Report and Recommendation of the President

to the Board of Directors

Project Number: 53038-001

May 2021

Proposed Loans and Administration of Technical

Assistance Grant
Mongolia: Climate-Resilient and Sustainable
Livestock Development Project

Distribution of this document is restricted until it has been approved by the Board of Directors.
Following such approval, ADB will disclose the document to the public in accordance with ADB's
Access to Information Policy.
 CURRENCY EQUIVALENTS
(as of 16 April 2021)

Currency unit – togrog (MNT)

MNT1.00 = $0.00035094
$1.00 = MNT2,849.47

ABBREVIATIONS

ADB – Asian Development Bank

COVID-19 – coronavirus disease
EMP – environmental management plan
LMIS – livestock management information system
MAHIS – Mongolian animal health information system
MOFALI – Ministry of Food, Agriculture, and Light Industry
O&M – operation and maintenance
PAM – project administration manual
PMU – project management unit
PUG – pasture user group
RUA – rangeland user agreement
TA – technical assistance

NOTE

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

Vice-President Ahmed M. Saeed, Operations 2
Director General James P. Lynch, East Asia Department (EARD)
Deputy Director General M. Teresa Kho, EARD
Director Thomas Panella; Environment, Natural Resources and Agriculture
Division (EAER), EARD

Team leader Jan Hinrichs, Senior Natural Resources Economist, EAER, EARD
Team members Mark R. Bezuijen, Principal Environment Specialist, EAER, EARD
Daisy Gavina, Associate Project Analyst, EAER, EARD
Arnaud Heckman, Principal Urban Development Specialist, Urban
and Social Sectors Division, EARDa
Battsengel J. Jamsranjav, Senior Procurement Officer, Mongolia
Resident Mission, EARD
Michiko Katagami, Principal Natural Resources and Agriculture
Specialist, Rural Development and Food Security (Agriculture)
Thematic Group, Sustainable Development and Climate
Change Department
Shingo Kimura, Senior Natural Resources and Agriculture
Specialist, EAER, EARD
Dorothea Lazaro, Regional Cooperation Specialist, Public
Management, Financial Sector, and Regional Cooperation
Division, EARD
Aysha Qadir, Principal Counsel, Office of the General Counsel
Noreen Joy Ruanes, Senior Operations Assistant, EAER, EARD
Nogendra Sapkota, Senior Social Development Specialist, EAER,
EARD
Peer reviewer Takeshi Ueda, Principal Natural Resources and Agriculture
Economist, EAER, Southeast Asia Department
a Outposted to the Mongolia Resident Mission.

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
PROJECT AT A GLANCE
I. THE PROPOSAL 1
II. THE PROJECT 1
A. Rationale 1
B. Project Description 4
C. Value Added by ADB 5
D. Summary Cost Estimates and Financing Plan 5
E. Implementation Arrangements 7
III. ATTACHED TECHNICAL ASSISTANCE 8
IV. DUE DILIGENCE 8
A. Technical 8
B. Economic and Financial Viability 9
C. Sustainability 9
D. Governance 9
E. Poverty, Social, and Gender 10
F. Safeguards 11
G. Summary of Risk Assessment and Risk Management Plan 12
V. ASSURANCES 12
VI. RECOMMENDATION 12

APPENDIXES
1. Design and Monitoring Framework 13
2. List of Linked Documents 16
 Project Classification Information Status: Complete

PROJECT AT A GLANCE

1. Basic Data Project Number: 53038-001

Project Name Climate-Resilient and Sustainable Livestock Department/Division EARD/EAER
Development Project
Country Mongolia Executing Agency Ministry of Food,
Borrower Mongolia Agriculture, and Light
Industry (MOFALI)
Country Economic https://www.adb.org/Documents/LinkedDocs/
Indicators ?id=53038-001-CEI
Portfolio at a Glance https://www.adb.org/Documents/LinkedDocs/
?id=53038-001-PortAtaGlance

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

Agriculture, natural Livestock 30.00
resources and rural
development
Total 30.00
3. Operational Priorities Climate Change Information
Addressing remaining poverty and reducing inequalities GHG reductions (tons per annum) 5,990,981.0
Accelerating progress in gender equality 00
Tackling climate change, building climate and disaster resilience, and Climate Change impact on the Medium
enhancing environmental sustainability Project
Promoting rural development and food security
ADB Financing
Strengthening governance and institutional capacity
Adaptation ($ million) 5.21
Mitigation ($ million) 16.80

Cofinancing
Adaptation ($ million) 0.00
Mitigation ($ million) 0.00
Sustainable Development Goals Gender Equity and Mainstreaming
SDG 1.5 Effective gender mainstreaming (EGM)
SDG 2.4
SDG 5.5 Poverty Targeting
SDG 10.1 General Intervention on Poverty
SDG 13.a

4. Risk Categorization: Low

.

5. Safeguard Categorization Environment: B Involuntary Resettlement: B Indigenous Peoples: C

.

6. Financing
Modality and Sources Amount ($ million)
ADB 30.00
Sovereign Project (Concessional Loan): Ordinary capital resources 7.00
Sovereign Project (Regular Loan): Ordinary capital resources 23.00
Cofinancing 0.00
None 0.00
Counterpart 4.50
Beneficiaries 2.42
Government 2.08
Total 34.50

Currency of ADB Financing: US Dollar

Note: An attached technical assistance will be financed on a grant basis by the Japan Fund for Poverty Reduction in the amount of $1,000,000.

Source: Asian Development Bank

This document must only be generated in eOps. 19042021172019647095 Generated Date: 06-May-2021 17:43:39 PM
 I. THE PROPOSAL

1. I submit for your approval the following report and recommendation on proposed loans to
Mongolia for the Climate-Resilient and Sustainable Livestock Development Project. The report
also describes the proposed administration of technical assistance (TA) to be provided by the
Japan Fund for Poverty Reduction for Capacity Building for Food Safety and Traceability, and if
the Board approves the proposed loans, I, acting under the authority delegated to me by the
Board, approve the administration of the TA.

2. The proposed project will support the improvement of livestock production systems in 20
soums (districts) of four aimags (provinces) in Central Mongolia.1 The project will promote pasture
rehabilitation and carbon sequestration while increasing the incomes of herder households
through the formation and institutionalization of pasture user groups (PUGs) and the
implementation of rangeland user agreements (RUAs).2 This will promote a reduction in livestock
numbers and increase in the quality of livestock products. The project will also build the capacity
of the public institutions of the Government of Mongolia to better assist the sector.

