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B.Yesukhei, Peri-Urban Rangeland Project beneficiary,

Sergelen soum, Tuv province, Mongolia.



Property Rights Project

Peri-Urban Rangeland Project

Vocational Education and Training Project


Health Project

Road Project

Energy and Environment Project

Compact Management


LIVES CHANGED - Completion Report

Activity-based costing

Arterial hypertension
Agency of Land Administration, Geodesy, and Cartography
Behavior Change Communication
Board of Directors
Competency-based training
Competitive grants program
Carbon monoxide
Center of excellence
Continually Operating Reference Station

Cascade training
Diabetes mellitus
Energy and Environment Project
Environmental impact assessment
Environmental Management Plan
Environment and Social Assessment
Environment and Social Oversight Consultant
Electronic property registration system
Geographic information system
the Government of Mongolia
Global Positioning System
Hazardous material
Heat only boiler
Health Project
Human Papilloma Virus
Hazardous Waste Materials Management Plan
International Roughness Index
Indicator Tracking Table
Labor exchange central office
Monitoring and Evaluation
Millennium Challenge Energy Efficiency Innovation Facility
Ministry of Education, Culture and Science
MCA-Mongolia Millennium Challenge Account Mongolia




Millennium Challenge Corporation

Memorandum of understanding
Ministry of Road, Transportation, Construction and Urban development
(Now Ministry of Road and Transportation)
Mongolian University of Science and Technology
Non-communicable disease
Non-communicable disease and injury
National Competitive Grants Program
National Council for Vocational Education and Training
National Learning Resource Center
National Vocational Qualification Framework
Policy Implementation and Coordination Department
Project Implementation Unit
Particulate matter
Public Relations
Property Rights Project
Public Private Partnership
Program Procurement Guidelines
Peri-Urban Rangeland Project
Technical and further education
Vocational Education and Training Project
Quarterly Disbursement Request Package
Request for proposal
Regional Methodology Center
Road Project
Road Traffic Injury
Real time kinematic
Stakeholders Committee
Soum Development Fund
Social and Gender Assessment
Terms of Reference
Vocational Training and Production Center
World Bank Operational Policy

LIVES CHANGED - Completion Report

Covering 1.56 million square kilometers, Mongolia is roughly the size of Western Europe. Nearly half of
its 2.6 million people live in the capital city of Ulaanbaatar, and approximately 60 percent are located
along the north-south rail corridor between Russia and China. Mongolias limited, aging transportation
infrastructure and young institutions are significant constraints to economic growth and development,
particularly given the pressures of the countrys abrupt transition to a market economy, the loss of financial
support from the Soviet Union and the rapid urbanization of what traditionally has been a highly dispersed
and pastoral society.
In October 2007, the Millennium Challenge Corporation signed a five-year, $285 million Compact with the
Government of Mongolia. The compact is estimated to benefit many Mongolians with investments in five
projects: the Property Rights Project (102,168 total; Urban 95,891; Peri-urban 6,277), the Vocational
Education Project (170,000 beneficiaries), the Health Project (2,300,000 beneficiaries), the North-South
Road Project (168,900 beneficiaries), and the Energy and Environment Project (338,425). The compact
aims to reduce poverty through economic growth by achieving the following objectives:

Increased security and capitalization of land assets of lower-income Mongolians and increased periurban herder productivity and incomes;
Increased employment and income among unemployed and underemployed Mongolians;
Reduced risk and incidence of premature death and disability from non-communicable diseases and
injuries (NCDIs);
More efficient transportation for trade and access to services through the north-south corridor; and
Increased savings and productivity through greater fuel-use efficiency and decreased pollution-related
health costs in Ulaanbaatar.

Property Rights Project: MCC funded several improvements to the property registration system
designed to improve the systems reliability, efficiency, ease of use, and affordability to the average citizen.
These improvements included renovating 11 registry office buildings, providing modern registration
computer hardware and software to these offices and improving the processes these offices used to
register rights. Every Mongolian citizen and company who seeks to privatize, buy, sell, lease, or otherwise
transfer land will benefit from this improved system.
MCC also helped individual households receive ownership of their household land plots (khashaa plots). So
far the project has helped provide titles for 18,336 land plots through this assistance.
Finally, MCC funded the design of a land-leasing system for pasture areas around cities, provided 15-year
land leases to 387 herder groups comprising approximately 1,300 households, installed wells on most of
these leases and trained the herder groups on sustainable pasture use and improving livestock productivity.
The herders are expected to benefit from higher incomes, and Mongolia is expected to benefit from
reduced land degradation.
Vocational Education: MCC supported Mongolia in moving towards a modern, demand-driven
technical and vocational education and training (TVET) system through extensive policy and legal reform,
a new labor market information and career guidance system and quality improvements in six priority
trades benefitting 50 vocational colleges and 12,609 students. More than 100 employers engaged in
establishing new skill standards, updating curricula in 28 trades, competency-based assessment, expanded
apprenticeship opportunities, industrial workshops and faculty-industry exchanges. MCC helped train
hundreds of teachers in new technical skills and teaching methodologies, as well as provide new technical
equipment including multimedia resource centers. In addition, to help the Mongolian system align with
best international practices in TVET, three Mongolian TVET schools were established as model Centers

of Excellence (CoEs) in their respective fields of mining, construction and health, and linked with two
equivalent Australian institutions.
Health: The NCDI project is working to reduce the prevalence and incidence of non-communicable
diseases and injuries through a multi-level and multi-pronged approach. This approach includes working
with the Government of Mongolia at the policy level to change laws on tobacco and alcohol use, providing
training to more than 16,000 medical and non-medical personnel, supporting 35 health care workers in
a Masters in Public Health program to develop a new cohort of public health and NCDI advocates, and
providing equipment and supplies to health care facilities at both the soum (district) and aimag (province)
level, as well as in the capital. As of September 2013, 15,604 people have been trained on NCDIs. Seven
clinical guidelines and four clinical standards have been approved and distributed. More than 1.4 million
health education materials have been distributed nationally. A revised tobacco control law was approved by
Parliament in October 2012. The project funded vaccination of 9,111 girls age 11-15 with three doses of the
human papillomavirus vaccine in a targeted vaccination campaign, reaching 65 percent of the age group
targeted by the project.
Road: The North-South Road Project is constructing 176.4 kilometers of road to connect Ulaanbaatar
with southern Mongolia completing one of the last remaining unpaved sections of road connecting
Mongolia to China and Russia. Travel time from Choir to Sainshand previously took five hours; after project
completion, travel time is expected to be reduced to just over 2 hours. The improved conditions will reduce
transportation costs, increase the flow of freight traffic and reduce the cost associated with transporting
products to markets in Ulaanbaatar and other parts of the country.
Energy and Environment: MCC funded a broad-based public awareness and marketing campaign that
provided information to support consumer purchases of energy-efficient household appliances. MCC funded
product testing, the establishment of a new distribution channel and limited subsidies to support consumer
purchases of new energy-efficient products demonstrated to reduce air pollution, resulting in sales of
more than 103,000 solid fuel stoves, as well as insulation, vestibules and energy-efficient homes covering
approximately 69 percent of the targeted market. MCC also funded the testing, selection and replacement
of some of the worst-performing heat-only boilers in the city and replaced 15 of them at 10 sites. 13
small competitive grants for greening and air quality research were awarded in two rounds, and MCC
funded tree planting in 2.3 acres of the newly established National Garden Park in Ulaanbaatar. Finally, to
reduce emissions from a planned expansion in combined heat and power generating capacity, MCC funded
transmission network upgrades to facilitate the introduction of at least 112,000,000 megawatts of wind
power into the national grid. Collectively, these efforts are expected to reduce air pollution in Ulaanbaatar,
where half of the national population lives, by 20 percent according to the Air Quality Office of Ulaanbaatar
Environmental and Social Assessment (ESA): The Millennium Challenge Account-Mongolia ESA unit
closely monitored the environmental and social impacts of all five projects and introduced good practices
into the countrys existing environmental regulations and procedures. For example, the compact work
influenced the development and implementation of the Hazardous Materials and Waste Management
Guidelines, which resulted in the proper handling, transportation, storage, and disposal of asbestos, leadbased paint and other hazardous wastes resulting from the rehabilitation of registry buildings and TVET
schools. Additionally, an annual conference on hazardous waste management was organized three times
in Ulaanbaatar during the lifespan of the compact. MCA-Mongolias efforts with respect to this issue
have contributed to the government of Mongolias decision to ban the importation of asbestos-containing
materials for construction purposes.
Social and Gender Assessment (SGA): The Mongolia Compact has made efforts toward integrating
gender into five different areas of projects and cross-cutting fields like monitoring and evaluation and
public communications following the adoption of the Compact-wide Gender Integration Plan in July 2011.
LIVES CHANGED - Completion Report


On October 22, 2007, MCC signed the Compact comprised of four projects: (i) improving the rail system
($188.38 million); (ii) upgrading vocational teaching standards and facilities ($25.51 million); (iii) improving
property registration and land management in the rangelands ($23.06 million); and (iv) improving
identification and treatment of non-communicable diseases ($17.03 million). On September 17, 2008, the
Compact entered into force; its five-year term September 17, 2013.
On April 27, 2009, the Government of Mongolia (GoM) notified MCC that it would not be able to proceed
with implementation of the rail project and requested that MCC consider re-allocating the approximately
$188 million previously committed to the rail project to both expansion of the remaining projects relating to
health, vocational education and property rights and addition of certain new projects in the fields of road
transport, and energy and environment.
MCC evaluated the GoMs proposals for both the new projects and the expansion projects and on
December 11, 2009 the Compact was amended. The modification of the Compact allowed for the addition
of the road and energy and environment projects as well as permitted the expansion of the health,
property rights, and education projects remaining in the Compact.
As a result approximately $188.4 million from canceled rail project was allocated to the expansion of
existing projects ($49.2 million); new projects ($127.0 million); and program administration and monitoring
and evaluation ($4.6 million). Approximately $7.5 million was not allocated to a specific project and it was
intended as contingency funding.


Millennium Challenge Account Mongolia (MCA-Mongolia)
MCA-Mongolia was an independent legal entity empowered to carry out the obligations of the Government
of Mongolia and to implement the program under the Compact Agreement and Program Implementation
Agreement. MCA-Mongolia implemented the Compact program through independent operations of six
Project Implementation Units (PIUs): Health Project, Vocational Education and Training Project, Peri-Urban
Rangeland Project, Property Rights Project, Road Project, and Energy and Environment Project.
MCA-Mongolia Board of Directors (Board)
MCA-Mongolia was governed by the Board, which had final decision-making authority on behalf of the
Government over implementation of the Program. The Board consisted of 9 voting members and 9 nonvoting members.
The voting members included: the Prime Minister, who served as Chairman of the Board, the Minister of
Finance, the Minister of Roads, Transportation and Tourism, the Minister of Education, Culture and Science,
the Minister of Health, and the Minister of Construction and Urban Development, one representative of the
private sector, and two representatives of civil society.
Non-voting members included the chief executive officer of MCA-Mongolia, the general counsel of MCAMongolia, the State Secretary from the Ministry of Social Welfare and Labor, the State Secretary from
the Ministry of Food and Agriculture, an observer appointed by MCC, one representative of the private, and

three representatives of civil society.

Subject to MCC's rights of approval as set forth in the Compact, the Program Implementation Agreement,
or in any Supplemental Agreement between the Government or MCA-Mongolia with MCC, the Board had
the responsibilities and authority, and operate, as provided in the Accountable Entity Guidelines.
The composition of the voting members was changed after the General Parliamentary Election of 2012.
After the election the Government of Mongolia re-structured its organization of the Ministries, thus
resulted in minor re-composition of the voting members or the Board.
Pre General Parliamentary Election of 2012:
After General Parliamentary Election of 2012:
Composition of the voting members of the Board Composition of the voting members of the Board


Prime Minister of Mongolia

Minister of Finance
State Minister, Head of the Cabinet of the Government of Mongolia
Minister of Road, Transportation, Construction
and Urban Development
Minister of Education, Culture, and Science
Minister of Health

Minister of Mineral Resources and Energy


Minister of Social Welfare and Labor

Stakeholder from civil society
Stakeholder from civil society
Stakeholder from private sector


Prime Minister of Mongolia

Minister of Finance
State Minister, Head of the Cabinet of the Government of Mongolia
Minister of Road and Transportation
Minister of Economic Development
Minister of Health
Minister of Nature, Environment, and Green Development
Minister of Labor
Stakeholder from civil society
Stakeholder from civil society
Stakeholder from private sector

MCA-Mongolia Technical Secretariat

MCA-Mongolia was managed by a senior technical staff consisting of qualified experts from the public and
private sectors. The Technical Secretariat included a CEO, a chief operating officer, a chief financial officer,
a general counsel, a procurement officer, an environmental and social assessment officer, a monitoring
and evaluation officer, a communications officer, a property rights project director, a peri-urban rangeland
project director, a vocational education and training project director, a health project director, a road project
director, and an energy and environment project director. The Technical Secretariat was supported by
appropriate professional and administrative personnel as agreed with MCC.
MCA-Mongolia Stakeholders Committee
MCA-Mongolia established a stakeholders' committee consisting of no more than 25 voting members who
represent the beneficiaries of the Program. The Stakeholders' Committee was an independent of MCAMongolia.
The Stakeholders' Committee served as a mechanism to provide representatives of the private sector, civil
society and local and regional governments an opportunity to provide advice and input to MCA-Mongolia
regarding the implementation of the Program. MCA-Mongolia provided such information and documents to
the Stakeholders' Committee as it deemed advisable, subject to appropriate treatment of such information
and documents by the members of the Stakeholders' Committee. The members of the Stakeholders
Committee were representatives of not-governmental not-for-profit organizations that had experience
related to the Compact goals and aspects.
In the final year of the Compact implementation, the Stakeholders Committee consisted from 16 nongovernmental and non-profit organizations that were related to the Compact activities and shared mutual goal.
LIVES CHANGED - Completion Report





Education and
Training Project

Property Rights Project

From 2000 to 2011, more than 380,000 Mongolians left their
traditional nomadic herding livelihood migrating from rural areas
primarily for Mongolias three biggest cities Ulaanbaatar,
Erdenet and Darkhan where they settled either in suburban
ger areas or in peri-urban rangeland areas.

Health Project

Road Project

Energy and
LIVES CHANGED - Completion Report

Convert land rights

to land ownership,
Use as collateral for
home or business loans,
Focusing on re-settled
ger- and peri-urban
area populations.


Property Rights Project

From 2000 to 2011, more than 380,000 Mongolians left their traditional nomadic herding livelihood
migrating from rural areas primarily for Mongolias three biggest cities Ulaanbaatar, Erdenet and Darkhan
where they settled either in suburban ger areas or in peri-urban rangeland areas.
Although such migrants have land ownership rights in their new living areas according to Mongolian law,
1) a complicated registration process and associated expense and 2) a State Registry lacking resources for
necessary changes to improve services made it difficult for the new arrivals to become owners in fact.
To improve accessibility to the formal system for recognizing and transferring land rights, for issuing
accurate, fully marketable private land titles to ger area residents, and in fulfillment of the agreement
between the Government of Mongolia and Millennium Challenge Corporation (MCC), the Government of
Mongolia agreed to
De-centralize the registration process and to
Provide office space suitable for the State Registry in the Chingeltei, Bayanzurkh, Songinokhairkhan and
Bayangol districts of Ulaanbaatar, in the main office in Ulaanbaatar, and around the country, and
The Millennium Challenge Account Mongolia (MCA-Mongolia) Property Rights Project (PRP) proposed an
action plan to:
Upgrade the physical office space, information technology and business process of the State Registry;
Supply Global Positioning System (GPS) equipment and other technology to improve the geospatial
infrastructure necessary for accurate land parcel mapping
Privatize and register land rights
Privatize and register 75,000 land parcels
Support legal and regulatory reform and thereby,
Support improved registration of land plots in ger areas of districts in Ulaanbaatar and eight regional
centers where migration and demand were heaviest.
In time, expected changes to Government of Mongolia policy, legal, regulatory and business procedures
and 2) the MCC investments in technical assistance and equipment together are predicted to lead to a
self-sustaining, fee-based registration process, generating revenues needed to support an easily accessed,
secure system for recognizing and protecting real property rights. Accordingly, PRP support focused on
two principal activities.

LIVES CHANGED - Completion Report


The needs
Start with those socio-economic
groups most at risk typically
low income and single heads of
households and their right under
Mongolian law to own the land they
occupy and continue with the need
Respond to the trend of rural-tourban migration which more than
doubled urban areas but left the newly
re-settled all but deprived of their land
rights by a complex and costly process
Reconcile inconsistency,
recommend changes for legal and
regulatory framework and for related
policies to implement institutional and
procedural reform necessary to install
a self-sustaining, secure system for
recognition, protection and transfer of
real property rights over the long term
Simplify and reduce costs
associated access and use of land
rights system, introducing new
technology for issuing accurate, fully
marketable land titles to ger- and
peri-urban area residents, thereafter
making such data accessible for
stakeholder official purposes, including
land used as loan collateral
Co-operate with state registrars,
implement plans for a simplified
and consolidated state registry
organizational structure; reconstruction of land offices,
installation and testing of satellite and
information technology; conducting
geo-satellite surveys and field visits
to classify land plots in selected
areas; title conveyance for those not
previously registered and desiring


Project Activities
Activity 1: Land privatization and registration system improvements
With stakeholders and with advice of its own technical experts, the PRP identified and recommended
improvements for efficient, cost-effective land registration, specifically,
Upgrade of geospatial infrastructure including provision of Continually Operating Reference Stations
(CORS), supply of Global Positioning System (GPS) equipment to regional land offices, and training on
the use of each;
Upgrade of State Registry central office space, information technology and business processes;
Offices established in four districts of Ulaanbaatar, and similar upgrades of State Registry offices in
eight regional centers;
Creation of, and support for Land Market Specialist positions to help applicants to resolve issues
related to land privatization and registration;
Training of land office staff in land law, land mapping, use of satellite imagery, and processing of
applications for privatization of ger area land plots.
Activity 2: Ger area land plot privatization and registration in Ulaanbaatar and eight
regional centers
With concurrence of stakeholders and with work specified by PRP and undertaken by its contractors, PRP
set as goals:

Approximately 53,0001 land plots privatized and registered;

Main utility corridors identified and mapped;
Public land areas (parks, schools, public buildings, etc.) within the ger areas mapped;
Project environmental, social, health and safety impacts identified and managed consistent with World
Bank Operational Policy on Involuntary Resettlement.

These two principal activities and associated tasks with technical assistance and investments in related
equipment were supported by MCC allocations of $15.7 million of its $284,911,363 grant between 2008
and 2013.

The original target was 75000 parcels. After the start of the PRP implementation, PIU had collected information on the status of
parcels as well as assessed the number of plots to be privatized and registered within the project target areas. Results of the
assessment had showed that plots to be titled within the PRP activity can be reached to maximum 53000. Based on that, PIU
proposed an amendment to the compact decreasing the target of 75000 to 53000, which was approved in November 2011 by
MCC and the Government of Mongolia.

LIVES CHANGED - Completion Report



land plots in regional centers and 38,806 land plots in

Ulaanbaatar were visited for field reconnaissance work


regional centers land plots privatized, registered and titled


titles were registered in Ulaanbaatar


Project Implementation, Results,

and Sustainability
Activity 1: Improve Land Privatization and Registration Systems
Specific to Activity 1, PRP completed the following Tasks:
Task 1: Evaluate laws, regulations, and administrative procedures, with recommendations to simplify
procedures and reduce costs associated with land privatization, registration and exercise of land rights
Key actions - PRP
- Analyzed Mongolian land privatization and registration legal environment. Outputs:
Recommended revisions to address legal inconsistencies identified, providing revised draft
amendments and appropriate legislation. Status legislation remains pending with Parliament
for approval.
- Assessed matters related to 1) dispute resolution, 2) the National Land Information System, 3)
the addressing system, 4) bank access to registration and land cadastre information, mortgage
and foreclosure, 5) servitudes for public utilities, 6) mapping standards, and 7) notaries,
Outputs: Issued reports for each with recommendations for improvements.
- Assisted with 1) the formation of a GASR-ALAGaC working group to improve information
sharing and 2) identify and eliminate redundancies related to simplified, less costly land
ownership registration. Outputs: A draft Joint Regulation on Transfer, Exchange and Sharing of
Information and Data between GASR and ALAGaC. Status: Regulation remains pending approval
with Parliament.
- Assisted the Ministry of Road, Transportation, Construction and Urban Development
(MRTCUD)s legislative working group with the conceptual framework for a new land law.
Outputs: Inputs into the new land law. Status: Law now pending at the State Great Hural.
Task 2: Improve business processes/procedures, supervise information technology upgrade supporting
registration of rights to immovable property to include digitization of all current registry data and develop a
new property rights registration application
Key actions Phase 1 Analysis, Solutions, Training PRP with Consultants completed in year one
of contract: 1) business processes and procedures, analyzed and assessed; 2) legal review conducted;
property registration IT systems for new GASR environment assessed, with detailed IT specifications
and bidding documents prepared; 3) architectural plans for renovation of the central registration office
and 12 district offices submitted; and 4) training program and materials and an implementation plan for
activities for the remaining two years of the project, designed and approval for same, obtained
- Recommended termination of contract with consultant - With the completion of Phase 1
deliverables, on June 1, 2011, MCA-Mongolia terminated its contract with Consultant company
citing Contract clause 2.7.1 (f) in CEO official letter #01/132, on May 2, 2011.
Termination of contract led to the following actions Implement recommended and accepted
modernization modules adjustment - Following termination of contract with consultant, MCAMongolia/PRP:
- Divided Phase 2 IT system implementation activities into 1) an oversight component consisting
of three individual consultants for IT infrastructure, Data Conversion and electronic property
registration system (ePRS); and 2) a sustainable implementation component; each with new
terms of reference (TORs), with consultants engaged through separate procurements and with
LIVES CHANGED - Completion Report



state registry buildings had

been upgraded and rehabilitated

management team, state
registrars, and related
stakeholders were trained

Continuously Operating
Reference Stations (CORS)
installed in urban areas


scopes of work adjusted for lost time.

- Amended revised bidding procedures and extended deadlines allowing bidders to supply their
own methodologies and tools for digitizing a paper archive.
- Selected as consultants: (1) ORGUT Consulting AB of Sweden in Joint Venture with COWI AS
of Denmark, (2) Joint Venture of MCS Electronics LLC and ILS-A Manatron company (ILS-A
Manatron replaced by SK C&C in January, 2013), (3) a consortium of International Land Systems
Inc. USA and Monmap LLC Mongolia; (4) Centre for Architectural Research and Design (CARD)
of the Mongolian University of Science and Technology; (5) Antec LLC, Ekbis LLC, Polisan LLC,
NAZU LLC, Munkh zagvar LLC, Bersum LLC, DCH LLC; MCA-Mongolia subsequently terminated
contract with NAZU LLC for reason of fraudulent practices; (6) Education Channel Television
Mongolia. Selected consultants, respectively, their Key Actions, Phase 2 Component as listed
Key Actions Phase 2 Component (as modified)
(1) Sustain implementation of new property rights registration system:
- Assessed Property Rights Registration Department operations and service.
- Outputs: Recommended necessary changes to the business processes and procedures, financial
accounting and legal environment incorporating same into a new operations manual written by
the consultant.
Developed 1) Strategic & Sustainability 2) Training and 3) One Year Business Plans
Developed recommendations for an organizational policy and effective management of
resources, including physical and human assets.
- Conducted training for 350 staff including members of management team, state registrars and
related stakeholders, including preparation of training materials and evaluations.
- From proposed sub-activities (22) to support six Key Strategic Aims, 13 are implemented or
under preparation, 3 are partly implemented and 6 activities have not been implemented or
have not been started yet. (2 should be only started after data is harmonized and improved2)
(2) Supply Electronic Property Registry System and IT Equipment system, to digitize property rights paper
archive and to develop electronic property registration system (ePRS):
- Outputs: Equipped state registry offices in eight regional centers, Chingeltei and Baganuur
districts and GASR with systems as specified, including next generation firewalls and routers,
back-up and monitoring systems and a disaster recovery system with nightly back-up of data.
- Digitized and migrated 12,038,3573 pages of property rights archive folders in eight regional
centers and four districts of Ulaanbaatar.
- Developed a web-based, Electronic Property Registration System (ePRS) as the principal source
of information on legal rights to real property, introducing new system efficiencies including
digitization software and strengthened revenue collection functions. Originally the Compact
was designed that NLIS will be operating, when the ePRS system launches. Unfortunaltely,
NLIS was not functional nor developed properly4. Therefore, the ePRS system was developed
without linkage with the NLIS. System integrates 11 external agencies5, provides centralized,
online registration for GASR state registrars and for general and professional users including
banks, tax offices, notaries, companies and local and international investors. System design
allows all aimags and districts to join the electronic system, in time effectively extending the
Final report-The sustainable implementation of the new property registration, WB03000, OCCM
The Numbers in the table combined from contractors final report.
The Government of Mongolia is intending to develop the NLIS within the NSDI development framework that will be implemented
between 2013-2016. At this moment, the feasibility study for NSDI is started.
Taxation authority, court, anti-corruption agency, procurator, police office, commercial banks, land administration authority, custom
office, notary, social insurance .

LIVES CHANGED - Completion Report



pages of property registration have been digitized as part of PRPs

Upgrade of information Technology of Property Rights Registration
Department activity (9 August, 2013)


geodetic control network points were



registry system to all parts of the country. The system is also designed to promote ease of use,
efficiency, and reduction of mistakes.
Status: ePRS was put into place in August 2013 and the system is fully functional within the
project target areas.
Outcome: expected outcomes are decreased time/cost for immovable property and land registration and
transactions and increased use of the formal property system.
Predicted outcome/effect on credit: Mongolias property registry now updated provides for
registration of rights on both immovable and property consistent with financial institution standards
to advance credit secured with property. This should lead 1) to increased efficiency and time/cost
saving, 2) to increased access to credit and reduced interest rates for Mongolians who qualify to
purchase homes, apartments and other property.
Output: The new ePRS identifies applicant gender missing from the old land registration process
and is predicted to enable easier assurance of equal treatment.
(3) Upgrade geospatial network and GIS mapping in suburban Ger Areas - Contractor
- Outputs: Upgrades to existing geodetic control network points in project target areas, and
Continuously Operating Reference Stations (CORS) and RTK-Global Positioning System (GPS).
Status: delivered 6 CORSs and 16 RTK-GPSs and functional orthorectified satellite imagery to
Administration of Land Affairs Geodesy and Cartography (ALAGaC) and regional land offices,
and thereby,
- Ensure accurate topographic and cadastral boundary mapping for Ulaanbaatar and eight
regional centers through continuous updating.
- Output planned: NLIS/GASR linkage. Status: GIS map not linked to NLIS as planned due to
the fact that NLIS is not operational. With no fix expected, MCA-Mongolia terminated further,
planned related work. Next steps: Government of Mongolia is intending to develop the NLIS
within the NSDI development framework, which is starting in 2013.

