Technical Assistance Report

Project Number: 55245-001

Knowledge and Support Technical Assistance (KSTA)
December 2021

Mongolia: Improvement of Urban Mobility in

Ulaanbaatar

This document is being disclosed to the public in accordance with ADB's Access to Information
Policy.
 CURRENCY EQUIVALENTS
(as of 6 December 2021)

Currency unit – togrog (MNT)

MNT1.00 = $0.00035019
$1.00 = MNT2,841.70

ABBREVIATIONS

ADB – Asian Development Bank

MUB – Municipality of Ulaanbaatar
TA – technical assistance

NOTE

In this report, “$” refers to United States dollars.

Vice-President Ahmed M. Saeed, Operations 2

Director General M. Teresa Kho, East Asia Department (EARD)
Directors Pavit Ramachandran, Mongolia Resident Mission (MNRM), EARD
Sujata Gupta, Sustainable Infrastructure Division (EASI), EARD

Team leaders Declan Magee, Principal Country Economist, MNRM, EARD

Jeffrey M. Miller, Principal Transport Specialist, EASI, EARD
Team members Nicolas Dei Castelli, Senior Transport Specialist, EASI, EARD
Uyanga Enkhsaikhan, Associate Project Analyst, MNRM, 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
KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE
I. INTRODUCTION 1
II. ISSUES 1
III. THE TECHNICAL ASSISTANCE 2
A. Impact and Outcome 2
B. Outputs, Methods, and Activities 3
C. Cost and Financing 3
D. Implementation Arrangements 3
IV. THE PRESIDENT'S DECISION 4

APPENDIXES
1. Design and Monitoring Framework 5
2. Cost Estimates and Financing Plan 7
3. List of Linked Documents 8
 Project Classification Information Status: Complete

KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE

1. Basic Data Project Number: 55245-001
Project Name Improvement of Urban Mobility in Department/Division EARD/MNRM
Ulaanbaatar
Nature of Activity Research and Development Executing Agency Ulaanbaatar Municipal
Modality Regular Government
Country Mongolia

2. Sector Subsector(s) ADB Financing ($ million)

Transport Urban roads and traffic management 0.50
Total 0.50
qq

3. Operational Priorities Climate Change Information

Tackling climate change, building climate and disaster GHG Reductions (tons per annum) 0.000
resilience, and enhancing environmental sustainability Climate Change impact on the Project Low
Making cities more livable
Strengthening governance and institutional capacity ADB Financing
Adaptation ($ million) 0.00
Mitigation ($ million) 0.10

Cofinancing
Adaptation ($ million) 0.00
Mitigation ($ million) 0.00
Sustainable Development Goals Gender Equity and Mainstreaming
SDG 9.1 No gender elements (NGE)
SDG 10.2
SDG 11.2 Poverty Targeting
SDG 13.a General Intervention on Poverty
4. Risk Categorization Low
Qq

5. Safeguard Categorization Safeguard Policy Statement does not apply

qq

6. Financing
Modality and Sources Amount ($ million)
ADB 0.50
Knowledge and Support technical assistance: Technical Assistance 0.50
Special Fund
Cofinancing 0.00
None 0.00
Counterpart 0.00
None 0.00
Total 0.50

Currency of ADB Financing: US Dollar

q

Source: Asian Development Bank

This document must only be generated in eOps. 01122021105716076684 Generated Date: 21-Dec-2021 21:46:23 PM
 I. INTRODUCTION

1. The Government of Mongolia has requested knowledge and support technical assistance
(TA) for Improvement of Urban Mobility in Ulaanbaatar from the Asian Development Bank (ADB) to
improve urban transport planning in Ulaanbaatar and to strengthen the capacity of government
authorities to manage and implement urban mobility solutions. The TA is fully aligned with the
strategic priority to support climate-resilient infrastructure to drive competitiveness and diversification
in ADB’s country partnership strategy, 2021–2024 for Mongolia.1 The TA will also support ADB’s
delivery of the objectives set out in Strategy 2030, particularly operational priority 4: making cities
more livable.2

II. ISSUES

2. Mongolia had an urbanization rate of 57% in 1989, just before its transition to a democratic,
free market economy, and the urban population remained relatively stable until the end of the 1990s.
However, the large loss of livestock following dzuds (a succession of droughts and severe winters)
resulted in large unplanned migration from rural to urban areas, mainly Ulaanbaatar. The largest
migrations happened after the dzuds in 2000–2001 and in 2010, but rural–urban migration has
recurred in the past 20 years as rural conditions have worsened.