II. THE PROJECT

A. Rationale

3. Mongolia has witnessed a gradual decline in poverty levels since the early 1990s, when
an estimated 40.0% of the total population was found to be poor.3 While the incidence of poverty
fell significantly from 38.8% in 2010 to 21.6% in 2014, recent estimates indicate that it has climbed
back to 29.6%.4 Moreover, according to the available statistics for 2018, the poverty rate was
higher in rural areas (30.8%) than in urban areas (27.2%).5 In addition, only 35.3% of households
were food secure in 2016, while half the population experienced moderate to severe food
insecurity. The high incidence of poverty and food insecurity is particularly alarming in rural areas,
where a majority of the poor depend on agriculture and extensive livestock production to sustain
their livelihoods.

4. The agriculture sector remains a key pillar of the economy. In 2019, agriculture contributed
10.8% of the country’s gross domestic product, with the sector growing at a similar rate
(compounded annually) from 2007 to 2019. Livestock accounts for 84.2% of agricultural outputs
and about 25% of Mongolia’s total employment. The primary products of the livestock subsector
are currently meat and milk, amounting to 61.0% of livestock output and 7.0% of gross domestic
product. In contrast, the mining sector provides 5.1% of total employment in the country. As such,
the agriculture sector translates far more directly into improved lives for vulnerable Mongolians
than mining; and has the potential to reduce rural poverty, boost incomes, and diversify economic
growth through food production and exports of high-quality meat and wool products. The Asian
Development Bank (ADB) supports Mongolia’s economic diversification with several projects
encouraging labor-intensive growth through utilizing and preserving Mongolia’s natural capital

1 The project will implement activities in 4 aimags and 20 soums, which are specified in the project administration
manual.
2 The key organizational unit is the traditional Neg Nutag Alliance, which is equivalent to a PUG and makes the RUA
with the soum governments. The Neg Nutag Alliance comprises the herders in the same ecological environment,
where herders together possess the same pasture or water resources, and salt marshes.
3 World Bank. 1996. Mongolia Poverty Assessment in a Transition Economy. Washington, DC (27 June).
4 Asian Development Bank (ADB), Economic Research and Regional Cooperation Department, Statistics, and
Innovation Unit. 2019. Basic 2019 Statistics. Manila: ADB.
5 National Statistics Office of Mongolia. 2019. Mongolian Statistical Yearbook 2018. Ulaanbaatar.
2

outside the mining sector (especially by small and medium-sized enterprises engaged in
agribusiness value chains), and through building the climate resilience of the livestock subsector.6

5. Despite the sizable importance of agriculture (the livestock subsector in particular), several
constraints and risks threaten the sector’s sustainability and competitiveness. The lack of a
regulatory framework, enforcement capacity, and coordinated policies on the part of central and
local administrations to control livestock numbers within the carrying capacity of grasslands has
created an alarming situation where livestock numbers (in sheep equivalents7) have increased by
71%, from 69.5 million in 2009 to 119.0 million in 2019;8 and 70.0% of Mongolia’s pastureland is
now degraded. These negative developments are exacerbated by extreme climatic events such
as droughts and dzuds (episodes of extreme winter weather), which have resulted in significant
livestock deaths and increased the risk of rural–urban migration. The government has adopted
policy actions to adjust the livestock herd and flock structure and grassland use rights to reduce
pasture deterioration.9 These have been included in recently developed projects and are expected
to play a major role in the current project.

6. Climate-vulnerable livestock production systems. The livestock subsector is dominated

by an extensive production system that depends on access to pasturelands. A lack of appropriate
water points, animal shelters, and feeding throughout the winter leads to the concentrated use of
surrounding pasture and undermines pasture management during winter. This remains a key
concern for herders given the increased frequency of climate change-induced severe weather
events. The absence of coordinated grazing management among herders has impaired the
development of more climate-resilient and profitable livestock production and marketing systems.
RUAs are the key legal instrument for pastureland management by PUG. Only 12%–39% of the
pasture in each project aimag is used by herder groups, few of which have formalized this use
through RUAs. The fact that the current land law allows open access to summer and autumn
pastures is regarded as the fundamental cause of pasture degradation. Although local
governments have the authority to manage winter and spring pasture through agreements with
herders in the soum, few soum governors exercise this authority. Major hindrances include the
governors’ limited knowledge of how to exercise their authority, the difficulty of coordinating with
the widely scattered herders, and the herders’ limited awareness of sustainable pasture
management.

7. Poorly developed meat value chain. Mongolia also faces challenges throughout the meat
value chain, limiting access to export markets that are vital for lifting incomes and overall sector
growth. First, transboundary animal diseases are prevalent, and the veterinary system has been
unable to manage outbreaks effectively. These outbreaks have periodically led Mongolia’s
neighbors to ban Mongolian meat exports.10 Second, some meat, especially beef, is unable to
compete in export markets on quality because of livestock producers’ limited nutrition and

6 ADB. 2015. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical
Assistance Grant to Mongolia for the Additional Financing of Agriculture and Rural Development Project. Manila;
ADB. 2019. Technical Assistance Completion Report: Sustainable Fodder Management. Manila; and ADB. 2019.
Technical Assistance Completion Report: Cooperative-Based Sustainable Agriculture Production. Manila.
7 Sheep equivalents are estimated based on a weighting of 7.0 for horses, 6.0 for cattle, 5.0 for camels, 1.0 for sheep, and 0.9

for goats.
8 Based on livestock numbers reported in www.en.nso.mn.
9 Government of Mongolia. 2016. Sustainable Development Vision 2030. Ulaanbaatar; Government of Mongolia. 2016.

Rangeland Protection Law. Ulaanbaatar (debated in Parliament House on 7 May 2019); and Government of Mongolia,
Ministry of Food, Agriculture and Light Industry (MOFALI). 2018. Order A-105 of the Minister of Food, Agriculture and Light
Industry. Action Plan of Mongolian Agenda for Sustainable Livestock. 8 June 2019.
10 World Bank. 2017. Sector Competitiveness for FDI Attraction in Agribusiness: Investment Policy and Agriculture

Investment Promotion (IPAIP) Project. Washington, DC (19 May).

