Asian Development Bank - Mongolia

Overview

ADB has been Mongolia’s largest source of multilateral official development assistance, playing a key role in the country’s impressive transformation from a planned economy to one of the fastest growing market economies in the world, and its emergence as a lower middle-income country.

Mongolia is fortunate to have rich mineral resources. However, development of the mining sector needs to accompany efforts for economic diversification and job creation, as well as social protection of the needy to ensure inclusiveness of growth. Significant investment is needed in business development and infrastructure, supporting job creation leading to better living standards.

Strategy

Based on its country partnership strategy for Mongolia, 2012-2016, and consistent with government priorities, ADB will foster a sustainable and inclusive growth process that benefits all Mongolians. Assistance will focus on:

• transport, energy, and water supply infrastructure;
• access to education and health; and
• regional economic cooperation.

After decades of underinvestment in public infrastructure, Mongolia has accumulated a significant backlog of needs in various sectors. ADB assistance will give priority to addressing current needs, offering access to new lending instruments, including the multitranche financing facility (MFF). ADB will support programs to link Mongolia’s western region by road with the PRC and the Russian Federation, improve services in poor neighborhoods of Ulaanbaatar, and introduce a modern urban mass transit system.

ADB’s lending will increasingly support private investment. With the government’s ability to tap resources from international markets, ADB will provide technical expertise needed for projects. Interventions, especially in power, heating, and other municipal infrastructure, will transform service delivery and create opportunities for private sector participation. ADB’s private sector operations are expected to play a growing role.

ADB will provide technical assistance to help the government mobilize and invest external resources, as well as its own. Government revenues from the mining sector are expected to increase substantially. Continued capacity development and good governance underlie effective use of public resources and will help position Mongolia to meet its development goals.