Mongolia : Capacity Building for Agriculture Value Chain Financing
Under the proposed project, the Asian Development Bank (ADB) will provide two sovereign loans to Mongolia from its ordinary capital resources, a $34.4 million concessional loan and a $22.7 million regular loan, to support the development of value chain financing in four key sub-sectors: (i) livestock and animal husbandry; (ii) crop production; (iii) food; and (iv) light industry. The project is expected to enhance technology adoption of agro-enterprises, to increase primarily the agro-processing capacity and secondly agricultural production in Mongolia, and hence increase value addition to agricultural resources. The increased capacity will lead to employment generation, and indirectly benefit herders, farmers, and primary processors through the PPEs' increased demand for raw materials.
Project Details
-
Project Officer
Yanoma, Yukitsugu
Sectors Group
Request for information -
Country/Economy
Mongolia -
Sector
- Agriculture, natural resources and rural development
- Project Name
- Capacity Building for Agriculture Value Chain Financing
- Project Number
- 55218-003
- Country / Economy
- Mongolia
- Project Status
- Active
- Project Type / Modality of Assistance
- Technical Assistance
- Source of Funding / Amount
TA 10227-MON: Capacity Building for Agriculture Value Chain Financing Source Amount Japan Special Fund US$ 2.00 million - Operational Priorities
- OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
- OP5: Promoting rural development and food security
- Sector / Subsector
Agriculture, natural resources and rural development / Agricultural production - Agro-industry, marketing, and trade - Land-based natural resources management
- Gender
- No gender elements
- Description
Under the proposed project, the Asian Development Bank (ADB) will provide two sovereign loans to Mongolia from its ordinary capital resources, a $34.4 million concessional loan and a $22.7 million regular loan, to support the development of value chain financing in four key sub-sectors: (i) livestock and animal husbandry; (ii) crop production; (iii) food; and (iv) light industry. The project is expected to enhance technology adoption of agro-enterprises, to increase primarily the agro-processing capacity and secondly agricultural production in Mongolia, and hence increase value addition to agricultural resources. The increased capacity will lead to employment generation, and indirectly benefit herders, farmers, and primary processors through the PPEs' increased demand for raw materials.
The proposed project's impact will be competitiveness and sustainability of Mongolia's agriculture sector improved. The project will have the following outcome: value addition on Mongolian agricultural resources increased by PPEs. The project will have three outputs: (i) capacity of enterprises and service providers improved; (ii) value chain investments enhanced; and (iii) production capacity of herders and farmers improved.
- Project Rationale and Linkage to Country/Regional Strategy
In support of the sovereign loan, the proposed transaction technical assistance (TA) will provide capacity building to various value chain stakeholders including the Ministry of Food, Agriculture and Light Industry (MOFALI), project participating banks (PPBs), project participating enterprises (PPEs), marketing and export promotion organizations, primary processors, producer cooperatives, and farmers and herders through training, awareness raising, support for preparation of technical guidelines and policy recommendations, and implementation of pilot projects.
The sovereign loans will finance value chain investments in PPEs through subloans to be provided by PBs. The TA will provide knowledge and enhance skills in a range of stakeholders including primary processors, cooperatives, and farmers and herders. This will include capacity development of technical and research institutes, support of pilot projects with farmer and herder cooperatives and promotion and management of brands. These activities cannot be performed under the sovereign loan because of the difficulty to structure on a cost-recovery basis. The TA is listed in the current country operations business plan.
- Impact
Project Outcome
- Description of Outcome
- Progress Toward Outcome
Implementation Progress
- Description of Project Outputs
- 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
- Consulting services will be identified on the terms of reference to be prepared for the technical assistance.
- Procurement
Procurement will follow the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Contact
- Responsible ADB Officer
- Yanoma, Yukitsugu
- Responsible ADB Department
- Sectors Group
- Responsible ADB Division
- Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
- Executing Agencies
-
Ministry of Food, Agriculture, and Light Industry (MOFALI)
Timetable
- Concept Clearance
- -
- Fact Finding
- -
- MRM
- -
- Approval
- 07 Dec 2023
- Last Review Mission
- -
- Last PDS Update
- 08 Dec 2023
Funding
TA 10227-MON
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 07 Dec 2023 | 20 Dec 2023 | 20 Dec 2023 | 31 Dec 2029 | - | - |
| ADB | Cofinancing | Counterpart | Total | |||
|---|---|---|---|---|---|---|
| Gov | Beneficiaries | Project Sponsor | Others | |||
| 2,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,000,000.00 |
| Date | Amount |
|---|---|
| 08 Jan 2024 | 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 |
|---|---|---|
| Capacity Building for Agriculture Value Chain Financing: Technical Assistance Report | Technical Assistance Reports | Nov 2023 |
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
Contracts Awarded
Procurement Plan
None currently available.