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 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 |
|
||||
| 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.