Mongolia : Tavan Bogd COVID-19 Food Security and Inclusive Job Creation Project

Nonsovereign Project | 56275-001

Project Name Tavan Bogd COVID-19 Food Security and Inclusive Job Creation Project
Project Number 56275-001
Borrower / Company Tavan Bogd Foods LLC
Tavan Bogd Foods Pizza LLC
Tavan Bogd LLC
Tavan Bogd Trade LLC
Ulaanbaatar Flour LLC
Country / Economy Mongolia
Location
Type or Modality of Assistance
4260 Loan Ordinary capital resources USD 6.00 million Committed
4261 Loan Ordinary capital resources USD 8.00 million Committed
4286 Loan Ordinary capital resources USD 4.00 million Committed
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP5: Promoting rural development and food security
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender Effective gender mainstreaming
Responsible ADB Department ERDI
Responsible ADB Division
Responsible ADB Officer Wong, Yee To
Project Sponsor(s)
Description
Objectives and Scope The project will contribute to ensuring a stable supply of wheat flour, the main staple in Mongolia. It will also mitigate disruptions to the food supply chain through an expansion of quick service restaurants affected by the coronavirus disease (COVID-19) crisis as well as the ongoing Russian invasion of Ukraine. The project will preserve the livelihoods of 6,000 wheat farmers and farm workers, as well as 1,250 employees, and will generate 358 new jobs.
Status of Development Objectives Ongoing.
Status of Operation/Construction The loan was fully disbursed and applied for wheat purchase by Ulaanbaatar Flour LLC and warehouse/chain store construction by Tavan Bogd Food LLC by end Aug 2023.
Linkage to Country/Regional Strategy

The project is aligned with ADB Strategy 2030 to scale up financing for agribusiness, promote gender equality in at least 75% of ADB committed operations and increase private sector participation by 2030. It is also aligned with the Operational Plan for Private Sector Operations, 2019 to 2024, which calls for working with strong tier 3 companies that are market leaders in their country or industry. The project is aligned with one of the strategic pillars of ADB country partnership strategy, 2021 to 2024 for Mongolia: fostering inclusive social development and economic opportunity. It is also aligned with the Independent Evaluation Department validation of the country partnership strategy, which supports private sector-led growth and tackling urban rural disparities.

The project is consistent with Strategy 2030 operational priority (OP) 1 by improving wheat farmers' standard of living and providing additional jobs

including people with disability during COVID-19; OP 2 by protecting women workers and farmers and promoting equal opportunities for both men and

women; and OP 5 by promoting rural development and food security. The project is part of ADB's Comprehensive Response to the COVID-19 Pandemic, which pledged $20 billion to meet the needs of its developing member countries to respond to the COVID-19. It is also part of ADB $14 billion food security response during 2022 to 2025.

Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects ADB categorized the loan in compliance with ADB's Safeguard Policy Statement (2009) as category B for environment. ADB has undertaken due diligence and reviewed the potential environmental and social (E&S) impacts of the project and the measures to avoid, minimize, mitigate, and compensate for the adverse impacts in the safeguard reports and plans. A qualified third-party consultant completed (i) a corporate ESMS audit of UBF and TBF (including TBF Pizza), and (ii) an environmental and social compliance audit of the TBF warehouse site. An initial E&S examination was conducted on the proposed TBF warehouse site. The E&S measures and the institutional capacity and commitment of UBF and TBF to manage the projects E&S impacts are deemed adequate.
Involuntary Resettlement ADB categorized the loan in compliance with ADB's Safeguard Policy Statement (2009) as category C for involuntary resettlement. No issues on land acquisition and involuntary resettlement are envisaged. No involuntary resettlement impacts are expected.
Indigenous Peoples

ADB categorized the loan in compliance with ADB's Safeguard Policy Statement (2009) as category C for indigenous peoples. No indigenous peoples

impacts are expected.

Stakeholder Communication, Participation, and Consultation UBF and TBF (including TBFP) are expected to develop a Stakeholder Engagement Plan (SEP) to manage participation of stakeholders. Prior to restarting the construction of TBF and TBFP warehouses, meaningful engagement with relevant stakeholders will be undertaken, and it will continue during operation. The borrowers will also apply an enhanced grievance redress mechanism which allows receiving and facilitating resolution of internal and external concerns and grievances.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 28 Nov 2022
PDS Creation Date 29 Nov 2022
Last PDS Update 11 Oct 2023

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
Tavan Bogd COVID-19 Food Security and Inclusive Job Creation Project: FAST Report Faster Approach to Small Nonsovereign Transactions Nov 2022
Tavan Bogd COVID-19 Food Security and Inclusive Job Creation Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Nov 2022

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.


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.