Mongolia land fact:

What is a khashaa?
- Khashaa is wooden fence that defines boundary of land parcel
What is a kheseg?
- Kheseg is informal subdivision of khoroo, which is the smallest administrative unit.
What is a cadastral survey?
- Cadastral survey is the process of measuring the land parcel boundaries using surveying equipment.
What does ortho-rectified mean?
- Ortho-rectification is the process of generating vertical parallel viewed image from perspective image (aerial
or satellite) using special geometric formula.
Output: Reconnaissance work had become a base of PRPs khashaa plot privatization and registration
activity as well as Governments policy making on land related issues in the future.

LIVES CHANGED - Completion Report



Output: Accurate GIS prepared maps of project khesegs/areas using the ortho-rectified satellite imagery
with overlays of khashaa plots already registered: khashaa plots already privatized, but not yet registered,
khashaa plots whose maps boundaries are no longer accurate as shown by the imagery, unmapped plots,
public land and utility corridors. The new maps show parcel boundary and building plot mapping accurate
to the 1 m and reduce the topological errors of parcels maps of the project areas that were used for
privatizing and registering khashaa plots.
Output: Training for land officers and ALAGaC staff in monitoring and updating of property boundaries in
cadastre database and land officers through satellite imagery, differential GPS equipment and CORS and
related applications. Outcome: Less time for cadastral transactions. Training led to improved service in
less time: average visit to register a khashaa plot,with accurate documents takes 5 minutes6.
(4) Design and management oversight of property registration office renovations PRPs contractor.
- Outputs: Developed site-specific Environmental Management Plans (EMPs) and Hazardous
Waste Materials Management Plans (HWMMP) for each of 11construction sites to identify
potential adverse environmental and social impact associated with the renovation work and to
identify, safely dispose of, and avoid any re-introduction of any hazardous materials into project
(5) Renovation of State Registry Offices by local contractors PRP selected:
Outputs: 117 (twelve) offices rehabbed in Ulaanbaatar and regional centers, new procedures
Expected Impact: Decreased time to conduct a land transaction
- Local contractors (seven), awarding renovation contracts (7) for State Registry Office buildings
11 as follows:
Lot 1 consisting of GASR Building #1 and #3 NAZU LLC was selected, but according to Clause
64.2 (h) of its contract, terminated on December 27, 2012 with the issue of CEO Termination
official letter #01/800
Lot 2 consisting of Chingeltei, Baganuur districts, Tuv and Khentii aimags: Antech LLC was
Lot 3 was further divided as four lots and contracts concluded with: Munkhzagvar LLC in
Khovd, Bersum LLC in Zavkhan, Polisan LLC in Erdenet, DCH in Uvurkhangai, and Ekbis LLC in
- MCA-Mongolia ESA team monitored and checked all phases of the renovation process to ensure
compliance with environmental and hazardous waste material abatement plans.
Outcome: Environmentally and socially sound construction methods adopted. Project implementation
introduced Mongolian construction companies to site specific environmental and hazardous waste
control and disposal standards, with a carry over to a favorable environment (safety standards observed,
protections) for the construction workers themselves, and thereby, educating workers and setting their
expectations for future labor contracts
Outcome: Import and sales of asbestos banned and with the support of the Ministries of Road,
Transportation Construction & Urban Development and of Nature, Environment and Tourism, the
Government of Mongolia adopted order No.192 dated July 14, 2010, which bans the import and sales of
asbestos and asbestos made products in Mongolia. As of mid-2012, 26 tons of asbestos and asbestos
products had been detained at Mongolias border
Time for actual field measument of a plot boundary with support of CORS and using RTK-GPS.
While the ITT has 15 offices rehab/established, 11 offices were rehabilitated. 3 offices were not rehabilitated under the project
as: (i) Premise provided by GASR for Dornod registry office contained friable asbestos and thus not acceptable, (ii) GASR could not
provide conclusive premise for Songinokhairkhan district registry building, (iii) The Government of Mongolia has built new Governors
office at Bayanzurkh district which had space for Bayanzurkh registry office, therefore the Project did not do any rehabilitation


LIVES CHANGED - Completion Report



Output: Socially sound methods extend to disabled Site specific plans include accessibility for disabled: ramps
for wheelchair users and separate toilets.
Impact: Fraud detected, prosecuted
MCA-Mongolia found NAZU LLC had engaged in fraud related 1) to competition for the contract and 2)
to a performance security deposit; and finally, had failed 3) to meet standards for satisfactory renovation
work. Accordingly, after termination of the NAZU LLC contract and a series of arbitration meetings to
resolve claims, the two parties agreed to MCA-Mongolia retention of a renewed Performance Security
deposit and payment for completed work and work beyond the original contract that was deemed

(6) Public Awareness and Outreach Campaign - PRP and MCA-Mongolia Peri-Urban
Rangeland Project (PURP):
- Conducted a joint, 18-month public education campaign consisting of television programs, public
service announcements and a print campaign intended to introduce ger area-, khashaa plot-, and
peri-urban residents in eight regional centers to the importance of land rights including how to
information to encourage registration of their plots so as to fully benefit from ownership.
- Viewed the Education Channel Television Mongolia as underperforming expectations concerning
management, initiative and creativity. Based on the recommendations of both projects, MCAMongolia terminated its contract with Education Channel Television Mongolia August 29, 2011;
and following termination, PRP subsequently,
- Brought public education activities in house and, using PRPs own resources, supplemented
by the MCA-Mongolia communications team, from 2012 on, continuing the campaign through
individual, project contracts primarily with media/TV channels in Ulaanbaatar and in eight
regional centers, an approach which proved effective.
Activity 2: Privatization and Registration of Ger Area Land Plots
Specific to Activity 1, PRP identified two Tasks as follows:
Task 1: Regional center khashaa plot privatization and registration PRP, with contractors Geomaster
LLC, ATTP LLC, Asme-Mon LLC and Aerogeodesy LLC:
- Established regional center working groups consisting of members of local authorities, PRP
local representatives and contractors;
- Developed new guidelines and work sheets for contractors for the assigned task: related to laws
and rules for land privatization and registration, including:
Number of Households Co-habitating per One Khashaa Plot
Neighboring Khashaa Plot Owner(s)
Land Rights Illegally Transferred to Others
Unresolved Disputed/Conflict Land Plots
Individual Land Ownership Receipt With Land Ownership Certificates
Voluntarily Non-Beneficiarys No Objection
List of Khashaa Plots for No-Objection
List/Receipt Form of Required Land Registration Documents;
- Conducted field reconnaissance visits of khashaa plots in eight regional centers, privatization
and registration of possible khashaa plots;
LIVES CHANGED - Completion Report


The firsts
First project of its kind to deliver real results, namely, a state-of-the-art system not just
recommendations for privatization, registration, and transfer of property rights with staff trained
in its use.
First Registration includes gender category, capability to disaggregate participant data by gender.
System recognizing gender effectively supports equality, encourages women to became owners of
land in their own right, while offering stakeholders access to data for statistical purposes such as
a measure of socio-economic progress.
First Protections environment and for financial loss added to land registration process to identify
illegal plots not in compliance with either Land Use Plans or land- related laws such as the Law
on Water, Law on Household Waste and related construction norms and regulations. Illegal plots,
typically included those located within flood protection zones, fuel tank protection zones, close to
power transmission lines/high voltage protection zones and public utility corridors.
First Land Market Specialists positions defined, staff hired and trained to help applicants to
resolve issues related to land privatization and registration.

The highlights
Joint Regulation on
Transfer, Exchange and
Sharing of Information
and Data, a draft based
on series of discussions
and agreements with
stakeholder organizations,
eliminates duplication of
effort, reduces transaction
costs, reduces errors.


Digitized records,
secure and protected,
now accessible via a
web-based, Electronic
Property Registration
System (ePRS) linking
13 networked State
Registrars, and accessible
to other external users
banks, lending institutions,
tax offices, notaries for
official use.

cadastral maps serve as
tutorial for both formal
and informal, on the
job training introducing
concept of private
property in contrast to
nomadic understanding of
land use/land rights.

- Coordinated hand-over of land ownership certificates to citizens;

- Conducted public outreach in collaboration with government organizations;
- Concluded reconnaissance work with hand-over of results to local land and State Registry
Offices, including all land ownership documents of citizen and the individual and data base used
to record/ track individual and parcel data.
Table 1 Results8 of Field Reconnaissance Plots, By Regional Center
Previously Registered Plots *
Beneficiary Plots
Recon Plots Total
No conflict Conflict** Refusals*** Titled****

Not titled*****

1 Darkhan
2 Erdenet
3 Zuunmod
4 Arvaikheer
5 Uliastai
6 Khovd
7 Undurkhaan
8 Choibalsan









Plots privatized and registered prior to PRP project implementation

Plot conflicts include boundary, owner and other document related issues
Refused PRP registration and related land possession assistance
Plots reistered and titled within PRP activity
Not titled for reason of unresolved conflict/dispute or unavailability of owner

Plots with following type of issues were not titlied within the PRP activity:Located in restricted areas
(utility corridors, flood areas, restriction zone of petrol stations and funeral areas);
Located outside of land management plan or areas that are not intended to allocate to individuals;
Have a boundary disputes with neighbor plots or overlapped with public land;
Unavailability of legal possessor or authorised representatives in what ever reasons i.e. serving in jail,
in abroad etc.
Oversized against 700 sq.m allowed by law once free of charge and possessor does not agree to
decrease the size of plot;
Illegally extended;
Legal owner passed away and inheritance not opened up yet (legally open up in one year period).

Task 2: Conduct Reconnaissance for Ulaanbaatar khashaa plot privatization and registration
MCA-Mongolia and Ulaanbaatar City Mayor signed a Memorandum of Understanding (MoU) March 22,
2013 which specified both PRP activity and local government support for same. Accordingly, PRP, with
contractors Asme-Mon LLC, Geomaster LLC:
- Classified approximately 36,400khashaa plots within selected areas of Songinokhairkhan (SHD),
Chingeltei (CHD) and Bayanzurkh (BZD) districts of Ulaanbaatar relative to registration status;
- Delivered land ownership certificates to citizens;
- Conducted extensive public education land registration and land rights public education campaigns;
- Coordinated work with government organizations and concluding with submission of
reconnaissance work results/records to relative land and registry offices;
- All plots that can be privatized according to the law and land management plan, will be
privatized and registered from March July 2013.

Final report of the formalization contractors-AsmeMon LLC, Aerogeodesy LLC, ATTP LLC and Geomaster LLC
LIVES CHANGED - Completion Report


Who? PRP immediate beneficiaries include a population eligible to own land, but particularly
those in low income and single heads of household categories and living in re-settled ger and
peri-urban areas and most in need of land title for use as loan collateral.
What? PRP invests in construction, satellite and information technology, training in its
operation, and technical assistance
Why? PRP responds to an immediate trend land ownership associated with re-settlement
created by migration to urban areas and anticipates extension of future needs with openended information technology architecture, ultimately benefiting entire adult age population
eligible for land ownership while adding to economic and job growth in financial sector,
building and construction, businesses
Where? PRP selected areas in Ulaanbaatar and 8 regional centers
How? PRPs strategic approach included recommended 1) changes to Government of
Mongolia policy, legal, regulatory and business procedures; together 2) with investments
in technical assistance and equipment with an objective of delivering a self-financing, feebased, fully functioning, low-cost and accessible land privatization, registration, titling system,
managed by professionally trained technical and service staff
Whats next?
PRPs legacy an open-ended, state-of-the-art information technology architecture supported
by satellite imagery in time, will extend the socio-economic benefits of land registration to
Mongolias entire adult population qualifying for land ownership


Table 2 Results9 Field Reconnaissance, Ulaanbaatar

Results of UB recon and formalization activity
Previously Registered Plots Beneficiary Plots

No District

of plots
executed Total





and disputes

Refusals Titled
and disputes





solved by
the contractor

Unavailable of


Protecting people and the environment: Land registration can never be free of environmental and
resettlement issues, nor should it. In part, land registration should include protections for both. The land
registration process identified for stakeholders those land plots not in compliance with either the Land
Use Plans or additional land related laws, such as the Law on Water, Law on Household Waste and related
construction norms and regulations so as to protect the environment, to prevent possible financial loss for
those attempting to register such plots, only later to be resettled, and to protect inhabitants physical well
being: illegal plots, typically, included land located within a flood protection zone, fuel tank protection zone,
close to power transmission lines/high voltage protection zone and public utility corridors.
Output: Within the project activity, 10921 titles in eight regional centers, 8436 titles in Ulaanbaatar have
been issued to individuals.
Outcomes: It is expected that legal registration of land plots will increase land tenure security, increase
the use of land plots as a collateral, and increase sustainable investment on registered land plots and
related property value.
PRP helped register previously excluded land owners re particularly at risk groups including low and
middle income groups, single parents, the elderly and the disabled. The net effect for individuals, aware
of the possibility of land ownership and further, the opportunity for use as collateral for home or business
loans, conferred new assets and provided the knowledge on how to benefit from same, raising prospects
of an improved standard of living. Process recognizes women, women participation. Beginning with a
simple addition of gender identity to land privatization and immovable property ownership registration
and privatization process, land officers and state registrars had the ability for the first time to disaggregate
data for khashaa plot owners, posscessors, and other residents by gender, and could encourage women to
become owners of land in their own right.
Outcome: The project expects to see women increase use of the formal land system. Project informed
and encouraged to register through effective awareness raising campaigns and outreach activities, women
responded; and when they had questions, they found help in the persons of newly trained land officers and
state registrars following gender protocols what to do and say when women asked questions. PRPappointed Land Market Specialists (LMSs) also served gender focal points for the duration of the project.

Final report of the formalization contractor-AsmeMon LLC

LIVES CHANGED - Completion Report


Key Findings
Regularly brief key parliamentary leaders and policy makers on key issues and
related legislative amendments requiring their support and critical to timely
realization of shared project/beneficiary goals.

Allow project management flexibility to adjust tasks and priorities so as to

remain consistent with beneficiary policy change(s).

Include clause to effect proper transfer, receipt and provision for training in use
of expensive equipment as Compact condition.
Evaulate/eliminate contract management procedures, which compromise PIU
actions and deliverables.

Manage essential contractor tasks so as to mitigate exposure/risk in the event of

failure to perform and contract cancellation.


PRP proposed a series of recommended amendments to improve the legal
and institutional environment for Urban Land Privatization, Registration and
Exercise of Rights to Land. Officials at Authority of Land Administration,
Geodesy and Cartography, General Authority for State Registration and
Ministry of Construction and Urban Development are well aware of the current
situation and issues, but lack of support and understanding from policy-level
decision-makers to effect necessary resolutions and amendments.
Cancellation of an Improvement of business processes & information technology
of the system for state registration of rights to immovable property contract
nonetheless left PRP with an obligation to execute no longer relevant, associated
tasks; similarly, PRP managed through tasks conflicting with shifting government
policy/priorities with each change of leadership (GASR, four changes; executive
administration, three changes) during the course of the project.
PRP donated equipment and upgraded the geospatial infrastructure, office
space and information technology platform in relevant government agencies.
PRP replaced a key partner of joint venture Thomson Reuters Manatron for a
failure to perform resulting, in the view of PRP, an unnecessarily complex, time
consuming procedural process to replace the contractor. The procurement
process overall could benefit 1) from more focus on spot checks, leading to 2)
time better spent, focus on key issues as may be identified overall, and, finally,
3) from an analysis so as to eliminate steps/reduce time required for valid
After the failure of a Consultant company, PRP split the assignment into two
activities: Sustainable implementation of new property rights registration
system and Electronic Property Registry System, IT Equipment for Property
Registration Department of General Authority for State Registration.

LIVES CHANGED - Completion Report


Opportunity Knocks.
Land ownership opens up economic
possibilities for women

My intention to make positive

changes in our lives have not
always led in a straight path but the
challenges and difficulties have given
me strength and hope.
Having formal land title definitely
aids our efforts to enhance our
livelihood and get out of poverty.
Many opportunities come along with
Our case also shows that regardless
of sex, age and other social factors,
if we come together and collaborate
with each other, we can make a
difference in our lives.
This was the helping hand that people
like us needed.

Ms. Baigalimaa, single head of

household, titled land owner,


Living in a rented room in Erdenet in 2008, Ms. Baigalimaa knew she wanted better, lacked a stable income
and had few job opportunities. Her self-help solution was to organize the Neighbors Friendship Cooperative
composed of other women like herself.
The group succeeded in applying for several grants from international donors to build a fence, to extend
the electricity grid and to dig wells but lacking collateral her housing situation remained the same. That
changed with a knock on her door.
MCA-Mongolia Property Rights Project contractor, in a yellow vest and name tag, explained to me that
land once privatized becomes an asset which can be used as collateral for bank loan to build a house or
grow vegetables and fruits.
Learning she was eligible for land and how privatized land could work as an asset, Ms. Baigalmaa began
the process to acquire land and encouraged her friends to do the same. With their land as collateral, and a
housing loan in hand, Ms. Baigalmaa and her cooperative built six houses and provided four gers to other
cooperative members. In the future the cooperative is also planning to grow vegetables on their land for
their household use, selling the surplus for the groups profit.
Previously, privatizing land seemed for us a difficult goal to achieve, since we heard its a long tedious
process with heavy bureaucracy. We knew very little about the whole complicated procedure. MCAMongolia contractor familiarized us with the process, collected our relevant materials and soon we all
received our land ownership certificates, which didnt take any time and expense from our side.
LIVES CHANGED - Completion Report










May 09,

October 18November 01, 2008

March 26,

December 10,


July 14,

August 08,

March 18,

April 21,

January 01,









March 16,



March 22,

December 02,

October 06,

September 16,

January 06, 2012January 06, 2013

August 2012June 2013




10,900 KHASHAA


LIVES CHANGED - Completion Report






Education and
Training Project

Peri-Urban Rangeland
After the collapse of socialism in the early 1990s, Mongolias
transition from a command economy to a free market
economy left many Mongolians jobless and desperate.

Health Project

Road Project

Energy and
LIVES CHANGED - Completion Report

Invest in improved land and herd

management techniques,
Improve herd quality,
Supply a
for meat,
dairy, related
Increase herder
Impact: Decline of the pure bred Black-and-Whites
As of 1990, more than 19,000 imported pure bred Black-and-White cattle produced between 3,200
liters and 3,800 liters of milk per head annually; by 2004, only 1,700 head of pure bred Black-and-White
cattle and another 1,200 mixed bred cattle remained. The net effect: in-breeding from drastically
reduced numbers of pure bred stock and mixed-breeding with indigenous stock led to inferior breeds and
production of 1,900 to 2,200 liters annually per head, halving the herders income per cow, while doubling
his/her workload


Peri-Urban Rangeland Project

After the collapse of socialism in the early 1990s, Mongolias transition from a command economy to a
free market economy left many Mongolians jobless and desperate.
Despite often lacking knowledge and skills, an estimated 131,000 families, nonetheless, turned to
traditional herding for their livelihood: as a result, the number of herder families increased nearly threefold from an estimated 69,000 to nearly 200,000 in the decade from the mid-1990s to the mid-2000s.
Most of the new herding families would settle in the pastoral lands near Mongolias principal urban areas
Ulaanbaatar, Darkhan, Erdenet, Kharkhorin and Choibalsan where their numbers contributed to the
severity of an agri-business already in crisis and worsening by the year, the result of several key, mutually
reinforcing factors/conditions, namely:

Infrastructure failures deplete supply of livestock feed Herders would lose their primary feed
source crop byproducts when newly privatized farms, formerly dependent upon the state for seed,
fertilizer and equipment, and for irrigation system maintenance, but lacking capital access during the
transition from state to private control, experienced crop failures.
Livestock numbers decrease In the early 2000s, successive severe winters (dzuds) followed by a
draught would deplete the national herd by 40 percent (11 million head): an estimated 10,000 herder
households would lose all of their livestock; the national herd of imported, pure-bred dairy cattle would
decline from more than 19,000 head in 1990 to 1,700 by 2004.
Livestock quality deteriorates Herders also would lack access to capital and to scarce veterinary and
animal husbandry support services; in the dairy sector alone, the drastically reduced numbers of pure
bred and dependence on inferior mixed breed stock would cause annual milk production per head to
decline by nearly half.
Overgrazing leads to land degradation and soil erosion Mongolias traditional open range policy
coupled with added herds (volume) concentrated in the vicinity of Mongolias principal cities would
create conditions unfavorable for natural regeneration of grasses and forage plants. Herd quality,
composition and type of grazing would compound this carrying capacity problem. One typical
example: a herder now needed to graze two lower quality dairy cattle to yield the same quantity of
milk produced by one high quality, pure bred cow.

To reverse both land and herd degradation and declining herder incomes, and supportive of the agreement
between the Government of Mongolia and Millennium Challenge Corporation (MCC), respectively,
Guaranteeing the right to use peri-urban pastureland to herder groups over a period of 15 years through
the Land lease contracts corresponds with and is supported by the State Policy on Herders, Mongol
Livestock Program and the National Program to Combat Desertification, all of which were adopted
by the State Ikh Khural. Through these State policies and programs a Pasture Specialist post was
newly established in each soum in addition to a Veterinary and Animal Breeding Unit, so support the
implementation of Project activities, and adhere to the sustainability of the herder groups throughout their
period of pastureland lease.
Furthermore, Project investments to herder groups through MCC funding were made under the condition
to repay a certain amount to foster and support similar activities. The repayment was agreed to be
accumulated in the Soum Development Fund to facilitate the timely repayment and appropriate allocation
of the funds towards pastureland preservation and regeneration activities in addition to supporting other
existing and potential herder groups.

LIVES CHANGED - Completion Report


The needs
Start with changes to applicable
land laws, regulations, and related
procedures to support land leases,
site selection and early resolution of
re-settlement issues related to site
selection land claims, and thereby
Solve for the problem of over
grazing responsible for land
degradation by providing land leases
to herder groups so as to limit
land use to carrying capacity; and
continue with the need to
Improve carrying capacity through
individual herd composition
managed for maximum profit
and minimum impact allowing for
natural regeneration of grasses,
supplemented with cultivated forage
Improve quality of livestock as a
function of improved breeding, access
to veterinary services and shelter to
reduce losses
Improve land management
practices as a function of changed
herder attitudes and applied
Increase value-added production
as a function of herds optimized for


Conform with applicable international and MCC environmental standards and an environmental impact
assessment (EIA) incorporating changes as necessary into an annual environmental management plan
Identify and manage health, resettlement, safety, social impacts consistent with MCC gender policy
and the World Bank policy on involuntary resettlement.

Millennium Challenge Account Mongolia Peri-Urban Rangeland Project (PURP) agreed to support
1) improved rangeland management in peri-urban areas adjacent to Ulaanbaatar, Darkhan, Erdenet,
Kharkhorin and Choibalsan and 2) increased herder incomes with the following specific objectives:

Improve fodder production as a function both 1) of herd composition and size and carrying capacity
of grazing areas so as to promote natural regeneration of grasses and forage plants/reduce land
degradation; and 2) of active cultivation of hay and other forage crops;
Improve land management practices as a function of changed herder attitudes and applied techniques;
Improve quality of livestock as a function of breeding and access to veterinary services;
Increase peri-urban land leases as a function of 1) formation of herder groups, 2) changes as necessary
to applicable land laws, regulations, and related procedures conducive to land leases; 3) site selection
and 4) early resolution of re-settlement issues related to site selection land claims;
Increase value-added production as a function of herds optimized for productivity/profitability.

In time, renewable (15 year) leases signed by herder groups with co-operating soum authorities for
modified exclusive rights to designated tracts of pastoral land would become the key to reversing periurban land degradation and improved herder incomes.
1. Applicable Government of Mongolia laws and regulations as amended and policy/procedures as revised
would provide the basis for leases for selected sites; and together with
2. MCC investments in technical assistance, construction materials, and other aid would support
3. Formation of herder groups; those selected groups assessed as willing to adopt and able to apply land
and herd management techniques, would sign leases with their respective soum governments; and
when proven, Mongolia would have its
4. Long term model for self-sustaining/self-financing rangeland management country wide.

LIVES CHANGED - Completion Report


peri-urban areas, 48 soums


wells drilled sufficient to improve water access

Mongolia land fact:

What is a peri-urban area?
- The peri-urban land areas border metropolitan centers and form a mosaic of often incompatable and
unplanned uses.
What is a dzud?
- A dzud is a severe winter condition consisting of strong snowstorms and extreme cold temperatures.
What is a hectare?
- A hectare is a metric unit of an area defined as 10,000 square meters and primarily used in the
measurement of land.
What is a sheep unit?
- A standard calculation for livestock stocking density
What is intensive farming?
- Intensive farms are the type of farms that raise animals in a shelter at high stocking density to produce
the highest output using concentrate feed, silage, and/or stored hay/fodder through the year.
What is semi-intensive farming
- Semi-intensive farms are the type of farms that raise animals in a shelter to produce the highest output
using concentrate feed and/or stored hay/fodder only during the cold season, and uses more traditional
grazing practices during the warm seasons.
What are formal land rights?
- A formal land rights are that with official land titles.
What are informal land rights?
- Informal land rights are that of subjective nature, and is without an official entitlement.
What is an aimag?
- Mongolia is divided into 21 provinces, which are called aimags.
What is a soum?
- The second level of administrative units are the soums. The soums are the subdivisions within the
What is a bagh?
- Baghs are the smallest administrative unit, the subdivisions within the soum.


Project Activities
To solve for the two related problems of land degradation and low herder incomes, PURP would need to create
a network of contiguously connected herder group tracts in each of the five peri-urban areas. Accordingly, in
cooperation with soum authorities, other counterparts and stakeholders, PURP proposed as joint activities:

Identify and map suitable leasing sites for each of five peri-urban areas;
Lease suitable tracts to qualified herder groups three main centers and two regional centers;
Drill or rehabilitate wells on these tracts to improve water access;
Provide material support to improve rangeland infrastructure and
Provide technical assistance and training to both officials and herder groups.

Accordingly, MCC allocated $12 million of its $284,911,363 grant to support PURP activities, investments,
and associated tasks between 2008 and 2013.

Project Implementation, Results,

and Sustainability
Activity 1 Identify and map suitable leasing sites for each of five peri-urban areas
Specific to Activity 1, PURP identified three Tasks as follows:
Task 1: Evaluate and recommend corrections for any legal, regulatory, institutional, procedural barriers
to leasing land to qualified herders in project areas PURP, with its contractor, the Mongolian Society for
Range Management:
Formed a Legal and Regulatory Committee comprised of nine credentialed pastureland and agricultural
livestock academics to review a proposed Law on Pasture, the Land Law of Mongolia (Article 52), and
the Civil Code of Mongolia (1.2.3 of Article 195, 1.2 of Article 196, 1-6 of Article 198, and 1 of Article
199), and consistent with
Solicited opinions and recommendations from more than 1,800 peri-urban herder households; and
based on both technical reviews and herder views/opinions,
Offered recommendations for the draft Law on Pasture to the Ministry of Industry and Agriculture for
Task 2: Conduct rangeland mapping PURP, in cooperation with GeoMaster LLC and MCA-Mongolia
Property Rights Project (PRP):
Mapped five peri-urban areas using the same MCA-Mongolia Property Rights Project (PRP) upgraded
high resolution (ortho-rectified) RTK-Global Positioning System and Geographic Information System
(GIS) used for mapping ger areas, registering
Recorded data with Administration of Land Affairs Geodesy and Cartography (ALAGaC) and regional
land offices, and thereby,
Ensured an accurate topographic and cadastral boundary record for areas surveyed with responsible
Government of Mongolia authorities, as well as providing data for
Continued analysis relative to site selection based on factors such as water availability, current land
use, estimates of carrying capacity, current forage vegetation.

