Completion Report Mongolia: Urban Development Sector Project
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Completion Report Project Number: 37697-013 Loan Number: 2301 August 2016 Mongolia: Urban Development Sector Project This document is being disclosed to the public in accordance with ADB's Public Communications Policy 2011. CURRENCY EQUIVALENTS Currency Unit – togrog (MNT) At Appraisal At Project Completion 15 November 2006 27 October 2015 MNT1.00 = $0.000859 $0.000502 $1.00 = MNT1,164 MNT1,993.25 ABBREVIATIONS ADB – Asian Development Bank CBO – community-based organization DED – Deutscher Entwicklungsdienst (German Development Service) EIRR – economic internal rate of return EMP – environmental management plan FIRR – financial internal rate of return GAP – gender action plan GIZ – Deutsche Gesellschaft für Internationale Zusammenarbeit (German Agency for International Cooperation) GTZ – Gesellschaft für Technische Zusammenarbeit (German Technical Cooperation Agency) ICB – international competitive bidding IEE – initial environmental examination JFPR – Japan Fund for Poverty Reduction LARF – Land Acquisition and Resettlement Framework LARP – Land acquisition and resettlement plan LARPIC – Land Acquisition and Resettlement Plan Implementation – Committee LRCUDD – Land Relations, Construction and Urban Development Department MCUD – Ministry of Construction and Urban Development MDF – Microfinance Development Fund MOF – Ministry of Finance NBFI – nonbanking financial institution NCB – national competitive bidding O&M – operation and maintenance OLA – onlending agreement PCR Project Completion Report PFI – participating financial institution PIU – project implementation unit PMU – project management unit PPMS – project performance monitoring system PSC – project steering committee PUSO – public urban services organization CRD – City Road Department RCR – Resettlement Completion Report RF – resettlement framework RP – resettlement plan SDR – special drawing rights SLA – subsidiary loan agreement TA – technical assistance VOC – vehicle operating cost WACC – weighted average cost of capital WEIGHTS AND MEASURES Lpcd – liters per capita per day Lpd – liters per day m2 – square meter m3 – cubic meter GLOSSARY Aimag – province/provincial Ger – traditional tent Hashaa – residential plot Khoroo – sub-district Soum – administrative subunit of aimag NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars. Vice-President S. Groff, Operations 2 Director General A. Konishi, East Asia Department (EARD) Country Director Y. Fernandez Lommen, Mongolia Resident Mission, EARD Team leader T. Badarch, Senior Project Officer (Infrastructure), EARD Team members T. Begzsuren, Associate Social Development Officer (Gender), EARD E. Enkhbold, Investment Officer, EARD A. Pettersson, Senior Portfolio Management Specialist, EARD O. Purev, Senior Environment Officer, EARD B. Tsetsgee, Project Analyst, EARD M. T. Villareal, Principal Portfolio Management Specialist, EARD 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. CONTENTS Page BASIC DATA i MAP v I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 3 D. Disbursements 3 E. Project Schedule 3 F. Implementation Arrangements 4 G. Conditions and Covenants 5 H. Related Technical Assistance 5 I. Consultant Recruitment and Procurement 5 J. Performance of Consultants, Contractors, and Suppliers 7 K. Performance of the Borrower and the Executing Agency 7 L. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Effectiveness in Achieving Outcome 8 C. Efficiency in Achieving Outcomes and Outputs 9 D. Preliminary Assessment of Sustainability 9 E. Impact 10 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14 APPENDIXES 1. Design and Monitoring Framework 16 2. Project Outputs 21 3. Project Cost and Financing Plan 25 4. Disbursements 26 5. Actual Implementation Schedule 27 6. Status of Compliance with Loan Covenants 30 7. Procurement Packages for ADB Financing 43 8. Economic Reevaluation 45 9. Financial Reevaluation 48 10. Gender Action Plan 51 11. Environmental Analysis 63 12. Land Acquisition and Resettlement 69 BASIC DATA A. Loan Identification 1. Country Mongolia 2. Loan Number 2301 3. Project Title Urban Development Sector Project 4. Borrower Mongolia 5. Executing Agency Ministry of Construction and Urban Development 6. Amount of Loan SDR 23,417,750.00 7. Project Completion Report Number PCR: 1589 B. Loan Data 1. Appraisal – Date Started 16 August 2006 – Date Completed 6 October 2006 2. Loan Negotiations – Date Started 20 November 2006 – Date Completed 21 November 2006 3. Date of Board Approval 19 December 2006 4. Date of Loan Agreement 27 August 2007 5. Date of Loan Effectiveness – In Loan Agreement 25 November 2007 – Actual 26 February 2008 – Number of Extensions 6. Closing Date – In Loan Agreement 30 June 2013 – Actual 18 December 2015 – Number of Extensions 2 7. Terms of Loan – Interest Rate 1% per annum during grace period and 1.5% thereafter – Maturity (number of years) 32 – Grace Period (number of years) 8 8. Terms of Relending (if any) Subloan agreements (SLAs) with aimag governments and Ulaanbaatar Municipal Government and onlending agreements with pubic urban service organizations (PUSOs) under Component A: – Interest Rate 2% – Maturity (number of years) 25 – Grace Period (number of years) 6 years SLAs with participating financial institutions (PFIs) under Component C: – Interest Rate 5% – Maturity (number of years) 10 years – Grace Period (number of years) 3.5 Onlending agreements (OLAs) with the subborrowers under Component C: – Interest Rate 8–10% ii – Maturity (number of years) 2–10 years – Grace Period (number of years) 1 year 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 23 July 2008 27 October 2015 87.20 months Effective Date Original Closing Date Time Interval 26 February 2008 30 June 2013 64.13 months b. Amounts (SDR million) Original Revised Amount Net Amount Amount Undisbursed Category Allocation Allocation Cancelleda Available Disbursed Balance 1. Civil Works 11.66 13.45 0.13 13.45 13.32 0.00 1A Basic Urban 3.43 9.12 0.13 9.12 8.99 0.00 Services 1B Urban Road 8.23 4.33 0.00 4.33 4.33 0.00 Improvement 2. Equipment 2.21 5.82 0.06 5.82 5.77 0.00 2A Basic Urban 1.83 5.39 0.06 5.39 5.33 0.00 Services 2B Urban Road 0.38 0.44 0.00 0.44 0.43 0.00 Improvement 3. Small Loan 2.12 2.11 0.02 2.11 2.09 0.00 4. Institutional 1.01 1.83 0.07 1.83 1.76 0.00 Development 5. Interest Charge 0.20 0.20 0.00 0.20 0.20 0.00 6. Unallocated 0.00 0.00 0.00 0.00 0.00 1.82 Total 23.42 0.28 23.42 23.13 0.00 19.02 Total $ Equivalent 28.20 35.43 0.40 35.43 35.03 0.00 a An undisbursed balance of SDR 0.28 million, equivalent to $0.4 million, was cancelled at loan closing. Note: Totals may not sum up precisely because of rounding. 10. Local Costs (Financed) - Amount ($) 26.1 million - Percent of Total Cost 63.2% C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 13.3 15.2 Local Currency Cost 24.3 26.1 Total 37.6 41.3 iii 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 7.3 6.1 ADB Financed 27.9 34.7 Other External Financing 2.1 0.2 Subtotal 37.3 41.0 IDC Costs Borrower Financed - - ADB Financed 0.3 0.3 Other External Financing - - Subtotal 0.3 0.3 Total 37.6 41.3 ADB = Asian Development Bank, IDC = interest during construction. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Actual Estimate A. Base Cost Component A: Improvement of Basic Urban Services 10.4 26.4 Component B: Urban Road Improvement 16.9 8.6 Component C: Small Loans for Water Connections and On-Plot Facilities 3.8 3.0 Subtotal (A) 2.9 3.0 Contingencies 1. Physical 2.4 - 2. Price 1.0 - Subtotal (B) 3.3 - C. Financing Charges During Implementation 0.3 0.3 Total 37.6 41.3 4. Project Schedule Item Appraisal Estimate Actual Component A: Basic Urban Services Date of Contract with Consultants Dec 2007 May 2009a Completion of Engineering Designs Dec 2008 Mar 2013b Civil Works Contract Date of Award Oct 2007 Jun 2010 Completion of Work Mar 2012 Jun 2015 Equipment and Supplies Dates First Procurement Jun 2008 Oct 2010 Last Procurement Jun 2010 May 2014 Completion of Equipment Installation Dec 2010 Jun 2015 Start of Operations - Completion of Tests and Commissioning Jun 2012 Jun 2015 Beginning of Start-Up Jun 2012 Jun 2015 Component B: Urban Road Improvement Date of Contract with Consultants - May 2009 Completion of Engineering Designs Mar 2008 Nov 2011 Civil Works Contract Date of Award Jun 2008 Jun 2010 Completion of Work Sep 2011 Sep 2013 Equipment and Supplies iv Dates Procurement - Jul 2010 Completion of Equipment Installation Dec 2010 May 2011 Start of Operations - Completion of Tests and Commissioning - Sep 2013 Component C: Small Loans for water connection and on-plot facilities Community Awareness and Education Mar 2008 Dec 2014 Launch of Small Loans Oct 2008 Mar 2015 Component D: Institutional development and training Identify Training Needs - Oct 2009 Institutional Capacity Building Dec 2008 Dec 2010 Training of Communities Mar 2008 Mar 2011 Off-Site Training Mar 2011 Jun 2012 a Refers to the first contract award to a firm to design a water supply and sewerage system in Erdenet. b Refers to the completion of the last contract design and tender documentation for water meters. 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress 26 Feb 2008 to 31 Dec 2008 Satisfactory Satisfactory 1 Jan 2009 to 31 Dec 2009 Satisfactory Satisfactory 1 Jan 2010 to 31 Dec 2010 Satisfactory Satisfactory 1 Jan 2011 to 31 Dec 2011 Satisfactory Satisfactory 1 Jan 2012 to 31 Dec 2012 Satisfactory Satisfactory 1 Jan 2013 to 31 Dec 2013 Satisfactory Satisfactory 1 Jan 2014 to 31 Dec 2014 Satisfactory Satisfactory 1 Jan 2015 to 30 Jun 2015 Satisfactory Satisfactory A.