 3

breeding practices.11 Third, food hygiene practices and sanitary standards fall short of
international standards; only 10% of the national meat supply in 2017 was met by livestock
slaughtered and processed at abattoirs, with the remainder processed informally.12 Mongolia’s
veterinary, breeding, and agriculture extension services and livestock production systems require
significant investment and improvement to meet international standards. Further, while
Mongolia’s new Animal Health Law came into effect in June 2018, secondary legislation is still
underway, and the national veterinary structure needs to be enhanced for effective surveillance
and animal disease control. Although the establishment of the General Authority of Veterinary
Services is an important step in instituting a national veterinary service, substantial assistance is
needed to enable it to function effectively. As a result of these constraints, Mongolia exported only
70,400 tons of meat in 2018, despite producing 448,000 tons.13 Since domestic production of
meat far exceeds consumption, simply increasing productivity along the value chain without
accessing new markets could lower prices and potentially hurt herder incomes. The current
demand–supply configuration, combined with Mongolia’s proximity to major markets in Northeast
and Central Asia, and reputation for pastoralist traditions suggests that there is potential to boost
exports and increase income generation significantly if the key binding constraints are addressed
in a sustainable manner.

8. Inadequate technical and institutional management capacity. Given the

predominantly small size of individual herders’ livestock herds, there is limited scope for
productivity- and quality-enhancing interventions without government regulation for better
coordination on pasture use. However, the limited capacity and policies of the Ministry of Food,
Agriculture and Light Industry (MOFALI) and local governments to enforce sustainable pasture
management and provide extension services severely impact their capacity to deliver the required
guidance. The lack of regulations and guidelines for good livestock husbandry practice further
limit the options that can be offered to herders. This is complicated further by the limited capacity
of public and private veterinary services to ensure livestock health and meat safety inspections
with traceability. In the absence of an information system on livestock and pasture conditions
based on a geographic information system, governments lack the necessary information to design
evidence-based policy reforms for pasture rehabilitation and improvement of livestock quality.

9. Government policy. The action plan for the Mongolian Agenda for Sustainable Livestock
focuses on the principles of (i) implementing sustainable pastureland management and
adaptation to climate change; (ii) improving the economic efficiency of the livestock sector; (iii)
enhancing livestock health, food security, and safety; (iv) improving social inclusiveness in rural
areas: and (v) strengthening partnership and participation.14 Despite extensive policy, institutional,
legal, and regulatory frameworks, the capacity of the agencies concerned is limited by the lack of
available staff and operational funds, together with frequent changes to the available staff at the
central and local levels. Substantial assistance is required to help the institutions strengthen their
capacity to fulfill their mandate.

10. Coronavirus disease pandemic. The coronavirus disease (COVID-19) pandemic has
amplified the interlinkages between human health, livestock health, and environmental

11 World Bank. 2019. Mongolia Central Economic Corridor Assessment: A Value Chain Analysis of the Cashmere-
Wool, Meat, and Leather Industries. Washington, DC (19 May).
12 ADB. 2019. Modernizing Sanitary and Phytosanitary Measures in CAREC: An Assessment and the Way Forward.

Manila; and Government of Mongolia, MOFALI. 2017. Meat Production. http://mofa.gov.mn/exp/blog/10/81.

13 Japan International Cooperation Agency. 2017. Data Collection Survey for Agriculture and Livestock Sector in

Mongolia. Tokyo; and National Statistical Office of Mongolia. 2018. Livestock Exports. https://www.en.nso.mn/.
14 Government of Mongolia, MOFALI. 2018. Action Plan of Mongolian Agenda for Sustainable Livestock. Annex of

Order No. A105. Ulaanbaatar.

4

degradation, particularly in pastoral production systems. Herders have suffered particularly from
reduced prices for cashmere because of restrictions on international trade and tourism. Although
COVID-19 has been largely contained in both rural and urban areas, it remains a risk.

11. Strategic fit. The project aligns with ADB’s Strategy 2030 by tackling climate change,
building climate and disaster resilience, enhancing environmental sustainability, and promoting
rural development and food security.15 Fostering economic growth through strengthening
vertically integrated value chains and enhancing environmental sustainability, particularly through
improved natural resource management, are key strategic priorities for ADB in its country
partnership strategy for Mongolia, 2017–2020.16 The draft country partnership strategy for
Mongolia, 2021–2024 maintains a focus on improved natural resources management. The project
supports improving livestock production through the establishment of PUGs and RUAs with the
objective of reducing livestock numbers, increasing output quality, and reducing pasture
degradation as a result.

12. Lessons. The project design incorporates lessons from previous and ongoing projects
financed by ADB and others in Mongolia, as well as from project preparation. These include the
need to (i) support government executing and implementing agencies to develop their project
implementation capacity; (ii) focus on the formation and strengthening of herder groups, including
ensuring that they understand the need for, and benefits from, pasture protection and reduced
livestock numbers; and (iii) improve livestock production support facilities for feed supply,
veterinary services, livestock breeding, and output processing.

B. Project Description

13. The project is aligned with the following impact: competitiveness and sustainability of
Mongolia’s livestock sector improved (Mongolia Sustainable Development Vision 2030).17 The
project will have the following outcome: efficiency and sustainability of climate-resilient livestock
production in the project areas increased.18

14. Output 1: Climate resilience of livestock, pasture, and water management improved.
This output will build the climate resilience of herders against the increased frequency of severe
weather events. Grassland management is the main driver of soil carbon sequestration and will
result in reduced greenhouse gas emissions for the overall project.19 Compliance with pasture’s
livestock carrying capacity limits will be achieved through (i) improving grazing management and
reducing stocking rates through the establishment of 466 PUGs and 466 RUAs covering 11,660
herders; (ii) improving 14,000 livestock shelters for herders; (iii) improving livestock drinking water
access by constructing or rehabilitating 382 wells and developing 466 water use agreements; (iv)
improving livestock feeding through the establishment of 14,000 hayfields and hay storage for
466 herder groups; and (v) establishing 20 soum pasture reserve areas.

15. Output 2: Livestock value chains strengthened. This output will improve the quality and
health standard of livestock herds and products though better integration and coordination of the
respective livestock value chain participants. Project-supported herders can obtain higher outputs

15 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila.
16 ADB. 2017. Country Partnership Strategy: Mongolia 2017–2020—Sustaining Inclusive Growth in a Period of
Economic Difficulty. Manila.
17 Government of Mongolia. 2016. Mongolia Sustainable Development Vision 2030. Ulaanbaatar.
18 The design and monitoring framework is in Appendix 1.
19 ADB. 2014. Making Grassland Sustainable in Mongolia. Assessment of Key Element of Nationally Appropriate

Mitigation Actions for Grassland and Livestock Management. Manila.