LIVES CHANGED - Completion Report



hectares of pasture subdivided as

hectares per leased area on

average, leased for


years, exclusive rights with conditions,

renewable, leased to


qualified herder groups 30 led by


Impact: on land administration.

Accurate maps enable soums to administer contiguous tracts, shared water resources and political
boundaries. Maps calibrated with geospatial equipment and accuracy jointly produced with the
MCA-Mongolia Property Rights Project (PRP) in conjunction with PURP developed land use database
provide soum administrators with the data necessary to determine which herder group has land/water
rights where temporary grazing rights and migration consistent with modified exclusive rights principle
and more, all important to quick, accurate adjudication should disputes arise.


Task 3: Identify/survey/assess potential leasing sites in each peri-urban area PURP, with its contactor,
a joint venture comprising the Center for Policy Research, Mongolia, GeoMaster LLC and the Research
Institute of Animal Husbandry, conducted further analysis using GIS maps and topological data as well as
other, relevant criteria, including:

Known current agricultural uses;

Land quality/resources including carrying capacity and forage vegetation;
Monthly precipitation/temperature;
Water resources: location, use rights/claims;
Water quality: dissolved solids, sources of contamination, nearby geologic units;
Migration routes and access to existing infrastructure;
Mining exploration licenses;
Land user profiles: total herder households/herder households by herder groups;
Claims to formal and informal land rights;
Herders willing to participate in the project.
Mongolia land fact:
What is a geologic unit?
- A geological unit is a volume of rock or ice of identifiable origin and age that is defined by the distinctive
and dominant, easily mapped and recognizable by its petrographic, lithologic, or paleontologic features
that characterize it.

Activity 2 Lease suitable tracts of pastureland to qualified herder groups through a public,
transparent and fair process in three main centers and two regional centers
Specific to Activity 2, PURP identified two Tasks as follows:
Task 1: Develop and vet leasehold eligibility criteria for herder groups consistent with applicable Mongolia
law, state policy regulations and MCA-Mongolia project goals and objectives PURP, with its contactor,
the joint venture between Centre for Policy Research NGO, Mongolia and the Research Institute of Animal
rganized workshops and meetings with aimag and soum officials, representatives from the
Ministry of Food, Agriculture and Light Industry, herders and other stakeholders for feedback and
recommendations on proposed herder group criteria.
Task 2: Conduct public education campaign PURP, with 10 television station contractors selected for
their coverage/penetration in the five peri-urban target areas.
Promoted the elements and benefits of the leasing program, beginning with the concepts of land
rights, formation of herder groups, discussion/events, opportunities to express opinions, protections for
Public outreach and awareness activities included a series of TV and radio programs and documentary
films such as Malch uhaan Ajliin amt Ergeh 4 tsag Tanaid honoy Minii mergejil Setguulch
Ganaa mergejlee solison ni had been aired, produced, and broadcasted in 2012. In the last year of
the Compact, public outreach and awareness activities included television programs such as Herder
wisdom, The rewards of hard work, Live Discussions, Beauty of the countryside/steppe, Success
Story: A documentary film and two PSAs.

LIVES CHANGED - Completion Report



herder households, of which

have single female heads

total herder households

collectively own

head (in sheep units) (Sheep
units equate to bog animals:
sheep and goats), but


households own fewer than

200 head of livestock

Impact: On policy.
Selection criteria pending wider use. The PURP developed, stakeholder sanctioned, herder group selection
criteria, and after extensive analysis and review, is now pending approval for country wide use incorporated
into Mongolias State Policy on Herders.


Activity 3 Install wells and supply materials for construction of fences and animal shelter
on the suitable leasing sites
Specific to Activity 2, PURP identified five Tasks as follows:
Task 1: A total of 465 herder groups were to be selected to participate in the project, while due to various
project requirements as well as social and environmental considerations, the total number of herder groups
participating in the project ended up being 387. While for further reasons of dry water points and those
herder groups who already had a well refused the construction and drilling of wells on their land, therefore
a total of 346 wells were drilled and commissioned within the scope of the project, with 11 contractors.
Task 2: Monitor and Inspect Well Construction and Rehabilitation
With its contractors, a joint venture with Bi-Garam LLC and Undur Bar LLC, monitored and inspected
well construction and rehabilitation in Ulaanbaatar, Darkhan and Erdenet peri-urban areas.
With 23 short-term individual consultants monitored and inspected well construction in Kharkhorin and
Choibalsan peri-urban areas.
The well monitoring activity was intended to inspect the installation and rehabilitation process of
wells, including drilling boreholes, well houses, training on well operation and maintenance on selected
rangeland tracts for development of intensive and semi-intensive livestock in the five peri-urban areas
of the project.
Task 3: Support to improve rangeland infrastructure PURP, with its contractor City Design LLC,
Designed and installed signboards on each of the 387 herder group leased land tracts with the
intention of informing rangeland inhabitants of those areas under lease as well as instructions
concerning well operation, water rights/access, migration policy. The signboards provide information
of the total area of land leased by the herder group with a map that clearly defines the coordinate and
location of the total area, as well as locations of the winter/spring shelter and well. Also stated on the
signboards are members of the herder group, and point of contact.
Task 4: Supply fencing and construction materials PURP, with 30 individual contractors, 374 herder
groups received necessary fencing and shelter materials chosen from a list of essential materials available
to supply by the contractors within a set range budget to build and complete warm animal shelters and
fences. The budget allocated to supply materials per herder group wasnt nearly enough to build a complete
shelter. Therefore, herder groups made their own investments to finish building their shelters.
Task 5: Supply alfalfa seed to herder groups PURP, with its contractor, Devshih Tuvshin LLC, herder
groups who have received the permission to plant fodder on their leased land from their local governments
were eligible to receive seeds to plant fodder. A total of 91 herder groups were eligible and have received
a combined total of 2.3 tons of alfalfa seeds. During the first year of planting, alfalfa seeds are not
harvested, therefore, all herder groups will not receive harvest until the following year.
Activity 4 Provide technical assistance and training to both officials and herder groups
Specific to Activity 4, PURP identified two Tasks as follows:
PURP, with its contractor, Center for Policy Research NGO, Mongolia in the form of joint venture with
GeoMaster LLC Research Institute of Animal Husbandry, provided training to herders and government
officials as:

LIVES CHANGED - Completion Report


Impact: Of training on project herder groups. Of all project herder groups*

44.5 percent become contract suppliers for milk, dairy and related products
63.8 percent construct warm animal sheds to protect their dairy and other livestock
67 percent build a hazardous waste disposal site and a toilet
89.9 percent encourage equal participation: members vote when making decisions
100 percent develop an Environmental Management Plan (EMP) with provisions for animal health and
hygiene, safety
100 percent develop Action Plans (2012-2014) which include: animal breeding, animal health, fodder,
shelter; pasture, water resource, environmental; business and risk management, increasing milk yield; land
relations, legal, and conflict resolution; and
100 percent of herder households maintain financial, animal health, pastoral use records
*387 herder groups in Darkhan, Erdenet, Ulaan Baatar peri-urban areas


Task 1: Training related to

Pastureland management: including monitoring rangeland carrying capacity, well operation and
maintenance; capturing precipitation run-off; fodder/feed storage techniques.
Task 2: Training related to
Herd productivity/stock density management; business and marketing.
Activity 5 Identify and resolve potential tract-size, environmental, social, safety, resettlement issues consistent with relevant Mongolian Laws and Regulations, MCC
Environmental Guidelines, MCC Gender Policy and World Bank Operational Policy on
Involuntary Resettlement (WB OP 4.12)
Exclusive use rights to land tracts can lead to displacement of neighboring herder groups, inadvertantly
disrupting and altering the lifestyles for hundreds of families in the project areas - PURP, together with
MCA-Mongolias Environmental & Social Assessment Team, conducted joint field visits to all shortlisted
sites proposed for lease by potential, qualified herder groups to evaluate potential for:
Loss of shelter leading to relocation;
Loss of assets or access to assets, including resources such a s pastureland, water and hayfield access;
Loss of income sources or means of livelihood, including through relocation; and
Involuntary restriction of access to legally protected areas with similar adverse impact on livelihood.
Specific to Activity 4, PURP identified two Tasks as follows:
Task 1: Verify that each short-listed land tract in the Darkhan, Erdenet and Ulaanbaatar peri-urban areas
conforms with revised plot boundaries; meets project design criteria; and identify any condition, conflict or
claim contrary to World Bank Involuntary Resettlement Policy (WB OP 4.12).
Environmental problems included proximity to hay, rivers, streams or mining areas within a two
kilometer radius of the proposed tract;
Social problems included any potential overlap within a 500 meter radius with neighboring herder
groups between participatant herder groups and all other non-participant parties occupying and/
or using land identified as potential lease tracts to avoid loss of shelter, land, assets, or income for
community members not participating in the project;
Validate a revised short list of herder groups for MCC no objection.
Impact: Of verification visits.
Of 403 shortlisted Darkhan, Erdenet and Ulaanbaatar herder groups and their neighbors visited in 2010
by PURP and MCA-Mongolia Environmental & Social Assessment Team, 301 herder groups qualify to
receive leases, 284 groups receive MCCs no objection and 234 sign leases with their soum governments.

Task 2: Verify each short-listed land tract in Choibalsan and Kharkhorin peri-urban area as conforming
with plot boundaries and meeting project design criteria; and identify any condition or conflict or claim
contrary to World Bank Involuntary Resettlement Policy (WB OP 4.12).
In sequence, the herder group and site selection in peri-urban areas Choibalsan and Kharkhorin followed
similar selection in Darkhan, Erdenet and Ulaanbaatar, positioning PURP to apply lessons learned with the
most important of these being herder group and site selection based on inclusiveness. Accordingly, PURP,
with its contractors,

LIVES CHANGED - Completion Report


Impact: On herder methods. Selection criteria and business focus define new herders
Those herders most willing and best suited to adopt and practice land- and herd management practices
to solve their problems on their own with the help of training and an initial investment from MCC
qualified as land lease eligible based on a public, transparent, and competitive selection process
managed by soum-level panels with PURP oversight.
The selection process as implemented for Ulaanbaatar, Erdenet, and Darkhan
1. Herders form groups, meet minimum criteria and accept terms and conditions of contract become
eligible to apply for the land lease program.
2. Shortlisted herder groups undergo training, prepare and submit business proposals.
3. Business Proposal Assessment Panels (3) composed of experts (4) with animal husbandry, livestock
breeding, nutrition, agribusiness and economics backgrounds evaluate and rank business proposals.
4. Highest ranked proposals receive opportunity to sign 15 year land leases.
5. Balance of proposals meeting minimums revert to lottery.
The results of 300 herder groups
1. 266 herder groups score 60 points or higher.
2. 90 highest ranking herder groups offered long-term use rights to peri-urban pasture.
3. 210 of 300 herder groups and additional 25 herder groups with water/well issues selected randomly by
a lottery.
4. Final selection of some herder group land tracts postponed pending resolution of social and
environmental issues.


Substituted a territorial approach based on all herder households residing bagh for Choibalsan and
Kharkhorin versus the fixed approach based on herder group winter/summer usage patterns used for
Darkhan, Erdenet and Ulaanbaatar;
Organized mapping workshops to assist herder groups to identify, discuss and agree on land use
Conducted door-to-door visits to households not attending a workshop to determine overlaps in tract
boundaries and to ensure no adverse impact on non-participants;
Conducted seminars for all soum selection panel members and government officials covering selection
criteria and how to evaluate herder group applications;
Confirmed no violations of involuntary resettlement policy;
Selected herder groups based on a randomized lottery process;
Validated a short list of herder groups for MCC no objection.
Seminars attended by a total of 193 soum selection panel members and government officials learned
about guidelines on possibilities to include other soum herders who stay over 180 days within the potential
sites, involuntary resettlement issues, and obtaining no objection letters from neighbors on lease area

Impact: On non-participants.
Inclusive territorial approach to land site and herder selection succeeds in minimizing resettlement issues
for 3,553 herder households residing in a 1.4 million square hectare area.

The territorial approach included, as a base, both those permanent soum resident herders and temporary
residents staying more than 180 days per year within a two kilometer radius of a potential, suitable site
within a 1.4 million square hectare, peri-urban area near Kharkhorin and Choibalsan regional centers.
Herder households. PURP met face-to-face with 3,553 herder households, the known herder population
of 15 soums, both permanent and temporary, of which 2,231, herder households, or 64 percent expecting
to participate, then attended consultation meetings; of those households attending, 26.9 percent include
female representatives; 1,230 households not expecting to participate, the majority of whom reside outside
the suitable sites, decline to attend consultation meetings.
Individual herders of 5,513 herders contacted, 40 percent were female; and 3,461 individuals attended
consultation meetings.
Non-participants to avoid adversely affecting non-participant, herder households during project
implementation, PURP visited 900 of 1,230 non-attendant herder households requesting each to draw and
sign a map of their pasture boundaries as a reference to either pre-empt or quickly resolve any future land
rights dispute between project and non-project herder households.
Lottery decides. PURP met with 47 bagh governments across the 15 project soums in order to obtain
approvals on applicant herder groups proposed land tracts. Of 332 herder groups, all but three herder
groups in Choibalsan were accepted by the bagh governments; of the 329 herder groups eligible to
participate in the lottery, 165 were selected. Herders groups expressed their satisfaction with a lottery they
viewed as conducted in an open, fair and transparent manner.

LIVES CHANGED - Completion Report


55 332
Participants -

farming and

herder groups

conduct semi-intensive
livestock farming

376 91
received materials
for fencing and
animal shelter

2.4 tons of
fodder seed



percent built
a hazardous
waste disposal
site and a toilet


percent of herder
maintain financial,
animal health,
pastoral use

Impact: on pasture preservation and productivity.

Leases establish basis for self-sustained, self-financed, long term use protective of environment.
Land leases, the focal point of the peri-urban project, grant modified exclusive rights to 387 herder groups
as leaseholders: in short, while leases grant exclusive rights for 15 years renewable certain conditions
obtain which provide emergency access to water in event of climatic emergency, grant limited migratory
rights, and other protections for non-leaseholders.
The leases typically confirm the modified exclusive rights pastures already in use by herder groups; but
insofar as the herder groups earned the lease rights through a selective process based on training in
both land and herd management, which included not only pastoral and breeding techniques conducive
to running a successful business, they come prepared not only to manage their land and their herds for
optimum protection and productivity, but for profitability; and, qualify for leases by demonstrating through
an acceptable business plan, their capability to meet lease payment obligations to their respective soum
In effect, the first round (15 years) of payments, deposited in Soum Development Funds (SDF) accounts
are the herder groups payback to their respective soums for the original MCC investments. For their part,
Soum governments, legally responsible for pastoral infrastructure maintenance and oversight of same,
draw upon their respective to renew the fencing, animal shelters, wells, alfalfa seed, and other projects as
they made decide, to preserve and protect pastureland in perpetuity.
As much as the leases are a legal contract between herder groups and their respective soum goverments
which retain the right to renew or not the leases also impose legally binding repayment terms to the
soums for MCC investments originally made in behalf of the herder groups. Soum goverments, in turn,
are legally responsible for the proper use and maintenance of infrastructure management of leased
pastureland and herder groups, responsible for all administrative costs. A Repayment Handover Act,
passed by the State Great Hural, provides for Agreements on the Repayment of Investments signed
between PURP, the soum governments, and the SDF trustee.
Impact: Of leased tract accuracy on dispute resolution.
Where to draw the line? PURP answered that question through a four step process:
1) Geospatial-generated maps allow for 2) in person, in field due diligence to identify and document those
areas as claimed by non-participants, as well as 3) communal forests, fodder producing areas and water
courses; and 4) by obtaining signed concurrence of neighbors with proposed lease tracts. Recognizing that
accurate leaseholds and stakeholder concurrence could help pre-empt, but not entirely eliminate potential
disputes, should traditional and existing forms of conflict resolution at the local level (e.g., between the
herders themselves) fail, PURP proposed/established on conjunction with soum authorities, a Sustainable
Conflict Prevention and Resolution Process (SCPRP), as a form of alternative dispute resolution specific to
peri-urban land leases, to settle disputes arising short of arbitration and civil suits.

LIVES CHANGED - Completion Report



Environment & Occupational Safety

100 percent of 387 participant herder groups develop an Environmental Management
Plan (EMP) with provisions for animal health and hygiene, safety
100 percent of shortlisted sites proposed for lease by potential, qualified herder groups
visited to evaluate non-participant potential loss of
Shelter leading to relocation
Assets including resources such a s pastureland, water and hayfield access
Income sources or means of livelihood
Social equality
40 percent of 5,513 individual herders contacted as potential participants in land lease
program were female
89.9 percent of 387 participant herder groups encourage equal participation: members
vote when making decisions
1315 households trained, including females comprising 44% of training participants

The firsts

Rangeland principle adopted A modified exclusive land rights principle accepted by

herder groups, reversed the centuries old open range principle and cause for overgrazing
and land degradation, with provisions 1) for reciprocal grazing rights in emergencies, 2)
for regulated crossing of leased land to access common resources; and 3) for necessary
Sustainable Conflict Prevention Resolution & Process established to supplement traditional
conflict resolution administered at the soum level specific to peri-urban land leases to settle
disputes short of arbitration and civil suits.

The highlights
Renewable (15 year)
leases signed by herder
groups with co-operating
soum authorities for
modified exclusive rights
to designated tracts of
pastoral land are expected
to be a key factor in
reversing peri-urban land
degradation and improved
herder incomes.


Accurate maps jointly

produced with the
MCA-Mongolia Property
Rights Project (PRP) and
calibrated with geospatial
equipment enable soum
governments to administer
contiguous tracts each
within their respective
political boundaries,
including management of

shared water resources,

temporary grazing rights
and migration consistent
with modified exclusive
rights principle.

Who? PURP beneficiaries include 387 herder groups representing 1,315 households trained in pastoral land
management and business principles; and by extension, those along the value chain from the herder as the
product source to the end consumer of meat, dairy, textile and related animal products.
What? PURP invested $12.1 million to identify and map suitable leasing sites for each of five peri-urban
areas, lease suitable tracts to qualified herder groups three main centers and two regional centers, drill or
rehabilitate wells on the leased land tracts to improve water access, provide material support to improve
rangeland infrastructure, provide technical assistance and training to both officials and herder groups.
Why? Land leases solve for the problem of open range grazing responsible for peri-urban land degradation by
limiting land use by herder group. Individual herder understanding related to breeds and their impact on carrying
capacity and profitability influences his/her decisions related to herd composition and ultimately, profitability.
Where? Peri-urban areas totaling 340,000 hectares adjacent to Ulaanbaatar, Darkhan, Erdenet, Kharkhorin
and Choibalsan in parts of 48 soums.
How? To solve for the two related problems of land degradation and low herder incomes, PURP, with soum
authorities, other counterparts and stakeholders, would identify and map suitable leasing sites for each of
five peri-urban areas, assist with leasing of suitable tracts to qualified herder groups, drill or rehabilitate
wells on these tracts to improve water access, provide material support to improve rangeland infrastructure
and provide technical assistance and training to both officials and herder groups.
Whats next? The leases co-signed by herder groups and soum governments provide for an initial 15 years
of payments for land use which, in turn, were deposited into a Soum Development Fund account, effectively
the payback for the initial PURP investments.

LIVES CHANGED - Completion Report


Key Findings
Most important PURP experience proves reversal of free range for all as
the basic principle underpinning rangeland access and primary cause for
overgrazing is possible, but only after suitable alternatives offer herders
reassurance and strong efforts at selling in gain acceptance.

Important World Bank Involuntary Re-settlement Policy, when tailored to the

unique elements of nomadic life proved a valuable tool selecting herder groups,
but only with access to livelihood interpreted in a local context. In Mongolia,
access to livelihood could be interpreted as access of animals to grazing areas,
leading to disputes as to whether soum officials were required to obtain no
objections from temporary residents for land they were using but to which they
had no legal claim.


Leverage protections of a modified exclusive land rights principle to grant
exclusive rights to designated groups under normal conditions with provisions
1) for reciprocal grazing rights in emergencies, 2) for regulated crossing of
leased land to access common resources; and 3) for necessary migration.

1) Identify and protect from loss those individuals who face the real prospect of
involuntary real settlement and identify and prevent those individuals not acting
in good faith from taking advantage of the policy.
2) Conduct social and financial impact assessment prior to initiating field visits,
to include income survey, to establish a baseline useful for comparison of
participant and non-participant herder groups.
3) Identify potential loss created through application of involuntary resettlement
policy, which would disproportionately disadvantage poorer herder groups
or allow neighbors to use the policy to advance illegitimate claims, realize
illegitimate gains.

Important establish geospatial imagery and comprehensive rangeland mapping

that illustrates the location of the leased tract, surface composition, existing
condition, and pasture and plant yield.

LIVES CHANGED - Completion Report


Meet a new herder.

A single mother and herder group leader takes charge of her business and her life.

Ms. Javzan, leader Uurd

Mandakh herder group,
Tuv Aimag, Sergelen
Soum and single
mother of eight college

Opportunity is always in your hand.

She is an incredible mother. All of us obtained at least a college degree and up. She teaches
that not everyone should be a superior but learn how to be good parents.

As a herder group leader in a male-dominated occupation and culture, Ms. Javzan sees herself in a rare
position, earned she believes based on her competency and managerial skills despite any male head of
the family stereotype to the contrary. If women are competent to lead the group, they should have the
opportunity, she says. Her life is nothing less than a role model and proof of what she believes.
Since 1971 when Ms. Javzan began working for a cooperative (negdel), herding had been her job but it had
never truly been a business. That changed in 1991, with the privatization of Mongolias national herd. With


her own small herd of cattle, sheep and horses to manage, she immediately realized both the advantages
and disadvantages: suddenly, she was a business woman and a dairy farmer without common business
skills. And, she was alone, a single mother with eight children to raise.
In time, her struggle and those like her found help they needed to turn their business prospects around
beginning with the organization of a herder group. Through the group, the herders learned pastoral and
water use management, livestock and business management as well as practical, collaborative approaches
to haymaking, processing of dairy products and marketing: with group-shared responsibility and tasks has
come an increased productivity and income.
In the past, paperwork and pencils were not so commonly used by herders and we had as if an allergy
to it. Nowadays though, books and pencils cannot be separated from herders life, Ms. Javzan says. She
credits the Peri-Urban Land Project for many of the changes: investments contributed by MCA-Mongolia
such as wells with its utilization and maintenance instructions and fencing materials. The group
traces increased the milk production and improved breeding of livestock, resulting in an increased income
all back to what they have learned through the project. With word-of-mouth spreading the results, nonparticipants have become following the lead of Ms. Javzan and her group.
Having learned improved occupational techniques and business management, Ms. Javzan is moving on
to finance. Understanding the value of bookkeeping for her business, she is now applying what she has
learned for personal financial management and again rallying her group with what might easily be called
the First Uurd Mandakh Credit Union: What better name for the group savings scheme she has initiated
among her group funding for the future and/or a rainy day.
LIVES CHANGED - Completion Report






May 15, 2008

September 4, 2008

April 7, 2009

July 17, 2009


September 1, 2008

October 1, 2008

June 10, 2009

September 9, 2009





October 9, 2009



September 27, 2010

March 16, 2011

September 29
October 7, 2011

June, 2013

September 30, 2010

July 4, 2011

May, 2013

July-August, 2013





LIVES CHANGED - Completion Report


During the decade from 1998
to 2008, Mongolias transition
from a command economy to a
free-market economy had begun
to create job opportunities for a
skilled workforce.





Education and
Training Project

Health Project

Road Project

Energy and
LIVES CHANGED - Completion Report

Teach relevant job skills

To a new generation,
Matched to a new
Create a demand-driven



During the decade from 1998 to 2008, Mongolias transition from a command economy to a free-market economy
had begun to create job opportunities for a skilled workforce.
For instance in 2002, Mongolias underemployment and unemployment rates also increased, with a disproportionate
impact on the young. The total population was 2.4 million, out of which 15 to 19 year and 20 to 24 year group
together accounted for 23 percent. In 2002, there were 30,900 registered unemployed, of which 54.3 percent were
women. The unemployment rate among women is 38 percent, which is about 12.0 percent higher than the national
level, and 22.0 percent higher than the mens unemployment rate. Poverty headcount ratio of the same year was 36.1.
Mongolia was job rich but skill poor.
To close this skill gap and thereby match Mongolias demand for skilled labor with increased supply while reducing
the numbers of marginally employed and unemployed, and supportive of the agreement between the Government of
Mongolia and Millennium Challenge Corporation (MCC), respectively,
The Government of Mongolia agreed to:
Consider recommendations for policy, legal, regulatory, managerial changes supportive of technical and vocational
education and training (TVET) meeting market demands/standards for skilled labor;
Support access to the current TVET schools and centers including 1) state-owned Vocational Training and
Production Centers (VTPC) and National and Regional Methodology Centers (RMC), 2) secondary vocational
schools, 3) privately owned TVET schools and 4) university sub-branches;
Support future governance and secure funding appropriate to maintain newly developed TVET academic,
management, training standards and physical infrastructure.
The Millennium Challenge Account Mongolia (MCA-Mongolia) Vocational Education & Training (VET) Project, within
the limits of its approved budget allocation, proposed an action plan to:
Revise/upgrade Mongolias technical and vocational education and training (TVET) curricula /instruction/delivery
to meet occupational standards/certification as determined by relevant government laws and industry/trade
association bylaws, as appropriate; and
Re-build/refurbish Mongolias TVET physical infrastructure and install of state-of-the-art equipment /technology
to create professional learning environments.
Accordingly, TVET Project identified as principal activities for TVET technical support and investment:
A. Support/draft legal amendments and policy recommendations for a demand driven technical and vocational
education and training system.
B. Support accreditation aligned with industry standards.
C. Encourage and support public private partnerships (PPP) to enhance the quality and relevance of TVET.
D. Improve management practices within schools and governance of the sector by GoM.
E. Establish internationally benchmarked skills standards and a competency-based training system (CBT).
F. Improve learning environment.
G. Re-position TVET for target audiences, increase enrollment.
Mongolia tvet fact:
- Public private partnership is a mechanism enabling linkage between TVET schools with employers to
support for all aspects of the teaching-learning process.
- Competency-based training is a cluster of related knowledge, skills, and attitudes necessary for
specific trades, work processes and functions in order to enhance job productivity.
LIVES CHANGED - Completion Report


The needs
Start with occupational and skill standards into modern vocational education and training
courses of study supported by new training packages, instructional materials and equipment,
Continue with revised TVET policy, legal reform, and operational framework needed to support
a demand-driven vocational education and training system in perpetuity,
Continue with selection, definition and development of national occupational standards and
standardization of competencies for careers, trades and jobs,
Continue with internationally benchmarked quality assurance frameworks with key institutional
supports to drive forward quality programming and a demand-driven TVET strategy.


