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Mongolia: Strengthening Capacity on Disaster Risk Assessment, Reduction and Transfer Instruments in Mongolia

Sovereign (Public) Project | 52021-001 Status: Proposed

The proposed knowledge and support technical assistance (TA) will support the National Emergency Management Agency (NEMA) of Mongolia in the development of legal, policy, and institutional frameworks needed for strengthening disaster risk assessments, promoting disaster prevention and risk reduction, and disaster risk financing and insurance in Mongolia. The Government of Mongolia requested a TA from the Asian Development Bank to support disaster risk management. The TA is included in ADB's country operations business plan for Mongolia, 2019 2021. Originally listed as two TA projects, Strengthening Disaster Risk Insurance Scheme and Strengthening Capacity on Disaster Risk Assessment and Disaster Prevention Planning, which are now combined into one TA.

Project Details

Project Officer
Suzanne Robertson East Asia Department Request for information
Country
  • Mongolia
Sector
  • Agriculture, natural resources and rural development
 
Project Name Strengthening Capacity on Disaster Risk Assessment, Reduction and Transfer Instruments in Mongolia
Project Number 52021-001
Country Mongolia
Project Status Proposed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA: Strengthening Capacity on Disaster Risk Assessment, Prevention and Transfer Instruments in Mongolia
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

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

Finance / Insurance and contractual savings

Gender Equity and Mainstreaming Some gender elements
Description The proposed knowledge and support technical assistance (TA) will support the National Emergency Management Agency (NEMA) of Mongolia in the development of legal, policy, and institutional frameworks needed for strengthening disaster risk assessments, promoting disaster prevention and risk reduction, and disaster risk financing and insurance in Mongolia. The Government of Mongolia requested a TA from the Asian Development Bank to support disaster risk management. The TA is included in ADB's country operations business plan for Mongolia, 2019 2021. Originally listed as two TA projects, Strengthening Disaster Risk Insurance Scheme and Strengthening Capacity on Disaster Risk Assessment and Disaster Prevention Planning, which are now combined into one TA.
Project Rationale and Linkage to Country/Regional Strategy

Mongolia is extremely vulnerable to hazards due to its geographical location, poorly developed infrastructure, persistent poverty, limited institutional capacity, and continental climate. The country experiences over 3,000 small- to medium-scale disasters each year, posing serious setbacks to the country's social and economic sustainable development. The toll of disasters has been significant, as from 2004 to 2013 disasters and hazardous phenomena caused approximately USD321 million (MNT841.5 billion) of damages and losses. Over the same period, a total of USD16 million (MNT42.2 billion) from central and local government resources, and respective ministerial budgets and donations were spent for disaster response and recovery activities (footnote 3). To support the sustainable socio-economic development of the country there is a significant need for Mongolia to strengthen its disaster management system. This requires a comprehensive approach to disaster risk management (DRM), based on a more holistic approach, which includes emphasizing disaster risk reduction (DRR), as well as strengthening disaster preparedness and emergency response.

Current laws and policies predominantly focus on disaster preparedness and emergency response but do not adequately cover DRR, prevention or promote the transference of risks. Strengthening DRR from identifying risks and hazards, awareness in the impact of those risks, planning for, making resources (including financial) available to implement plans and integrating all these elements into the development agenda and plans is an important risk reduction strategy.

The government plans to increase investments in risk prevention, reduction, and preparedness measures. This will reduce the government financial burden and contingent liability as well as seek opportunities to engage the private sector as a compliment to further increase overall financial resilience to disasters. This should include promoting financing instruments for different layers of risk. However, as there is limited understanding among policy makers, private sector stakeholders, and the public about the rationale and potential benefits of enhanced financial arrangements for disaster response current financial management and risk reduction actions are not comprehensive and have limited impact. An overall disaster risk financing strategy needs to be put in place.

Disaster risk insurance is one such financial instrument that can enhance resilience. The recently adopted Law on Disaster Protection of Mongolia, which was revised and ratified on 27 February 2017, provides the legal basis for disaster risk insurance as part of the risk transfer approach. The law requires all legal entities to have an insurance policy in place against the potential risk of natural and man-made disaster incidents. However, the law does not provide details on the regulatory framework. The absence of such a framework has limited the upscaling of initiatives made by development partners in advancing the insurance mechanism on disaster risk, like the index-based livestock insurance program as well as plans by private local insurers to offer earthquake risk insurance products.

Impact Mongolia''s resilience to and national capacity to cope with disasters enhanced.
Outcome Disaster risk management mechanisms and governance at the national and local levels strengthened
Outputs

Disaster risk assessments enhanced

Disaster resilience enhanced

Financial resilience to disaster risk strengthened

Institutional, technical and management capacity strengthened

Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time).
Procurement Procurement will follow the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Suzanne Robertson
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
National Emergency Management Agency
Partizan Rd., Ulaanbaatar
Mongolia
Timetable
Concept Clearance 08 Aug 2019
Fact Finding 06 May 2019 to 17 May 2019
MRM -
Approval -
Last Review Mission -
Last PDS Update 24 Sep 2019

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

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