MONGOLIA
Urban Sector Operation
4 June 2014
Tuul Badarch, Senior Project Officer (Infrastructure)
Mongolia Resident Mission
Asian Development Bank
Major Challenges in Urban Sector
•
•
•
Need for better strategic and long-term
planning, infrastructure investment,
financial sustainability of service provision,
and land-use regulation
Disparities in urban services: city core
apartment areas vs. peripheral ger areas in
Ulaanbaatar City
Environmental degradation in ger areas:
sanitation, air pollution, poor access to
water, lack of waste collection, and aging
facilities
2
Sector Objectives and Operational
Priorities
 ADB’s operations support government initiatives including economic
growth and social inclusion.
•
•
Enhance basic urban service provision especially in water supply, wastewater,
and heating
Improve urban sector management that encourages physical and investment
planning, and maintenance of the assets
3
ADB Sector experience
•
ADB has been a leading agency in funding both technical assistance
and loan projects in the urban sector with a primary objective of
supporting the government in achieving the MDGs
•
Since 1997, ADB had approved grant and loan-financed investment
projects amounting to $92.1 million, one mulitranche financing facility
of $163 million , 14 technical assistance projects amounting to $10.0
million. Two grants from the Japan Fund for Poverty Reduction
amounting to $3.7 million for assisting ger areas and remote rural
communities were also implemented.
•
ADB’s urban sector program has sought to achieve (i) improved living
conditions for the urban poor, (ii) improved access of the poor to basic
services, (iii) better urban environmental conditions, and (iv) improved
urban planning.
4
Active and Proposed Lending Program
Amount
($ mil)
Fund
type
Date of
Approval
Date of
Closing
L2301: Urban Development Sector
(Original +Supplementary)
35.23
ADF
Dec 2006
Nov 2009
Jul 2015
G0204: Southeast Gobi Urban and Border Town
Development Project
15.00
ADF
Apr 2010
May 2015
G0380/L3098/L3099: Ulaanbaatar Urban Services
and Ger Area Development Investment Program
- Tranche 1
50.00
UEIF/
ADF/
OCR
Dec 2014
Jun 2018
Darkhan Wastewater Management Improvement
Project
18.00
ADF
Sep 2014
Ulaanbaatar Urban Services and Ger Area
Development Investment Program - Tranche 2
and 3
113.00
ADF/
OCR
TOTAL
231.23
Project Name
Active
Pipeline
ADF = Asian Development Fund, MFF = multitranche financing facility, MNRM = Mongolia Resident Mission, OCR = ordinary capital
resources, UEIF = Urban Environmental Infrastructure Fund, UFPF = Urban Financing Partnership Facility.
5
Key lessons from ADB’s
prior support
• Institutional weakness is a key constrain;
• Local governments are unable to borrow from international
financial institutions and other lenders limiting their access to
funds for urban development;
• lack of project management and procurement capacity should
be addressed during project preparation;
• short construction period needs to be a factor when the
implementation schedule is formulated;
• projects have had only limited and variable success in raising
tariffs for urban services, resulting in underfunding of operation
and maintenance.
6
Potential Future Areas of Focus
• Support the government’s new priorities
• Strengthening of institutional capacity to
undertake reforms urban sector
• Introduction of innovative and affordable
technologies and mechanisms in urban
infrastructure development
7
Thank You