TVET Project invested $50.2 million in funding more than 500 activities at 58 TVET schools. Of the total,
TVET Project spent approximately $30 million on construction projects and equipment to improve the
learning environment at 28 selected beneficiary training institutions, which received varying amounts from
$37,000 to $2.9 million per training institutions.
Table 3
Construction, trade equipment, IT and software
Capacity building, public outreach, surveys
Development of teaching and learning materials

Consultancy services on program activities


Grant programs

Administration cost and others

Project Implementation, Results,

and Sustainability
Activity 1 - Support/draft legal amendments and policy recommendations for market driven
technical and vocational education and training
Specific to Activity 1, TVET Project identified as Tasks:
Task 1: Recommend amendments of the Law on Vocational Education and Training consistent with the
legal and policy framework along with funding necessary to support a demand driven vocational education
and training system. TVET Project, with its contractors, drafted amendments which, as passed by the
State Great Hural, provided the basis for:
National Council for Vocational Education and Training (NCVET) - approved by the Ministry of
Education, Culture and Science (MECS) with equal representation from the Government and private
sector. Private sector membership includes non-governmental organizations and professional
associations jointly organized by employers and the Chamber of Commerce and Trade;
Charter for a TVET Promotion Fund along with a levy system methodology, guidelines for applying an
activity-based costing (ABC) approach to improve operations of the Promotion Fund, as submitted to
the Ministry of Labor.
Activity 2 - Support accreditation and competency based training (CBT) aligned with
industry standards
Specific to Activity 2, VET identified as Tasks:
Task 1: Establish Centers of Excellence (CoE) aligned with growth sectors of the economy TVET Project,
with its contractors,
LIVES CHANGED - Completion Report



different activities benefiting 58 TVET schools


Vocational Education Schools competed successfully for

public-private partnership grants and innovation grants


Schools and TVET institutions benefit from hard investment,

ranging from $139,000 to $2.5 million per institution

600 +

instructional learning materials 28 CBT curricula were supplied to

22 TVET schools

Introduced required methodology to establish Mongolias leading academic schools and institutes as
Centers of Excellence as well as providing the basis for international accreditation in three key sectors
of economic growth, namely:
Construction - Institute of Engineering and Technology
Health - School of Health Technology
Mining - Govisumber Polytechnic College
Equipped these same leading schools with state-of-art equipment as used by their respective industries
as well as multi-media labs featuring audio-video recording equipment for use in instruction/course
archive and for future development of on-line and/or distance learning.
Impact: on accreditation.
An $8 million investment buys certifiable excellence. Mongolias three leading technical schools for
construction, health and mining, fully equipped with state-of-the-art technology, and fulfilling the
requirements as Centers of Excellence each within their academic and professional disciplines, become
fully accredited by the Asia Pacific Accreditation and Certification Commission (APACC) in December 2012.
Task 2: Support a competency-based training (CBT) and assessment model consistent with curricula
standards and industry involvement/feedback - TVET Project, with its contractors,
Developed a draft Guidelines for Twinning Program to support selected CoEs with the Australian
Holmesglen Institute of Technical And Further Education (TAFE) and Central Queensland Institute of
Sponsored teacher training/exchange programs for teachers (36) from CoEs subsequently awarded the
Certificate IV in Teaching and Assessment recognized within the Australian Qualification Framework;
and, longer term,
Drafted Memorandum of Understanding signed by the twinning institutions to ensure the sustainability
of the program.
Activity 3 - Encourage and support TVET-public private partnerships (PPP)
Specific to Activity 3, TVET Project identified as a Task:
Task 1: Develop incentive program to encourage PPP TVET Project, with its contractor, established
a National Competitive Grants Program (NCGP) to distribute $2 million in grants. TVET Project grants
supported 28 projects implemented in 26 vocational training institutions.
13 grantees established relationships with 46 employers with joint investments in equipment and
training valued at an estimated $757,400.
25 academic classrooms, 25 trade workshops, 2 farming workshops, 21 teacher development and
career guidance centers either upgraded or newly established at grantee schools.

LIVES CHANGED - Completion Report


Impact: from classroom to shop floor.

Students ready to produce from day one. Students at Orkhon Vocational Training and Production Center
(VTPC) know what to expect their first day on the job and so does Erdenet Carpet. The company installed
the same equipment used on the production line at the school their investment in future employees.
Teachers trained in updated competency-based approaches and technical skills valuable to providing
students a strong understanding of work processes they will encounter. Students learn, as graduates, come
prepared to work to the company standards their first day on the job.


Impact: of competency based curricula.

New textile jobs for 85 percent of graduates of Mongol Korean College. Of 567 students completing
six competency based curricula courses at Mongol Korean College, 482, or 85 percent, found jobs
in Mongolias textile industry . The program was one of 11 grant recipient schools, which developed
competency based training (CBT) curricula. In total, the grantees developed 36 new CBT curricula
involving 186 teachers and 326 technical staff and engineers from partnering employers, piloted with 1449
students. Of the 36, 20 of the newly developed curricula have been approved by the government and used
in training conducted at employers request. Direct beneficiaries of the program include 1431 teachers and
3760 students and 736 staff from employers.
Activity 4 - Improve management practices
Specific to Activity 4, TVET Project identified as Tasks:
Task 1: Improve management skills at NCVET, sector councils and at the Ministry of Labor, TVET Policy
Implementation and Coordination Department (PICD) TVET Project, with its contractor,
Introduced more than 2,400 stakeholders from both government and private sector to the new TVET
law and policies through workshops, discussions and study tours between 2009 and 2012.
Task 2: Introduce management principles for a demand-driven TVET system TVET Project, with its
Introduced NCVET members, the Ministry officials, directors, training managers and the administrative
staff from 35 TVET colleges to demand driven TVET systems;
Introduced TVET managerial staff to change management principles and benchmarking tools to enable
them to conduct self-assessment of outcomes versus objectives.
Impact: on TVET management.
More than 500 key management staff of target schools, NCVET members, and ministry officials
participated in a nine-module course including financial management systems; development of quality
control and assurance systems; Competency-Based Training assessment; research methodology and
computer software application for design; monitoring and evaluation system for TVET institutions.
Task 3: Provide a central, freely accessible, web-based TVET resource/archive with both legal status and
provision for long term funding TVET Project, with its contractor,
Established a National Learning Resource Center (NLRC) featuring an Learning Management System
for TVET institutions, on-line e-learning resources for faculty and students, a TVET exchange for sector
related information, a VET project archive, and a Taiwanese e-library system including more than 300
professional books and training materials made available through a contractual agreement as open
source materials all accessed by logging on to the NLRC website;
Developed an NLRC strategic plan, a commercialization plan and related copyright documents;
Drafted for NLRC Memorandum of Understanding/contracts for six regional methodological centers
defining areas of mutual support/cooperation with TVET projects sponsored by the Ministry of Labor,
MONEF, CoEs and donors;
Secured Ministry of Labor agreement/approval for NLRC legal status and position within the TVET
LIVES CHANGED - Completion Report


Impact: on curriculum development.

Stakeholders define, validate skills, competence, performance standards. Improving the relevance of TVET
curricula began with documenting and consolidating on-the-job experience and feedback from more
than 150 expert workers from 11 priority trades occupational analyses and more than 50 employers
and industries. Implementation teams at each of nine pilot TVET schools worked with 34 trainers and
more than 160 students to vet 28 competency-based training (CBT) curricula outlining new occupational
duties, tasks and competencies. After evaluating the pilot results, VET stakeholders revised the curricula
for submission to the Ministry of Labor TVET Policy Implementation and Coordination Department. The
approved curricula are accessible via the NLRC website for use by TVET institutions system-wide.


Activity 5 - Establish skills standards and develop competency-based curricula/training

Specific to Activity 5, TVET Project identified as Tasks:
Task 1: Verify occupational duties and tasks and identify competencies required at work places TVET
Project, with contractors and stakeholders,
Identified seven priority economic clusters including: agriculture, construction and construction
materials production, energy, mining, transportation and information technology; and related to same,
Produced, vetted 28 competency based training (CBT) curricula in seven priority economic clusters.
Task 2: Guide development of a national TVET qualification framework TVET Project, with contractors
and stakeholders,
Developed the policy document establishing a National Vocational Qualification Framework (NVQF)
to guide/update TVET development subsequently endorsed by the National Council for Vocational
Education and Training (NCVET). Based on this document, the final version of the definition of the
NVQF levels and the related criteria were approved and endorsed by the NCVET.
Developed an Explanatory Dictionary for Vocational Education and Training and NVQF Terminologies.
Developed concept papers: 1)for NVQF quality assurance and 2) for an NVQF credit system.
Impact: on TVET criteria.
Universally understood, applied standards accepted by the Ministry of Labor. Who is qualified? VETs work
with stakeholders to define National Vocational Qualification Framework (NVQF) criteria answered that
question with definitions of competency standards for 1044 occupational units pertaining to 28 trades in
seven economic clusters.
Task 3: Competency-based training - Train TVET administrators, instructors, teachers VET, with
contractors and stakeholders, to implement
28 core curricula for rapidly expanding occupations incorporating both unique and common
competencies shared across trades
Trade specific training course for instructors of hydraulics, pneumatics, electronics, mechanics and
mechatronics, as well as for instructors of information communication technology

Impact: on trainers.
3096 teachers, instructors, administrative and managerial staff and employers attend training sessions
- 609 management staff and TVET short term providers complete CBT courses;
- 972 teachers completed certification trainings;
- 1370 instructors completed trainings for improvement of technical skills and teaching

- 145 career guidance counselors completed training.

LIVES CHANGED - Completion Report


Impact: on employers.
400 employers from heavy and light industries, including agriculture, construction, food, energy, mining, road
and transport trained in competency-based training approaches and sensitized to best practices in publicprivate partnership development.


Task 6: Establish specific labor market/skill set needs TVET Project, with contractors and in
cooperation with stakeholders,
Conducted labor market survey for mining, construction and road construction trades;
Introduced more than 100 participants from the total of 85 private sector organizations to Developing
A Curriculum methodology; with the aim of
Increased employer acceptance, participation and partnerships established between employers and
training institutions.
Impact: on employability
Understanding leads to feedback. VET-sponsored events attracted more than 100 human resource
managers from large employers who become familiar with CBT, LMIS, PPPs and how to use Developing
A Curriculum job analysis. Employers gained a common understanding of how to work with VET training
institutions to define and execute training relevant to current human capital needs.

Impact: on performing comparably to workers in Peoria, Illinois, USA

Heavy machinery technicians certified as instructors. Of 30 experienced instructors trained on heavy
equipment technology in cooperation with Wagner Asia Equipment LLC and Caterpillar Corporation, seven
attended further training at Caterpillar headquarters, in Peoria, Illinois, USA, completing their first phase
training with distinction. Furthermore based on the success of the above training activity another six
trainers from Govisumber Polytechnic College the mining Center of Excellence completed an 18-month
apprenticeship to become certified instructors authorized to teach Caterpillars Heavy Machinery Service
Technician program at C Level.

Mongolia tvet fact:

Caterpillar-trained experts operate heavy machinery equipment operation and maintenance.

Task 7: Conduct English language training tailored to TVET course content TVET Project, with
contractors and in cooperation with stakeholders,
Trained more than 308 instructors from 50 TVET schools in improving technical English skill.
Task 8: Develop link labor market data with career guidance, develop counselor services network TVET
Project, with contractors and in cooperation with stakeholders,
Conducted a Nationwide Labor Market Study of 1370 industrial and business entities in 21 aimags
and Ulaanbaatar. Survey focused on general data including current employment, employment/job
migration, employer expectations, business cycle/growth trends, new skills/shortages and competency;
Conducted a Gobi Region Technical and Vocational Skills, Labor & Training Survey of 17,773
respondents in four Gobi aimags - Umnugobi, Dundgobi, Dornogobi and Govisumber. Survey focused on
395 specific skills;
Developed websites for an integrated Labor Market Information System and a Career Guidance System
for the Labor Exchange Central Office (LECO);
LIVES CHANGED - Completion Report


Impact: on learning environment.

New classrooms, workshops, systems, and equipment transform teaching, learning in 26 schools. TVET in
- Renovate/install new equipment for six priority trades at 15 pilot schools and three Centers of
- Equipped 10 VTPCs with multimedia training labs that include audio and video studios, video
conference rooms and computer labs.
- Sewing and computer training equipment were provided to two TVET schools
- 20 new practical training workshops in five schools built
- 44 practical training workshops rehabilitated in 12 schools 7 new power sub-stations
constructed and one extended


Trained 17 government employees to become national trainers for career guidance services. These
trainers, in turn, provided career guidance training for 52 TVET social workers and local social welfare
The first integrated labor market information system designed and developed. It is posted on portal site
The web-based career counseling service was developed: http://www.mergejil.mn was developed to
support career guidance services.
Activity 6 - Improve learning environment
Specific to Activity 6, TVET Project identified as Tasks:
Task 1: Construction and rehabilitation - Upgrade, equip, and improve learning environments in selected
TVET schools TVET Project, with its contractors,
Identified and carried out construction, rehabilitation and related equipment with a combined budget of
$30 million at 28 TVET institutions located in Ulaan Baatar and 16 aimags.
Impact: on environmental safety and health.
New construction methods and materials meet environmental and health standards. VET-managed
projects conformed with MCC and MCA-Mongolia construction standards which provided for lead free paint,
asbestos-free insulation materials and environmentally safe disposal of any hazardous materials and waste.

Task 2: Develop multi-media course materials TVET Project, with its contractors,
Developed multimedia training for five priority trades including automotive service technician,
electrician, heavy equipment technician plumbing, and welding consisting of professionally designed,
highly illustrative textbooks, technical pictorial dictionary, a DVD package that includes interactive 3D
lessons, video lessons and assessments.
Impact: on line and free.
Materials available for download from the National Learning Resource Center web portal. Teachers,
students anyone can obtain any of the course materials developed for the 28 TVET curricula and the
more 600 related course materials sourced from other countries and supplied to TVET schools.

Activity 7 - Re-position TVET for target audiences, increase enrollment

Specific to Activity 7, TVET Project identified as Tasks:
Task 1: Conduct baseline Public Perception Survey TVET Project, with its contractors,
Conducted a Public Perception Survey in 2010 sampling 2,500 respondents from 12 representative
aimags and Ulaanbaatar to establish a perception baseline for measuring future gains as well as for
development of effective campaign/message development tailored for specific stakeholder audiences

LIVES CHANGED - Completion Report



Task 2: Develop multi-media campaign - TVET Project, with its contractors,

Targeted stakeholders each with special-interest, with complementary and mutually reinforcing messages
promoting understanding of, need for, benefits of TVET so as to progress versus business/policy objectives:
namely, attract and retain professionally committed, skilled instructors; employers interested in both
satisfying skill shortages and an effective, government response to their needs; students/parents of youth
reticent to enroll in programs for reason of quality and/or negative perception; unemployed adults; general
public and consumers following issues of the day including youth and the economy.

Task 3: Develop multi-media campaign TVET Project, with its contractors, produced and aired:
19 public service announcements focused on TVET values with primary target audience: current and
potential students and employers;
30 TVET Reform TV talk programs focus on TVET issues, problems, benefits featuring as guests
more than 150 representatives of government, policy makers, training organizations, professional
associations, employers;
More than 30 TV documentaries, reality shows and youth shows were produced and aired showcasing
the successes of TVET graduates, as well as current students and teachers;
More than 500 secondary school students attend career guidance lectures Ulaanbaatar, hear the latest
labor market information about professions and skills in demand.
Task 4: Promote gender sensitive environments TVET Project, with its contractors,
Trained 50 social workers from TVET schools and aimag social welfare officers human trafficking
prevention, detection;
Organized gender integration training workshop for management staff of 10 project beneficiary
schools which offer mining programs and courses;
Ensured equal participation of women and men in any capacity building activities, sex disaggregated
data collected during all workshops and trainings.
Task 5: Conduct follow-up Public Perception Survey TVET Project, with its contractors,
Conducted a Public Perception Survey in 2013 sampling 2,500 respondents from 12 representative
aimags and Ulaanbaatar as a follow-up to the baseline survey in 2010. The results showed increased
TVET awareness from a level of 75 percent to 88 percent; and an increase in knowledge about local TVET
providers from a level of 78 percent to 95 percent
Impact: on physical learning spaces.
Gender sensitive environments part of awareness. When not to ignore gender? As part of its training of
aimag and school administrative staff, TVET Project took care to promote sensitivity when appropriate such
as when constructing and/or refurbishing school buildings and other facilities previously lacking separate
restrooms and wardrobes for men and women.

LIVES CHANGED - Completion Report


The highlights
Target schools and
institutions receive
total of $30 million for
construction and stateof-the art instructional
technology systems
and technical training

Centers of Excellence
established to assure
quality training and
preparation of skilled
workers in economic
priority sectors, namely,
construction, mining and

TVET Law establishing

national advisory council
with private sector
representation and quality
assurance framework.

curricula and instructional
materials produced.

Labor Market Information

System established and
linked to career guidance

Public-private partnerships
ensure high-quality
curricula and demanddriven training and
matched educational and
occupational standards.

Upgrading of teachers
to competency-based
approaches and
establishment of National
Qualifications Framework
for teachers and students.

Free web-accessible
training packages
developed for five priority
trades including welding,
plumbing, electrician,
automotive service
technician and heavy

equipment technician
featuring illustrated
textbooks, technical
pictorial dictionary,
interactive DVD lessons,
videos and assessments.

What? Project invests $50.2 million in TVET curricula, instruction, and facilities at
state-owned Vocational Training and Production Centers (VTPC), National and Regional
Methodology Centers, Colleges, privately owned TVET schools and university sub-branches,
and Labor Exchange Central Office.
Why? Project responds to market demands for skilled labor with a focus on growth sectors of
the economy, including: allied health occupations/nursing, automotive, construction (building/
road), electronic/ mechanical trades, mining, tourism and transport.
How? Project strategic approach recommended changes to TVET policy, supporting legal
reform, operational framework, management and funding mechanisms, curricula evaluation
and development, professional development of instructors and senior administrators.


Impact: on gender stereotype.

How well did (he/she) do? When employers fill their jobs, they should care not about gender, but rather
about those willing and able to perform to an industry standard and maybe beyond. The message(s)
used to promote TVET programs as a means to a well-paying career focused on pursuit of interests and
consciously avoided common stereotypes. The gender message delivered by TVET Project: the workplace
protects privacy and promotes performance.
The public outreach program content was developed under the main message More than you thought,
promoting TVET benefits as better than the public thought of it. Within series of TV portrait programs
under the title of My profession is plumbing woman teacher, construction reinforcement worker-recent
TVET graduate girl, crane operator young lady, lathe milling women worker were featured respectively. For
instance, Ts.Adyadulam, who worked as plumbing teacher at Dundgovi province VTPC for last 34 years says
that she graduated 600 students in plumbing, 11 were girls. However she strongly believes that regardless
of gender, if you are competent, skilled and acquired good attitude, plumbing trade will let you become a
millionaire. O.Solongo, who is recently graduated from Uvs province Polytechnic College and was employed
as a reinforcement worker at local construction company admits that her friends often say to her that
working with iron and concrete is harsh for girls, but she herself says that it is not that hard as it looks, I am
actually very proud to work in construction field and after completing my work see what I have constructed.

LIVES CHANGED - Completion Report


Key Findings
Mitigate risk, continue public private dialogue target school administrators,
industry/association representatives and other TVET stakeholders, driven by
joint interest will continue to have a stake in maintaining a continuing dialogue
to address the shared needs and issues of their public-private partnership;
established with the help of VET grants now ready to expire, continuing the
dialogue and funding cooperative programs will depend upon new sources of
Mitigate risk, maintain progress without annual reviews and adequate financing,
over time to maintain new TVET curricula, instruction, standards, and physical
plant, TVET risks gradual decline in quality and a return to irrelevance.


Ministry takes lead 1) to establish a permanent council or working group
to maintain on-going public private partnership dialogue to vet sector
specific needs, respond to shared issues, whereby government and school
administrators effectively treat industry as TVETs client for producing skilled
labor; 2) to budget for PPP activity as a line item and 3) to lobby external
partners (industry associations and beneficiaries) for financial support and
contribution from stakeholders.
Ministry takes lead: 1) writes annual plan incorporating legislative, regulatory,
legal, curricula reviews, sector specific trend data/occupational forecasts
(demand side) and graduate/certification forecasts (supply side) data; 2)
develops budget adequate to maintain all TVET programs/assets /relationships
including NCVET and sector councils; and related to budgets, 3) considers
external non-ministry funding sources to include partnership/association
grants, possible student finance schemes to include tuition/backed by student
loans and co-op work-study programs, 4) apply activity based costing
technique in budget estimations of schools and provide necessary policy
support, 5) raise and centralize funds in TVET promotion fund.
Ministry of Education takes lead: approaches remaining donor(s) for support
to implement the next phase of policy initiatives incorporating: National
Qualification Framework, Teacher Qualification Framework, Paper on Quality
Assurance, TVET Strategy Plan 2012-2016.
Ministry of Labor takes lead: invites and sponsors sector councils and
professional associations to form working groups to continue to focus on
developing and maintaining industry standards and trade specific curricula.

LIVES CHANGED - Completion Report


Key Findings
Maintain momentum TVET gains to date may stagnate without a next wave of
national policy documents as identified by VET and continued involvement of key

Maintain teacher professional development without incentives for teachers to

maintain and advance current levels of expertise, the TVET system performance
may decline or stagnate.


Ministry of Labor takes lead:
Establishes industry sector councils, outreach with teacher associations
and employers; identifies professional enrichment and academic opportunities
for teachers; establishes a professional career track by specialty to provide both
opportunities and performance incentives to maintain currency and advance
professionally; and as part of this career track;
Assigns individual teacher teams responsibility to ensure sustainability of all
multimedia and e-learning materials; encourages/offers performance award for
those who revise/develop new training materials for publication;
Assigns CBT cascade trainers (14) and teachers (46) from four cascade
training (CT) programs as resources to continue to propagate competency-based
training assigning target schools for each;
Maintains two-way communication with industry and individual employer-partners
through offers of short courses, promoting these though industry sector councils;
leverages these same employer relationships as a basis for co-op programs;
Develops a HR policy on ensuring that MCA-Mongolia trained teachers and
instructors are kept and effectively utilized in TVET sector;
Recommendation on MCA-Mongolia provided equipment use:
Have equipment insured;
Develop specific guidelines on safe operation of equipment;
Ensure that equipment maintenance and service expenses are included in
annual budget planning of schools.
Recommendation on ensuring gender equality in TVET sector:
Organize and plan admission process with gender sensitive approach;
Encourage female students to study in economic priority trades and have
access to higher paid job opportunities through continuous sensitizing activities
involving potential students, their parents and employers;
Ensure gender balance in management and teaching staff at TVET institutions.
LIVES CHANGED - Completion Report


Careers make the

case for TVET:
Heavy equipment and salon operators agree.

Senior methodologist at Ulaanbaatar Regional Methodological
As a senior teacher and methodologist at Regional
Methodological Center, I am proud that involvement with TVET
project enabled me to train over 300 other teachers using the
state of the art multi media and IT equipment.

Food production and service technology teacher at Institute of
Engineering and Technology
As a result of professional development trainings organized by
MCA-Mongolia TVET project I not only improved my skills but
have become a member of Competency asessment teachers

G.Zolbayar, hair designer

Saranchimeg, training manager of Gobi LLC
Cooperation built with Mongolian Korean
Polytechnic College benefited our company to
recruit over 170 TVET graduates, whose skills
exceeded our expectations and requirements.


Every profession has its own unique taste and joy.

Seeing the results of own work is something to be
proud of. I am happy to be a hairdresser and see the
happiness in customers faces almost every half an
hour. Now I have my own hair salon and hair design
photo studio. I also publish hair design magazine. As
a young man, I am proud to realize my dreams, and
eager to contribute to future development of my

Director of Yavuu-Impex Co.,Ltd
Thanks to cooperation with training institutions, its now two
years since we as employers started conducting trainings to
encourage unemployed and willing-to-work youth to acquire
those skills in demand and improve their lives.

Crane operator
I am proud to be a crane operator and work to build homes
that bring happiness to people. Not everyone has to have a
high education. The main thing is how you can be productive
and satisfied at what you do. For me, doing what I like to do
and earning good is one of the achievements of my life.

N.Sukhbaatar, electrical teacher at Tuv province

Vocational Training & Production Center
For the 8 years Ive been working as electrical
teacher at this school. We did our practical trainings
outside with no sophisticated training equipment.
Now that MCA-Mongolia TVET project provided full
set of practical training equipment, it is up to the
students to aquire best skills possible. As a teacher
I am happy that now I spend one year teaching the
skills that earlier required minimum 2.5 years. Now
I can truly link theoretical knowledge with practical
training. I feel rewarded to see happy and shining
faces of my students.

S.Amarjargal, Manager of DCH Co.,Ltd

MCA-Mongolia TVET project was distinct and
innovative because it implemented the construction
work in a full package including how to deal with
hazardous materials and waste considering all
possible environmental and social aspects. This
know how was new to the Mongolian construction
sector, and we, as a construction company, learned
a lot from this cooperation.

LIVES CHANGED - Completion Report



completion of the
public out reach
pilot program

grants contracts
were signed with
first round 17
recipient technical,
education and
training schools

Labor market
survey completed;
1323 economic
entities were

March 24,

July 2,

March 31,

June 11,

April 17,

July 1,

September 24,

April 7,

Draft bylaw of
national council
for vocational
and training
(ncvet) was
signed by major

Government of
1St meeting of
mongolia endorsed ncvet, chairman
members of ncvet and deputychairman were

Policy and
framework reform
sub-project was

Technical and
education and
training project
workshop was

Nomination of the
representatives of
the private and
public sector in

February 2,

March 4,

February 13,
New vocational
education training
law was ratified by
the parliament of


based training
sub-project was

Gobi region
technical and
skills, labor abd
training survey
involving 17,773
respondents was

The latest upto-date training

200 Tvet
equipments and
instructors were
training workshops
trained in intensive were handed over
technical english
to recipient tvet
language training schools

and maintaining
national learning
resource center
sub-project was

Completion of
the development
of technical
training full
packages on 5
priority trades

training subproject completed
with over 1800
tvet instructors

October 21,

August 20,


November 13,

March 4,

June 28,

September 20,

December 17,

September 28,

March 16,

November 19,

April 10,

Public perception
baseline survey on
tvet completed

grants contracts
were signed with
second round 11
recipient tvet

capacity building
sub-project was

completion of
the labor market
system and career
guidance system

Activity based
costing technique
for supporting
levy system policy
guidelines were
developed and
handed over to the
ministry of labor

capacity building
completed with 9
module training
organized for over
tvet 500 key
management staff

LIVES CHANGED - Completion Report






Education and
Training Project

Health Project
Cardiovascular disease, cancer,
diabetes and injury-induced trauma
account for 3 of every 4 deaths
recorded in Mongolia.

