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PCR Standard Completion Report Project Number: 39265-022 Grant Number: 0107 November 2019 Mongolia: Western Regional Road Corridor Development Project, Phase 1 This document is being disclosed to the public in accordance with ADB’s Access to Information Policy. CURRENCY EQUIVALENTS Currency unit – togrog (MNT) At Appraisal At Project Completion (8 January 2008) (30 July 2019) MNT1.00 = $0.00085 $0.00038 $1.00 = MNT1,169.75 MNT2,666.00 ABBREVIATIONS ADB – Asian Development Bank CAREC – Central Asia Regional Economic Cooperation EIA – environmental impact assessment EIRR – economic internal rate of return EMP – environmental management plan km – kilometer m – meter MFF – multitranche financing facility MRTD – Ministry of Road and Transport Development PIU – project implementation unit PRC – People’s Republic of China RRP – report and recommendation of the President TA – technical assistance GLOSSARY aimag – province soum – local administrative subdivision NOTE In this report, “$” refers to United States dollars. Vice-President Ahmed M. Saeed, Operations 2 Director General Amy S. P. Leung, East Asia Department (EARD) Director Sujata Gupta, Sustainable Infrastructure Division, EARD Team leader Masahiro Nishimura, Senior Rural Development Specialist, South Asia Department Team members Alice Corinna Bañez, Operations Assistant, EARD Anand Ganbaatar, Transport Officer, EARD Cristina P. Roldan, Project Analyst, EARD Yun Zhou, Senior Environment 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. DESIGN AND IMPLEMENTATION 1 A. Project Design and Formulation 1 B. Project Outputs 2 C. Project Costs and Financing 4 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 5 G. Consultant Recruitment and Procurement 6 H. Gender Equity 6 I. Safeguards 7 J. Monitoring and Reporting 8 III. EVALUATION OF PERFORMANCE 8 A. Relevance 8 B. Effectiveness 9 C. Efficiency 9 D. Sustainability 9 E. Development Impact 10 F. Performance of the Borrower and the Executing Agency 10 G. Performance of the Asian Development Bank 10 H. Overall Assessment 11 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 11 A. Issues and Lessons 11 B. Recommendations 12 APPENDIXES 1. Design and Monitoring Framework 13 2. Project Cost at Appraisal and Actual 15 3. Project Cost by Financier 16 4. Disbursement of ADB Grant Proceeds 18 5. Contract Awards of ADB Grant Proceeds 19 6. Chronology of Main Events 20 7. Appraisal and Actual Implementation Schedule 23 8. Ministry of Road and Transport Development Organization Chart 24 9. Economic Reevaluation 25 10. Status of Compliance with Grant Covenants 32 11. Details of Contract Packages 40 12. Environmental Management Plan Implementation Checklist 41 BASIC DATA A. Grant Identification 1. Country Mongolia 2. Grant number and financing source 0107, Asian Development Fund 3. Project title Western Regional Road Corridor Development Project, Phase 1 4. Recipient Ministry of Finance, Mongolia 5. Executing agency Ministry of Road and Transport Development (formerly Ministry of Roads, Transport, and Tourism) 6. Amount of grant $37.60 million 7. Financing modality Project grant B. Grant Data 1. Appraisal – Date started 4 September 2007 – Date completed 12 September 2007 2. Grant negotiations – Date started 7 January 2008 – Date completed 8 January 2008 3. Date of Board approval 26 February 2008 4. Date of grant agreement 18 April 2008 5. Date of grant effectiveness – In grant agreement 17 July 2008 – Actual 22 May 2008 – Number of extensions 0 6. Project completion date – Appraisal 30 April 2012 – Actual 1 December 2015 7. Grant closing date – In grant agreement 31 October 2012 – Actual 1 December 2015 – Number of extensions 2 8. Financial closing date – Actual 18 May 2016 9. Terms of grant – Interest rate Not applicable – Maturity (number of years) Not applicable – Grace period (number of years) Not applicable 10. Terms of relending (if any) – Interest rate Not applicable – Maturity (number of years) Not applicable – Grace period (number of years) Not applicable – Second-step borrower Not applicable ii 11. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 7 October 2008 14 April 2016 91 months Effective Date Actual Closing Date Time Interval 22 May 2008 1 December 2015 91 months b. Amount ($ million) Increased Canceled Last Original during during Revised Amount Undisbursed Allocation Implementation Implementation Allocation Disbursed Balance Category (1) (2) (3) (4=1+2–3) (5) (6=4–5) 1. Works 32.76 0.94 0.00 33.70 33.54 0.16 1A. Package 1 21.86 11.84 0.00 33.70 33.54 0.16 1B. Package 2 10.90 (10.90) 0.00 0.00 0.00 0.00 2. Equipment 0.60 (0.13) 0.00 0.47 0.45 0.02 2A. Road Maintenance 0.25 (0.02) 0.00 0.23 0.23 0.00 2B. Other Equipment 0.35 (0.11) 0.00 0.24 0.22 0.02 3. Community Development 0.15 (0.01) 0.00 0.14 0.11 0.03 4. Capacity Building and Training 0.16 (0.08) 0.00 0.08 0.08 0.00 5. Consulting Services 2.74 (0.04) 0.00 2.70 2.68 0.02 5A. Construction Supervision 2.30 0.24 0.00 2.54 2.52 0.02 5B. Environmental Monitoring 0.44 (0.28) 0.00 0.16 0.16 0.01 6. Project Administration 0.25 0.26 0.00 0.51 0.52 0.00 7. Unallocated 0.94 (0.94) 0.00 0.00 0.00 0.00 Total 37.60 0.00 0.00 37.60 37.36 0.24 Note: Numbers may not sum precisely because of rounding. C. Project Data 1. Project cost ($ million) Cost Appraisal Estimate Actuala Foreign exchange cost 53.28 37.36 Local currency cost 58.94 24.19 Total 112.22 61.55 a Limited to the section where the grant was actually used. 2. Financing plan ($ million) Cost Appraisal Estimate Actuala Implementation cost Borrower financed 74.62 24.19 ADB financed 37.60 37.36 Other external financing 0.00 0.00 Total implementation cost 112.22 61.55 Interest during construction costs Not applicable Not applicable Borrower financed Not applicable Not applicable ADB financed Not applicable Not applicable Other external financing Not applicable Not applicable Total interest during construction cost Not applicable Not applicable a Limited to the section where the grant was actually used (110.8-kilometer section against 431.2-kilometer project scope at appraisal). iii 3. Cost breakdown by project component ($ million) Component Appraisal Estimate Actuala A. Investment Costs 1. Civil Works (including safety) 78.79 51.20 2. Construction Supervision and Environment 4.70 2.68 3. Community Development 0.15 0.11 4. Road Maintenance Units and Equipment 0.60 0.45 5. Capacity Building 0.16 0.08 6. Project Administration 0.25 0.52 7. Taxes and Duties 10.06 6.53 Subtotal (A) 94.71 61.55 B. Contingencies 17.51 0.00 Total (A+B) 112.22 61.55 Note: Numbers may not sum precisely because of rounding. a Limited to the section where the grant was actually used. 4. Project schedule Item Appraisal Estimate Actual Dates of contracts with consultants Construction supervision Q1 2009 21 August 2009 Environmental monitoring Not applicable 28 September 2012 Environmental monitoring (archaeological survey and Not applicable 15 February 2013 protection work) Environmental monitoring 6 January 2014 Completion of engineering designs Q4 2008 16 January 2009 Civil works contract Date of award Q1 2009 22 December 2010 Completion of work March 2012 24 November 2015 Equipment and supplies Dates First procurement Q1 2009 October 2014 Last procurement Q1 2012 November 2015 Completion of equipment installation Q2 2012 October 2015 Q = quarter. 5. Project performance report ratings Ratings Implementation Period Development Objectives Implementation Progress From 29 February 2008 to 31 July 2009 Satisfactory Satisfactory From 1 August 2009 to 29 September 2009 Satisfactory Highly satisfactory From 30 September 2009 to 31 March 2011 Satisfactory Satisfactory Single Project Rating From 1 April 2011 to 31 March 2016 On track iv D. Data on Asian Development Bank Missions No. of No. of Name of Mission Date Persons Person-Days Specialization of Membersa Fact-finding 26 May–4 Jun 2007 6 60 a, b(3), c, d Appraisal 4–12 Sep 2007 4 36 a, b(2), e Inception 27 Aug–1 Sep 2008 3 18 e, f, g Review mission 1 11–14 Oct 2009 2 8 b, f Review mission 2 5–11 May 2010 2 14 e, f Review mission 3 10–22 Jun 2011 7 89 b, c, e, g, h, i(2) Review mission 4 30 Sep–6 Oct 2012 3 21 c, h, j Midterm review mission 3–6 Jun 2013 7 28 b(2), c, e, h, j, k Review mission 5 14–21 Sep 2013 3 24 b, c, j Review mission 6 24–29 Jun 2014 3 18 b(2), j Review mission 7 20–24 Oct 2014 3 15 b(2), j Review mission 8 24–31 Aug 2015 5 35 b, e, h(2), j Review mission 9 13–24 Mar 2016 8 56 b(2), h(2), i, j, l, m Project completion review 23–30 May 2017 9 65 b, c, f, h, j, n, o, p, q Project completion review 14–15 Mar 2019 1 2 b (follow-up) a a = financial analysis specialist or senior financial analysis specialist, b = transport specialist or senior transport specialist, c = transport economist or senior transport economist, d = social development specialist, e = associate project analyst, f = project analyst, g = counsel, h = consultant, i = principal project implementation specialist, j = environment specialist or senior environment specialist, k = social safeguards specialist, l = resettlement specialist, m = young professional, n = advisor to the executive director for the United States, o = social development specialist (safeguards), p = senior portfolio management specialist, q = associate transport officer.
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