3. By 2020, 70% of the population lived in urban areas. Ulaanbaatar has 1.54 million people,
accounting for almost 50% of the total population of 3.3 million, 66% of the urban population, and
63% of gross domestic product. According to the National Statistics Office, the population of
Ulaanbaatar is projected to reach more than 2 million by 2035, outpacing national population growth.
As investment has not kept pace with urban population growth, urban systems have exceeded their
planned service life or deteriorated, becoming inefficient and incapable of meeting present needs
and planned future growth. The situation has led to major infrastructure gaps, with only 40% of
Ulaanbaatar households living in apartments and serviced houses, while the rest—840,000, almost
30% of the entire country’s population—live in ger areas.3 Most roads in ger areas are unpaved and,
as a result, buses cannot access many of them. The roads that are paved often have no pedestrian
footpaths and other safety features such as signage, speed bumps, and safe crossings.

4. In addition to the steep rise in Ulaanbaatar’s population—it grew by 5.6% on average per
annum during 2015–2019—vehicle registration increased 13.4 times from 2000 to 2019, but the
urban road network expanded only 2.5 times. Ulaanbaatar has public transport, with 21 bus
companies operating on 75 main routes, but quality and coverage are mixed. Public transport
solutions are often unable to provide adequate services for suburban and ger areas. The poor state
of public transport has encouraged the use of private vehicles and informal taxi services, resulting in
a highly polluting transport system. The urban road network has deteriorated because of high traffic
volume, funding gaps in maintenance, and flooding. These factors, combined with inadequate land
use planning and lack of enforcement of zoning regulations, poor traffic engineering design, and
disregard for traffic laws, contribute to heavy traffic congestion and long travel times. Road safety is
another concern, especially for pedestrians, who accounted for 60% (1,616) of road-related injuries
and 67% (88) of road-related fatalities in Ulaanbaatar in 2019.

1 ADB. 2021. Country Partnership Strategy: Mongolia, 2021–2024—Laying Resilient Foundations for Inclusive and
Sustainable Growth. Manila. The TA first appeared in the business opportunities section of ADB’s website on 23
November 2021.
2 ADB. 2019. Strategy 2030: Operational Plan for Priority 4: Making Cities More Livable, 2019–2024. Manila.
3 Traditional tent communities in urban areas.
2

Women in Ulaanbaatar face safety concerns, including gender-based violence, in public

spaces and on public transport. Resolving urban traffic congestion, strengthening public
transport, improving road safety, and greening urban transport are all priorities in the
government’s Vision 20504 and the Government Action Plan, 2020–2024.5 The government
and Municipality of Ulaanbaatar (MUB) have drawn up plans to improve transport. However,
the urban transport action plan and sector framework need updating. The government has
established the National Committee on Traffic Congestion and Urban Decentralization,
headed by the Prime Minister, to oversee development and investment in urban transport in
Ulaanbaatar during 2022–2024.6 The national committee has approved a comprehensive road
map to improve public transport, expand the urban road network, and implement an intelligent
transport system, with plans to enforce road transport policy and related regulations.7 The
proposed road map is fully consistent with the Ulaanbaatar City Masterplan 2020 and the draft
Ulaanbaatar City Masterplan 2040. However, important gaps remain, including data collection,
analysis of urban mobility solutions, and coordination with a broad variety of stakeholders. The
national committee and MUB will need to implement the plans diligently and learn the lessons
from past interventions in urban transport, which were often piecemeal and implemented with
a mixed record of success.

5. ADB has supported urban transport, focusing on intelligent transport systems and
broader transport interventions covering road development and maintenance and road safety.
ADB is supporting improvement of transport services in the ger areas. 8 The TA will upgrade
the urban transport framework in Ulaanbaatar, build the capacity of MUB officials, and provide
technical and implementation support to the national committee. A small expenditure financing
facility will build on the TA’s achievements by preparing detailed designs of public transport
options and piloting smart traffic solutions.9 A planned loan to improve traffic management will
help finance the chosen public transport solution and the road improvements that must
precede it. Several other development institutions are active in the sector. The World Bank is
providing a loan to improve road infrastructure along selected transport corridors in
Ulaanbaatar,10 and the Japan International Cooperation Agency is undertaking traffic studies,
which may be followed by loans for urban transport. The Government of the People’s Republic
of China, through the Export Import Bank of China, is planning to fund underpasses in
Ulaanbaatar. The TA will complement ADB interventions in urban development by helping
better align urban and transport planning and by supporting decentralization in urban areas.11

