Download - 23.05.2012 Creating financial partnerships to develop Mongolia's infrastructure, Steve Lewis Workman
FINANCING FOR MONGOLIA’S
TRANSPORT SECTOR
Experience and Future Directions for the
Asian Development Bank
Coaltrans Mongolia 2012
ADB transport strategy in
Mongolia
Rural connectivity and poverty reduction
Regional integration and trade
Central Asian Regional Economic Cooperation (CAREC Program
Border crossings and facilities
Reducing logistics costs
UB urbanization
Asset management
Private sector participation and PPPs
ADB financing for transport
Approved Projects (Loans/Grants)
5 road sector projects ~$185 million
1 logistics facility ~$45 million
2 aviation sector projects ~$60 million
Planned/Proposed Projects
2 road sector loans ~$125 million
Urban transport project ~$215 million
UB logistics facility ~$65 million
Technical Assistance provided for aviation and roads/proposed for logistics and urban transport
Western Regional Road – Existing condition
Western Regional Road – Existing bridge
ADB Financed Transport Projects
Road Development
Project, 1995
Second Road Development
Project, 1999
Regional Road
Project, 2004/2008
Regional
Logistics, 2010
Western Regional Road
Phase 1, 2008
Western Regional Road Corridor
Development Program
– Tranche 1, 2011
Western Regional Road Corridor
Development Program –
Tranches 2 &3, 2013-2016
UB Airport//Air Nav
System, 1993/1995
Experience to date - roads
History of rapid cost escalation
Procurement delays
Lack of experience with
international practice (e.g.
FIDIC)
Lack of maintenance
Need for capacity development
in sector
Second Road Development
Western Regional Road
Regional Road
Road sector challenges and
opportunities
0
2000
4000
6000
8000
10000
12000
1992 1997 2000 2006 2009 2012 2015 2021
Improved earth
Gravel
Paved
Km road works completed 2000-2008
0
100
200
300
400
500
600
2000 2001 2002 2003 2004 2005 2006 2007 2008
km
Network expansion plans to 2021 (km)
Sector production needs to increase rapidly.
GDP growth > 15% after 2012 Fiscal balance to improve in parallel Sector resources to rise quickly after 2012
Demand for road works will expand fast Government Action Plan National Development Strategy
Sources: DOR, National Development Strategy, ADB calculations
Strategies to address road sector
constraints
New financing modalities – multi-tranche financing facility (MFF) Long term investment programs
Provide incentives for reform
Match financing to project readiness
Explicit support to develop domestic contracting industry
Support sector performance through capacity development technical assistance $2 million grant - Japan Fund for Poverty Reduction (JFPR)
Prepare and implement sector roadmap
Comprehensive sector
development
Road Sector
CDTA
Management
for
Development
Results TA
Loan financed
Capacity
Development
$2 million JFPR financing
Implement sector roadmap
Consulting support
for management and
procurement
Road asset
management system and
training
Procurement
specialists
Consolidated PMO
International
consultant support PIU
Added PIU staff
Consultant support for road sector
program monitoring - dual posted at
MNRM & EA
Immediate implementation support
MFF
New direction for ADB support:
Logistics
Zamyn-Uud approved 2010 Ulaanbaatar proposed 2013
46
Figure 4-2: General Location of ZULC
New direction for support: Urban
transport UB Urban Transport Project
(2012 proposed)
Bus network upgrade/BRT
Road network improvements
Traffic management
Pedestrian improvements
BEFORE
AFTER
BRT Network Plan - 2020
Future opportunities
Railways
High impact for Mongolian development
Needs greatly exceed ADB resources allocated to Mongolia
PPP? PPP advisory role?
ADB technical assistance to railway subsector
Infrastructure tariff study
Proposed consultant support for Development Bank of Mongolia
Seeking other opportunities
Thank you