Mongolia: Improving Safeguard Planning and Implementation in Mongolia

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Education / Education sector development

Energy / Energy sector development and institutional reform

Transport / Transport policies and institutional development

Water and other urban infrastructure and services / Urban policy, institutional and capacity development

The present portfolio in Mongolia of $1.6 billion comprises 36 projects of which (i) 1 is categorized A and 22 are categorized B for environment, and (ii) 3 are categorized A and 7 categorized B for resettlement. There are no category A or B projects for indigenous peoples. Implementation performance of safeguards varies across the portfolio. In recent years, there has been an increase in complaints received by ADB's Office of the Special Project Facilitator on alleged lack of compliance with ADB's Safeguard Policy Statement (SPS). Issues raised included inadequate consultation, impacts on livelihood, concerns on compensation, valuation, and inadequate environmental mitigation. Lack of understanding on ADB's SPS requirements, gaps between Mongolia's and ADB's safeguard requirements, and relatively weak capacity among executing agencies, implementing agencies, consultants, and contractors have led to the increase in complaints.

ADB's country partnership strategy for Mongolia has identified the need for selectivity, with a move to support fewer, larger, and more programmatic operations. The proposed Indicative Country Pipeline and Monitoring Report (2023-2025) includes major projects in transport, renewable energy, urban, and agriculture and rural development sectors. The shift towards larger projects will invariably result in more complex safeguards, requiring stronger safeguard planning and implementation.

Given the challenges faced in implementing safeguards in current portfolio and the proposed move toward larger projects, it is imperative that the capacity of executing and implementing agencies to plan and implement safeguards is strengthened. The TA will (i) support capacity building of project teams, through hands-on support and tailored training programs and workshops; and (ii) support project preparatory activities and implementation. The support will cover the entire project cycle, preparation and updating of due diligence reports, impact assessment and mitigation plans, monitoring, consultation, grievance redress and safeguard assessments at project completion. Specifically, the TA will support the updating of environment and social assessments of two projects that have planned scope changes. Some of the proposed scope changes require in depth studies and analysis which are beyond the capacity of the executing agency. This TA will also complement other TAs supporting improved social safeguards.