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

2. 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

3. 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

4. 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

5. Environmental Hotspots
12/3/2018

6. 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 + $ 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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