Dzud Disaster Response (ADB-58121-001)

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
C
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
Mar 28, 2024
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 - Ministry of Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Education and Health
  • Humanitarian Response
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 2.80 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)
$ 2.80 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.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS May 8, 2024

Disclosed by Bank Apr 2, 2024

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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.

According to the United Nation's Office for the Coordination of Humanitarian Affairs, almost 60% of the total territory of Mongolia is experiencing a disaster called dzud, since the second half of December 2023, putting vulnerable herder households at serious risk and requiring a humanitarian response.

Considering the scope of damages caused by the dzud and the government's constrained resources, it is recommended that an amount of $2.8 million is provided to the government as a grant financed by the APDRF, and up to 30% of the grant amount may be used retroactively for eligible expenditures incurred prior to grant effectiveness but not earlier than 8 December 2023 i.e. on the day the government activated its response through emergency operation centers.

The government requested ADB assistance from the Asia Pacific Disaster Response Fund (APDRF) on 19 March 2024 (Attachment 7). It is proposed to use these funds provided by APDRF for life-sustaining interventions comprising the provision of cash assistance, basic food rations, medical and emergency kits, communication and rescue equipment, fuel, and personal hygiene kits to affected herder households.

Around one-quarter of households live nomadic herding life in Mongolia. Learning from the past dzud disasters, the short- and medium-term potential impacts of the dzud on the affected herder households' livelihood include: (i) increased poverty for most herder households who lose their livestock, (ii) large-scale migration to the cities, (iii) increased unemployment; (iv) psychological stress, and (v) school dropouts. In such a situation, herder households face difficulty in meeting their repayment obligations and become debt trapped. Further strains will be placed on the government budget as considerable funds will be needed to restore the livelihood of the affected herder households. Therefore, it is crucial for the government to receive ADB assistance from APDRF to support herder households affected by the dzud disaster.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

A grant of US$ 2.80 million

Source: Asia Pacific Disaster Response Fund


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.

Ministry of Finance

Government Building 2

S. Danzan Street 5/1

Ulaanbaatar 15160

Mongolia

Facsimile Number: (976) 51-267468

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.

How it works

How it works