Health Project

Road Project

Energy and
LIVES CHANGED - Completion Report

The proposition
Reduce incidence of
preventable disease and
injury among susceptible
and high risk groups through
access to preventive health
care and changed behavior/
reduced risk so as to increase
life expectancy and improve
quality of life.


Health Project

Cardiovascular disease, cancer, diabetes and injury-induced trauma account for 3 of every 4 deaths recorded in
Mongolia. In addition to eventual tragic personal loss suffered by families, after onset of disease or incident of
trauma, they typically forego income, add to government social welfare and health care costs, and contribute to
lost productivity.
According to official data there were 7000 people diagnosed with diabetes in 2008. However, results of STEPS
2009 survey showed that prevalence of raised blood glucose is 6.5%. In other words around 60,000-80,000
people remain undetected and will be diagnosed when they will have end organ damage or complications of
diabetes, such as stroke, visual impairment, diabetes foot etc. Raised blood glucose is a secondary risk factor for
non communicable diseases, thus it is important to prevent and detect this condition at early stage.
Acknowledging the consequences of this health, social and economic problem, beginning 2005, the Government
of Mongolia prepared to shift its emphasis and re-allocate resources from disease treatment to cost-effective
prevention, early detection, and disease management. Accordingly, supportive of the NCDI Program and
consistent with the agreement between the Government of Mongolia and the Millennium Challenge Corporation,
MCA-Mongolia Health Project focuses on extending the productive years and productivity of the labor force
by reducing the incidence and severity of NCDIs with a primary emphasis on cancer, cardiovascular disease,
diabetes and preventable accidents and trauma, and reducing and refocusing total health expenditure.
The health project aims to:
A) Improve National and Local Response to NCDI: MCA-Mongolia Funding was used to encourage local and
national initiatives to promote healthy lifestyles at workplaces, schools and communities; support policy
initiatives to increase NCDI funding, control the use of tobacco and alcohol and other policy and program
B) Improve NCDI Knowledge: MCA-Mongolia Funding was used to increase public awareness of risky behaviors,
the need for regular screening and testing, and the need to respond rapidly to stroke and other NCDI danger
signs. Funding supported the national communication strategy, including awareness campaigns, events and
education outreach focusing on youth and adult general, changes in school health curricula and in workplaces.
C) Improve NCDI Service: MCA-Mongolia Funding was used to increase the availability of sound NCDI services by
changing treatment NCD protocols and provider training, mobilizing client demand by introducing modern costeffective procedures, and providing key equipment and supplies.

LIVES CHANGED - Completion Report


The needs
Start with the legal and
policy basis and budget to
implement cost-effective
prevention, early detection,
diagnosis, injury treatment
and case management of
certain Non-Communicable
Diseases and Injuries (NCDI),
namely, cardiovascular
disease, diabetes, cervical
cancer, breast cancer, road
traffic induced trauma, and
continue with the need for
Training of clinicians, health
care managers and other
Screening made universally
available, accessible, and
Promoting benefits of a
healthy life style to effect
changed behavior among
target groups


Project Activities
Activity 1 Train health care professionals prevention, early detection and treatment of
With the Ministry of Health, stakeholders and with advice of its own technical experts, the Health Project
focused on training, which,
Introduced new skills, techniques, technologies, and evidence-based approaches via short-term training
for health professionals;
Improved the training environment;
Offered study/survey enrichment opportunities.
Activity 2 Introduce effective, affordable, systemic diagnosis and injury treatment
accessible to all
With the Ministry of Health, stakeholders and with advice of its own technical experts, the Health Project
focused on screening, for the following prevalent NCDIs in Mongolia:
Arterial high blood pressure (hypertension), stroke and other cardiovascular disease,
Cervical cancer and its precursor lesions,
Breast cancer.
Activity 3 Promote a healthy life style through changed behavior/reduced risk
With the Ministry of Health, stakeholders and with advice of its own technical experts, the Health Project
focused on:
Advocacy among law- and policy makers necessary to establish legal, policy and other changes
necessary regarding behavior change
Conducted public education campaign(s) supporting each Health Project initiative/activity.

LIVES CHANGED - Completion Report


$8.5 million
state-of-the-art specialized cardiovascular care unit
installed at State Clinical Hospital #3

$3.1 million
invested for 83 types state-of-the-art diagnostic
equipment and supplies


primary health care facilities in all 21 aimags and nine districts

of Ulaanbaatar equipped, prepared to screen virtually every
Mongolian aged 40+ years old for designated NCDs

Project implementation
Activity 1 Train health care professionals in prevention, early detection and treatment of

Specific to Activity 1, the Health Project identified the following tasks:

Task 1: Conduct nationwide training on Prevention and Control for Non-Communicable Diseases for all
medical and non-medical health care practitioners
To accomplish this, the Health Project, with stakeholders and contractors:
Identified more than 19,000 health practitioners in 21 aimags and nine districts of Ulaanbaatar;
Prepared and qualified 543 trainers on NCDI subjects, who then prepared courses/presentations on
NCDI subjects;
Scheduled meetings/presentations with virtually all health practitioners identified to introduce the
NCDI topics, gaining understanding and Best practices to prevention, early dectection, treatment, and
Impact: on virtually all health care practitioners vital to NCDI control.
The commitment to make NCDI common knowledge began with trainings in all 21 aimags and nine
Ulaanbaatar districts. The Health Project prepared 543 trainers trained in 3,792 person days conducting
training related to NCDI subjects, training of 19,403 (81.4 percent women, 18.96 percent men) health related
professionals including: medical doctors, general practitioners, cardiologists, endocrinologists; nurses;
public health specialists; local health organization managers; quality managers; health education teachers,
school teachers and doctors of the secondary schools; social workers; community members; and directors or
managers of the public and private health organizations.
Task 2: Establish 31 fully-equipped training rooms in the 21 aimag Health Departments, the nine districts
of Ulaanbaatar, and the Railway Central Hospital
Task 3: Support revision of existing curricula and modules and the development of new curricula and
modules for health professionals on NCDI in collaboration with the Health Sciences University of Mongolia
Task 4: Organize and conduct trainings consistent with the revision of secondary school health education
for a Ministry of Education, Culture and Sciences working group
Task 5: Organize and conduct opportunities for health care clinicians, government and agency officials
to observe models, best practices, and exchanges for their subsequent implementation consistent with
government policy, project initiatives, and their responsibilities the Health Project, with stakeholders and
contractors, sponsored study tours, sharing tours and conferences for selected groups as follows:

LIVES CHANGED - Completion Report


$1.7 million

investment in digital mammography imagining equipment

make breast cancer screening no more than an one-day trip
for Mongolias over 300,000 women aged 30 and older

9,141 people

pilot program population of 14,063 girls aged 11-15 years received

three doses of Human Papilloma Virus (HPV) vaccine, with more
than 12,000 doses available for on-going voluntary program


of respondents agree that the HPV vaccination prevents cervical

cancer, a 30 percent gain compared to a similar baseline survey


Table 4
Study Tour
Public Health

Health Care Delivery &

Road Safety
Workplace Health
NCDI best practices

Sharing Tour
Behavior change
Health Promotion issues

Workplace health
Tobacco Free Aimag

Ministry of Health (25), 21 Aimag Health
Departments (21), Ulaan Baatar Health
Policy makers, managers and practitioners (18)





Government representatives (14)

Mongolian Network for Workplace Health (14)
Representatives from Ministry of Health, Aimag
& District Health Departments, National Cancer
Center, State Hospital N.3 (15)
Representatives (42) from 21 aimags observe
best practices
Representatives (21) from seven aimags attend
this local study tour on health promotion related
Representatives (28) from seven aimags observe
model aimag
Aimag representatives (30) attend/observe
model practices









1st International
Conference on NCDI
250 participants
Prevention & Control
National Conference on
300 participants
NCDI Prevention & Control
2nd International
Conference on NCDI
Prevention & Control

Sukhbaatar 10/2012
grand hotel



Activity 2 Introduce effective, affordable, systemic diagnosis and injury treatment

accessible to all
Specific to Activity 2, the Health Project identified the following tasks:
Task 1: Develop both the legal environment and the screening process to include early diagnosis,
treatment, case management of arterial hypertension (AH) and diabetes mellitus type 2 (DM)
The Ministry of Health approved:
New clinical guidelines for AH & DM2 and nine different procedure protocols along with updated
Orders and decisions to create the necessary legal environment for the newly established screening

LIVESCHANGED - Anual Report 2013



(81.4 percent women, 18.96 percent men) clinicians, managers,

teachers, social workers, community members receive NCDI
training in 21 aimags and nine Ulaanbaatar districts


clinicians attend local training on disease detection and diagnostics


practicing physicians from 21 aimags and nine Ulaanbaatar districts

earn a Master of Public Health degree program offered by the
Health Sciences University of Mongolia, School of Public Health in
cooperation with The George Washington University


Task 2: Screen target groups for NCDs

argeted 631,960 adults aged 40-64 years for arterial hypertension (AH) and diabetes mellitus type
2 screening. As of August 2013, health centers had screened 368,229 people, or 58.27 percent of
the target population for AH; 167,375, or 46 percent were normal , 36,782 or 10 percent cases were
possible AH; and 15754 or 4.2 percent were confirmed AH; 314,143, or 49.7 percent of the target
population was screened for DM2; 193,785, or 61.7 percent were normal; 16,974 or 5.4 percent cases
were with increased fasting glycaemia (high blood sugar); and 2,429 or 0.8 percent cases were
confirmed DM2.
Targeted women aged 30-60 years for cervical cancer and breast cancer screening. As of March 2013,
health centers had screened 75,046 women for cervical cancer using pap smear; 3,682 or 4.9 percent
tested positive; 825 showed pre-cancer cases; and 39 cases of cervical cancer were diagnosed. The
breast cancer screenings treated 104,615 women for breast cancer; 139 were identified with precancerous symptoms and 10 cases of breast cancer were diagnosed.
Impact: on screening.
More than 550 primary health care facilities installed 83 different types of medical and diagnostic
equipment in all 21 aimags and nine districts of Ulaanbaatar. An investment by the Health Project of $3.1
million made state-of-the-art screening accessible for target NCD to virtually every Mongolian. The $1.7
million investment in digital mammography imagining equipment, strategically located at the National
Cancer Center and the regional centers of Orkhon, Khovd and Uvurkhangai, meant that screening checks
were no more than a 1-day trip for women, who need mammography examinations.

Impact: On future diagnosis and management of cancer.

Data from initial screening leads to a baseline and future recalls. Data from the initial screening of 185,000
women aged 30-60 posted to the www.screening.mn cancer recall website will assist clinicians
1) to manage cancer recall programs in 21 aimags and 9 districts, 2) to schedule follow-up screenings and
3) to manage patient histories. Longer term, the data will serve the Ministry of Health as a baseline for
future studies.

Mongolia health fact: What is Gardasil Access Program?

The Gardasil Access Program (GAP) plans to make available at least 3 million doses of GARDASIL (Human
Papillomavirus Quadrivalent (types 6, 11, 16, 18) Vaccine, Recombinant), to qualifying organizations and
institutions in developing countries where approximately 80% of the worlds cervical cancer cases occur.

The GAP partnered with MCA-Mongolia and the Government of Mongolia and targeted 14,063 girls aged
11-15 in Selenge and Umnugobi aimags and the Bayangol and Baganuur Districts of Ulaanbaatar for a
pilot program to administer a Human Papilloma Virus (HPV) vaccine as a primary prevention for cervical
cancer using a Gardasil Access Program 9,141 or 65 percent of a target population of 14,063 received three
doses of the vaccine administered in March, May, and September 2012.

LIVES CHANGED - Completion Report



high incidence locations in Ulaanbaatar, Hoolt Hiil and

Bayanchandmani Davaa of Tuv aimags identified along
with recommended corrective measures

825 sq. m.

of road markings painted, and installed and 6 road signs and 760
reflective plastic road studs installed


clinicians trained in basic life support and use of supplied

emergency medical equipment
500 ambulance drivers, rescue staff, police trained in first aid

Impact: of Human Papilloma Virus (HPV) pilot program.

Demonstration of successful methods, with additional vaccine available to continue vaccination on a
voluntary basis. As a result of the pilot program, the Ministry of Health has in place: 1) a training program
model for clinical and school administrators; 2) an Implementing Entity Agreement which provides legal
authority to conduct the program and as well as legal protections for cooperating health centers and school
health clinics; 3) a methodology for cold chain delivery, and cold storage equipment for storage of HPV
vaccines; 4) parental consent forms as required for administration of vaccines; and 5) can offer consultative
access to National Center for Communicable Diseases (NCCD) specialists trained by Health Project
contractor University Research Co., LLC (URC) who provided technical assistance during implementation of
the pilot HPV vaccine program. With the HPV pilot phase complete an additional 12,500 doses of vaccine
remain with the Ministry of Health, which will conduct a second phase of vaccination program on the same,
free-of-charge and voluntary basis used for the pilot.

Impact: on early diagnosis, preventive care, and treatment.

Clinicians are equipped with how-to guidance, training, and data, and are able to refer cardiovascular
patients to specially equipped units. The sum of the parts approach taken by the Health Project to shift
emphasis to early diagnosis of cardiovascular disease began with the development of new clinical guidelines
covering cardiovascular disease from symptoms to rehabilitation; as approved by the Ministry of Health and
with distribution to hospitals, health organizations, and agencies, clinicians now had the how to references
necessary to help identify and properly refer at-risk patients. Beyond guidance, 13190 clinicians attended to
trainings on NCD prevention, more than 750 people attended national and international workshops, more
than 760 attending local training on cardiovascular disease detection and diagnostics, and 18 researchers
attended international workshops. Software developed for a cardiovascular patient data bank established
at key hospitals will provide secure access to records enable medical professionals to retrieve patient data
easily; and importantly, clinicians can refer those needing treatment to the $8.5 million state-of-the-art
specialized patient cardiovascular care unit in State Clinical Hospital #3. This unit, equipped by the Health
Project, includes an angiography machine, a computerized tomography machine, patient monitoring
equipment, 40 intensive care beds, and other specialized equipment.

Impact: on salt intake reduction

A healthier choice begins with a survey. The Health Projects Salt Consumption Survey began a sequence
of events leading to consumer options for reduced salt foods. By 2013, the major two bread factories had
reduced salt content in products and/or offered/were promoting low-salt varieties of products. Talkh chiher
and Atar orgoo company reduced salt content in bread by 12 %. Based on the Salt Consumption Survey.
Task 3: Identify traffic accident high incidence locations, determine and implement road safety measures
The Health Project, with support from stakeholders and contractors,
Identified traffic accident high incidence locations in Ulaanbaatar (13), Hoolt hiil, and Bayanchandmani
along with recommended corrective measures and provided these to municipal authorities;
Trained more than 300 clinicians in basic life support and usage of supplied equipment;
Trained 500 ambulance drivers, rescue staff of the National Emergency Management Agency, and
Traffic Police on first aid;
Provided an ambulance with a full suite of life support equipment and supplies to Ulaanbaatar
Emergency Care Center;
Provided basic life support supplies to the Emergency Care Center of Ulaanbaatar, the National
LIVES CHANGED - Completion Report



talk shows and open discussions

60 & 30

60 TV programs, including cooking shows

30 episodes of TV drama series


disease specific printed pieces distributed, and

1 movie produced

Emergency Management Agency, the Health Sciences University of Mongolia, and to 36 soum hospitals
Developed an integrated traffic accident and injury reporting information system for the national
traffic safety program for joint use by health organizations and traffic police.
Impact: on safety where it counts most.
New road markings, reflective road studs, speed bumps, digital speed signs, radar detection for speed
enforcement, and life support equipment mark a new beginning for road safety. The Health Project painted
the five main intersections in Ulaanbaatar with 1,030 sq. m of road markings; borders of another 1,829 m
of Ulaanbaatar roads; in another five intersections near schools, installed speed bumps, digital mobile speed
displays with integrated radar detectors, other road safety signs and painting; and, installed 1,177 reflective
non rigid stands and 1,730 m of fences. In Hoolt hiil, Uushiin hutul, Bayanchandmani davaa aimags, painted
825 sq. m. of road markings, and installed six road signs and 760 reflective plastic road studs.
Activity 3 Promote a healthy life style through changed behavior/reduced risk
With the Ministry of Health, stakeholders and with advice of its own technical experts, the Health Project
identified as Tasks to promote behavioral change/reduced risk of NCDI:
Task 1: Advocate legal, policy and other changes necessary to target primary audience (adult population
30 years and older) with behavior change messages The Health project, with Ministry of Health and
stakeholders, contributed to:
National Health Behavior Change Communication Strategy (2010-2016) as with approved NCD and RTI
prevention activities;
Revision of a draft Alcohol and Tobacco Control Law;
A Tobacco Control Law 2005 was amended and approved by the State Great Hural (October 2012) and
implemented beginning March 2013, provides the legal basis for 100 percent tobacco-free workplaces;
New food labeling standard now in the process of revision by the Mongolian State Standardization
Organization following passage by the State Great Hural of a new food safety law, which included input
from the Health Project.
Impact: smoke free workplaces.
Early adaptors ask for and receive help to protect their workers. Talkh-Chiher Company and Mon Suu
Company asked Health Project specialists to provide them technical assistance in creating a smoke-free work

Impact: healthier bread on the shelf.

The brand of choice for 60 percent of Ulaanbaatars consumers now has 12 percent less salt. Mongolias
National Bread Factory, which covers 60 percent of the market share in Ulaanbaatar now offers nine varieties
of bread with less salt. Furthermore, dairy producer Mon Suu now offers five products with sugar reduced by
3-5 percent and even three new sugar free products. The good news from Mon Suu will continue with further
sugar reductions in yogurts initially by five percent with an eventual target of 20 percent.

LIVES CHANGED - Completion Report


The highlights
Protocols developed and implemented Health Project advocacy supported the
legal environment and helped to introduce the screening process at health
clinics nationwide for the early diagnosis, treatment, case management of
arterial hypertension (AH), diabetes mellitus type 2 (DM), breast and cervical
Budget support mandated Health Project advocacy led to legal amendments
and enforcement of the Law On the Special Fund providing transfer of one
percent of an alcohol excise tax and two percent of a drug registration excise
tax amounting to $2,381,855 (2010-2012) to a Health Promotion Fund for
public health education, with funding on-going.
Healthier diets Health Project advocacy in the marketplace led to the reduction
of salt, sugar, and fat in foods, new categories of low salt, low sugar, and low
fat options, and the introduction of certain products free of such ingredients,
which had previously been unavailable.
New food labeling standard Health Project advocacy supported the
implementation of new standards by the Mongolian State Standardization
Organization following passage a new food safety law by the State Great Hural
for labels protecting consumers.
Breast and cervical cancer registered according to international requirement:
under the support from the project nationwide health facilities connect through
internet based cancer registry and recall system, allowing all women aged 30
and above to be registered and followed for the prevention of the above named
types of cancer.
Cardiovascular patient data bank software developed with Health Project
support provides secure access and record retrieval to patient data for
networked hospitals.
Awareness leads to behavioral change Comparing the 2013 Knowledge,
Attitude and Practice Survey on NCDs with a 2010 baseline survey, knowledge
of NCDs increased 30 percent, protection from second hand smoke increased
by 8 percent, those who understood that the prevention of diabetes is possible
increased by 23.4 percent, women who believe that self-breast exams can
detect breast cancer increased by 20 percent, and women able to selfadminister a breast exam increased by 7 percent.


Task 2: Develop a coherent communications strategy effecting behavioral change consistent with,
and supportive of a the Health Projects primary goals The Health project, with Ministry of Health,
stakeholders and contractors,
Trained 27 outreach workers at the aimag and district level who introduced counterparts to the
development an annual behavior change communications plans;
Conducted media briefings for television and newspaper journalists on NCD prevention and risk factors;
Established public private partnerships (PPPs) with companies and other entities to promote healthy
diet, physical activity, and road safety;
Conducted national promotional campaigns promoting lifestyle decisions and changes, including:
Alcohol and tobacco prevention, joining with the international campaign for a No Tobacco Day;
Healthy diet and physical activity, including a Car Free Day;
Cervical and breast cancer prevention;
Road traffic injuries prevention;
Cardiovascular disease and diabetes prevention, including both a Heart Healthy Day and a
Diabetes Prevention day.
Produced public affairs and other programs focused on NCDI topics and individual decisions based on
cause-and-effect as a legitimate means to influence and change behavior for better
Implemented a $2.4 million competitive grants program (CGP) in support of health organizations and
non-medical sectors in preventing non-communicable diseases and injuries.
The first round of the CGP focused on NCD prevention in general. 93 projects were selected and
received total amount of $832,968. 89.2 % of these grant were for health promotion activities and
60.2 % of the total recipients were from Ulaanbaatar city. One of the successfully implemented
projects was the vegetarian food and healthy diet which was implemented by the Food Technology
School of Technical University. The project developed several handouts on healthy vegetarian
cooking, and eating. They trained cooks in Ulaanbaatar, Darkhan and Erdenet city on healthy
diet and vegetarian cooking. Another successful project was implemented by the City Health
Department. The project created a 100 % Tobacco free workplace in Khangarid palace where the
major government offices located.
The second round of the CGP of MCA-Mongolia Health Project selected 37 successful projects
which were supported by $373,100 in grant awards. The second round of the grant was mainly
focused on promoting research project on NCDs and RTIs prevention. 29% of the total recipients
were research on health promotion, 27% of which focused on cancer and CVDs research.
The third round of the CGP of MCA-Mongolia Health Project selected 53 successful projects and
awarded grants totaling $742,795. 85% of the grants were focused on health promotion. A national
park received $18,710 to equip the internal part of the park which enables people to exercise
utilizing different physical activity equipment.
The fourth round of the CGP selected 36 successful projects and awarded grants totaling
$462,566. 28% of the grant recipients were from education sector, 25% were from health sector,
and 22% of them were from NGOs. The first clinical hospital received $15,000 to develop diabetes
center. The hospital furnished a room for diabetic patients training and developed training modules.
This will be ongoing sustainable training center in Mongolia.

LIVES CHANGED - Completion Report


Who? For screening and behavior change: At risk populations, men and
women aged 40-64 years for arterial high blood pressure (hypertension),
stroke and other cardiovascular disease; diabetes; women, for breast
cancer and, including girls aged 11-15 years, for cervical cancer; and, for
road traffic induced trauma: both drivers and pedestrians for road safety;
for training clinicians, managers, teachers, social workers, community
members, emergency response staff.
What? 42 million invested in advocacy efforts, medical equipment, a
targeted vaccination campaign, local and international trainings, and
behavioral change communications.
Why? Screening for NCDs and the reduction of road traffic injuries (RTI)
in the short term leads to increased life expectancy, improved quality of
life, and productivity of labor in the long term.
Where? Screening performed at 550+ primary health care facilities,
including hospitals, health centers and clinics; similarly, training conducted
and behavioral communications events staged in the 21 provinces, and
nine Ulaanbaatar districts, with trainings also conducted in several foreign
countries; specialized cardiovascular and stroke treatment provided at
newly equipped State Clinical Hospital #3; and road safety improvements
made at 13 high incident locations.
How? Introduce effective, affordable, systemic diagnosis and injury
treatment accessible to all through screening so as to prevent and detect
early symptoms of high incidence NCDs, and then promote screening
and benefits of a healthy life style leading to behavior change so as to
decrease NCDI risk factors.
Whats next? Mongolias Ministry of Health and allied agencies will
continue the program initiated by MCA-Mongolia of Non-Communicable
Disease screening and Road Traffic Injury treatment and prevention
consistent with Mongolias NCDI policy and program goals dating from
2005. Longer term, the impact of the Health Project as a function of
increased life expectancy and quality of life will only be known after
compilation and analysis of data collected during the next 10-20 years.


Impact: on a national audience.


23 talk shows and open discussions

160 radio programs
60 TV programs, including cooking shows
30 episodes of TV drama series
150 newspaper/magazine interviews, stories and advertisements
Website www.ncdi.mn now managed by Center for Health Development
1,412,055 disease specific printed pieces, and
30 serial movie Sharp turn on NCDIs prevention with a repeat broadcast

Impact: on behavior and NCD knowledge

Improvement verified by research. Compared to baseline research conducted in 2010, a Knowledge,
Attitude and Practice Survey on NCDs conducted in 2013 showed that NCDI public knowledge
among adults over the age of 15-64 had increased by 30 percent; morning sobriety had increased
by 7.3 percent; protection from second-hand smoke had increased by 8 percent; female respondents
who believe that self-breast exams can detect breast cancer had increased by 20 percent; and
knowledge of how to do a self-breast exam had increased by 7 percent; women who thought that
the HPV vaccination can prevent cervical cancer had increased by 30 percent.

Impact: on diet.
Behavorial change begins with a basic message and acceptance. The message that healthy
lifestyles begin with healthy choices including food habits and exercise, basic as it is, came to
Mongolias western aimags with an Italian flavor thanks to Tengis, the president of Italian Food in
Mongolia, on five-day tour through Selenge, Uvs, Khovd, Bayan-Ulgii, Govi-Altai and Zavkhan aimags.
Local master chefs joined Tengis and participated in an exhibition and healthy foods taste test
which came with an introduction to preparation.

Impact: on message, for youth.
They came for fun, stayed for the message. Rural youth heard a healthy food and exercise message
while attending performances by Burtu Wolfs Children, a Mongolian dance group. Their routine
included a healthy food and exercise message aimed at their peers. Said the groups producer:
Dancing over preaching: works every time.

Impact: tuned into a Healthy Lifestyle.

