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Mongolia: Enhancing Private Sector Outreach

Sovereign (Public) Project | 54394-001 Status: Approved

The government of Mongolia has requested the Asian Development Bank (ADB) to provide a knowledge and support technical assistance (TA) to expand ADB's nonsovereign operations (NSO) in Mongolia. The TA will focus on (i) increasing the private sector's awareness of ADB's financial products, investment principles and eligibility criteria; and (ii) enhancing project readiness and implementation.

The TA is aligned with ADB's Strategy 2030 and the goals of ADB's Operational Plan for Private Sector Operations, 2019-2024. The TA is included in the country operations business plan for Mongolia, 2021.

Project Details

Project Officer
Enerelt Enkhbold East Asia Department Request for information
Country
  • Mongolia
Sector
  • Industry and trade
 
Project Name Enhancing Private Sector Outreach
Project Number 54394-001
Country Mongolia
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6738-MON: Enhancing Private Sector Outreach
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Industry and trade / Large and medium industries

Gender Equity and Mainstreaming Some gender elements
Description

The government of Mongolia has requested the Asian Development Bank (ADB) to provide a knowledge and support technical assistance (TA) to expand ADB's nonsovereign operations (NSO) in Mongolia. The TA will focus on (i) increasing the private sector's awareness of ADB's financial products, investment principles and eligibility criteria; and (ii) enhancing project readiness and implementation.

The TA is aligned with ADB's Strategy 2030 and the goals of ADB's Operational Plan for Private Sector Operations, 2019-2024. The TA is included in the country operations business plan for Mongolia, 2021.

Project Rationale and Linkage to Country/Regional Strategy

Over the past 7 years, ADB has intensified its NSO efforts and has approved a total of nine projects in Mongolia amounting to $167.2 million from ADB's ordinary capital resources (as of March 2021). Before the coronavirus (COVID-19) pandemic, ADB has increased the number of missions fielded to Mongolia from the Resident Mission in Beijing and its Headquarters in Manila to identify and negotiate small-scale private sector projects in the infrastructure, financial institutions, agribusiness, and social sectors. This effort has been recognized and appreciated by the government.

The government has highlighted the importance of a more dynamic private sector to Mongolia's future economic prospects. In the near-term, the government has identified an ambitious infrastructure pipeline and recognizes that private sector financing is essential for the successful implementation of this pipeline. Over the longer-term, Mongolia wants to develop dynamic, private-sector-led economic sectors, in the non-mining space to support continued efforts to diversify the economy. The government has underlined the catalytic role that international financial institutions (IFIs) can play to provide finance, build capacity and given increased confidence to prospective investors. As such, the Ministry of Finance has requested ADB to further expand its efforts to reach out to Mongolia's private sector companies and to increase its pipeline of NSOs in the country.

ADB's nonsovereign engagement adds significant value to private sector financing in Mongolia and ADB coordinates closely with the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), the two other major actors on private sector operations. ADB's absence in the mining sector allows for a dedicated focus on supporting and developing the non-mining private sector, a situation which is unique amongst IFIs. ADB is also well placed to use its large sovereign portfolio to complement the success and lessons from NSOs with upstream efforts to strengthen the investment climate an important priority for ADB in Mongolia given the recent stagnation in Mongolia's business climate reforms in recent years. This complementarity between NSOs and sovereign work and the focus on investment climate reform will be a core priority of the upcoming country partnership strategy for Mongolia and the proposed TA will be a key part of this approach. ADB is already showing leadership amongst the IFIs in complementing NSOs with upstream sovereign work. For example, ADB is coordinating a joint position paper on the investment climate in Mongolia with the other IFIs. This builds on the excellent collaboration between ADB and other IFIs at the transaction level, which will continue to underpin ADB's approach on NSOs going forward.

The success of fully expanding ADB's NSO financing depends on the depth of ADB's engagement with the country's private sector, which is a time- and resource-intensive process, especially for smaller transactions. Further outreach to the business community will require additional human resources to provide the necessary expertise and ignite the momentum for NSO. Challenging economic and geographic conditions call for a further boost of the business development capacity within the country. With this TA, ADB will recruit experienced business development professionals to reach out to private sector companies and state-owned enterprises and drive new project pipeline growth in Mongolia on behalf of ADB. The TA will complement ADB's Private Sector Operations Department's (PSOD) business development efforts, market research, transaction support, and portfolio management activities in the country.

Impact 5. The proposed TA's expected impact is aligned with the Government Action Plan (GAP), 2016-2020, which supports NSO financings and partnerships with various sectors in the Mongolian economy. The expected outcome is for ADB to develop and increase the number of NSO financings in Mongolia.
Project Outcome
Description of Outcome ADB's NSO financings developed and increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Readiness for ADB's NSO financing enhanced

Awareness of private sector on ADB's financial products investment principles and eligibility criteria increased

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
Responsible ADB Officer Enerelt Enkhbold
Responsible ADB Department East Asia Department
Responsible ADB Division Mongolia Resident Mission
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Ministry of Finance (formerly Ministry of Finance and Economy)
S.Danzangiin Gudamj 5/1, Zasgiin Gazriin
II Bair, Ulaanbaatar 15160 Mongolia
Timetable
Concept Clearance 25 Jan 2021
Fact Finding 26 Jan 2021 to 26 Jan 2021
MRM -
Approval 22 Jun 2021
Last Review Mission -
Last PDS Update 27 Jan 2021

TA 6738-MON

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 - 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.

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.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Enhancing Private Sector Outreach: Technical Assistance Report Technical Assistance Reports Jun 2021

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.


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
International Senior Bussiness Development Consultant Individual - Consulting Closed 10 Jul 2021 16 Jul 2021
Project Assistant Individual - Consulting Closed 10 Jun 2021 19 Jun 2021
Junior Bussines Development Consultant Individual - Consulting Closed 04 Jun 2021 17 Jun 2021
Senior Bussines Development Consultant Individual - Consulting Closed 04 Jun 2021 17 Jun 2021

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.