 5

per head of livestock, thus reducing the need to maintain large herds. This will also reduce stress
and impact on pasturelands and allow Mongolia to pivot toward a more sustainable livestock
development model. This can be achieved through strengthened livestock value chains by
improving (i) livestock marketing by establishing linkages between 2,915 herder households and
processors to meet processing and market standards for health and carcass quality, and provide
feedback to herders; (ii) livestock feeding for 466 herder groups through support for hay
production and fodder storage; (iii) animal health for 11,660 herders through support for 54 private
veterinary units; (iv) animal breeding through the establishment of 20 nucleus flocks for sheep
and goats; (v) livestock turnoff through lamb fattening in 20 small-scale lamb fattening farms; and
(vi) cashmere marketing through establishing 20 soum-level cashmere-sorting facilities.
Supported livestock value chain investments will be demand-driven. Herders are eligible to submit
business proposals outlining investment costs, operation and maintenance (O&M), technical
support, and income beyond the project implementation period.

16. Output 3: Livestock sector regulatory framework and capacity enhanced. This output
will strengthen the livestock regulatory framework and institutional capacity by (i) developing
implementing regulations, awareness raising, and promotion activities for improved pasture
management; (ii) establishing a geographic information system-based livestock management
information system (LMIS) and Rangeland and Fodder Division within the MOFALI; (iii)
developing systems for carcass traceability and feedback to meet international market standards;
(iv) expanding the Mongolian animal health information system (MAHIS) in 20 soums; (v)
improving extension and training capacity within the MOFALI’s Research and Development
Center; and (vi) developing three inter-aimag pasture reserve areas.

C. Value Added by ADB

17. The project’s organization of pasture management will showcase value added
interventions that preserve the natural capital of rangelands. The following lessons from projects
targeted at supporting collaborative pasture management have informed the project design:20 (i)
adopt a demand-driven approach to providing project investments, (ii) link reductions in livestock
numbers to reduced pasture degradation through RUAs, and (iii) develop the proposed LMIS to
improve the government’s capacity for livestock management and policy development. The
project is compatible with another proposed ADB project that will provide financing for agri-
processing enterprises to link PUGs with high-value markets.21 During implementation, the project
team will liaise with the Central Asia Regional Economic Cooperation Program, World
Organisation for Animal Health, and other development partners to disseminate best practices,
prepare technical guidelines, and encourage knowledge-sharing by participating in regional
events. The project design ensures that these collaborations are promoted, and value added is
maximized.

D. Summary Cost Estimates and Financing Plan

18. The project is estimated to cost $34.50 million (Table 1).

20 ADB. 2012. Grant Assistance Report: Proposed Administration of Grant to Mongolia for Establishment of Climate-
Resilient Rural Livelihoods. Manila; ADB. 2008. Grant Assistance Report: Proposed Administration of Grant to
Mongolia for Water Point and Extension Station Establishment for Poor Herding Families. Manila; and ADB. 2008.
Grant Assistance Report: Proposed Administration of Grant to Mongolia for Poverty Reduction through Community-
Based Natural Resource Management. Manila. The Swiss Agency for Development and Cooperation has established
PUGs and RUAs through its Green Gold Program (2006–2020).
21 ADB. 2017. Project Data Sheet: Aimags and Soums Green Regional Development Investment Program. Manila.
6

19. Detailed cost estimates by expenditure category and by financier are included in the
project administration manual (PAM).22 The major expenditure items that constitute the project
are civil works (34.00% of base costs), and equipment and materials (29.49%).

Table 1: Summary Cost Estimates

($ million)
Item Amounta
A. Base Costb
1. Climate resilience of livestock, pasture, and water management improved 13.12
2. Livestock value chains strengthened 6.57
3. Livestock sector regulatory framework and capacity enhanced 6.12
4. Project management 4.31
Subtotal (A) 30.12
B. Contingenciesc 3.16
C. Financial Charges During Implementationd 1.22
Total (A+B+C) 34.50
a Includes taxes and duties of $1.96 million. The government will finance taxes and duties of $1.96 million through
exemptions from duties and value added tax. The Asian Development Bank will finance taxes and duties for
consulting services and recurrent costs.
b In mid-2020 prices as of November 2020.
c Physical contingencies computed at 10% on the ADB-financed civil works and goods and 5% on all other base costs.

Price contingencies computed at an average of 1.6% on foreign exchange costs and 6.0% on local currency costs.
d Includes interest and commitment charges. Interest during construction for the ordinary capital resources loan has

been computed at the 5-year London interbank offered rate (LIBOR) swap rate plus an effective contractual spread
of 0.5% and maturity premium of 0.1%. Interest during construction for the concessional loan has been computed at
2.0%. Commitment charges for the ordinary capital resources loan are 0.15% per year to be charged on the
undisbursed loan amount.
Source: Asian Development Bank estimates.

20. The government has requested a regular loan of $23,000,000 from ADB’s ordinary capital
resources to help finance the project. The loan will have a 25-year term, including a grace period
of 6 years, an annual interest rate determined in accordance with ADB’s London interbank offered
rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year, and such other
terms and conditions set forth in the draft loan agreement. Based on the straight-line method, the
average maturity is 15.75 years, and the maturity premium payable to ADB is 0.10% per year.
The government has also requested a concessional loan of $7,000,000 from ADB’s ordinary
capital resources to help finance the project. The loan will have a 25-year term, including a grace
period of 5 years, an interest rate of 2% per year during the grace period and thereafter, and such
other terms and conditions set forth in the draft loan agreement. The government has provided
ADB with (i) the reasons for its decision to borrow under ADB’s LIBOR-based lending facility; and
(ii) an undertaking that these choices were its own independent decision and not made in reliance
on any communication or advice from ADB.

21. The summary financing plan is in Table 2. ADB will finance the expenditures for civil works,
goods, consulting services, and project management unit (PMU) and project implementation unit
operating costs totaling 87.0% of the total project costs through a regular loan and concessional
loan. The government will finance counterpart contributions of 6.0% through exemptions from
value added tax.