III. THE TECHNICAL ASSISTANCE

A. Impact and Outcome

6. The TA is aligned with the following impact: urban mobility in Ulaanbaatar improved
(footnote 4). The TA will have the following outcome: urban transport management and
planning for Ulaanbaatar upgraded. This outcome will be achieved through the delivery of two
outputs.12

4 State Great Khural. 2020. Vision 2050: Long-Term Development Policy of Mongolia. Ulaanbaatar.
5 Government of Mongolia. 2020. Action Plan of the Government of Mongolia, 2020–2024. Ulaanbaatar.
6 Government Order establishing National Committee (in Mongolian) (accessed 12 November 2021).
7 The proposed road map was awaiting government approval at the time of this report’s writing (9 December

2021).
8 ADB. Mongolia:
Intelligent Transport Systems Development for Mongolia; ADB. Mongolia: Improving Transport
Services in Ger Areas.
9 ADB. Mongolia: Project Readiness Enhancement Project.
10 World Bank. 2021. Ulaanbaatar Sustainable Urban Transport Project. Washington, DC.
11 ADB. Mongolia: Ulaanbaatar Urban Services and Ger Areas Investment Program; and ADB. Mongolia:

Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Project.

12 The design and monitoring framework is in Appendix 1.
 3

B. Outputs, Methods, and Activities

7. Output 1: Assessment and planning of public transport options boosted. The

output will support MUB in finalizing low-carbon, resilient, inclusive, and gender-sensitive
public transport options for Ulaanbaatar as part of the implementation of an updated urban
transport action plan and sector framework. ADB will support MUB in finalizing urban transport
studies to ensure that urban transport plans are based on a coherent assessment of the
proposed interventions to resolve urban mobility issues. ADB will support MUB in finalizing
feasibility studies of possible public transport solutions for Ulaanbaatar, including green public
transport, bus rapid transit, light rail transit, and other options. The final public transport options
will build on feasibility studies for public transport solutions undertaken previously by ADB.13
ADB will ensure that the feasibility studies are of high quality and contain up-to-date data. ADB
will work with MUB to fill any technical or data gaps in the feasibility studies if needed. ADB
will help prepare essential surveys to inform the feasibility studies and the implementation of
urban mobility solutions. The surveys may include road access management, signal
optimization, road maintenance, a traffic flow survey, a travel speed survey, bus route
optimization analysis, intersection capacity analysis, analysis of phasing out left-hand-drive
cars, and other needs. The studies and surveys will consider green transport planning
undertaken previously by ADB, planned urban transport activities by the World Bank (footnote
10), and traffic demand surveys being undertaken by the Japan International Cooperation
Agency. ADB will help MUB undertake consultation, including with end users, around the
action plan and sector framework.

8. Output 2: National committee and municipality staff’s knowledge on and skills

in implementing urban mobility solutions improved. The output will create a knowledge
solution to the urban mobility problem in Ulaanbaatar by building the capacity of MUB and the
National Committee on Traffic Congestion and Urban Decentralization in urban transport
planning, program management, and project development. International and national experts
will build capacity by providing training and guidance on current issues. International
consultants will guide MUB and ADB on the selection, design, and implementation of public
transport solutions by helping anticipate risks, set up consultation, and ensure high quality
design. Program management aspects will focus on building the capacity needed to implement
the action plan and sector frameworks, and project management capacity in MUB and other
relevant government agencies to ensure the success of urban mobility projects planned for
Ulaanbaatar.

C. Cost and Financing

9. The TA is estimated to cost $500,000, which will be financed on a grant basis by ADB’s
Technical Assistance Special Fund (TASF 7). The government will provide counterpart
support in the form of staff remuneration, office accommodation, office supplies, and other in-
kind contributions. The key expenditure items are listed in Appendix 2.

