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Regional Transport Operations in Mongolia and the PRC Reality and ADB Involvements

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Regional Transport Operations in Mongolia and the PRC Reality and ADB Involvements Lakshman Athukorala Transport Division, East Asia Department CAREC Corridors in PRC and Mongolia • PRC – 4 corridors out of 6 designated CAREC corridors run though the PRC (Corridor 1a,1b,1c,2a,2b,4a, and 5) • Mongolia – Corridor 4a and 4b runs through Mongolia 2 3 CAREC Corridors in Mongolia • Corridor 4a – a road corridor connecting Xinjiang of the PRC to the Russian Federation via the Yarant/ Ulaanbaishint/Tsaganuur road. • Corridor 4b – currently a rail corridor. It will soon be accompanied by a paved all-weather road. 4 CAREC Corridors in Mongolia 4a 4b Western Corridor 4a 4b 770 km 5 1009 km Question is how well these Corridors fit into Mongolia’s Country Strategy on Transport Sector? PRESENT SITUATION OF ROAD NETWORK IN MONGOLIA Khankh Khandgait Ulaanbaishint Khatgal Ereentsav Altanbulag ULAANGOM Tsagaannuur Nogoonnuur ÓÂÑ ÒýñTes HUVSGUL Öýíãýë Naranbulag Tsagaan-Uul ULGII MURUN Ulgii Selenge Dayan DARKHAN Khutag-Undur Bayan-Uul BAYAN-ULGII Tudevtei SELENGE Havirga ERDENET Sumber ZAVKHAN BULGAN KHOVD BULGAN Jargalant KHENTII ULIASTAI ARHANGAI Batnorov ULAANBAATAR CHOIBALSAN Mandakh Tsahir Battsengel Gachuurt Lun Baganuur DORNOD Darvy Nalaikh ZUUN MOD Munkhaan Matad KHOVD TSETSERLEG TUV UNDURKHAAN Khar-Khorin Yarantai ALTAI Uench ÃÎÂÜѯÌÁÝÐ BARUUN- URT BAYANHONGOR CHOIR SUKHBAATAR ARVAIHEER Buutsagaan Erdenetsagaan Bichigt MANDALGOVY GOVY-ALTAI Nariin Teel UVURHANGAI DUNDGOVY SAINSHAND Burgastai BAYANHONGOR Tsogt Ovoo DORNOGOVY DALANZADGAD UMNUGOVY Khanbogd Gashuun Suhait Asphalt road 2278.60 Population Total Area (million) Land Gravel road Country Coastline 1980.30 (sq. km.) July 2003 Boundaries Improved earth road 1867.90 estimates Earth road 43123.33 Mongolia7 1.565 2.7 PRC, Russia Landlocked TOTAL 49250 million MON: ROAD NETWORK PROJECTION UPTO 2021 Khankh Khandgait Ulaanbaishint Khatgal Ereentsav Baga-Ilenkh Altanbulag ULAANGOM Tsagaannuur Nogoonnuur UVS Òýñ HUVSGUL Öýíãýë Naranbulag Tsagaan-Uul MURUN ULGII Selenge Ulgii DARKHAN Dayan Bayan-Uul Khutag-Undur SELENGE BAYAN-ULGII Tudevtei Havirga ERDENET Sumber ZAVKHAN BULGAN KHOVD BULGAN Jargalant KHENTII ULIASTAI ARHANGAI Batnorov ULAANBAATAR CHOIBALSAN Mandakh Tsahir Battsengel Gachuurt Òàìñàãáóëàã Lun Baganuur DORNOD Darvy Nalaikh Numrug ZUUN MOD Munkhaan Matad KHOVD TSETSERLEG TUV UNDURKHAAN Yarant ALTAI Khar-Khorin Uench ÃÎÂÜѯÌÁÝÐ BARUUN- URT BAYANHONGOR CHOIR SUKHBAATAR ARVAIHEER Buutsagaan Erdenetsagaan Bichigt MANDALGOVY GOVY-ALTAI Nariin Teel UVURHANGAI DUNDGOVY SAINSHAND Burgastai BAYANHONGOR Tsogt Ovoo DORNOGOVY Zamiin-Uud DALANZADGAD Khanbogd UMNUGOVY Shivee khuren Gashuun Suhait 8 RAILWAY TRANSPORT IN MONGOLIA – CURRENT STATUS 9 Planned Railway Network in Mongolia 96o00 E 111o00'E RUSSIAN FEDERATION Hanh 50° 00'N 50° 00'N Ulaangom Hatgal UVS Nogoonnuur HOVSGOL Tsengel Naranbulag Tes Suhbaatar Ereentsav Tsagaab-Uul Moron Dayan BULGAN SELENGE Olgiy Olgiy BAYAN-OLGIY Selenge Darhan DARHAN-UUL Bayab-Uul Tudevtey Hutag-Ondor Erdenet DORNOD Havirga Hovd ZAVHAN Bulgan ORHONSumber HENTIY ARHANGAY ULAANBAATAR Choybalsan Hishiig Ondor Tsahir Lun ULAANBAATAR Manhan Battsenge Batnorov Uliastay Baganuur Dariv Nalayh Tamsagbulag TOV Tsetserleg Zuunmod HOVD Maanit Ondorhaan Monhhaan Tayshir Matad Harhorin Yarantay GOVISUMBER Baruun-Urt Uyench Altay Bayanhongor Choyr Arvayheer Erdenntsagaan Togrog Buutsagaan Mandalgovi