22 Project Administration Manual (accessible from the list of linked documents in Appendix 2).
 7

Table 2: Summary Financing Plan

Amount Share of Total
Source ($ million) (%)
Asian Development Bank
Ordinary capital resources (regular loan) 23.00 66.66
Ordinary capital resources (concessional loan) 7.00 20.29
Government of Mongolia 2.08 6.03
Beneficiaries 2.42 7.02
Total 34.50 100.00
Source: Asian Development Bank estimates.

22. Food security investments are estimated to cost $34.50 million, comprising $30.00 million
in regular and concessional loans. The project invests in pasture rehabilitation, strengthening
herder resilience to extreme weather events, and building livestock value chain linkage. This is
expected to stimulate agribusiness capacity building in the agriculture, natural resources, and
rural development sector.

23. Climate change mitigation is estimated to cost $16.80 million, and adaptation is estimated
to cost $5.21 million. ADB will finance 100% of mitigation and 100% of adaptation costs.23

E. Implementation Arrangements

24. Implementation arrangements are summarized in Table 3 and described in detail in the
PAM (footnote 22).
Table 3: Implementation Arrangements
Aspects
Implementation period
Estimated completion date
Estimated loan closing date
Management
(i) Oversight body
(ii) Executing agency
(iii) Key implementing
agency
(iv) Implementation units
Procurement
Arrangements
July 2021–June 2027
30 June 2027
31 December 2027
A multisector project steering committee, chaired by the MOFALI and with
representatives from other central agencies and participating aimags and
professional associations, will provide guidance to the project and the TA.
The steering committee will include members from the MOF; Livestock
Policy Implementation Coordination Department; Monitoring, Evaluation,
and Internal Audit Department; Food Production Development Policy
Implementation Coordination Department; and General Authority for
Veterinary Services.
MOFALI
Livestock Policy Implementation Coordination Department of the MOFALI
A project management unit will be established in the MOFALI to
coordinate and oversee project implementation.
Staff: The project management unit will be staffed by 11 individual
consultants hired under the project loans.
Four project implementation units will be established at aimag agriculture
departments to implement project- and TA-related activities in target project
aimags and soums.
Open competitive bidding 21 contracts $13.905 million
(nationally advertised)
Request for quotations Five contracts $0.258 million
Community participation in Multiple contracts $4.913 million
Procurement

23 Details are in the Climate Change Assessment (accessible from the list of linked documents in Appendix 2).
8

Aspects Arrangements
Consulting services Quality- and cost-based One contract $2.603 million
selection
Consultant’s qualification Three contracts $0.540 million
selection
Direct contracting One contract $0.027 million
Advance contracting Four consulting services contracts with a value of $0.418 million will be
awarded through advance contracting.
Disbursement Disbursement of the loan proceeds will follow ADB's Loan Disbursement
Handbook (2017, as amended from time to time) and detailed
arrangements agreed between the Government of Mongolia and ADB.
Front-loading of the concessional loan will be applied for financing eligible
goods, works, services, and recurrent cost expenditures.
ADB = Asian Development Bank; MOF = Ministry of Finance; MOFALI = Ministry of Food, Agriculture and Light Industry;
TA = technical assistance.
Source: Asian Development Bank estimates.

III. ATTACHED TECHNICAL ASSISTANCE

25. The attached TA is an integral part of the project. It will strengthen Mongolia’s food safety
and traceability system by building the MOFALI’s capacity at central and local levels to implement
the MAHIS and LMIS. The TA will support output 3 of the project to enhance livestock sector
regulatory framework and capacity. The TA will include three activities: (i) strengthening the
capacity of the General Authority for Veterinary Services to trace livestock and livestock products
through the establishment of the MAHIS in the project area; (ii) establishing a pilot LMIS in the
project area, and organizing workshops at the national and aimag levels to inform systems
development and roll out use of the LMIS; and (iii) helping the MOFALI establish a system of
carcass quality, traceability, and feedback to suppliers, including animal identification systems
and animal health compliance. The MOFALI will be the executing agency and its Livestock Policy
Implementation Coordination Department will be the implementing agency. The PMU established
for the overall project will be responsible for coordination and overseeing the implementation.

26. The TA is estimated to cost $1.00 million, which will be financed on a grant basis by the
Japan Fund for Poverty Reduction and administered by ADB. The government will provide
counterpart support in the form of counterpart staff, and other in-kind contributions.24

IV. DUE DILIGENCE

A. Technical

27. The project design is technically sound and compatible with local conditions. Technical
solutions for improving livestock production consist of adopting practices and processes that have
been successful in improving grazing management and reducing livestock numbers. Previous
work in the areas of livestock identification and carcass traceback and feedback systems has
been incorporated. Capacity building of participating agencies comprises technically appropriate
practices and technology packages together with training and workshops, as well as consultant
support to ensure they make optimal use of the investments. Measures to address climate change
include reducing pasture degradation to increase carbon sequestration, particularly through
focusing on decreasing livestock numbers while increasing output quality and reducing
greenhouse gas emissions. Climate resilience measures include improving livestock water
supply, feed, and shelter so that they can better withstand the impact of dzuds and improving
overall ground cover and soil organic matter content over time. The project supports a demand-

24 Details are in the Technical Assistance Report (accessible from the list of linked documents in Appendix 2).
 9

driven approach with investments based on approved business plans at the production level, to
raise downstream livestock and cashmere marketing and processing to a level acceptable to the
domestic and international markets. Environmental sustainability will be enhanced by developing
access to sustainable water sources, protecting land and surface waters from erosion and
contamination, and protecting the biotic environment, including areas of conservation
significance, from significant impacts from the project investments.

B. Economic and Financial Viability

28. The economic analysis indicated that the overall project is economically viable, with an
economic internal rate of return of 14.8% and a total project net economic benefit of MNT111.1
billion. Quantifiable economic benefits result from increased meat output because of increased
outputs from improved production practices and livestock culling to reduce herd sizes, together
with increased carcass weights. The analysis also confirmed the economic viability of the four
aimag subprojects. The sensitivity analysis indicated that the project is robust to the negative
scenarios examined, such as increased investment costs, reduced benefits reduction, and
increased O&M costs.25 The financial analysis included (i) a fiscal sustainability analysis to assess
the capacity of the final borrower, the Government of Mongolia, to provide sufficient funds for all
incremental recurrent costs incurred by the project;26 and (ii) a financial statement analysis of the
four project aimags. It is concluded that the fiscal impacts are well within the government’s
projected revenue capacities. Implementing agencies depend on central government funding.
This poses a moderate risk to the financial sustainability of the project.27

C. Sustainability

29. The sustainability of the project outcomes and outputs will be maintained over the project’s
economic life through a combination of public institutional support and private investment. This
will be achieved by ensuring that project investments support the implementation of business
plans developed through a demand-driven process as being technically and financially feasible.
The approved business plans that attract project investments will incorporate agreements
between the soum government and herder groups on pasture management. Proper O&M and
replacement of equipment will also be stipulated in approved business plans. As part of the
capacity building, the requirement to provide training was included in the consultant contracts,
and manuals on O&M for the facilities in particular were developed.

