Mongolia : Support for the Establishment of a Supplementary Pension System

Sovereign Project | 52151-001

Project Details

  • Project Officer
    Van Rijn, Johannes Jacobus Frederik
    East Asia Department
    Request for information
  • Country/Economy
    Mongolia
  • Sector
    • Public sector management
Project Name
Support for the Establishment of a Supplementary Pension System
Project Number
52151-001
Country / Economy
  • Mongolia
Project Status
Closed
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 9551-MON: Support for the Establishment of a Supplementary Pension System
Source Amount
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Partnerships
Sector / Subsector
  • Public sector management / Public administration - Social protection initiatives

Gender
Some gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

More inclusive and sustainable development process promoted

Project Outcome

Description of Outcome

Legal, regulatory and institutional arrangements for an improved pension system strengthened in Mongolia

Progress Toward Outcome
The TA has progressed well - and has now reached the stage where produced outputs are likely to be submitted to the State Great Hural (Parliament). Given the current Covid-19 crisis, it seems unlikely that Parliamentary agendas will not be affected. Following a period of delays caused by Covid19 and the elections, the incoming minister for Labor and Social Protection has confirmed her strong interest in the project (August 2020). The team is currently awaiting the first meeting of the inter-ministerial Working Group, post-election.

Implementation Progress

Description of Project Outputs

Legal and regulatory framework for the establishment of a private pension scheme developed

Institutional arrangements for systems operation and asset management developed

Awareness about new pensions arrangements among government officials, private sector stakeholders, and the public enhanced

Status of Implementation Progress (Outputs, Activities, and Issues)
A back to back mission was fielded from 10-14 September 2018 and briefed the executing agency on the status of the technical assistance support: " TA paper was approved on 31 July;" MoU was signed by Ministry of Finance, Financial Regulatory Commission and Ministry of Labour and Social Protection (24 August);" No objection from the Mongolian authorities obtained (24 August);" All international and national consultancy positions have been advertised;" Shortlisting will be done by team-leader and Private Sector Development Specialist, MNRM;" Mission confirmed that a no-objection from the EA for the shortlisted candidates will be obtained; " Inception Workshop tentatively scheduled for week 2, November 2018 (depending on the pace of consultants recruitment);" EA expressed their appreciation for the speed of processing and the communication with the ADB, agreed with the idea of an Inception Workshop and confirmed their availability. Inception workshop was held on 29 January 2019, chaired by MoF and with participation from the two implementing agencies MLSP and FRC, and ADB's support team. Inception meeting basically confirmed the project's understanding in terms of substance and the division of roles and responsibilities between the various stakeholders (albeit that some institutional tension continues to exist between MLSP and FRC)Next step is to start legal drafting, which will be done as part of the mission of the international pension lawyer (25 March - 12 April). The intention is to have a first draft of the law available by July 2019. Following a team mission in May 2019, draft law was prepared and has been discussed with the Working Group, comprising MoF, MLSP and FRC. Comments were provided, and a 2nd and 3rd draft were prepared. In addition, an analysis of the (minimal) fiscal impact of providing tax incentives for private pension fund providers was prepared and also submitted to the Working Group. The Working is expected to reconvene in early October and is expected to provide final feedback then. Next step would be to submit the law to the legislature. On 24 March, the team was informed that MLSP will submit the fourth draft of the law for discussion in Parliament. Given the current Covid-19 crisis, it is unclear at this stage to what extend existing Parliamentary agenda's will be affected. Following a period of delays caused by Covid19 and the elections, the incoming minister for Labour and Social Protection has confirmed her strong interest in the project (August 2020). The team is currently awaiting the first meeting of the inter-ministerial Working Group, post-election. On 26 February 2021, ADB approved an extension request for the TA, on the grounds that implementation was unduly disrupted by COVID-19 and the elections. New closing date: 26 August 2022.As of 20 March 2021, the project team has been assigned by MLSP to produce a 5th draft of the legislation, scheduled to be tabled in Parliament in the 2021 autumn session. The TA activities were completed on 28 August 2022. The financial account closing of the TA is ongoing.
Geographical Location
Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
Regular discussion with the executing and implementing agencies.
During Project Implementation
Regular discussion with the executing and implementing agencies.

Business Opportunities

Consulting Services
The TA will engage international and national consultants following ABD Procurement Policy (2017, as amended from time to time.
Procurement
no procurement of goods

Contact

Responsible ADB Officer
Van Rijn, Johannes Jacobus Frederik
Responsible ADB Department
East Asia Department
Responsible ADB Division
Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Ministry of Finance (formerly Ministry of Finance and Economy)

Timetable

Concept Clearance
23 May 2018
Fact Finding
28 May 2018 to 31 May 2018
MRM
-
Approval
30 Jul 2018
Last Review Mission
-
Last PDS Update
27 Sep 2022

Funding

TA 9551-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jul 2018 23 Aug 2018 23 Aug 2018 28 Feb 2021 28 Aug 2022 10 Oct 2022
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00
Cumulative Disbursements
Date Amount
10 Jul 2023 377,320.45

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.

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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

Title Document Type Document Date
Mongolia: Support for the Establishment of a Supplementary Pension System Validation of Technical Assistance Completion Reports Mar 2024

Related Publications

None currently available.


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
National Econometrist Individual - Consulting Closed
National Tax Lawyer Individual - Consulting Closed
International Communication Specialist Individual - Consulting Closed
National Accountant and/or Management Consultant Individual - Consulting Closed
International Actuarial Specialist Individual - Consulting Closed
National Communication Specialist Individual - Consulting Closed
International Pension Policy Specialist Individual - Consulting Closed
International Pension Law Specialist Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.