Bichigt GOVI-ALTAY Nariynteel SUHBAATAR OVORHANGAY DUNDGOVI Ulaangom Burgastay BAYANHONGOR Tsogt-Ovoo DORNOGOVI Zamyn-Uud Dalanzadgad 42° 00'N Bayan-Ovoo National Capital 42° 00'N Gashuun Suhayt Provincial Capital C ity/Tow n N Main Road PEOPLE'S REPUBLIC Provincial Road O F CH IN A Existing Railway Potential R ailw ay 0 50 100 150 200 250 River K ilom eters Provincial Boundary International Boundary Boundaries are not necessarily authoritative 96o00'E 111o00'E 10 Mongolia's Main Constraints in Achieving Targets • Mongolia needs substantial financial resources to develop these corridors. • Government estimates that rail corridors along needs about $4.5 billion while road corridors will need additional funds too • Mongolia is only an ADF country for ADB financing purpose. Received about $50 million per annum as ADB assistance for all sectors in the past • ADB assistance for next 3 years will average to about $80 million per annum for all sectors 11 ADB Involvements in CAREC Transport Projects in Mongolia • Corridor 4a (road) − Phase I • 2008 ADB approved a grant of $37.6 million • 3 year implementation period. Expected to be completed by 2011 • Consultant selection and preparation of bidding documents ongoing − Phase II • Expected that additional loan of $45 million will be approved in 2010 • Will have at least 3 year implementation period 12 ADB Involvements in CAREC Transport Projects in Mongolia • Corridor 4b (road) − Current Status • ADB already approved 3 loans totaling $87 million to upgrade the road corridor • Completed two projects (upgrading of 500Km) successfully • Third project of upgrading 428Km is ongoing • Ongoing project face financing issues – ADB exploring possibilities of providing $24 million as a supplementary loan − Further Improvements Proposed: • Widening of UB to Altanbulag (Russian border) – Identified CAREC project . No firm financing arranged yet • Government proposes to upgrade the entire corridor to expressway status. No firm financing arranged yet • Regional Logistics project in Zamyn-Uud, ADB to provide loan of $23 million in 2011. 13 CAREC Corridors in the PRC • Corridor 1, 2, 4 and 5 runs through the PRC • Like in the case of Mongolia the Corridors fits well into country’s national plans 14 Availability of Resources in the PRC • Unlike Mongolia a substantial amount of resources has been allocated for the development of infrastructure in the PRC • Financial Stimulus Package allocated RMB 4 trillion over 5 years of which about 30% is allocated to the Transport Sector 15 ADB Involvements in CAREC Corridors in the PRC • Ongoing Projects − Korla-Kuqa road upgrade (296km) • Part of Corridor 1c, 2 and 5 • ADB provided $150 million out of total investment of $594 million • Construction ongoing • No major issues and expect to complete construction by 2011 • New Projects − ADB allocated $200 million for 2011 for a road project in Inner Mongolia 16 ADB involvements in the PRC Reality • Financial Limitations − Limitations to availability of ADB funds. Only $1.5 billion can be approved as loans to the PRC per annum • CAREC identified eight investment projects with a total investment of over $4 billion • So far only one ADB assisted project ($150 million) 17 What Needs to be Done to Improve Regional Cooperation • Investments - Road, Rail and Air, infrastructure needs further upgrading • Trade Facilitation - Custom and immigration facilities needs upgrading and procedures to be harmonized • Appropriate Legal Environment - Bilateral and Regional • Capacity Building 18.
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