30. Mitigation measures relating to the project’s institutional, environmental, social, economic,
and financial risks have been incorporated into project implementation to minimize the likely
medium- to long-term effects on natural resources, pollution, biodiversity, and financial and
economic factors.

D. Governance

31. A financial management capacity assessment was conducted in accordance with ADB’s
Financial Management Technical Guidance Note: Financial Management Assessment (2015).
The financial management capacity of the MOFALI, the Livestock Policy Implementation
Coordination Department, and the four subproject aimags was assessed and the pre-mitigation
financial management risk is moderate. The MOFALI has experience implementing foreign-
25 Details are in the Economic Analysis (accessible from the list of linked documents in Appendix 2).
26 While the aimag and soum governments will be responsible for financing and implementing O&M of project
investments, they are expected to have to rely on financing from the central government.
27 Details are in the Financial Analysis (accessible from the list of linked documents in Appendix 2).
10

funded projects, including ADB projects. Although it has highly qualified financial and accounting
staff, they are not involved in project management and cannot be assigned to the PMU. Therefore,
a long-term financial consultant will be recruited on an individual basis for the PMU. The
monitoring and internal auditing system of the executing agency and aimag governments is weak
because of a staff shortage to audit and monitor project progress during each fiscal year. This
weakness will be mitigated by the MOFALI collaborating with project aimag governments to
improve continuous, on-site, and on-time monitoring and internal auditing of the project.

32. A project procurement risk assessment (PPRA) was conducted in accordance with ADB’s
Guidance Notes on Procurement Risk Framework (2018) and Strategic Procurement Planning
(2018). The project procurement risk was rated medium. The PPRA confirmed that MOFALI has
sufficient experience in implementing ADB-funded projects. However, MOFALI lacks the
personnel needed to fully implement the project. Therefore, a procurement specialist and a
contract management specialist will be recruited to ensure that (i) the project procurements are
carried out in compliance with the ADB Procurement Policy and Regulations; and (ii) all parties
meet their contractual obligations after contract award and during contract implementation. The
national e-procurement system is recommended to be used on a pilot basis for contracts following
open competitive bidding (OCB) (with national advertisement) and request for quotations (RFQ).

33. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed
with the government and MOFALI. The specific policy requirements and supplementary measures
are described in the PAM (footnote 22).

E. Poverty, Social, and Gender

34. Poverty and social. The project is categorized as general intervention for poverty
reduction. The project will support poverty reduction and development by improving rangeland
conditions and ensuring better quality livestock products to meet international standards, leading
to increased production and income for herders. The herders will be organized in PUGs and will
receive project support based on their needs. The total number of beneficiaries in the 20 soums
is estimated at 38,587 persons in 11,661 herder households, including 7,709 poor and vulnerable
persons in 2,332 households. The poverty and social analysis was undertaken based on available
data, surveys, and consultations. Because of the COVID-19 outbreak, meetings were held in
smaller groups, and household survey interviews were done remotely.

35. A social development action plan has been prepared based on the poverty and social
analysis. The social development action plan comprises measurable actions and indicators under
each output to ensure benefits for herders, including the poor. Consultations were undertaken
with herders and stakeholders during the project preparation, and a consultation and participation
plan for the project implementation stage has been included in the PAM (footnote 22).

36. Gender action plan. The project is classified as effective gender mainstreaming, following
ADB’s Guidelines for Gender Mainstreaming Categories of ADB Projects (2012). Women are
involved in the livestock value chain in all project soums. Women are already active members of
existing PUGs and cooperatives but are not as actively engaged in decision-making as are men.
Women are also under-represented in management positions in the veterinary sector.

37. A gender action plan has been prepared based on the gender analysis to ensure that the
project contributes to gender equity empowerment. The gender action plan includes the following
key measures and targets for women: (i) there is a gender-targeted information campaign; (ii)
40% of PUG members are women and 30% of PUGs have female leaders; (iii) 40% of jobs are
 11

filled by women during construction and operation; (iv) 30%–50% of participants in consultations,
workshops, and awareness raising and training activities are women; (v) specific training is
provided to women beneficiaries on leadership, income generation activities, and marketing
techniques; and (vi) 30% of private veterinary units and state veterinary units are led by women.
Key gender targets have also been included in the design and monitoring framework.

38. Capacity for implementation and monitoring social and gender measures. The
MOFALI has experience implementing ADB projects. To implement social and gender measures
properly, the PMU will include a social and gender specialist, and the MOFALI and each
participating aimag will appoint a social and gender focal point from within their own staff for the
implementation, monitoring, and reporting of social and gender measures.

F. Safeguards

39. In compliance with ADB’s Safeguard Policy Statement (2009), the project’s safeguard
categories are as follows.28

40. Environment (category B). An initial environmental examination, including an

environmental management plan (EMP) has been prepared and disclosed on ADB’s website. The
project design adopts a demand-driven approach wherein the maximum extent of project support
per soum is fixed. The initial environmental examination has assumed a maximum design impact
per soum and is based on domestic feasibility studies and environmental assessments, site visits,
and stakeholder consultations. The MOFALI, through the PMU, will be responsible for the
implementation of and compliance with the EMP. A qualified environment safeguard specialist will
form part of the PMU, and a training program has been included in the EMP. The project will
contribute to environmental benefits through pasture rehabilitation with considerable carbon
sequestration. Risks include inappropriate siting of the project facilities, unsustainable
groundwater extraction, inadequate waste management, and the complexity of managing
safeguards across many locations. Measures to address these risks include site selection criteria
to exclude sites of ecological or heritage value, the requirement for detailed monitoring of water
balance assessments during implementation, and appropriate waste management procedures.