D. Implementation Arrangements

10. The TA will be implemented from 20 December 2021 to 31 December 2023. MUB will
be the executing agency and implementing agency. ADB through the Mongolia Resident

13 Municipality of Ulaanbaatar. 2011. Feasibility Study on Metro Construction in Ulaanbaatar City. Ulaanbaatar;
ADB. 2009. Technical Assistance to Mongolia for the Urban Transport Development Investment Program.
Manila; ADB. 2012. Technical Assistance for Implementation of Sustainable Transport in Asia and the Pacific—
New Approaches to Implement Sustainable Low Carbon Transport in the Asia and Pacific Region (Subproject
5). Manila; ADB. 2012. Technical Assistance to Mongolia for Ulaanbaatar Urban Transport Capacity
Development. Manila; and ADB. 2015. Technical Assistance to Mongolia for Public–Private Partnership in Urban
Public Transport Sector of Ulaanbaatar. Manila.
 4

Mission will administer the TA and engage international and national consultants to deliver the
TA outputs.

11. Implementation arrangements are summarized in the table.

Implementation Arrangements
Aspects Arrangements
Indicative implementation period 20 December 2021–31 December 2023
Executing and implementing Municipality of Ulaanbaatar
agency
Consultants To be selected and engaged by ADB
Individual consultant International public transport $185,000
recruitment specialist (8 person-months)
Firm recruitment International traffic engineer $97,000
(through CQS) or (4 person-months)
individual consultant National transport specialist $21,000
recruitment (6 person-months)
National legal expert $21,000
(6 person-months)
National transport economist $20,000
(6 person-months)
National road engineer $20,000
(6 person-months)
Individual consultant National TA coordinator $76,000
recruitment (18 person-months)
Procurement To be procured by consultants
Request for 1 contract for office $15,000
quotation equipment
Disbursement Disbursement of TA resources will follow ADB's Technical Assistance
Disbursement Handbook (2020, as amended from time to time).
Asset turnover or disposal Office equipment will be handed over to the executing agency upon
arrangement upon TA completion completion of the TA.
ADB = Asian Development Bank, CQS = consultants’ qualification selection, TA = technical assistance.
Source: Asian Development Bank.

12. Consulting services. ADB will recruit individual consultants to provide technical
oversight and support and a will work with MUB and ADB to ensure that all project activities
are coherent and well-coordinated with other urban mobility initiatives. ADB will recruit a team
of experts to support the national committee. ADB will explore the feasibility of recruiting the
team by selecting a firm using consultants’ qualification selection (CQS) but will use individual
consultant selection if CQS is not possible. ADB will engage the consultants following the ADB
Procurement Policy (2017, as amended from time to time) and its associated project
administration instructions and/or staff instructions.14

13. ADB’s procurement. The TA will, through the firm or the national TA coordinator,
procure office equipment to ease TA implementation. Procurement will follow the ADB
Procurement Policy (2017, as amended from time to time).

IV. THE PRESIDENT'S DECISION

14. The President, acting under the authority delegated by the Board, has approved the
provision of technical assistance not exceeding the equivalent of $500,000 on a grant basis to
the Government of Mongolia for Improvement of Urban Mobility in Ulaanbaatar, and hereby
reports this action to the Board.

14 Terms of Reference for Consultants (accessible from the list of linked documents in Appendix 3).
 Appendix 1 5

DESIGN AND MONITORING FRAMEWORK

Impact the TA is Aligned with

Urban mobility in Ulaanbaatar improved (Mongolia’s Vision 2050)a
Data Sources and Risks and Critical
Results Chain Performance Indicators Reporting Mechanisms Assumptions
Outcome
Urban transport a. An updated urban transport a.–b: MUB records of R: MUB makes key
management and action plan and sector official decisions, urban urban transport
planning for framework that incorporates TA transport plans for investment decisions
Ulaanbaatar recommendations approved by Ulaanbaatar before completion of
upgraded MUB by 2023 (2021 baseline: the updated action
Not applicable) (OP 4.2.1) plan.
b. At least one new public
transport solution endorsed by
the National Committee on
Traffic Congestion and Urban
Decentralization for inclusion in
Ulaanbaatar urban transport
plans by 2023 (2021 baseline:
Not applicable) (OP 4.2.1)
Outputs
1. Assessment 1a. Urban transport study, 1a-c. Studies and A: Other development
and planning of including gender sensitivity surveys endorsed by partners, most notably
public transport analysis, for Ulaanbaatar MUB and ADB the World Bank and
options boosted prepared by 2022 (2021 the Japan
1a-c. Periodic TA
baseline: 0) International
progress reports
Cooperation Agency,
1b. Feasibility studies for at least
1a-c. Accomplishment actively coordinate
one public transport option
reports from TA with ADB.
updated by 2023 (2021 baseline:
consultants
0)
1a-c. Minutes of
1c. At least two urban transport
meetings between MUB
optimization surveys completed
and ADB
by 2022 (2021 baseline: 0)
2. National 2a. At least 75% of the 50 2a-b. Periodic TA
committee and training participants report progress reports
municipality improved awareness and
2a-b. Accomplishment
staff’s knowledge understanding of project or
reports from TA
on and skills in program management by 2023
consultants
implementing (2021 baseline: 0) (OP 6.1.1)
urban mobility 2a-b. Minutes of
2b. At least 50 national
solutions meetings between MUB
committee and municipality staff
improved and ADB
participate in a 12-month hands-
on training program and report 2a-b. Survey of training
improved knowledge and skills in participants
urban transport solutions by
2023 (2021 baseline: 0) (OP
6.1.1)
6 Appendix 1

