic and social development. The program will enhance infrastructure at key BCPs, related services including health services, and living conditions by improving environment and waste management systems. Expanded financial and business support to small and medium-sized enterprises in border regions will spur local income growth. Establishment of an agricultural value chain will enhance livelihoods on both sides of the frontier. The program will have strong regional spillover benefits to Mongolia: improvement in infrastructure and services at IMAR-Mongolia BCPs will boost the volume and quality of trade, creating about 3,300 direct and indirect jobs in Mongolia; and improvement in health and other services will benefit disadvantaged communities on both sides of the border.
Project Rationale and Linkage to Country/Regional Strategy IMAR is located in the northern PRC and borders Mongolia to the north along a 3,200 km border. Regional cooperation and integration (RCI) especially with Mongolia played an important role in IMAR's growth and development. Over the past decade, trade between IMAR and Mongolia has grown rapidly, from CNY8.42 billion in 2009 to CNY32.79 billion in 2018 with consistent and significant surplus for Mongolia. Given fundamental resource complementarities, where PRC mainly imports minerals, coal, animal husbandry products, and exports machinery, construction materials, and consumer products, the trade volume is expected to continue to grow. Cooperation has also expanded beyond trade to trade in services including tourism, health and education, and to environmental protection, and other transboundary issues following the all-round strategic partnership established in 2011 between PRC and Mongolia.
Impact Sustainable economic development and shared prosperity for Central Asia Regional Economic Cooperation (CAREC) region achieved.
Project Outcome
Description of Outcome Sustainable economic opportunities and living conditions in areas along the IMAR-Mongolia border improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Sustainable infrastructure for cross-border connectivity and health services improved

Ecological environment in key border towns improved

Income generating opportunities expanded

Cross-border cooperation mechanisms, technical project management, and institutional capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Inner Mongolia
Summary of Environmental and Social Aspects
Environmental Aspects An initial environmental examination report and environmental management plan have been prepared for tranche 1 activities, which confirm that the project will not result in significant adverse environmental impacts that are irreversible, diverse, or unprecedented. Any minimal adverse environmental impacts will be prevented or mitigated through implementation of the environmental management plan.
Involuntary Resettlement The MFF will involve the development of physical infrastructure such as roads, buildings, and logistics facilities. However, most of the project sites are in the remote area where most lands are owned by the government or acquired from local residents. The potential impact of subprojects under tranche 1 is expected to be minimal as relocation or resettlement of local residents are not required.
Indigenous Peoples Mongolians are the second largest ethnic group in the area. The project will directly benefit communities in the project areas regardless of ethnicity. No adverse impacts on the ethnic minority group are expected.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with stakeholders will be conducted during project processing.
During Project Implementation Consultations with stakeholders will be conducted during project implementation.
Responsible ADB Officer Karimova, Zulfia K.
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Timetable
Concept Clearance 28 Jun 2019
Fact Finding 02 Sep 2019 to 11 Sep 2019
MRM 29 Jan 2020
Approval 21 Oct 2020
Last Review Mission -
Last PDS Update 21 Oct 2020

MFF Facility Concept 0108-PRC

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 888.35 Cumulative Contract Awards
ADB 420.00 - 0.00 0.00 %
Counterpart 468.35 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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