41. Involuntary resettlement (category B). The project will adopt a community demand-
driven approach, and civil works will be based on proposals submitted by PUGs during project
implementation. All civil works are expected to be located on state-owned land or existing rights-
of-way without the acquisition of private or community-owned lands. However, the PUGs will
decide specific civil works locations during implementation, and there may be some unavoidable
minor involuntary resettlement impacts, such as temporary land use and damage to structures
during construction. A resettlement framework has been prepared since the project has adopted
a demand-driven approach and the civil works footprint will not be known until project
implementation. The resettlement framework describes key principles for civil work site selection,
screening processes, situations where a due diligence report or resettlement plan may be
required, and the allocation of counterpart funds and implementation in case of resettlement
impacts. The project’s executing and implementing agencies have experience with ADB projects,
but no specific experience with ADB social safeguards. The project design includes measures for
capacity building of the project executing and implementing agencies and inputs of support from
a social consultant for implementation of the resettlement framework.

28 ADB. Safeguard Categories.

12

42. Indigenous peoples (category C). The project is not expected to impact distinct and
vulnerable communities of indigenous peoples or ethnic minorities, triggering ADB’s Safeguard
Policy Statement requirements on indigenous peoples.

G. Summary of Risk Assessment and Risk Management Plan

43. Significant risks and mitigating measures are summarized in Table 4 and described in
detail in the risk assessment and risk management plan.29

Table 4: Summary of Risks and Mitigating Measures

Risks
Government fiscal resources become insufficient to
continue support for counterpart funds, debt servicing,
and/or O&M of the project-funded infrastructure.
O&M = operation and maintenance.
Source: Asian Development Bank.
Mitigation Measures
Full and timely provision of counterpart funds
for O&M of the project-funded facilities is
included as a covenant.

V. ASSURANCES

44. The government and MOFALI have assured ADB that implementation of the project shall
conform to all applicable ADB requirements, including those concerning anticorruption measures,
safeguards, gender, procurement, consulting services, financial management, and disbursement
as described in detail in the PAM and loan documents.

45. The government and MOFALI have agreed with ADB on certain covenants for the project,
which are set forth in the draft loan agreements.

VI. RECOMMENDATION

46. I am satisfied that the proposed loans would comply with the Articles of Agreement of the
Asian Development Bank (ADB) and recommend that the Board approve

(i) the loan of $23,000,000 to Mongolia for the Climate-Resilient and Sustainable
Livestock Development Project, from ADB’s ordinary capital resources, in regular
terms, with interest to be determined in accordance with ADB’s London interbank
offered rate (LIBOR)-based lending facility; for a term of 25 years, including a grace
period of 6 years; and such other terms and conditions as are substantially in
accordance with those set forth in the draft loan agreement presented to the Board;
and
(ii) the loan of $7,000,000 to Mongolia for the Climate-Resilient and Sustainable
Livestock Development Project, from ADB’s ordinary capital resources, in
concessional terms, with an interest charge at the rate of 2% per year during the
grace period and thereafter; for a term of 25 years, including a grace period of 5
years; and such other terms and conditions as are substantially in accordance with
those set forth in the draft loan agreements presented to the Board.

Masatsugu Asakawa
President
11 May 2021

29 Risk Assessment and Risk Management Plan (accessible from the list of linked documents in Appendix 2).
 Appendix 1 13

DESIGN AND MONITORING FRAMEWORK

Impact the Project is Aligned with
Competitiveness and sustainability of Mongolia’s livestock sector improved (Mongolia Sustainable
Development Vision 2030)a
Data Sources
Results and Reporting Risks and Critical
Chain Performance Indicators Mechanisms Assumptions
Outcome By 2028:
Efficiency a. At least 11,660 project herders with Quarterly R: Changes in local or
and higher incomes (2020 baseline: progress and national political
sustainability MNT10.92 million per year and implementation leadership with new
of climate- household) (OP 5.1) reports produced priorities disrupt project
resilient by the PMU, activities and actions.
livestock b. A 4.78 million-hectare increase in including data
production in higher productivity grazing land made from the LMIS
the project available for herding households,
areas reducing pressure from overgrazing at
increased existing water points (2020 baseline: 0)
(OP 5.3)
Outputs By 2027:
1. Climate 1a. 11,660 herder households enter 1a.–1h. R: The Government of
resilience of PUGs, of which 40% of the members Semiannual Mongolia and other
livestock, are women (2020 baseline: 0) progress and development agencies
pasture, and implementation fail to coordinate plans
1b. 466 PUGs with rangeland user
water reports produced for water point
agreements established, of which 30%
management by the PMU development and
have female leaders (2020 baseline: 0)
improved rehabilitation.
(OP 2.3)
1c. 382 water points established or
rehabilitated in project soums (2020 R: Severe droughts or
baseline: 0) (OP 1.3.1; OP 5.1.1) severe winter conditions
put pressure on pasture
1d. 466 PUGs enter into water use and
and water management
water well maintenance agreements
strategies and
with project soum governors (2020
agreements.
baseline: 0) (OP 3.2)
1e. 466 PUGs have access to project
winter livestock shelters (2020 baseline:
0) (OP 3.2)
1f. 466 PUGs have access to fodder
storage facilities established to minimize
damage to fodder and provide feed for
animals (2020 baseline: 0) (OP 3.2)
1g. Winter and spring pastures in 20
project soums are released every year
(2020 baseline: 0)
1h. All summer and autumn pastures
are rotated at least every 5 years in 20
project soums (2020 baseline: 0)
By 2027:
2. Livestock 2a. 20% of PUGs sign cooperation 2a.–2d. Project R: Severe weather may
value chains agreements with food safety certified progress and limit the implementation
strengthened implementation of project activities,
14 Appendix 1