A weekly television program with a focus on NCDI risk factors became a must watch show on local
aimag TV. With support from $18,000 grant, the MBC Ulaangom, Uvs aimag affiliate produced
a weekly Healthy Lifestyle program with its own unique studio set, for an entire year, airing the
program on Wednesdays with two repeat broadcasts. The program focused on NCDI risk factors,
proved so popular that the channel will continue the program on its own initiative.
LIVES CHANGED - Completion Report


Key Findings
HPV pilot program with support of the Ministry of Health was successful based on voluntary
participation in the pilot program and broad-based acceptance:
Of those eligible to participate, 65 percent completed the program,
Of those respondents to a second survey, agreed that the HPV vaccination prevents
cervical cancer, a 30 percent gain compared to a similar baseline survey, and will continue with
a follow on program until current supplies of vaccine (12,000 doses) are consumed.
HPV pilot program encountered opposition.
False and misleading information regarding health issues needs 1) an aggressive, professional
response, and further, 2) professionally handled annual programs need to be prepared in
advance so as to draft and disseminate messages on a coherent, continual basis to pre-empt
and counter anticipated opposition.
The National Public Health Center, within the Department of Public Health, consists of four
units: Nutrition, Health Promotion & Public Relations, Non Communicable Diseases Control,
and Reproductive Health and Gender. The Health Promotion & Public Relations unit is entirely
responsible for health promotion, outreach, and BCC activities, the latter including TV and
radio advertisements.
Joint Ministry of Health, World Health Organization, and MCA-Mongolia Health Project
news conferences provided evidence-based information through national broadcasting and
newspapers to introduce the HPV pilot program. At the same time, anti-vaccine lobbyists, local
physicians and expatriate media exposure opposed the program with opposition strongest
in the Bayangol District where, not coincidentally, the coverage rate was at a lower level of
51.4 percent, whereas the three other sites located outside Ulaanbaatar reached 70 percent.
Overall 14 percent of the children in the target group declined vaccine after opposition
arguments surfaced in the news media.
In Umnugovi Aimag, the governor issued a regulation requiring health and education administrator
to collaborate on the HPV vaccination. The aimag achieved the highest coverage (82 percent).
The Tobacco Control Law (2005) provides for 2 percent of the tobacco excise tax to be used for a
Health Promotion Fund later established in 2007. However, no such transfer occurred between the
years 2007-2009 during which time some funding came from the state budget. Subsequently,
Health Project advocacy led to an amendment of the Law On The Special Fund. Accordingly,
since 2010 the state has transferred to the Health Promotion Fund 1 percent of an alcohol excise
tax and 2 percent of a drug registration excise tax amounting to MNT 442,900,000 ($316,357)
in 2010, MNT 22,073,000 ($15,766) in 2011 and MNT 2,869,626,000 ($2,049,732) in 2012.
Subsequently, the excise tax was increased by amendment in July 2012. The Health Promotion
Fund allocated 120 MNT (0.08USD) per person for use on prevention activities. In the first six
months of 2012, $256,489 was spent on local prevention and outreach events.


The Ministry of Health should consider :
Including HPV awareness as a permanent module of health curricula at the
secondary school level and for parents of girls aged 11-to-15 years,
Evaluate and test improved distribution and maintenance of supply anticipating
storage, volume, and temperature monitoring in order to prevent loss in event of power
failure/lack of cold storage/equipment failure,
Consider serological vaccine effectiveness study of 200 girls in Mongolia for future
HPV typing studies,
Evaluate costs and logistics, identifie additional savings, including volume purchase
and/or lower cost vaccine source(s).

The Ministry of Health should consider :

Testing alternative media strategies including a stronger emphasis on timely local
outreach to parents/guardians by school personnel supported by information on the HPV
vaccine on the NCCD website to include generic Question & Answer information specifically
countering opposition arguments previously made.
Request governmental orders signed by aimag/district health authorities and other
stakeholders explaining the program, its benefits, and requesting their support.
Tap into the known good will among private institutions eager for recognition in
exchange for their contributions supporting projects benefitting the common good.
Incorporate HPV and behavioral change into a National Health Communications
Strategy supportive of NCDI and other initiatives so as to achieve focus and coherence
promoting health, while avoiding a fragmented, one off approach. Over time, such a
plan will provide occasion for regular give and take within the health sector and among
important stakeholders, particularly engaging/achieving coherence within the government at
the Aimag and soum levels.

The Ministry of Health should consider :

Budgeting for the National Health Communications Strategy with a focus on the
Health Promotion Fund managers; and further, that bylaws of the fund provide for a Ministry
of Health representative on the board of trustees and access to financial records with
provision for the Ministry of Health to conduct an independent audit so as to assure the
Ministry such money collected is used solely for prevention activity purposes.

LIVES CHANGED - Completion Report


How to live healthier

Work for Newtel

D. Altantsetseg
Company Physician
One of Mongolias leading telecommunications
companies, Newtel was an early adopter of the
Healthy Office model promoted by the Health Project.
According to D. Altantseteg, the Newtel
workplace has changed and so have the workers who
benefit from healthy diet tips, twice-a-day exercise
breaks done to music, and a tobacco and alcohol free
We focus on reinforcing health as a workplace
habit. We deliver our own health tips via worker
computers, organize regular seminars and sport
activities, promote exercise and a healthy diet. We
encourage physical breaks as well by making exercise
an enjoyable, group routine: every day at 11a.m. and
at 4 p.m. workers exercise together to music.


We have tripled the frequency of online lessons

from once every season to once every month. As a
result, we have documented fewer complaints about
high blood pressure, headache, and exhaustion. We
also offer professional advice on site to those who
We have organized nutrition and healthy diet
lessons in cooperation with the Soyolj center and
frequently order lunch from Soyolj. Now that our
workers have learned how to cook a healthier meal,
they are able to prepare lunch at home and enjoy
eating together in our dining room.
Newtel workers also can exercise at the Hearty
Fitness Club for a discounted price. And the number
of people choosing to exercise there has increased
gradually. The workers are pleased, and so is Newtel
management. The result? The best has yet to come.

Less salt, more taste: Whats not to like?

Health conscious consumer choices
Inspire socially responsible food producer
Talkh Chikher LLC
As a food producer, you learn to listen to the consumer.
When Talkh Chikker LLC listened, the company
reduced salt content in all products and changed the
promotion of its Ta Chi brand with an added emphasis
on such healthy ingredients as dark flour, seeds, and
oats all of which promote digestion. As it turned
out, what is good for consumer health is also good
for business. Consumer demand has made the Ta
Chi brand a success, in part because of the product
appeal to a consumer consciousness changed by the
Healthy food your choice campaign sponsored by
the Health Project.
We follow regulations, we make and promote
healthy products, we can profit by being socially
responsible, says L.Yanjin, but thats not all we do.
We cannot be health conscious in the marketplace
and be any less in the workplace. If we as a company
promote healthy living for consumers, we also must
create a healthy environment for our 700 workers.
And we do.
We have even included this in our 2013 strategic
planning. Since we produce food, we constantly think
about environmental hygiene. Since our workers eat
in the factory cafeteria, we have made sure through
seminars on healthy diet that our cooks prepare
healthy meals. We have started implementing a plan
to reduce the use of oil, sugar, and salt. In response
to higher worker use/demand, we are expanding our
fitness center and sauna.
Last year, Kh.Battsooj, our CEO, went to the
USA to become acquainted with workplace health.
While there are many changes being impleme nted
as a result of that trip, one of the most immediate
and obvious is the factory has become tobacco
free. We are planning to restart the operations of
our Khargui hiking team. We also have set a goal to
solve our workers health and social problems in a
comprehensive manner: All things in good time.

A new playground becomes a focal point for

community health.
Doctor Z. Sarantuya
Bayangol soum hospital
Uvurkhnagai aimag
Connecting a place, a message, and making both a
habit was the logic behind a playground built with
a $8,210 grant from the Health Project in Bayangol
soum, according to Dr. Z. Sarantuya, a doctor working
at the soum hospital.
We wanted people to understand prevention
begins with their own changed behavior, but you
cannot change behavior just with ideas and message
alone. Our soum lacked a facility for community
exercise, so, logically, thats where we began, building
an outdoor sports playground to promote the physical
Then, to promote the benefits of exercise, we
organized training focused on prevention of risk
factors and non-communicable diseases.
15 trainers spoke to more than 750 local people.
Afterward, we conducted our own survey 10
percent of the population and based on the results,
determined both gains in terms of awareness and
then our messages for the balance of our education
Finally, at our own initiative, we have begun
teaching yoga which has proven popular with all age
groups as well as our patients this type of program
maintains focus, progress and because people like it,
it works. The project has been rewarding, and our
efforts, in my view, successful.

LIVES CHANGED - Completion Report


Health Project
has chosen
Contractor for the
Prevention and
Control of Major

MoU was signed

between MCAMongolia and
Ministry of
Health regarding
collaboration on
implementation of
NCDI prevention
and control.

Health Project
Behavior Change
Social Marketing

Four kinds of
clinical guidelines
on Arterial
Diabetes Mellitus
Type II, Cervical
and Breast Cancer
were developed
and approved by
Ministry of Health.

First National
Conference on
NCDI Prevention
and Control
successfully was

The Recall system

guideline for
cervical and breast
cancer screening
/with forms/ and
Cancer registry
guideline were
approved by
Ministry of Health.




MAY 11,




APRIL 14-16,


JUNE 21-22,



The resolution
of Minister of
Health, Mongolia
between MCAMongolia Health
Project and
Ministry of Health

First International
Conference on
NCDI Prevention
and Control was

trainings on NCDI
prevention started
simultaneously at
31 sites.

Supplied and
delivered 30 pcs
of Biochemical
Analyzer to 21
aimags and 9

A fully equipped
ambulance car
with proper
basic life support
supplies was
handed over to
the Emergency
Care Center of
Ulaanbaatar city.

screening program
on Arterial
(AH) and diabetes
mellitus 2 (DM2)
began within the
target group of
citizens aged 4064.



The first National

Forum on Health
Service Quality
organized by the

Multi serial TV
drama on creating
awareness of
prevention of RTIs
and NCDs started
to broadcast
by nationwide
TV channel,
National TV.

Over 400
workplaces joined
to Workplace
health promotion
(WHP) network
supported by
Health project.

On March 29, 2011

ran agreement
between the
Challenge Account
Health Sciences
University of
Mongolia (HSUM)
and George
University (GWU)
was signed.

MAY 31,




JUNE 15,

JULY 30,




MAY 28-29,

JULY 22,

JULY 30,

Cervical and
breast cancer
screenings began
involving 30-60
aged women.

Amendment to
Tobacco control
law was approved
by Mongolian
Parliament in
October 2012, and
came into force
starting from 1st
of March 2013.

Four kinds of
clinical guidelines
on heart attack,
stroke and its
rehabilitation were
developed and

Conference on
NCDI Prevention
and Control was

Cancer Registry
and Recall System
for National
Cancer Center are

machine, intensive
care 20 beds
and effective
tools for stroke
& heart attack
patients have
been installed to
State 3rd clinical

For the first time

in Mongolia,
Sukhbaatar aimag
has become
aimag with
both financial
and technical
assistances from
the Project.

A traffic accident
system for the
national traffic
safety program
developed and

LIVES CHANGED - Completion Report






Education and
Training Project

Mongolias National Development Strategy calls for
expansion of its paved road network to 11,000 km by 2021.

Health Project

Road Project

Energy and
LIVES CHANGED - Completion Report

Overcome weather, time,

other constraints,
construct 176.4 km of paved
road, the missing link
in the 1100 km, north-south
connecting Mongolia with
Russia and China,
vital to trade and continued
economic development.



Mongolias National Development Strategy calls for expansion of its paved road network to 11,000 km by
2021 by adding nearly 9,000 km to the 2,830 km of paved road as of 2010, at the rate of 1,000 km per
year while answering three questions:
Where to build first? Sixty percent of Mongolias 2.7 million inhabitants live within a days travel
of a 300 km wide, north-south transportation corridor stretching 1100 km from Russia to China. Yet,
throughout its history, Mongolia has never had an all-weather, through road connecting its north-south
borders, leaving shippers moving freight with two slow options: rail via the Altanbulag Ulaan Baatar Zamynn-Uud line; or motor transport traveling a road roughly parallel to the rail line which, prior to 2013,
included a 176.4 km unpaved, stretch of un-engineered earth road south of Ulaan Baatar between Choir
and Sainshand north of the Chinese border where traffic moved at top speeds of 30 km/hour.
The unpaved section of road, part of the 1109 km Altanbulag Zamynn-Uud Road, planned as AH 3, an
integral part of Asian Highway system now under construction, also connects regional centers to Ulaan
Baatar. Toward China, the north-south corridor also transects the mineral rich South Gobi region where
development of the Oyu Tolgoi gold-copper deposit is currently under way.
Impact: Future road beneficiary
The Sainshand Industrial Complex Project, sits right beside ofAltanbulag Zamyn-Uud Road and
400 km and 500 km respectively from the Oyu Tolgoi and Tavan Tolgoi mineral deposits and near
Mongolias oil fields in Zuunbayan 50 km away. According to the Development Bank of Mongolia,
when finished, the initial $10 billion expected in private investment in Sainshand will contribute
significantly to an industrial sector which is expected to account for 57 percent of GDP and
refineries, 14 percent of GDP by 2021. Sainshands state-of-the-art technology will include: a coalchemical plant project, an oil refinery, a copper smelting plant, a construction material factory, and a
steel and metallurgical plant. The complex will employ 10,000 during construction and 2,400 within
the complex itself..

According to Mongolias National Development and Innovation Committee estimates, and based on Bank
of Mongolia projections for GDP growth, the costs to Mongolias GDP for the years 2011-2013 of this
unpaved stretch of road: 1.12 percent in 2011, 1.04 percent in 2012, and another 0.85 percent in 2013
based on known usage rates and travel times for unpaved road versus projections for paved road which
conservatively double the traffic and half the travel time.
How best to work within Mongolias road map for road construction? In August 2011, after
a year of consultations with sector stakeholders, the government approved Mongolias Mid-Term Road
Sector Capacity Building Program which defined 5-year objectives for road building and milestones
toward the 11,000 km goal as managed by Mongolias Ministry of Roads, Transportation, Construction &
Urban Development (MRTCUD) and implemented by the Department Of Roads, including those projects
considered priority for their significant, immediate, and major economic impact.

LIVES CHANGED - Completion Report


80,11 million
USD investment

176.4 km road
eight bridges were built on time


Mongolia Road Fact:

Current cost of construction of asphalt paved road is US$ 800,000 in Mongolia.

Mongolia Road Fact: Why do roads fail?

Factors such as non-market driven structure in repair and maintenance system, inaccurate assessment
and planning, insufficient funding for repair and maintenance as well as lack of experience of repair and
maintenance companies result in failure of road.

Mongolia Road Fact: With proper maintenance, how long do good roads last?
Age of the road may range differently depending on structural designs. However, with proper maintenance,
an asphalt-paved road, which was constructed according to its Technical Specifications, may last for 13
years without periodic repair works.
These factors economic benefit of this critical section of road, capacity shortfall and coherence with
Mongolias Mid-Term plan - defined a need for the Road Project as approved by MCC and supported with
$80,1 million re-allocated from a cancelled rail project. The present program includes with funding under
the Millennium Challenge Corporation (MCC) program.
Accordingly, supportive of the agreement between the Government of Mongolia and Millennium Challenge
Corporation (MCC), respectively,
The Government of Mongolia, with funding from MCC and through MCA-Mongolia agreed to:
Activity 1: To construct an all-weather 176.4 km road section between Choir and the 35th railway
crossing outside of Sainshand;
Activity 2: To rehabilitate the existing Bayanzurkh bridge, construct a 288 m bridge near the existing
Bayanzurkh bridge, and rehabilitate the road from Ulaanbaatar to Nalaikh;
Activity 3: To support capacity building in the Governments Department of Roads, to support
improvements in the operation of state-owned enterprises involved in roads maintenance to ensure
long-term viability and quality of their works.
With the completion of the project, Mongolia would have the all weather, engineered, paved, border-toborder, north-south highway serving national, regional and local needs with double the current motor
freight capacity, improved road safety and environmental conditions along the route while providing
Mongolias own professional engineers, project managers, and skilled labor work force valuable large scale,
project experience.

LIVES CHANGED - Completion Report


6.7 IRI to
2.0 IRI
Economic impact the travel time
reduction based on a reduction of
the International Roughness Index
(IRI) from 6.7 IRI to 2.0 IRI

days, per year

Project implementation
Activity 1 Construction of Choir Sainshand Road.
Timeline for completion:
LIG Engineering & Construction Co., Ltd after submitting a winning bid, for construction of the entire
176.4 km length of road began work in May 2010 in conjunction with three contractors: ARJ Capital,
Green Station, and World Yeruna.
The Road Project terminated its contractor with effective May 2011 for reasons of a weak financial
condition, and subsequently entered into individual contracts with LIGs former subcontractors.
The Road Project split the remaining work into two lots and conducted a re-tender for 2012 and 2013
construction seasons, awarding contracts for Lot 1, Km 0 90 to Halla Engineering & Construction
Corporation for $ 33,897,612.00 Lot 2, Km 90 176+4 to Jiangxi Water & Hydropower Construction Co.
Ltd for $ 31,864,901.47. Choir-Sainshand road was completed on 1 September 2013 within its Contract
End Date. Additionally, two link roads , one of which is 1.1 km from the main road to Dalanjargalan
soum center and the other is 1.7 km road to Airag soum center were constructed within the budget and
Contract End date.
Activity 2: An update of design drawing was conducted and budget cost estimates for Ulaan
Baatar-Nalaikh road with an intersecting bridge at Bayanzurkh was developed.
Two bids were publically announced for Construction of the UB- Nalaikh road and Bayanzurkh bridge,
however, an adequate bidder meeting requirements of Bidding documents was not selected. Therefore, the
activity was cancelled.
Impact: Whats new about the new Choir-Sainshand Road?
Tests performed to evaluate previous attempts to build roads in Mongolia helped the Road Project
and its contractors to fine tune methods and materials used led to a preferred option, a Mongolian
model suitable for soil, weather, loads and other factors. As seen in the cross section, the Road
Project used cement-treated base course, which used screened natural material with grading
according to Technical Specifications as per Lot 1, and, with crushed stone, as per Lot-2, respectively.
Another major point of notes is that this road was constructed with 50 cm-wide paved shoulders.
This structural design is different and new to previously constructed roads in Mongolia.

All documents related with construction of this road, including sets of design drawings, results of tests
and surveys and resettlement action plan was handed over to Ministry of Road and Transportation in
September 2012.
Activity 3 Improve road maintenance through training of road maintenance staff
MCA-Mongolia Road Project developed technical specifications of road repair and maintenance equipment
to hand them over to Ministry of Road and Transportation to strengthen the capacity of repair and
maintenance sector. Additionally, MCA-Mongolia Road Project team had developed a Needs Assessment
for Capacity Development in the sector.
A training program to be conducted in regions for staff of repair and maintenance companies was
proposed by the Road Project. However, the training program was not approved by MCC due to time
constraints. Within TA activities MCA-Mongolia Road project had another objective, which was to provide
LIVES CHANGED - Completion Report




Average work days per

construction season


Average work days

per season in warm
climate countries

Average down time
for equipment down
for maintenance

necessary equipment for repair and maintenance sector. MCA-Mongolia announced two procurements,
one of which was to procure and introduce large-capacity equipment to Mongolia and the other was to
procure sets of small-capacity repair and maintenance equipment. MCA-Mongolia Road Project did not
receive no objection on the first procurement. Thus, the project procured 5 sets of equipment comprising
of seven items in each set and handed over to Ministry of Road and Transportation in September 2013.
Implement safety, environmental mitigation measures and assess social impact
Task 1: Consistent with Mongolias Department of Road policy and specifications, build a road engineered
with specifications:
The road is designed for 44 ton Gross Vehicle Weight Rating loads. 18-kip single axle load can be
passed 9.9 million times for an anticipated surface life of 13 years.
Well-marked passing lanes provided on steep grades.
Safety reflectors at standard intervals.
Safety, distance, and access road signage consistent with international safety standards for night and
low visibility conditions.
Bus stops at every 30 km and rest areas available every 80 km with warning signs.
Water runoff using standard engineering techniques (all culverts of the road were designed and
constructed with 0.5-3 percent grade to assure adequate cross drainage.
Constructed side ditches and intercepting drains at necessary locations along the road.
Task 2: Consistent with Mongolias current environmental protection policy and standards,
Observe and strictly enforce environmentally sound collection and recycling/disposal of all waste
products generated by contractors and strictly enforced by Road Project; and, as a result of the hard
Eliminate dust pollution produced by traffic over the entire length of the unimproved, earth road, 176.4 km.

LIVES CHANGED - Completion Report


Key Findings
While the Ministry of Roads and Transportation oversees technical and quality
control of usage and maintenance of the road and aimag road maintenance
companies will continue to implement and oversee such maintenance, the
Ministry will need to budget accordingly.

Potential shortages of key materials such as cement addressed after suppliers,

informed of project needs and Department of Roads future plans, scaled their
production accordingly with new investments leading to timely delivery of
required products/amounts.


The Asian Development Bank report, Mongolia Road Sector Development to
2016 provides options for Ministry of Roads & Transportation consideration.

Ministry of Roads promotes building plans/schedules, promotes via website

and e-- newsletters and alerts to a supplier list to allow interested suppliers
to adjust/plan inventories based on their own intentions to bid; and in some
cases and based on forecasts, consider local production of previously imported
products such as bitumen and high grade steel.

Effective Project
Management (M)

Effective Material
Management (M)

Effective Machinery
Management (M)

Effective Manpower
Management (M)

Effective Money
Management (M)

LIVES CHANGED - Completion Report


D. Tuulaikhuu
Chair of citizens representative council of Airag sub-province

Airag sub-province is located 330 km from

Ulaanbaatar city in Dornogobi province along the
main road corridor of Mongolia. Nearly 3,600 people
reside in Airag sub-province and make living by
herding animals and working in local spar mines. Due
to difficult terrain and harsh weather climate in Gobi,
the travel was an issue, especially in winter time. It
required a good vehicle and a good driver that knows
local dirt roads to reach destinations in the area.
Mrs. D. Tuulaikhuu is one of the residents in Airag
sub-province and she shared the same difficulty as
any other. As citizens representative she was very
concerned for well being and safety of local travelers
and most importantly the necessity of road for
further development of the community.
After MCA-Mongolia Road Project handed over
the newly constructed road to the Government
of Mongolia, Mrs. D. Tuulaikhuu became one of
thousands of beneficiaries of the Mongolia Compact.
Usually we traveled for very long hours to
Ulaanbaatar city. After the road was completed
travel time is reduced almost twice. We are
saving time and at the same time traveling very
comfortably. The people are very happy and thankful
to MCA-Mongolia Road Project and Millennium
Challenge Corporation. Moreover, MCA-Mongolia
paved new road to Airag sub-province center. Now
we have a paved exit too! says Mrs. D. Tuulaikhuu.


LIVES CHANGED - Completion Report




176.4 KM ROAD


November 17, 2009

May 21, 2010

September 3, 2010


February 2, 2010

July 16, 2010

October 7, 2010





20.9 KM AND 288 M



February 2, 2011

July, 2011

September 28, 2012

May 6, 2011

February 15, 2012

September 1, 2013


176.4 KM ROAD

176.4 KM FROM

LIVES CHANGED - Completion Report


Mongolia has an extremely harsh winter climate and an

eight-month heating season. Mid-winter temperatures in the
capital can drop to as low as negative-58 degrees Fahrenheit
at night, making Ulaanbaatar the coldest capital city in the





Education and
Training Project

Energy and
Environment Project

Health Project

Road Project

Energy and
LIVES CHANGED - Completion Report

Reduce urban air pollution/

improve air quality by
introducing consumers to
energy efficient technology,
replacing publicly owned,
obsolete, heat technology, and
adding clean energy sources to
the national electrical grid.


Energy and Environment Project

Mongolia has an extremely harsh winter climate and an eight-month heating season. Mid-winter
temperatures in the capital can drop to as low as negative-58 degrees Fahrenheit at night, making
Ulaanbaatar the coldest capital city in the world. Half of Mongolias population lives in Ulaanbaatar,
which is the worlds second-most polluted city by airborne levels of particulate matter10. At levels of up
to 10 times the international standards for particulate matter, air pollution is a major cause of serious
respiratory problems among urban residents. The primary source of ground level air pollution is the
usage of raw coal in inefficient stoves for heating poorly insulated traditional gers and small homes11.
Ger district households spend 20-30 percent of their monthly income for solid fuel expenditure during
the heating season, depending on whether they purchase the solid fuel on bulk or retail price12.
Mongolia ENERGY AND ENVIRONMENT Fact: What is a ger?
Ger is a traditional nomadic dwelling which is easily assembled and disassembled. It consists of wooden
frame and felt cover.Size of ger mainly determined by its number of wall sets circled around ger. Common
sizes of ger are 4 wall and 5 wall.
Impact: on health.
Traditional coal-fired stoves release high levels of particulate matter (PM). When inhaled, these
particles can settle in the lungs and respiratory tract. MCA-Mongolia estimates 23,510 people will
benefit from health savings as result of the Energy and Environment Project.
To reduce fuel consumption and cost, air pollution, and health risks and costs, the Government of Mongolia,
signed a Compact amendment to implement the Energy and Environment Project (EEP).
The MCA-Mongolia EEP was designed to:
Provide technical assistance to assess energy efficient technology and products,
Market energy efficient products, and related to same,
Offer/promote financial incentives for, adoption of such energy efficient technology by consumers,
Support/subsidize development, introduce renewable energy into the national power grid.

Project Activities
Activity 1: Assess energy efficient technologies and provide financial incentives for
consumers ger district residents to purchase such technologies
MCA-Mongolia identified and tested promising energy efficient products and homes for their potential to:
Reduce level of particulate matter emissions,
Increase thermal efficiency/reduce fuel costs,
Return a cost benefit in terms of health cost and fuel cost reductions greater than subsidies (including
Urban Outdoor Air Pollution Database, WHO, August 2011.
Heating in Poor, Peri-Urban Ger Areas of Ulaanbaatar, WB, October 2009.
Stove Behavior Survey, MCA-Mongolia, 2012-2013

LIVES CHANGED - Completion Report


The needs
Evaluate, establish standards for,
test energy efficient products prior to
mass market introduction
Encourage consumer awareness
and preferences for energy efficient
products and homes leading to a
market ready-and-able to pay for such
Identify and replace worst offenders
among publicly owned heat only
boilers generating particulate matter
pollution, and
Upgrade the national power grid with
investments in public infrastructure to
bring privately financed, clean energy
sources on line


later with the addition of the Government bonus),

Build consumer demand for energy efficient products,
Establish a grants program to support 1) greening as an air quality improvement strategy and 2)
research initiatives related to impacts and methods for mitigating particulate matter in the air.
Prior to making consumer subsidies available, products went through product review process, which meant
that products must demonstrate or undergo efficiency and emissions testing, cost benefit analysis, market
analysis, and a subsidy setting process. Efficiency testing was designed to demonstrate the increased level
of thermal efficiency and reduced fuel costs via the installation of the new technology. Emissions testing
was designed to demonstrate the reduced level of emissions or emissions avoided via the installation
of the new technology . Cost benefit analysis was designed to determine whether subsidies applied to
specific products or homes were cost effective. In other words, would the benefits attributable to emissions
reductions be greater than the cost of the subsidies. Market analysis was designed to evaluate both the
supply of and demand for certain products and homes which performed well on efficiency and emissions
tests. Finally, a subsidy setting process determined reasonable subsidy levels for each product and home to
address both affordability and an incentive to purchase.
MCA-Mongolia started the product review process by organizing an exhibition of energy efficient product
products in March, 2010. The objective of the exhibition was introducing the project and become
acquainted with commercially available energy efficient products in Mongolia. Over 20 producers of
energy efficient products including electric heaters, stoves, ger insulation, energy efficient home, and
clean fuel products participated in the exhibition. In July of 2010, laboratory tests were conducted on 14
stove models to determine, among other performance characteristics, their energy efficiency and PM
emission performance. MCA-Mongolia contracted with Mongolian University of Science and Technology
(MUST) to establish a temporary lab at the Mining Institute of Mongolia, and received technical assistance
from Lawrence Berkeley National Laboratory. Based on the laboratory test of stoves and ger insulation,
Lawrence Berkeley National Laboratory provided technical assistance to MCA-Mongolia to conduct
technical and economic analysis of the energy efficient products. In September 2010, as a result of the
partial product review process completed and political pressures to launch the project, MCA-Mongolia
launched subsidies of 1 type of ger insulation from 5 producers, 3 energy efficient homes and 1 type of
vestibule from 1 producer as a pilot basis on two sub-districts of ger district (11th and 12th khoroos of
Chingeltei District). The Xac bank was contracted as subsidy transfer agent to intermediate the payments
amongst consumers, MCA-Mongolia, and producers for energy efficient products and homes at the pilot
area of the project. 2089 ger insulation, 562 vestibules, and 9 energy efficient homes were sold during the
pilot period.
Table 5
per unit


Product type

Market price

4 wall ger insulation

717,000 800,000



92 000 175 000

5 wall ger insulation

817,000 895,000



149 500 227 500




32 600

12,536,434 28,104,742 5,000,000


7,536,434 23,104,742

27,610,000 56,826,116 9,000,000

16-33% 18,610,000 47,826, 116

Energy efficient home
35 sq m.
Energy efficient home
65 sq m.

