Border Efficiency for Sustainable Trade Project (ADB-55044-002)

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 8, 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 - Office of the National Committee for Port Revival
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 95.00 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.
Grant Amount (USD)
$ 5.00 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)
$ 106.30 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 Mar 5, 2024

Disclosed by Bank Dec 8, 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.

According to the Bank’s website, the project will support Mongolia’s economic recovery, diversification, and resilience through a sector loan by (i) upgrading selected border crossing points (BCPs), (ii) establishing One Health coordination mechanisms and facilities at selected BCPs, and (iii) implementing key modules under the national single window (NSW) for risk management and paperless trade. It will benefit remote border communities in east and west Mongolia, providing access to crucial imports and increased sources of income and livelihoods from transport, tourism, and trade.

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.

Environment (category B). Following the environment due diligence required by ADB’s SPS for the sector loan modality, two safeguard guidance documents have been developed: (i) an environmental assessment review framework (EARF), specifying the selection and approval procedures covering risk screening, impact assessment, monitoring, and reporting requirements for additional (non-sample) BCP subprojects to be developed; and (ii) an initial environmental examination and environmental management plan covering output 1 and 2 sample subprojects at Khavirga BCP, including a due diligence review of the existing and associated facilities.

Involuntary resettlement (category B). Due diligence of the subprojects at Khavirga indicated that there will have no land acquisition and resettlement impacts. Impacts remain unlikely for additional subprojects but cannot be ruled out.

Indigenous peoples (category B). Due diligence confirmed that the subprojects at Khavirga will not trigger indigenous peoples safeguards. Ethnic group impacts are unlikely for the remaining subprojects but cannot be ruled out.

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

(i) a loan of $50,000,000 to Mongolia for the Border Efficiency for Sustainable Trade Project, from ADB’s ordinary capital resources, in regular terms, with interest to be determined in accordance with ADB’s Flexible Loan Product; for a term of 25 years, including a grace period of 6 years; and such other terms and conditions as are substantially in accordance with those set forth in the draft loan agreement presented to the Board;
(ii) a loan of $45,000,000 to Mongolia for the Border Efficiency for Sustainable Trade Project, from ADB’s ordinary capital resources, in concessional terms, with an interest charge at the rate of 2% per year during the grace period and thereafter; for a term of 25 years, including a grace period of 5 years; and such other terms and conditions as are substantially in accordance with those set forth in the draft loan agreement presented to the Board; and
(iii) a grant not exceeding $5,000,000 to Mongolia from ADB’s Special Funds resources (Asian Development Fund) for the Border Efficiency for Sustainable Trade Project, on terms and conditions that are substantially in accordance with those set forth in the draft grant agreement presented to the Board.

The government will provide $6.3 million in-kind counterpart funding.


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.

Executing Agency

Office of the National Committee for Port Revival
Name: T. Turbold
Position: Chief of Office of the National Committee for Port Revival
Telephone No.: +976 888 80129
Email address: turboldceo@gmail.com
Office address: Government Building #12, Ulaanbaatar City, Mongolia

Implementing Agencies

Border Ports Administration (for output 1)
Name: B. Batkhishig
Position: Chief
Telephone No.: +976 991 19698
Email address: batkhishig0918@gmail.com
Office address: Government Building #12, Ulaanbaatar City, Mongolia
Mongolian Customs

General Administration (for output 2)
Officer's name: R. Otgonjargal
Position: Director General
Telephone No.: +976 940 06688
Email address: rotgonjargal@customs.gov.mn
Office address: Sukhbaatar District, Ikh Toiruu Street 81/1,
Ulaanbaatar City 14193, Mongolia

Asian Development Bank
Transport Sector Office, Sectors Group and Mongolia Resident Mission, East Asia Department
Staff name: Chen Chen
Position: Director, Transport
Telephone No.: +63 2 8632 6851
Email address: cchen@adb.org

Mission Leaders Staff name: Rebecca Stapleton
Position: Transport Specialist
Telephone No.: +63 2 8632 4938
Email address: rstapleton@adb.org

Staff name: Unurjargal Dalaikhuu
Position: Regional Cooperation Officer
Telephone No.: +976 855 05104
Email address: dunurjargal@adb.org

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