Data Sources
Results and Reporting Risks and Critical
Chain Performance Indicators Mechanisms Assumptions
processors, of which 30% are led by reports produced including the provision of
women (2020 baseline: 0) by the PMU timely agriculture
extension services.
2b. All PUGs receive agriculture
ADB review
extension training on topics related to R: Herder cooperatives
mission reports
animal health, nutrition, and breed face challenges in
improvement and feeding, with at least coordinating activities
40% of the participants being women and obtaining consensus
(2020 baseline: 0) among all members and
herders.
2c. 120 private livestock production,
health, and marketing units established,
of which 30% are led by women (2020
baseline: 0)b
2d. Soum and private veterinary units
provide high-quality soum veterinary
services to 11,660 herders, of whom at
least 30% are women (2020 baseline: 0)
(OP 5.2)
By 2024:
3. Livestock 3a. A comprehensive legal system to 3a. Government R: Reforms are
sector enforce and monitor grassland use resolution, discontinued because of
regulatory rights formulated and agreed upon announcements, changes in political
framework (2020 baseline: not developed) and policy priorities.
and capacity amendments
3b. A LMIS and Rangeland and Fodder
enhanced R: Various levels of
Division in the MOFALI established and
3b.–3f. Progress administration reduce
operational to provide policy advice on
and their commitment to
pasture management (2020 baseline:
implementation coordinate efforts on
not established)
reports produced livestock, pasture, and
3c. 555 person-times of national, aimag, by the PMU and water management.
and soum staff (of whom at least 30% transaction TA
are women) trained in operating the consultants
LMIS (2020 baseline: 0) (OP 2.1.1)
3d. 555 person-times of national, aimag,
and soum staff (of whom at least 30%
are women) trained in the carcass
traceback and feedback system to
improve market linkages (2020 baseline:
0) (OP 2.1.1; OP 6.1.1)
3e. 2,156 person-times of Research
Development Center, aimag, and soum
staff (of whom at least 30% are women)
trained in technical skills for delivering
effective extension services to herders
(2020 baseline: 0) (OP 2.1.1)
3f. 135 person-times of aimag and soum
staff (of which at least 30% are women)
trained in implementing the MAHIS (OP
2.1.1)
 Appendix 1 15

Key Activities with Milestones

1. Climate resilience of livestock, pasture, and water management improved
1.1 Help herder groups and individual herders become PUGs in each project soum (Q3 2021–Q2 2022).
1.2 Assist PUGs in preparing rangeland user agreements, and each project soum in preparing a soum-
wide pasture management plan with the government (Q3 2023–Q2 2026).
1.3 Conduct assessment of PUG needs for new and rehabilitated water points (Q3 2023–Q2 2025).
1.4 Conduct rapid hydrogeological surveys to identify potential water point locations (Q4 2023–Q3 2025).
1.5 Prepare proposals for well construction for government approval (Q4 2023–Q3 2025).
1.6 Procure civil works for water point establishment and monitor implementation (Q4 2023–Q4 2026).
1.7 Establish water use agreements with herder cooperatives (Q3 2023–Q2 2026).
1.8 Establish winter livestock shelters and fodder storage facilities (Q3 2023–Q4 2026).
2. Livestock value chains strengthened
2.1 Strengthen existing public and private veterinary units to provide effective support to herders (Q3
2021–Q4 2026).
2.2 Construct livestock trade facilities for private livestock marketing units in each soum with linkages
between cooperatives and agribusinesses, processors, and exporters (Q2 2023–Q2 2027).
2.3 Procure equipment and training for the development of private feed units (Q2 2023–Q2 2027).
2.4 Procure equipment and training for lamb fattening farms (Q2 2023–Q2 2027).
2.5 Construct sorting facilities and provide equipment for the development of cashmere-processing
units linked to national and international markets (Q2 2023–Q2 2027).
3. Livestock sector regulatory framework and capacity enhanced
3.1 Conduct 40 workshops and training sessions to strengthen the legal and socioeconomic
environment for pasture management with the support of the transaction TA consultant (Q3 2021–
Q2 2024).
3.2 Develop a LMIS and Rangeland and Fodder Division in the MOFALI and implement it in the project
soums with support from the transaction TA consultant (Q3 2021−Q2 2024).
3.3 Promote carcass traceback systems in project soums with support from the transaction TA
consultant (Q3 2021–Q2 2024).
3.4 Establish a MAHIS in project soums with support from the transaction TA consultant (Q3 2021–Q2 2024).
3.5 Assess previous agriculture extension services and strengthen the capacity of the Research
Development Center, aimag agricultural departments, and soum agricultural units to deliver
effective state-sponsored agriculture extension services (Q3 2021–Q2 2024).
3.6 Support the development of three inter-aimag pasture reserves (Q3 2021–Q2 2024).
Project Management Activities
Establish a project steering committee, PMU, and project implementation units by Q3 2021.
Implement the environmental management plan and submit semiannual environmental monitoring
reports to ADB from 2022 to 2027.
Implement the resettlement framework and social safeguards, social and gender action plan, and
consultation and participation plan; monitor implementation; and submit semiannual social monitoring
reports to ADB from 2022 to 2027.
Monitor and evaluate project impact, outcome, and outputs using the project performance monitoring
system; and submit semiannual project progress reports from 2022 to 2027.
Submit the project completion report by Q3 2027.
Inputs
ADB: $30.00 million ($23.00 million ordinary capital resources; $7.00 million concessional ordinary
capital resources)
Government of Mongolia: $2.08 million
Technical assistance grant: Japan Fund for Poverty Reduction: $1.00 million
Beneficiaries: $2.42 million (in-kind)
ADB = Asian Development Bank; LMIS = livestock management information system; MAHIS = Mongolian animal health
information system; MNT = togrog; MOFALI = Ministry of Food, Agriculture and Light Industry; OP = operational priority;
PMU = project management unit; PUG = pasture user group; Q = quarter; R = risk; TA = technical assistance.
a Government of Mongolia. 2016. Mongolia Sustainable Development Vision 2030. Ulaanbaatar.
b Supported units will be small in scale to support herders in each soum. Private veterinary services will recover costs
through fees from herders and public–private partnerships in which they carry out public health services
commissioned by the soum veterinary services.
Contribution to Strategy 2030 Operational Priorities:
Expected values and methodological details for all OP indicators to which this operation will contribute results are detailed
in the Contribution to Strategy 2030 Operational Priorities (accessible from the list of linked documents in Appendix 2).
Source: Asian Development Bank.
16 Appendix 2

LIST OF LINKED DOCUMENTS

http://www.adb.org/Documents/RRPs/?id=53038-001-3

1. Loan Agreement: Ordinary Capital Resources (Regular Loan)

2. Loan Agreement: Ordinary Capital Resources (Concessional Loan)
3. Sector Assessment (Summary): Agriculture, Natural Resources,
and Rural Development
4. Project Administration Manual
5. Financial Analysis
6. Economic Analysis
7. Summary Poverty Reduction and Social Strategy
8. Risk Assessment and Risk Management Plan
9. Contribution to Strategy 2030 Operational Priorities
10. Attached Technical Assistance Report
11. Climate Change Assessment
12. Gender Action Plan
13. Initial Environmental Examination
14. Resettlement Framework

Supplementary Documents
15. Technical Feasibility Study Report
16. Financial Management Capacity Assessment