Consumer Price

In December 2010, MCA-Mongolia organized another Exhibition of Energy Efficient Products in order to
develop a pipeline for product review process in 2011. There were many more participants and visitors in
LIVES CHANGED - Completion Report



More than
subsidized energy efficient products


this exhibition than the previous exhibition. Some of the energy efficient products from the exhibition were
included in the field testing of the project.
For stoves and heaters, the project decided to re-contract MUST to improve the reliability of its ger
laboratory test results by conducting field tests in order to confirm the technical data and usage level in
typical households. The field testing took place from December, 2010 to March, 2011.The stoves that met
the EEP stove selection criteria, particularly performance and production capacity were selected to enter
the field testing. Apart from 5 stoves, 9 types of other heating devices, already commercially available
in Ulaanbaatar, were included in the field tests. MUST reported that electric heaters tested could not
heat gers fully during periods of very low temperatures due to their limited heating capacity and the
limited availability of electricity in the ger districts. Both electric and LPG types of heaters would require a
separate appliance for cooking. There were reports of a smell of gas in the ger while using the LPG heater
and there were some safety concerns. Survey results indicated that households participating in the testing
were not interested in purchasing the tested heaters. After analysis of the field testing data, the project
recommended that 4 stoves continue through the product review process.
In December 2010, the PIU contracted with Nexant Inc. for technical support on the completion of the
product review process for the products which tested favorably. Based on results of the product review
process and the pilot implementation, MCA-Mongolia scaled up the project to additionally include stoves in
44 khoroos. It offered 4 stove models, 1 ger insulation set, 3 energy efficient home designs, and 1 vestibule
model. MCA-Mongolia contracted with Xac Bank and Khan Bank for subsidy transfer agent services and
with Solid Links for Public Awareness and Marketing Services. Marketing staff worked in Product Centers
alongside bank staff and also established one demonstration center in each district.
The Subsidy Delivery Mechanism for stoves, ger insulation and vestibules was set as follows:
A. The Public Awareness and Social Marketing Consultant conducted public outreach in the form of
information and promotion campaign for the supported products including informing residents
of product capabilities, available subsidies, and product operation, residents responsibilities after
purchase, etc.
B. The prospective client visited the Product Center, was informed of the qualities of the various stoves,
ger insulation, vestibules available, their delivery times, the prices and relative subsidy levels, the
terms and conditions of warranty and after sale assistance as stipulated by MCA-Mongolia with the
supplier. The conditions for qualifying in the Subsidy Program and the terms and conditions of the
Consumer Participation Agreement were also explained.
C. Then the client selected the products they wish to purchase (no more than 1 of each product type
per household) and executes the Consumer Participation Agreement. The Product Center personnel
collected from the client the necessary information (photocopy of the ID card and other documents),
confirmed location of residence and gives the client the invoice for clients portion of selected
product price. The Public Awareness and Social Marketing Consultant explained to consumer the
fire safety preparations to be made by consumer before scheduling the installation of the energy
efficient stove and obtain consumers signature on Fire Safety Preparation Instruction prepared by
D. The consumer went to the Subsidy Transfer Agents Branch and paid his/her portion of the product
price (i.e. total price less amount of applicable subsidy). This payment could be as direct cash-in-hand
payment, or the client if qualified can take a loan directly from the Subsidy Transfer Agent.
E. The consumer was issued a receipt which served as a claim for product or reimbursement; the
receipt indicated products purchased, amount of payment by the consumer, and refered to the
agreement between MCA-Mongolia and the Supplier for sale terms and conditions (delivery time,
warranty, after sale service).
F. The Subsidy Transfer Agents branch deposited the amount paid by the client into the bank account
of the Supplier.

LIVES CHANGED - Completion Report


energy efficient stoves

ger insulation


G. The Subsidy Transfer Agent notified the Supplier of the executed sale, and of the direct deposit into
its bank account.
H. Date and time of delivery was communicated to the consumer.
I. The Supplier and Subsidy Transfer Agent representatives delivered the new energy efficient stove
to the household on pre-agreed time and date. If the Supplier was unable to install the new energy
efficient stove on date and time pre-agreed with the consumer due to consumers fault, the
consumer had to visit the Product Center to obtain invoice for adequate delivery fee for next delivery,
paid to the Suppliers account at the Subsidy Transfer Agents branch, and submitted the receipt to
the Product Center. The Subsidy Transfer Agent scheduled the new date and time of delivery and
communicate to the consumer.
J. The Subsidy Transfer Agent representative witnessed the successful installation, and adequacy of
stove function and users instructions. Copy of the executed Consumer Participation Agreement, with
copy of the terms and conditions of warranty and after sale service were given to the consumer,
which in turn handed over the invoice for his/her portion of product price and receipt received at the
time of payment.
K. Subsidy Transfer Agents representative took the old traditional stove to be discarded and loaded
it into the Subsidy Transfer Agents truck after it was labeled with the appropriate tracking number
and then they made a notation in the old stove log. All the old stoves were made unusable and
then taken to the Subsidy Transfer Agents Product Center in that khoroo to be stored in container.
The Old Stove Dismantling Agency periodically collected the old stoves from each Product Center
warehouse and made a notation of the received old stoves on its old stoves log. Periodically the old
stoves were dismantled in batches, and the identity of the dismantled stoves was annotated in the
log. The Old Stove Dismantling Agency sent a copy of the old stove log to MCA-Mongolia on weekly
L. The consumers buying ger insulation and vestibules received those products from Product Center.
Approximately one month after consumer received the product from Product Center, the Subsidy
Transfer Agents staff checked the proper installation of the product at the address indicated on
Consumer Participation Agreement.
M. The Subsidy Transfer Agent collected the sales information, Consumer Participation Agreements and
supporting documents from all its Product Centers once a week, compiled lists of sales per Supplier,
and indicated the relative delivery times, and prepared the consolidated Invoice. This Invoice was
submitted to MCA-Mongolia on weekly basis along with Consumer Participation Agreements and
supporting documents for processing the relative subsidies.
N. MCA-Mongolia depositted the subsidy amount into the Suppliers bank account.
O. Approximately 3 months after stove sale, the Subsidy Transfer Agent confirmed the presence of the
stove in the purchasing household.
The Subsidy Delivery Mechanism of Energy Efficient Homes was set as follows:
The Subsidy Transfer Agent transfered the subsidy payment from MCA-Mongolia to the producer on behalf
of the consumer in two parts: 1) the down payment subsidy, which covered an agreed proportion of the
home down payment and 2) the purchase subsidy, which covered an agreed proportion of the consumers
total home loan.
In addition to all loan documentation required by the Subsidy Transfer Agent, beneficiaries also sign a
Consumer Participation Agreement with MCA-Mongolia (similar to those signed by consumers of the
energy efficient products) in order to receive the subsidy.
The Subsidy Transfer Agent first confirmed a households eligibility to receive an energy efficient home
subsidy (see criteria below). To begin construction, the applicant made a down payment, which MCAMongolia (through the Subsidy Transfer Agent) subsidized at a predetermined amount. Once construction
was complete MCA-Mongolia released the remaining subsidy funds (Purchase Subsidy) to the Subsidy
LIVES CHANGED - Completion Report



energy-efficient homes


heat only boilers were replaced


sales or product centers in 6 districts


Transfer Agent after UNDPs BEEP conducted a Thermal Audit of the home and determined that it met
the design standard and after the Subsidy transfer Agent provided MCA-Mongolia with: (i) a description of
the consumer and an appraisal of the loan application; (ii) the proposed terms and conditions of the loan
agreement; (iii) thermal audit report; (iv) the Consumer Participation Agreement for the Energy Efficient
Home and (v) BEEP quality certification documents.
Eligibility Criteria
Subsidies on energy efficient homes shall be offered only to:
Households in specific districts
Households who have property rights to their khashaa plot
Households who have no existing houses (other than ger) on their khashaa plot
Households khashaa plots must be their primary place of residence (e.g. no summer homes)
Beyond these criteria, subsidies were available on a first come first served basis.
In May 2011, the project scaled up its subsidy delivery to additional 49 sub-districts of ger districts on 4
types of stoves from two suppliers, 1 type of ger insulation from 16 suppliers, 3 energy efficient home
designs in two sizes (30m2 and 65m2) and 1 type of vestibule. The Xac and Khan Banks were contracted
as the Subsidy Transfer Agents of EEP. In support of the EEPs goal to reduce air pollution in Ulaanbaatar
through adoption of energy efficient products in the ger area by providing consumer subsidies the Subsidy
Transfer Agents primarily acted as a financial intermediary between MCA-Mongolia, which set and funded
the subsidies, and the producers which provided approved products, for the benefit of consumers. More
specifically the Subsidy Transfer Agents handled the sale and payment of all energy efficient products
offered through the EEP, collection of old stoves, and consumer monitoring for the energy efficient
products. The Subsidy Transfer Agents received payments from consumers, transferred the subsidy funds
to the producers to complete payment, and managed any down payment and/or micro loan from the
consumer, for the purchase of the approved product. EEP required that beneficiaries sign a Consumer
Participation Agreement in order to receive the subsidy.
The Project concluded Producer Participation Agreements with all energy efficient product suppliers which
a) Fixed price for each type of product for 1 year
b) Level of subsidy offered for each type of product
c) Delivery time
d) MCA-Mongolias committed to pay the applicable subsidy amount once evidence of delivery was
received from the Subsidy Transfer Agent
e) Agreement on the mechanism of payment (consumers portion of payment and subsidy amount)
f) The quality of supplied product to be in compliance with acceptable standards
g) Suppliers agreement to allow an MCA-Mongolia Inspector to enter, at any time and without prior
notification, its premises to perform inspections of quality, workmanship, and overall status of the
production process
h) Terms and conditions of the warranty to be provided with each delivered product
Furthermore, each consumer purchasing energy efficient product at subsidized price signed a Consumer
Participation Agreement, which stated that:
a) In the case of stoves, consumer must trade in their old stove, or in the case of a wall stove, the door
to the stove, upon new stove delivery.
b) Consumer will use the purchased product only at the indicated address
c) Consumer will not resell the product purchased
LIVES CHANGED - Completion Report



d) Consumer will comply with fraud and corruption rules and regulations of MCA-Mongolia
e) Consumer will allow an MCA-Mongolia Inspector to enter its premises to perform inspections of
quality and monitoring
Table 6 Subsidies products sold, 2011-2012 heating season

Market price less


Silver Mini
(Ulzii stove)
Silver Turbo
(Khas stove)
Royal Single
(Dul stove)
Royal Double
(Golomt stove)
4 wall ger insulation
5 wall ger insulation



Government of
Mongolia bonus

Consumer Price




50 000






200 000






40 000






40 000



775,000 890, 000

845,500 900, 000
330,000 480, 000
13,193,400 27,925
Energy efficient home



295,500-350, 000

In August 2011, the Clean Air Fund of the Ministry of Environment and Tourism (now Ministry of
Environment and Green Development) added additional subsidy or bonuses to the subsidy in amounts
of MNT 50,000 for the Ulzii stove, MNT 200,000 for the Khas stove, and MNT 40,000 for both types
of Royal Ocean LLC stoves. The additional bonus led to consumer demand which temporarily exceeded
producer capacity to build and deliver stoves, finally leading to an increase in prices (2012-2013). As a
result, the subsidy per stove was increased from 5.1 percent to 13.6 percent for the 2012-2013 season. A
total of 92206 energy efficient products were sold from June 2011 to May 2012 under the subsidy delivery
activity of the EEP. From these 69202 were energy efficient stoves, 18379 were ger insulation, 4529 were
vestibules and 96 were energy efficient homes.
In August 2012 the project selected 21 new sub-districts in which to offer subsidized sales. During this
period the project continued supporting four (4) selected product types: ger insulation, vestibule, energy
efficient stoves, and energy efficient house. The contracts with Xac and Khan bank had been amended
and they continued working as the Subsidy Transfer Agents of the EEP. Xac bank operated 16 Product
Centers at 8, 9, 10, 11, 12, 13, 14, 17, 28th khoroos of Bayanzurkh District, 1, 2, 30, 31, 32nd khoroos of
Songinokhairkhan District, and 8, 16th khoroos of Khan-Uul District and 21,780 stoves, 290 ger blankets,
and 87 vestibules were purchased by residents of this ger area.
Table 7 Subsidies heating season 2012-2013

Silver Mini (Ulzii stove)

Silver Turbo (Khas stove)
Royal Single (Dul stove)

Market price less

352 000
480 000
378 000


230,000- 368 000 MNT 125,750 34%-55%




Government of
Mongolia bonus
51 220
203 260 42%
111 400 29%

27 500
57 700
28 300
104,250242 250

LIVES CHANGED - Completion Report



4 wall ger insulation

820,000- 837 000 MNT 263,000 31-34%

5 wall ger insulation


517,000574 000
605,000625 000

MNT 275,000 31%

Target areas

The targeted areas were chosen based

on the density of air pollution and UB air
pollution reduction zones (see darkest
portions of the below map13). The areas
with highest air pollution were targeted
first in order to achieve the highest
reductions in PM throughout the city at
the earliest possible date.

The targeted area for subsidy delivery activity for energy efficient products and homes ultimately included
72 khoroos of 6 districts. These khoroos were 2, 4, 5, 8, 9, 10, 11, 12, 13, 14, 17, 19, 21, 22, 27, 28th khoroos
of Bayanzurkh, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19th khoroos of Sukhbaatar, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 20,
22, 23, 24, 25, 26, 27, 28, 30, 31, 32nd khoroos of Songinokhairkhan, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18,
19th khoroos of Chingeltei, 9, 10, 11, 16, 21, 22, 23 khoroos of Bayangol and 8, 9, 10, 16th khoroos of KhanUul Districts. The total market of consumers living in gers and homes amounted to approximately 137000
Impact: on fuel savings and air quality
According to analysis, solid fuel stoves approved and available for purchase with EEP subsidies were
proven to be the most cost effective product among all products offered through EEP programs in
terms of fuel savings and reduction of particulate matter (PM) and carbon monoxide (CO). Compared
to traditional stoves, testing showed the energy efficient stoves reduced fuel consumption from 20.5
to 30.2 percent, PM from 67.2 to 85.7 percent, and CO from 18.3 to 56.6 percent

EEP approved for subsidy and offered four types of energy efficient stoves: the Ulzii, the Khas, the Dul, and
the Golomt.
The Silver Mini Ulzii features (pictured)
Rated for spaces up to 60 sq. m
Consumption: 26 percent less coal compared to traditional stove14
Emissions: 89 percent reduction in particulate matter
compared to a traditional stove16
Country of manufacture: Turkey
Distributed by Selenge Construction LLC

Air Pollution in Ulaanbaatar Initial Assessment of Current Situation and Effects of Abatement Measures, WB, December 2009.
The MCA-Mongolia field testing.
LIVES CHANGED - Completion Report


The highlights
Reduced fuel consumption compared to traditional stoves, the energy efficient
stoves reduce fuel consumption from 20.5 to 30.2 percent, particulate matter
from 67.2 to 85.7 percent, and carbon monoxide from 18.3 to 56.6 percent.
Recycled stoves for virtually each of 103,255 new stoves put into service, an old
stove was collected, tagged, dismantled, and accounted for, with scrap metal
An average ger household saves 40 percent of its annual fuel costs with the
addition of two standard layers of insulation.
An energy efficient house heat loss reductions of up to 40 percent compared to
a traditional ger.
Quality control Of 16 initial ger insulation suppliers meeting Mongolia codes
and standards, EEP eliminated all but five for quality and/or delivery problems,
effectively shaking out the market by identifying the best producers on a
competitive basis.


The Silver Turbo Khas features:

Rated for spaces up to 80 sq.m.
Consumption: 11 percent less coal compared to traditional stove16
Emissions: 70 percent reduction in particulate matter
compared to a traditional stove16
Country of manufacture: Turkey
Distributed by Selenge Construction LLC
The Royal Single Dul Features: (pictured)
Rated for spaces up to 60 sq. m.
Consumption: 19 percent less fuel compared to
to traditional stove15
Emissions: 83 percent reduction in particulate matter
compared to traditional stove16
Country of design/manufacture: Mongolia/China
Manufactured and distributed by Royal Ocean LLC
The Royal Double Golomt features:
Rated for spaces up to 80 sq. m.
Consumption: 21 percent less fuel compared to
to traditional stove16
Emissions: 87 percent reduction in particulate matter
compared to traditional stove16
Country of design/manufacture: Mongolia/China
Manufactured and distributed by Royal Ocean LLC
The Ger insulation features:
Ger insulation package included: a wall insulation, door insulation,
roof top insulation, ceiling insulation, and canvas covering
Consumption: 25 percent less fuel compared to single layer
insulation ger with traditional stove16
Emissions: 25 percent reduction in particulate matter
compared to single layer insulation ger with traditional stove16
Country of design/manufacture: Mongolia

Impact: on consumer demand for insulation.

Creating consumer demand for well insulated gers relied on promotion of fuel savings and related
health benefits with initial costs offset by a subsidy. According to testing, an average ger household
could save 40 percent of its annual fuel costs with the addition of two standard layers of insulation
while incurring no associated ventilation or moisture risks, but most ger residents could not afford
the up front costs. Of the MNT 717,000 800,000 full market price for four-wall ger insulation,
an EEP subsidy paid consumers MNT 625,000 (2010) to purchase and install insulation, and in
succeeding years, subsequently reduced the subsidy to MNT 526,000 (2011-2012) and then again
to MNT 263,000 (2012-2013), owing to relatively low cost-benefit ratios; five-wall ger insulation also
available came with slightly higher subsidies to offset higher market prices.

The MCA-Mongolia field testing

The MCA-Mongolia and ADB field testing
LIVES CHANGED - Completion Report


Who? benefits? The entire population of Ulaanbaatar with the most immediate beneficiaries
being the approximately 340,000 residents living in 160,000 households in six ger districts
comprising 72 khoroos (sub-districts) with the risk of developing respiratory disease as a
result of direct exposure to in home, stove-produced particulate matter and emission gasses
What? cumulative effects? MCC calculated that the combination of energy efficient heat
sources together with ger retrofitted with insulation or energy efficient new home construction
could reduce heavy particulate matter generated by traditional stoves by 30 percent or more
by 2013.
Why? To reduce 1) fuel consumption and cost and air pollution, 2) to mitigate health risk and
reduce related costs, and 3) to support existing Government of Mongolia Clean Air Program
to market energy efficient technology/products and Clean Fuel Program to support clean fuel
How? EEP engaged key stakeholders to support, and contractors 1) to assess, test market
and introduce energy efficient technology products targeting consumers with a combination of
subsidies and microcredit loans while building a market for same, 2) to introduce clean coal
fuel technology in ger districts and publicly owned, upgraded boiler technology and, 3) to link
an existing source of wind energy to the national grid as a new source to supply added power
and at the same time to reduce use of non-renewable fuel
Whats next? Beyond gains achieved during the project, MCC estimates suggest that
with future improved reliability of power the need for private generators supplying private
consumers and industrial users would reduce fossil fuel consumption and particulate matter.


The subsidies were reduced in order to enable gradual transition to market price sales without
subsidy and because of priority of products in regard to cost-benefit analysis for limited project
budget. A Subsidy Transfer Agency tracked the insulation sets from product centers, where
consumers took delivery, to their household, checking for proper installation as well. Of 16 initial
suppliers with products meeting Mongolia codes and standards, all but five were eliminated for
reasons including quality and delivery problems, effectively shaking out the market by identifying
the best producers on a competitive basis while building consumer demand for energy and cost
saving products.

The Ger vestibule features:

Consumption: 5 percent less fuel compared to single layer insulation ger with
traditional stove16
Emissions: 5 percent reduction in particulate matter
compared to single layer insulation ger with traditional stove16
Country of design/manufacture: Mongolia

Impact: Of vestibules on energy cost savings.

Any gain is a good gain. In winter, ger residents use vestibules entries mostly self-constructed of
wood attached to the main ger structure to buffer cold air infiltration and for cold storage. Testing
confirmed that more energy efficient vestibules could save energy consumed by as much as five
percent, and identified one factory-constructed, energy efficient, environmentally friendly products
for consumer trials beginning in 2011-2012. The pilot confirmed a strong demand with a subsidy of
MNT 279,416 (85%) subsequently reduced to MNT 251,500, and then again to MNT 125,750, owing
to realtively low cost-benefit ratios. Unlike ger insulation which was self installed by the consumer,
EEPs suppliers handled installation, in turn, monitored by the Subsidy Transfer Agency. In all, over
5000 vestibules were sold.
EEP subsidized, energy efficient homes
featured A-to-B ratings for energy efficiency
(BEEP standards), heat loss reductions of
up to 40 percent compared to gers, 50 year
guarantees, 5-to-6 magnitude earthquake
ratings, , and construction times (start-tooccupancy) between 30-45 days.

LIVES CHANGED - Completion Report



Impact: on home construction.

Energy efficient home demonstrates value, builds demand among ger residents. An energy efficient
home is an inherently more energy efficient structure than a ger. However, the resultingemissions
savings in conversion from coal-stove heating to electric heating was insufficient to justify the cost
of the entire home. Neverthless, to encourage higher quality and more energy efficient construction,
MCA-Mongolia, in cooperation with the UNDP Building Energy Efficiency Project (BEEP), initially
offered a subsidy of MNT 5,000,000 for a 35 sq. m. house and MNT 9,000,000 for 65 sq. m. house
constructed of wood, light weight concrete, insulated panel, or brick, which achieved a BEEP energy
efficiency rating of A or B. The offer, good for the first 200 successful applicants on a first come
first served basis, also served as a test market for energy efficient construction and consumer
acceptance/preference and price points. After the first nine-homes, MCA-Mongolia revised its plan,
and ultimately built and subsidized 109 homes limiting the subsidy to MNT 5,000,000, half paid as
a down payment and half after the house passed a thermal audit and received a energy and quality
certification; in year 2, EEP changed the terms of the down payment reducing the amount paid
as down payment to the lesser of MNT 2,500,000 or 20 percent of the purchase price as down
payment, with the balance paid after thermal audit confirmed an energy rating consistent with
the design specification. Consumers could choose their construction company from UNDP/BEEP
prequalified lists.

Mongolia ENERGY AND ENVIRONMENT Fact: What is a heat only boiler (HOB)?
Heat Only Boiler (HOB) commonly used in Ulaanbaatar to heat buildings consume large quantities of
fuel and emit high degree of particulate matter. Newer technology based on improved and highly efficient
boilers reduce these emissions and conserve fuel.
MCA-Mongolia replaced HOBs at selected sites with new, lower emissions technology. MCA-Mongolia:
Developed a database and electronic map of old technology HOBs
Developed an HOB testing protocol based on factors such as: age, consumption of coal (annual metric
tons) emissions and efficiency
Conducted emission and efficiency testing on 15 HOBs shortlisted for replacement
Conducted a cost benefit analysis
Prepared bidding documents
Based on findings, working with two contractors, and construction supervision provided by the
Investment Department of Ulaanbaatar City, replaced 15 HOBs located at 10 sites
Collected and dismantled the old HOBs under agreement with the Property Relations Department of
Ulaanbaatar City.
Acceptance test results compared to pre-replacement tests showed that the new HOBs reduced the
particulate matter emissions from the old HOB by as much as 90 percent.

LIVES CHANGED - Completion Report


Nalaikh Substation
upgrades included a
transfer circuit breaker
to switch power to
a second, back-up
line or transformer
and relay protection
devices to stabilize
the central grid
electricity transmission
against fluctuations
attributable to
intermittent power
generated by the wind


Replaced HOB at School 104 located, 25th Khoroo,

Songinokhairkhan District. The old HOB (above, left)
was replaced by new technology (above, right)

Table 8 Heat Only Boilers (HOB) Replaced

Replaced HOBs
9 Khoroo, Songinokhairkhan District Talst Erchim LLC
2800 W
8th Khoroo, Bayanzurkh District
4200 W
12 Khoroo, Bayanzurkh District
Khoyulaa Khuu LLC
1400 W
6th Khoroo, Khan-Uul District
Khoyulaa Khuu LLC
1400 W
25 Khoroo, Songinokhairkhan District 104 Secondary School
350 W
2nd Khoroo, Bayanzurkh District
102nd Secondary School
490 W
5 Khoroo, Bayanzurkh District
Ikh Zasag College
2100 W
15th District, Sukhbaatar District
Heating Technology & Ecological Institute, MUST 1
490 W
Finally, MCA-Mongolia encouraged individual community-led and research initiatives aimed at reducing
Ulaanbaatar air pollution
Established and promoted a Competitive Greening Grants program focused on greening, approved 15
of 69 submissions (2011-2012) for a 1st Greening Grant Program; and 13 of 28 submissions for a 2nd
Greening Grant Program (2012-2013); and also related to greening,
Supported the development of the National Garden Park in Ulaanbaatar (2013) by funding the
installation of 2,000 trees and shrubs in a designated .95 hectare section.
Established and promoted a Competitive Air Quality Research Grant Program which funded research
and pilot programs demonstrated to be scalable and sustainable for their positive impact on reduced
particulate matter in Ulaanbaatar (2011-2102; 2012-2013).
Activity 2: Fund network upgrades and limited tariff subsidy required to add electricity from
the Salkhit Wind Farm to the national grid and to dispatch the same

Upgraded the nearest substation at Nailakh to accommodate electricity from intermittent sources
Installed a Fiber Optic Cable between Nailakh substation and the National Dispatching Center
Installed a Dispatch Training Simulator to model and manage the dispatch of intermittent sources
Provided a limited tariff subsidy to smoothe the transition from current tariff levels to higher tariffs
required for to ensure financial sustainability of the transmission company in meeting its obligations
under a Power Purchase Agreement with the owners of the commercial wind farm.

Nalaikh substation upgrade

The Nalaikh Substation upgrading work was successfully completed on December 26, 2012. As a result of
upgrading, the Nalaikh Substation now has capability to transfer electric power from the Salkhit wind park
and transfer electricity with double line connection.

