Agriculture and Rural Development Project Phase 2 (ADB-55218-001)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mongolia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 7, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Mongolia
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 57.10 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 57.10 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 57.10 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jan 17, 2024

Disclosed by Bank Dec 7, 2023


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the ADB, the project will be aligned with the following impact: competitiveness and sustainability of Mongolia's agriculture sector improved.
The outcome of the project will be value addition on Mongolian agricultural resources increased by project participating enterprises (PPE).
The project is expected to enhance technology adoption of agro-enterprise, 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.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorized the risk of the project as follows:

Environment B
Involuntary Resettlement C
Indigenous Peoples C
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the ADB, Khanbogd Cashmere LLC is located in an existing industrial area of Songinokhairkhan District in western of Ulaanbaatar City. Since its establishment in 1999, the company has been operating a sustainable cashmere scouring, de-hairing and exporting business, and it is now the largest primary cashmere processing companies in Mongolia, processing 11% of all the scoured cashmere in the country. Production in 2021 was 745 tons (t) of scoured cashmere and 205 t of de-haired cashmere.

Erdmeat LLC currently operates a small-scale meat processing plant. Procured from Erdenet Mining Corporation in 2012, the plant is located in the industrial area of Erdenet City of Orkhon Aimag. Erdenet City, the second-largest city in Mongolia is situated 410 km northwest from the capital city Ulaanbaatar.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Erdmeat LLC Client Agriculture and Forestry
- - - - Khanbogd Cashmere Client Industry and Trade

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ADB Team Leaders:

Thomas Panella - Director, Agriculture, Food, Nature, and Rural Development
Phone: +63-2-8632-5279/4444
Email: tpanella@adb.org
Address: 6 ADB Avenue, Mandaluyong, 1550 Manila, Philippines

Yukitsugu Yanoma - Senior Natural Resources and Agriculture Specialist
Phone: +976 11 313440
Email: yyanoma@adb.org
Address: Level 18, Shangri-La Office, Shangri-La Centre, 19A Olympic Street, Sukhbaatar District-1, Ulaanbaatar, Mongolia 14241, Mongolia

Executing and Implementing Agency - Ministry of Food, Agriculture, and Light Industry:

T. Jambaltseren - State Secretary
Phone: +976-51-261308
Email: jambaltseren@mofa.gov.mn
Address: Government building 9/A, Peace Avenue, Bayanzurkh district, Ulaanbaatar-13381

Clients -

Erdmeat LLC:

Address: Erdenet, Orkhon 61020, Mongolia
Phone: +976 9906 0017
Website: https://erdmeat-llc.business.site/

Khanbogd Cashmere:

Address: Bayanzurkh District, 1st khoroo, Seoul Business Center 406, Ulaanbaatar, 13380, Mongolia
Phone:
+976-7509-5588
Email: cashmere@khanbogd.mn
Website: https://khanbogdcashmere.com/en/

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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How it works