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

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

The proposed knowledge and support technical assistance (TA) will help the National Emergency Management Agency (NEMA) of Mongolia develop the legal, policy, and institutional frameworks needed to strengthen disaster risk assessments and promote disaster risk reduction (DRR) and disaster risk financing and insurance in Mongolia. The TA will improve the capacity and ability of NEMA, ministries, local government officials, and communities to understand and better plan for disaster risks and respond to disasters. The knowledge and outputs generated through the TA will also provide evidence-based policy recommendations and a draft law for disaster insurance as a key financial risk management tool.

Project Details

Project Officer
Osti, Rabindra P. 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 Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9880-MON: Strengthening Capacity on Disaster Risk Assessment, Reduction 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 help the National Emergency Management Agency (NEMA) of Mongolia develop the legal, policy, and institutional frameworks needed to strengthen disaster risk assessments and promote disaster risk reduction (DRR) and disaster risk financing and insurance in Mongolia. The TA will improve the capacity and ability of NEMA, ministries, local government officials, and communities to understand and better plan for disaster risks and respond to disasters. The knowledge and outputs generated through the TA will also provide evidence-based policy recommendations and a draft law for disaster insurance as a key financial risk management tool.
Project Rationale and Linkage to Country/Regional Strategy

Mongolia is extremely vulnerable to natural hazards because of its geographical location, poorly developed infrastructure, persistent poverty, limited institutional capacity, and continental climate that directly influences the nature, scale, and frequency of hazards experienced. 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: during 2004- 2013, disasters and hazardous phenomena caused about $321 million of damages and losses. Over the same period, the government spent a total of $16 million from central and local government resources and respective ministerial budgets and donations for disaster response and recovery activities. To support Mongolia's sustainable socioeconomic development, there is a significant need for Mongolia to strengthen its DRM system. This requires a comprehensive approach to DRM, based on a more holistic approach, which includes DRFI, emphasizing DRR, and coupling structural and nonstructural actions, 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 disaster risk reduction, financing, or insurance. It is important to strengthen DRR strategies that include identifying risks and hazards, increasing awareness about the impact of those risks, planning for them, making resources (including financial) available to implement plans, and integrating all these elements into the development agenda and plans.

The government plans to (i) increase investments in risk reduction and preparedness measures and (ii) provide opportunities to engage the private sector as a complement to further increase overall financial resilience to disasters. These plans should include promoting financing instruments for different layers of risk. However, there is limited understanding and knowledge among policy makers, private sector stakeholders, and the public about (i) enhanced financial arrangements for disaster response, (ii) the levels and nature of disaster risk, opportunities for DRR, and preparedness measures, and (iii) the related benefits such actions can bring. 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 a financial instrument that can enhance resilience. The Law on Disaster Protection of Mongolia, which was revised and ratified in 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 artificial 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 and plans by private local insurers to offer earthquake risk insurance products.

Strengthening the legal, policy, and institutional frameworks required for a comprehensive approach to manage disaster risk will enhance Mongolia's resilience and national capacity to cope with disasters. As the basis for such a system, strengthening the disaster risk assessment process, including modeling, will improve the identification of hazards, assessment of risk exposure and vulnerability, and estimates about the frequency and severity of potential damage and losses. This increased knowledge and awareness about the hazards and risks will allow the government and communities to better plan to reduce disaster risk and identify preparedness needs and priorities. A disaster risk financing strategy can help implement these DRR plans through appropriate financing instruments and related budgetary support for disaster relief, early recovery, and reconstruction. Strengthening financial risk transfer instruments will be crucial to ensure that the government can deliver the benefits of such tools. To support these improved actions, the government and stakeholders will need improved capacity and awareness at the national and local levels to increase uptake of the preparedness and financing tools.

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

Disaster risk assessments enhanced

Disaster risk reduction planning enhanced

Financial resilience policies and best practices recommended

Institutional, technical and management capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
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 Osti, Rabindra P.
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 29 Aug 2019 to 30 Aug 2019
MRM -
Approval 02 Dec 2019
Last Review Mission -
Last PDS Update 30 Mar 2020

TA 9880-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2019 17 Apr 2020 17 Apr 2020 30 Apr 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 02 Dec 2019 0.00

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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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

None currently available.

Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
Strengthening Capacity on Disaster Risk Assessment, Reduction and Transfer Instruments in Mongolia Firm - Consulting Closed 15 Nov 2019 29 Nov 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9880 31 Aug 2020 ICEM ASIA CONSULTING PTE. LTD(SINGAPORE) in association with Pricewaterhousecoopers Pvt. Ltd. (IND)(INDIA) 60 PAYA LEBAR ROAD # 11-01 PAYA LEBAR SQ 101 Cecil Street #11-04 Tong Eng Buildin Singapore National Emergency Management Agency 1,987,000.00

Procurement Plan

None currently available.