LIVES CHANGED - Completion Report


The Salkhit wind park at

Tuv province, Mongolia


Fiber optic cable installation

Fiber optic cable installation work was successfully completed on December 26, 2012. As a result of the
fiber optic cable installation, the Nalaikh substation connected with the Ulaanbaatar substation by data
transmission which allowed National Dispatching Center to dispatch the power from the Salkhit wind park.
Installation of Dispatcher Training Simulator
MCA-Mongolia was completed in May, 2013. As a result of the installation of the Dispatcher Training
Simulator, the National Dispatching Center have permanent facility to train dispatchers for skill of
dispatching variable power sources like wind.
Impact: on tariffs.
EEP funded subsidy for transition to increased market rates to cover wind energy investment. The
EEP subsidy partially covered the difference between the revenues received from consumer tariffs
and the cost as agreed in a Power Purchase Agreement till the Compact end date. The Government
of Mongolia budget will cover the difference beyond the Compact end date until such time as it
raises consumer tariffs to fully reflect cost recovery.
Activity 3: Introduce consumers to the benefits of energy efficient products, available
subsidies, locations, certified products/partners
MCA-Mongolia promoted products, benefits, processes to acquire and install energy efficient technology,
and promote public benefits achieved through investments made at consumer and government levels
through public awareness campaigns including:
Product centers17 in each of 72 khoroos (sub-districts) and Demonstration centers18 in each of 6 ger districts.
Subsidies/application process for same, consumer participation agreements.
Products/safe operation warranties, old stove collection.
Renewable energy and its benefits.
MCA-Mongolia changed attitudes and behavior of ger distric residents/households through increased
awareness and acceptance of links between air quality and individual health and cost benefits with success
measured by sales of EEP approved, energy efficient products. MCA-Mongolia:
Introduced ger district residents/households to energy efficient products and benefits in three phases,
beginning with pilot programs targeting areas of Chingeltei and Sukhbaatar Districts, and then
expanding coverage to include an additional 49 khoroos in year one; and then adding another 21
khoroos in year two,
Invited ger district residents to visit Demonstration Centers established in each district and Product
Centers established in each sub-district where marketing staff demonstated product operations
answered consumer questions prior to closing sales,
In year one, sold over 97,000 energy efficient products,
In year two, sold over 29,000 energy efficient products,
Relied on both celebrities including a reputable, well known Buddhist monk, well known artists,
Olympians, as well as satisfied consumers to explain the benefits of the energy efficient stoves and
convince consumers to exchange their old stove for a new, energy efficient model.

LIVES CHANGED - Completion Report


Key Findings
Informed investment decision making
At the start of EEP, MCC/MCA-Mongolia wanted to invest most money in solutions likely to have the
greatest impact on household air pollution, but emissions performance of products was unknown. EEP
established a Product Review Process which included analysis prior to approval into, and launch of, the
subsidy program. This included technical analysis (including independent stove/fuel testing), market
analysis, cost benefit analysis, risk analysis, and subsidy setting. The model was piloted.
Importance of public awareness and marketing
Another key factor for successful implementation of EEP was its public awareness and marketing
campaign. EEP undertook an extensive and well-planned public awareness campaign that was
integrated with the program launch plan.
It should be noted that when consumers were choosing the energy efficient products they were
interested not only in their price or subsidy level, but also in quality of the product, fuel savings ability,
whether it is easy to use, and its design.
Therefore, using the results of the energy efficient product tests and consumer satisfaction surveys in
the complex campaign in an easy understandable manner and establishing Product Centers at ger
where product can be tried-out, made the project a success. Furthermore, Mobile Opinion Books, hot
line for inquiries, and monthly meetings with consumers created an opportunity to listen to opinion
of consumers in timely manner and improve the activities of the project, as well as served as bridge
between consumers and producers/suppliers.

Improve the energy efficient products consumer database

One of problems that EEP encountered during project implementation was the inaccuracy of
household census data. Information about households which have newly moved into the khoroo
or moved out of the khoroo were not accurately reflected on household list and this led to many
problems in selling the energy efficient product based on household census data. The purpose
of selling the energy efficient products based on correct household list is to make sure that one
consumer does not purchase multiple pieces of the same product which will prevent from resale, allow
consumer and product monitoring, and updating data for carbon revenue.

Creating strong program management system

One of key factors which led to successful implementation of EEP was the use of best project
management practices. Using the project planning program for tracking the projects progress and
updating the work plan on monthly basis, controlling and approving projects financial disbursement
plan on quarterly basis, assessing environmental and social impact of the project, developing risk
management plan, determining the expected outcomes, and conducting monitoring in accordance
with it allowed MCA-Mongolia to identify and respond to any problems in a timely manner and keep
the project on track.


There is an ongoing need to establish a reliable and independent product/fuel testing and
reporting institution.

Giving citizens information about benefits and proper usage of environment friendly energy
efficient products is essential in sustaining the usage and market of energy efficient
products. Especially, constant reminding about correct and safe usage of improved stoves
plays significant role in achieving the level of air pollution reduction expected from results of
stove tests.

Create integrated web-based database for registering the energy efficient product
consumers. Review and update the Household List obtained from the Khoroo prior to
commencement of energy efficient product sales.

Using the above mentioned project implementation methodology in execution, oversight,

and administration of other air pollution reduction projects will allow tracking the
implementation process more accurately, increasing sense of responsibility, and finishing the
project successfully and on time.

LIVES CHANGED - Completion Report


Key Findings
Risk assessment and mitigation
Before commencing the subsidized sales of energy efficient products the Energy and Environment
Project developed a project implementation plan that included an assessment of possible risks
and indication of mitigation measures, which allowed to reduce and mitigate the risks that could
have occurred during implementation of the project. For example: working with existing financial
intermediaries (banks) helped to provide the financial controls necessary to ensure that benefits
accrued to intended beneficiaries.

Increasing the involvement of private sector

Delivering public goods should be the responsibility of government. Delivering products and services
that individual consumers need should be the responsibility of the private sector.

Risk assessment and mitigation

Before commencing the subsidized sales of energy efficient products the Energy and Environment
Project developed a project implementation plan that included an assessment of possible risks
and indication of mitigation measures, which allowed to reduce and mitigate the risks that could
have occurred during implementation of the project. For example: working with existing financial
intermediaries (banks) helped to provide the financial controls necessary to ensure that benefits
accrued to intended beneficiaries.

Model for energy efficient stove subsidy distorted with additional, government bonus
EEP established the subsidy offered for consumer stove purchase to emission reduction (as a measure
of particulate matter (PM) released after combustion) and retail cost so as to provide incentives
for production and purchase of high quality, low cost, energy efficient stoves. The subsidy model
logic later was significantly distorted with the Governments introduction of a bonus on top of it.
Afterward, with subsidies approaching 90 percent of the stove purchase price, consumer demand rose
to exceed supply and further complicate a planned withdrawal of subsidies and a return to market
prices for stoves.


In order to sustain the energy efficient product sales market it is necessary to increase
the involvement of banks, support micro loans, gradually decrease governmental subsidies,
support producer/suppliers in gaining capacity to assess and address commercial risks, and
reduce a dependence on government subsidies, especially as households become wealthier.

In order to sustain the energy efficient product sales market it is necessary to increase
the involvement of banks, support micro loans, gradually decrease governmental subsidies,
support producer/suppliers in gaining capacity to assess and address commercial risks, and
reduce a dependence on government subsidies, especially as households become wealthier.

Assessment of possible risks such as market risk, fraud and corruption risk, financial risk,
sustainability risk, performance risk, etc. and determination of mitigation measures before
commencing implementation is crucial for successful implementation of such project.

Manage relationships with beneficiaries and stakeholders so as to pre-empt major

distortions and compromises to key programs.

LIVES CHANGED - Completion Report


Ya. Oidov, resident of Chingeltei district, 12th sub district, was able to save
fuel and reduce emission by using energy efficient products.


Every household on 35th Street of Belkh bought an energy efficient stove. Also we talked to
other households who havent bought the stove. My family has a 72 sq. m. house. We tried
to stoke in the stove with Nalaikh, Baganuur, Alag tolgoi coal and found that Alag tolgoi coal
performed well and saved us money. We also found that we used about one-third less coal
otherwise the stove would become too hot. Our coal saving compared with the traditional
stove was about 50 percent.

My house is really comfortable, warm, and problem free. I especially like not buying coal
as frequently as we did in the past. I live with my grandsons and its good to see that my
grandsons can stay at my house and be warm and comfortable. The MNT 5 million subsidy
from EEP enabled us to build our energy efficient house. I want to encourage other people to
buy energy efficient house.

In my case, I preferred to build vestibule by myself before, but now I really appreciate our
new vestibule which we bought through the EEP. I think features like design and portability
are important. Also this vestibule is good quality, offers protection against heat loss and in
summer, will give us added space. I really am satisfied with our new vestibule.

We bought an MNT 800,000 package ger insulation with the help of a 70 percent discount
(subsidy). Last winter, we had only one layer ger blanket but this year we have two additional
layers, and we are living in a very warm ger. We only stoke our stove once in the morning
and once in the evening. Additionally we have vestibule, and our home is warmer and consuming less coal. The money saved from coal consumption was really helpful for my family.
If EEP hadnt given us the chance to have ger insulation with discounted (subsidized) price,
we could have never afforded it.

Even in summer time, the ger district has air pollution because of limited greening and high
amount of dust. To reduce dust, every family needs to plant greenery in their yard but not
every household can afford to do so. EEP gave us the chance to have it. My family planted
10 trees in our yard and they are growing now.

LIVES CHANGED - Completion Report






February 2, 2010

September 7, 2010

February 1, 2011

August 10, 2010

December 27, 2010

September 14, 2011











September 14, 2011

April 6, 2012

May 22, 2012

December 18, 2012

March 29, 2012

April 16, 2012

May 31, 2012







LIVES CHANGED - Completion Report


MCA-Mongolias Finance unit acted as the monitoring unit of the grants received by the Government
of Mongolia from the United States of America, acting through the Millennium Challenge Corporation.
The main objective of the Finance unit was to establish general financial standards and to monitor
the compliance of compact activities with the established standards. MCA-Mongolia Finance unit had
established an internal control system which adequately records, classifies and reports on all costs.
The MCA-Mongolia Finance Unit, in consultation with the Fiscal Agent, had updated and modified the
Fiscal Accountability Plan in compliance with the MCC Cost Principles, and it served as a primary policy on
financial management and procurement practices in relation to the grant received by MCA-Mongolia from
MCC. The Fiscal Accountability Plan not only served as the main regulatory document for MCA-Mongolia
and the Fiscal Agent, it also comprehended the implementing entities that had contractual relationship
with MCA-Mongolia.
Another primary objective of the finance unit was to establish effective financial control system and to
monitor the compliance of operations with the established system.
Each quarter of the compact year MCA-Mongolia Finance team with the Fiscal Agent and PIUs prepared
and submitted to MCC the Quarterly Disbursement Request Package (QDRP). If the QDRP was approved
by the MCC Fiscal Accountability, the Finance Unit ensured that the expenditures of the given quarter were
requested in advance by the mentioned QDRP. By doing so, Finance Unit had the advantage of foreseeing
the possible expenses in advance, which made the monitoring part more effective.
Also, by preparing the QDRP the MCA-Mongolia provided the necessary information regarding the process
of the projects to MCC.
Another key responsibility of the Finance Department was to distribute information regarding the financial
matters to the Project Implementing Units. Providing MCA-Mongolia and other relevant implementing
entities with financial information was an essential part of the day to day work for the Finance Unit.
Daily operation of the Finance department also included: monitoring the expenses, accounting, preparing
relevant reports, payrolls, payment functions such as reviewing the invoices and processing them in
accordance with the invoice flow diagram, reviewing the travels, VAT, Petty Cash, assets of MCA-Mongolia,
insurance of such assets, distribution of supplies and monitoring its consumption.
All procurement activities were conducted according to procedures defined in the MCC Program
Procurement Guidelines (PPG), which provided guidance and tools for the procurement of goods, works,
consulting and non-consulting services funded by the MCC of the United States of America through a
Compact for the Government of Mongolia (GoM).
During the compact period, Procurement had played important role in ensuring smooth implementation of
the Compact by assisting Project Implementation Units in procuring their activities in compliance with MCC
PPG, managing contracts in enabling both the PIUs and contractors to implement their targeted activities
with lowest risks, providing management of MCA-Mongolia, as well as, of MCC with proper and timely
information for them to make proper decisions based on solid grounds. In addition, the Procurement team
had made all efforts to provide a professional manner in managing daily procurement related activities at a


high level of quality with clear and transparent communications between all related parties.
The Procurement unit received approximately 900 Requisitions and assigned 300 ID numbers to RFPs,
Bidding Documents, which multiplied to total of 270 large contracts during the Compact period. These
processes were handled through shopping or competitive bidding with the highest amounted as USD
47,286,000 and the smallest amounted as low as USD 25.00.
Cumulatively, about 800 Purchase Orders and smaller contracts had been made since the commencement
of the Program.
The average shopping exercise lasted two (2) weeks while large procurements took around 2 months from
the date the Procurement Requisition was received till the date Final Acceptance Certificate was issued.
Towards to the end of the Compact, MCA-Mongolia had been strengthening its mechanism for contract
management in order to provide smooth completion of the compact with no risk of poor performance of
suppliers. This included a finalization and application of contract tracking tool, deliverable dates monitoring,
weekly payment monitoring, identifying contracts with completion risks far before the end of the Compact,
so that to mitigate possible risks associated with contract management. In implementing Program Closure
Plan, a first round of Notification Letters to all contractors informing them closure date of MCA-Mongolia,
expected deliverables, termination of contract if needed was completed six to four months ahead of
Compact end date.

LIVES CHANGED - Completion Report


Monitoring and Evaluation (M&E) was essential for a results-based approach to program management.
It was a key component of program design and remains incorporated into all facets of the program
cycle through program close-out. The purpose of the M&E system was (i) to allow for staff at all levels
to continually check if project activities are actually contributing towards the MCC and MCA-Mongolias
intended outputs and outcomes and (ii) to assist MCA-Mongolia management to adjust the project
strategy in order to maximize the MCC and MCA-Mongolias impact.
All activities under the MCA-Mongolia M&E were guided by MCA-Mongolia M&E plan and it was
considered a binding document, and failure to comply with its stipulations could result in suspension of
The direct aim of the Mongolia Compact was to reduce poverty through economic growth in Mongolia
as a result of (i) increased security and capitalization of land assets and increase in peri-urban herder
productivity and incomes, (ii) increased employment and income among Mongolians through access to
more effective vocational education, (iii) reduced risk and incidence of premature death and disability
from Non-Communicable Diseases and Injuries (NCDIs) (iv) more efficient transport for trade and access
to services through the North-South corridor and (v) increased wealth and productivity through greater
fuel use efficiency and decreasing health costs from air pollution in Ulaanbaatar. The Outcomes of the
Mongolia Compact can be summarized as follows:

Property Rights Project: Increase the security and capitalization of land assets held by lower-income
Mongolians, and increase peri-urban herder productivity and incomes
Outcomes: (1) Increased land right formalization and (2) Optimized peri-urban rangeland carrying
capacity and range management
Vocational Education Project: Increase employment and income among unemployed and
underemployed Mongolians
Outcome: Improved quality and relevance of TVET System
Health Project: Reduce the risk of premature death and disability from NCDIs (Non-Communicable
Diseases and Injuries) and traffic injuries
Outcomes: (1) Improved National and local response to NCDI (2) Increased understanding of NCDI
prevention, and (3) Increased availability of sound NCDI services
NS Road Project: More efficient transport for trade and access to services
Outcomes: (1) Increased Traffic, (2) Decreased travel times, (3) Decreased vehicle operating costs, and
(4) Decreased road roughness
Energy and Environment Project: Increased wealth and productivity through greater fuel use
efficiency and decreasing health costs from air pollution in Ulaanbaatar.
Outcomes: (1) Reduced incidence of respiratory-related morbidity, (2) Reduced fuel consumption, (3)
Increased energy efficiency, (4) Substitution of wind power for additional coal-fired power generation
capacity, (5) Improved power quality.


In order to capture measureable effects of the Compact intervention within the Compact period in a
consistent and independent way, MCA-Mongolia M&E had worked with several international research
institutions such as IPA, Social Impact, USDA, Jornada, and WHO for project evaluation design as well as
data collections.
Rigorous impact evaluations were designed for TVET, Peri-Urban and Urban property right projects and
thus Randomized Treatment Trial was used for detection of Counterfactual effect. Moreover, Propensity
Score Matching technique was used in EEP and Peri-Urban project evaluations.
In the past, M&E Unit could manage to track over 300 indicators for six projects plus two cross-cutting
units which aimed to monitor project implementation progress as well as measure overall results of the
Compact and produced Indicator Tracking Table (ITT) report for all 20 Quarters.
M&E unit had to build effective communication and cooperation with various institutions such as
government and non-government organizations, national contractors and implementers, in order to
receive primary data and secondary information which feed MCA-Mongolia ITT and MCA-Mongolia
Evaluation. There were over 74 institutions which was the source of the ITT and Evaluation including
respective Ministries, Government Agencies, TVET Schools, Soum administrations, Ulaanbaatar City and
Administrative Courts and City municipal. And MOUs were established with 26 external organizations to
formalize collaboration toward data exchange.
Since the start of the Compact, M&E has been conducted 29 main surveys including baseline and followup rounds and excluding the other data collections from GoM agencies, short-term consultancy service and
Data quality monitoring consultancy.
The total numbers of respondents by projects are:
1. TVET project 13,762 TVET students, 1015 TVET School management staff, 2,555 TVET teachers,
5,790 TVET graduates,
2. Urban Property Right project 7,105 individuals and 3,435 Property transaction review,
3. Peri-Urban Property Right project 4,657 Herder households, 452 Herder group leaders and 87 soum
governors, 1,440 spots of caged and un-caged spots in 162 tracts,
4. Health project 22,967 individuals, 3,960 Health sector officials, 10,631 Health sector students and
736 Health sector institutions,
5. EEP 1,550 Ger area households and 151 households for Emission test,
6. Road 174.4 km road was inspected and measured by 4 outcome indicators.
And all 21 provinces with 3 main sites were allocated for data collection. The average survey lasted for four
months and covered around 1,300 respondents while largest data collection took around 8 months and
covered 5,816 households.
The follow-up and final rounds of data collections will be continued and managed by MCC after the close of
the Mongolia Compact until 2015.
Environment and Social Assessment (ESA):
The key objectives of the ESA unit were to identify potential adverse impacts of the Compact projects
from environmental and social perspectives, undertake mitigation measures, followed by monitoring of the
implementation. To ensure full participation of project affected communities in the project sites, extensive
public consultations were held. The aim of the public consultations was to inform project stakeholders
about the proposed activities of the project and give an opportunity to propose mitigation measures
by the communities. Consequently, a Framework Environmental and Social Assessment /Framework
LIVES CHANGED - Completion Report


Environmental Management Plan was developed for all projects, a precondition for the Compact. As
a result, the environmental and social impacts of each project were mapped in detail, known by key
stakeholders and mitigation measures were identified. Extensive monitoring has ensured the mitigation
measures were adequately followed. The ESA unit hired an Environmental and Social Oversight Consultant
(ESOC) to assist in the development of various documents and the implementation of activities.
One aspect, where the project brought forward a significant change, was the increase in awareness about
the management of hazardous waste and materials at the target sites and in the whole of Mongolia.
Through the work of MCA-Mongolia ESA, many people in Mongolia became aware for the first time about
the negative impacts on human health and the environment from certain construction materials, such as
asbestos, bitumen, and metal containing paints. MCA-Mongolia had worked over the term of the Compact
to raise general awareness of the importance of proper management of construction of hazardous wastes.
As a result of these efforts, the Government of Mongolia had recently banned the use of asbestos in
The team developed a comprehensive set of guidelines covering the identification, removal, handling,
transportation, storage and disposal of these hazardous materials. HazMat management plans were
developed accordingly and implemented for all construction activities. Training courses were held
by HazMat experts and delivered to the companies employed to undertake the works to improve
their knowledge about HazMat issues and identify the risks to their workforce. This included working
methodologies for the removal of hazardous material and the use of Personal Protective Equipment. As a
result of the work done by MCA-Mongolia, Darkhan TVET integrated HazMat concepts into their training
activities to ensure that work done by MCA-Mongolia was passed on to future generations. Moreover, a
national conference on sustainable management of hazardous materials and waste management was
held three times since 2010 to draw nationwide attention to this issue. One of the highlights included the
first HazMat temporary disposal site in Mongolia introduced upon initiative of the MCA-Mongolia ESA unit.
MCA-Mongolia and the Municipality of Ulaanbaatar have agreed on a final disposal process at the Citys
Narangiin Enger landfill, another first for Mongolia.
Social and Gender Assessment (SGA):
One of the ESA missions was to integrate gender elements into the Compact Program. A Program-wide
Gender Review and Integration Plan was completed in 2011 in the third year of Compact implementation,
and an annual update was produced in 2012. These included key issues and recommendations to make the
MCA-Mongolia program compliant with MCCs Gender Policy and ensure proactive benefits to women and
other under-represented social groups. To enhance the understanding of the general public on gender, a
creative photo contest under the topic: Female leaders in my neighborhood and Gender equality through
my eyes and an essay contest under the topic: How can/will female leaders impact the future of your
community and/or our country? were held. A Womens leadership in the economy campaign aimed to
inspire and motivate women to achieve success in their profession and fulfill their leadership potential
by showcasing female role models from each Compact activity for their exemplary accomplishments. A
promotional brochure and notebook that contained the success stories were published and the stories were
published widely in national media.
In order to ensure a sustainability of the Compact projects, MCA-Mongolia ESA unit initiated three major
consultancies as a result of which the independent experts review and assessment were made available.
The small - scale survey on Property Rights and Gender survey, which is being conducted in 5 different
aimags and 3 districts of Ulaanbaatar city covering 1000 respondents. This has become one of the very
first initiative in the country, to study a correlation of womens land tenure and secure, formal property
rights, with domestic violence; to explore intra-household empowerment dimensions and bargaining power
and dynamics as they relate to the increase or change in formal land ownership that the project is bringing
about and to document economic and social benefits of securing rights to land for women.


The one was a consultancy for an environmental and social gap analysis. An objective of the gap analysis
was to conduct assessment on environmental and social, gender, and health & safety aspects of the
project areas in order to identify possible differences between actual and intended outcome of the
Compact interventions. Further, an Environmental, Social, Gender and Health & Safety Data Sheet will be
completed for each Project. This data sheet will be updated regularly based on the frequent monitoring
visits and at the end of the Compact; it will be archived in the MIS and made available to the public on-line.
The intention of the consultancy activities is to ensure that all sustainability issues are clearly identified
and that they are followed up by the agency that is responsible for this. Therefore, the ESA will identify
the issues, define the measures to be addressed and ensure the involvement of the agency that will be
responsible for the implementation of the required actions.
Newly adopted standards and techniques
A number of pioneer guidelines and regulations had been adopted by the ESA unit. Key highlights are
summarized below:
From ESA standpoint:
For the first time in Mongolia, MCA-Mongolia had developed Hazardous Materials and Waste
Management Guidelines that aim to ensure a proper handling, transportation, storage, and disposal of
asbestos, lead-based paint, and other hazardous waste generated from the project interventions. In
accordance with the guidelines, the Hazardous materials and waste management plans were developed
for all construction and renovation works, of which implementation has been closely monitored. The
Government of Mongolia and other key stakeholders had highly supported this initiative, which resulted
in an adoption of a regulation to ban the importing of asbestos containing materials.
Healthcare waste management for secondary level aimag health organizations was introduced for the
first time nationwide through training. Moreover, a Compendium on Healthcare Waste Management
in Mongolia was developed in 2012 that serves as a pioneer hand-out for secondary level healthcare
waste management. The issue of improperly disposed historical health care waste was addressed.
Two series of trainings for local officials, which the ESA unit had completed included a broad range of
environmental and social topics including management and monitoring methodologies for pasture,
forest, water, soil erosion, and wildfire management while social training focused on prevention of
involuntary resettlement, conflict resolution, gender and legal protection for HGs leased pasture
against mining. However, a key issue for PURP was proper management and monitoring mechanism
for pasture. Therefore, ESA unit in collaboration with other contractors like CPR and Mongolian Society
for Range Management had defined the most adequate pastureland management and monitoring
techniques and used it through the training.
The World Bank operational policy on involuntary resettlement (OP 4.12) had been adapted to the PURP
context based on which involuntary resettlement could be avoided through extensive field verification
efforts that covered around 2000 herder households in the focus areas. Given the land reform MCAMongolia had been introducing through lease of land plots for herder groups, this pioneer approach for
mitigating a risk of involuntary resettlement through protection of non-participants rights was of high
A Complaint Resolution Procedure (CRP) had been adopted by MCA-Mongolia in order to reduce the
risk of adverse impact and complaints since November 2011. The procedure aimed to assist involved
parties in resolving complaints that may arise from implementation of MCA-Mongolia projects - PRP,
PURP, and Road project. This procedure was also intended to support traditional local-level mechanism
for complaint resolution and legal administrative approaches to complaint resolution at all levels.
Specifically, if negotiations between individual parties fail to resolve the complaint, the matter was to
be presented to MCA-Mongolia for consideration. If the matter was not resolved to the satisfaction of
the concerned parties at the level of the CRP, it was the partys responsibility to seek redress from the
relevant administrative officials for action.

LIVES CHANGED - Completion Report



MCA-Mongolia Communications team served to accomplish following two (2) main objectives throughout
the implementation period:
To inform and update about MCA-Mongolia activities, projects implementation progress, and relative
results to MCA-Mongolia Stakeholders Committee, Board of Directors, MCC RCM, direct and indirect
beneficiaries of MCA-Mongolia projects, and the general public.
To conduct public relations activities to facilitate positive attitude and standard of living among the
direct beneficiaries and the general public.
Pursuing the above mentioned objectives Communications team of MCA-Mongolia established the
consistent work frame with five (5) sections: corporate identity and marketing activities, message and
content management, message and content delivery channels media activities, advocacy and public
relations, and capacity building.
Following tools of main activities were crucial in reaching MCA-Mongolia Communications and Public
Relations objectives.
Corporate identity and marketing activities:
Development and enforcement of MCA-Mongolia Branding Guidelines,
Development and acquisition of promotional items,
Facilitation and participation in the awareness workshops.
Message and content management:
Weekly communications team meeting,
Monthly communications meeting,
Meeting with public outreach contractors,
Meeting with press media representatives and establish reliable network.
Message and content delivery channels Media activities:
Publish weekly column on daily newspaper,
Publish monthly articles on daily newspaper,
Publishing Quarterly Bulletin of MCA-Mongolia,
Development and publishing Annual Reports,
Facilitation and production of the Talk shows,
Production of the Documentary series,
Facilitation of the website,
Management of the online channels including: Facebook, Twitter, and Youtube accounts.



B.Yesukhei, Peri-Urban Rangeland Project beneficiary,

Sergelen soum, Tuv province, Mongolia.