Asian Development Bank in Mongolia Samantha Hung Deputy

Asian Development Bank in Mongolia Samantha Hung Deputy Representative, European Representative Office 25 June 2020

ADB and Mongolia 1991: Mongolia became a member of ADB 2001: Mongolia Resident Mission opened First Projects in Sectors 1991 1992 1994 Finance Road and transport Energy Trade and industry Public sector management Education Agriculture Health 1996 Social protection 2008 2016 Environment Urban development Active Portfolio (as of end Feb 2020) • Total loan and grant portfolio value = $ 1. 64 billion: o 61 active loans and grants – financing 37 projects • Total technical assistance value = $47. 21 million: o 52 active technical assistance projects (grant-basis) Gender

MONGOLIA PORTFOLIO: Cumulative Loan and Grant by Sector (as of end Feb 2020) • $2. 68 B sovereign loans • $175. 13 M nonsovereign loans WATER & OTHER MUNICIPAL INFRASTRUCTURE & SERVICES 11% • $324. 29 M grants AGRICULTURE & NATURAL RESOURCES 4% EDUCATION 5% ENERGY 11% • $179. 90 M technical assistance TOTAL = $3. 36 billion TRANSPORT & ICT 25% FINANCE 10% HEALTH & SOCIAL PROTECTION 8% PUBLIC SECTOR MANAGEMENT 20% INDUSTRY & TRADE 6%

Support to Mongolia‘s response: ü $2. 6 m to boost response&readiness ü $1 m for emergency medical equipment ü $100 m countercyclical support ü $26. 4 m to expand social security ü $30 m for health security ü $24 m reallocation to support SMEs 4 $20 B Total response package $18. 2 billion For sovereign operations $1. 8 billion For nonsovereign operations 4

Key Sectors ADB is a key partner in transport, supporting of major transport corridors (including the Western Regional Road); developing urban transport solutions; and strengthening Mongolia’s rail network. The demand will likely continue. The focus is on: (1) transforming urban ger areas into green, livable, inclusive, and permanent areas that provide jobs and affordable housing; and (2) supporting priority aimag and soum centers to be more livable, and promote green development. Environment and DRM work has grown significantly in recent years and covers water, forestry, air and soil pollution, tourism and disaster response. Going forward, it will remain important with increasing emphasis on disaster preparedness and community resilience. An increasing sovereign and nonsovereign portfolio in energy as part of support for energy diversification and security. Scope to increase engagement particularly on upscaling renewables. Agriculture is central to Mongolia's aspirations for diversification. ADB's focus has been on agribusiness, employment creation and market access. The aim is to use a mix of sovereign and non-sovereign operations to promote exports and encourage climate-resilient approaches.

Key Sectors Finance. ADB supports supervision and regulation; innovation; and direct lending to MSMEs. This sector including banking sector reforms will remain a key area of focus going forward. ADB has been the largest development partner in the health sector since 1996. Our aim is to support the country in achieving Universal Health Coverage, provide access to quality health services, and provide access to safe and affordable medicines. Providing education is a core challenge in such a large sparsely populated country with nomadic traditions. ADB's focus is on the provision of quality education to all, including children with disabilities, and the creation of a favorable learning environment at schools and dormitories. Public Sector Management. ADB has supported macroeconomic reforms through the IMF program but we have also provided support to improve procurement, taxation, audit, civil registration, state registration, and anticorruption RCI is a major priority for landlocked Mongolia. ADB has important investments in border infrastructure and laboratory standards. There is an opportunity to increase our ambition with respect to large -scale and interlinked infrastructure projects that aim to promote greater regional connectivity.

Nonsovereign Operations (cumulative as of 31 December 2019) $144. 92 m nonsovereign loans Energy $10. 74 m trade finance transactions 16% TOTAL = $155. 67 million [CATEGORY 2017 -2020 NSO Commitments - Total $54. 9 m: NAME] [PERCENTA • Gender Inclusive Dairy Value Chain Project $7. 3 m, GE] approved 2019 • MSME Financing Project, $30 m, approved 2019 • Tenuun Gerel Construction LLC Sermsang Khushig Khundii Solar Project, $9. 6 m, approved 2018 • Value-Added Cashmere Production and Export Project, $8 m, approved 2018. Finance 71%

Innovative Work Air Pollution: ADB’s support has helped reduced air pollution by over 40% in one year, with policybased and investment lending and TA. There is a huge amount of work to do for further improvements and to make them sustainable. Disabilities: First ADB project targeting Persons with Disabilities (PWDs), is focusing on what PWDs can do, early identification; improving service delivery; and ensuring better work and employment prospects. Gender: Going beyond gender mainstreaming with 2 standalone TAs to support enforcement of Mongolia’s Gender equality legislation and ADB’s first standalone project to combat gender-based/domestic violence. Mining: ADB supports better mining sector governance by enabling better management of finances and more transparent reporting from the sector IMF Program: Contributed $900 m to IMF Program (total $5. 5 bn). Overall, major success with 25% point reduction in public debt to GDP ratio and 18% point swing in fiscal balance in 2 years. Challenges remain with the banking sector. + Knowledge and Economics

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Thank you for listening! Samantha Hung Deputy Representative European Representative Office shung@adb. org