The Netherlands – Mongolia Trust Fund for the Environment Progress Review Meeting Ulaanbaatar June 22nd, 2005

Outline Mongolia: Context Environmental Challenges The Netherlands – Mongolia Trust Fund for the Environment (NEMO TF) Component I: Self-standing AAA Component II: Co-financing of Environment Components in World Bank Ongoing Projects Component III: Project Development Disbursements & Commitments Implementation Issues Next Steps 12/3/2018

Mongolia - Context Mongolia: Is a large, landlocked country (1.564 Km2) in Central Asia Has a total population is 2.3 million (2000 Census): 30% of which lives in Ulaanbaatar; Overall, 78% of total population lives in ger areas; about 60% of urban population still lives in ger areas Is one of the most sparsely populated countries in the world (1.63 people per Km 2) Is heavily dependent on natural resources and the environment for its development and economic growth 12/3/2018

Mongolia – Environmental Challenges Growing population and changing lifestyles are intensifying pressure on the country’s fragile ecosystems Overgrazing is degrading significant areas and displacing wildlife from his habitats Pollution from industrial and urban sources is negatively affecting environmental quality Human and financial resources for environment and natural resources management are limited, and institutional capacity is weak 12/3/2018

Environmental Hotspots 12/3/2018

The Netherlands – Mongolia Trust Fund for the Environment (NEMO TF) NEMO TF was established in November 2004, with an endowment of US$ 5.88 million from the Dutch Government It has three components: Bank-executed technical assistance ($ 1.1 million + $ 0. 380 million for contingency) Government-executed support for on-going projects ($ 3.6 million) Government-executed preparation of new projects ($ 0.8 million) NEMO TF represents an outstanding opportunity to achieve progress on environmental governance in Mongolia 12/3/2018

Component I: Self-standing Technical Assistance AAA activities under this component focus on the Green and Brown Agendas; specifically: Green Agenda Illegal Wildlife Trade in Mongolia Forest Cover Mapping of Arkhangai, Khuvsgul and Bulgan Aimags Assessment of the Success of Reforestation Projects in Mongolia Updating Nomenclature of Selected Groups of Animals and Plants of Economic and Conservation Importance Conference on Buddhism and the Environment Brown Agenda Tourism development in Mongolia and its Impacts on the Natural and Social Environment Moving up the value-chain in livestock-based industries: Implications for Environmental Policy, Regulations and Management Urban Environmental Services in Secondary Cities in Mongolia Review of Toxic Chemicals Used in Mongolia Total Netherlands TF Financing is US$ 1.1 million 12/3/2018

Disbursements & Commitments for Component I Self—standing AAA TF Funding Delivery Milestone Disbursed Commitments Illegal Wildlife Trade in Mongolia. 100,000 October 2005 80,000 20,000 Tourism Development in Mongolia and its Impacts on the Natural and Social Environment. 150,000 25,000 145,000 Moving up the value-chain in the livestock-based industries: implications for environmental policy, regulation and management 200,000 September 2005 160,000 Activity 2 and 3 sub-total 350,000 45,000 305,000 Urban Environmental Services in Secondary Cities in Mongolia Study 53,000 97,000 Forest Cover Mapping of Arkhangai, Khuvsgul and Bulgan Aimags Assessment of the Success of Reforestation Projects in Mongolia August 2005 ??? 74,000 Updating of Nomenclature of Certain Groups of Animals of Plants of Economic and Conservation Importance November 2005 66,000 Review of Toxic Chemicals Used in Mongolia, with Special Attention to Pesticides Used Against Rodents and Grasshoppers 46,000 54,000 Conference on Buddhism and the Environment July 2005 75,000 Component I Sub Total 1,100,000 302,000 631,000 12/3/2018

Component II: Co-financing of Environment Components in WB Projects Activities under this component complement already on-going loans and grants activities; specifically: Second Urban Services Improvement Project Total Loan Amount: US$ 20 million (an IDA Credit of US$16 M; an AusAID Grant of US$3.35 M, and an UB Municipality contribution of US$2.3 million); Total Dutch Co-financing: US$ 1,850,000 for Community Development Sanitation in Ger Areas of Ulaanbaatar and the Geser Sum Sacred Urban Landscape Protection Initiative Sustainable Livelihood Project Total Loan Amount: US$ 22 million (APL) Total Dutch Co-financing: US$ 200,000 for Well Rehabilitation on Wild Ass in the Gobi Desert 12/3/2018

Component II: Co-financing of Environment Components in WB Projects (II) Dynamics of Biodiversity Loss and Permafrost Melt in Lake Hovsgol National Park Project Total Grant Amount: US$ 1 million (GEF MSP) Total Dutch Co-financing: US$ 250,000 for the organization of the Workshop and Associated Training Program on Ecosystem Dynamics and Environmental Management Strengthening Environmental Management Capacity at National and Local Level Project Total Grant Amount: US$ 270,000 (IDF Grant for IDA Countries) Total Dutch Co-financing is US$ 1.2 million for Strengthening Environmental Management Capacity 12/3/2018

Disbursements & Commitments for Component II Co-financing of Environmental Components in World Bank Projects TF Funding Delivery Milestone Disbursed Commitments Ulaanbaatar Second Urban Service Improvement Project Community Development Sanitation in Ger Areas of Ulaanbaatar Geser Sum Sacred Urban landscape Protection Initiative 1,750,000 100,000 September - November 2005 Sustainable Livelihood Project Impacts of Well Rehabilitation on threatened Species in the Gobi Desert 200,000 October 2005 Dynamics of Biodiversity Loss and Permafrost melt in Lake Hovsgol National Park Workshop and Associated Training Program on ecosystems Dynamics and Environmental Management 250,000 March – May 2005 120,000 Strengthening Environmental Management Capacity at National and Local Level Strengthening Environmental Management Capacity 1,200,000 October – November 2005 Component II Sub-Total 3,500,000 12/3/2018

Component III: Project Development The main objective of this component is to facilitate the development of environment and natural resources management projects; current effort focus on: Forest Resources Management Project Proposed Loan Amount: US$ 5 million (IDA credit Total Dutch Co-Financing: US$ 750,000 Retrofitting of Polluting and Inefficient Heat-only Boilers in Ulaanbaatar and Selected Aimags Proposed Grant Amount: US$ 4 million (GEF grant) Total Dutch Co-Financing: US$ 150,000 12/3/2018

Disbursements & Commitments for Component III Component III Project Development TF Funding Delivery Milestone Disbursed Commitments Forest Resources Management Project 750,000 November 2005 Retrofitting of Polluting and Inefficient Heat- only Boilers in Ulaanbaatar and Selected Aimags 150,000 August 2005 12/3/2018

Implementation Issues The Bank-executed activities (all under Component I) are complex; however, their implementation is relatively straightforward and on schedule The implementation of the Government-executed activities involves six agencies, it is proving challenging, and experiencing delays due to: The formulation of the Grant Agreement and financial management arrangements; The need for the new Special Accounts to be opened in bank/s approved by the World Bank; MoF has worked to simplify the disbursement processes for the NEMO TF by making itself the only signatory on Withdrawal Requests 12/3/2018

Next Steps Take stock of the status of disbursements and discuss/decide about possible reallocations of funds Complete the contracting within USIP2 and SLP – allowing for work to be continued after final payments Define the Forestry project and determine what can be spent (and on what) by December 1st, 2005 Advance the work on retrofitting boilers Review the existing timeline for components II and III to ensure timely completion of all the activities 12/3/2018