Key Activities with Milestones

1. Assessment and planning of public transport options boosted
1.1 Agree with government on additional data and studies required to deliver output by Q1 2022.
1.2 Deliver updated action plan and sector framework and additional studies and data by Q4 2022.

2. National committee and municipality staff’s knowledge on and skills in implementing urban
mobility solutions improved
2.1 Prepare training needs assessment and training plan by Q3 2022.
2.2 Agree with government on training needs assessment and training plan by Q3 2022.
2.3 Prepare and implement training plan during 2023.

TA Management Activities
Recruit national TA coordinator and international urban transport specialist by Q1 2022.
Recruit consultants to prepare updated urban transport action plan and sectoral framework by Q1 2022.
Recruit consultants to deliver training by Q4 2022.
Conduct inception mission in Q1 2022, midterm review mission in Q1 2023, and completion mission in Q4
2023.
Inputs
ADB: $500,000 Technical Assistance Special Fund (TASF 7)
Note: The government will provide counterpart support in the form of staff remuneration, office
accommodation, office supplies, and other in-kind contributions.
A = assumption, ADB = Asian Development Bank, MUB = Municipality of Ulaanbaatar, OP = operational priority, Q =
quarter, R = risk, TA = technical assistance.
a State Great Khural. 2020. Vision 2050: Long-Term Development Policy of Mongolia. Ulaanbaatar.

Contribution to Strategy 2030 Operational Priorities:

The expected values and methodological details for all OP indicators to which this TA will contribute results are detailed
in Contribution to Strategy 2030 Operational Priorities (accessible from the list of linked documents in Appendix 3). In
addition to the OP indicators tagged in the design and monitoring framework, this TA will contribute results for the
following:
OP 3.3.2: Solutions to enhance pollution control and resource efficiency improved (number)
Source: Asian Development Bank.
 Appendix 2 7

COST ESTIMATES AND FINANCING PLAN

($’000)
Item Amount
Asian Development Banka
1. Consultantsb
a. Remuneration and per diem
i. National consultants (42 person-months) 143.00
ii. International consultants (12 person-months) 274.00
b. Out-of-pocket expenditures
i. International and local travel 8.00
ii. Training, seminars, and conferencesc 15.00
iii. Goodsd 15.00
2. Surveyse 24.00
3. Miscellaneous technical assistance administration costs f 10.00
4. Contingencies 11.00
Total 500.00
Note: The technical assistance (TA) is estimated to cost $550,000 of which contributions from the Asian Development
Bank are presented in the table. The government will provide counterpart support in the form of staff remuneration,
office accommodation, office supplies, and other in-kind contributions. The value of the government contribution is
estimated to account for 10% of the total TA cost.
a Financed by the Asian Development Bank’s Technical Assistance Special Fund (TASF 7).
b Includes remuneration, per diem, national travel-related expenses, and workshop cost.
c Includes the TA inception and final workshops, a seminar and workshop on the results of studies and surveys.
d Equipment to be procured are office equipment including laptops, photocopiers, and other necessary office

equipment to support the delivery of the TA activities. Equipment purchased under the TA will be turned over to the
executing agency upon completion of the TA activities.
e Includes studies and surveys on urban transport action plan and sector framework.
f Includes project administration cost and all publications to be produced under the project and all costs of translation

of TA-related documents other than consultants’ deliverables.

Source: Asian Development Bank estimates.
8 Appendix 3

LIST OF LINKED DOCUMENTS

http://www.adb.org/Documents/LinkedDocs/?id=55245-001-TAReport

1. Terms of Reference for Consultants

2. Contribution to Strategy 2030 Operational Priorities