The main objectives of the Project are to facilitate investments in infrastructure to support mining and downstream processing activities, regardless of funding source, and to build local capacity to prepare and transact infrastructure projects.
The Project consists of the following 3 components:
1. Support for infrastructure Investments,
2. Capacity Building and Knowledge Transfer,
3. Strengthening Groundwater Management.
Financing for project implementation was provided by the International Development Association (components 1 & 2) and Australian Agency for Development (component 3).
Component I: Support for infrastructure Investments
In the framework of this component, environmental studies and technical research works of the following sub-projects are being undertaken. These are included:
1. Flow Regulation of Orkhon River and Construction of Reservoir Plant,
2. Shuren Hydropower Plant Project,
3. Integrated Steel Complex with Infrastructure in the Central Region of Darkhan and Selenge,
4. Coal to Synthetic Natural Gas,
5. Cumulative Impact Assessment in Tavan Tolgoi Coal Mining Regions,
6. Cumulative Impact Assessment in Baganuur Coal Mining Regions,
7. Development of Feasibility Studies for Extension of Baganuur Coal Mine.
These sub-projects have the following key objectives:
- Prepare infrastructure investment plans, including the determination of priority infrastructure needs based on regional mining development through planning, feasibility and business cases, conduct feasibility studies for priority mining-related infrastructure projects in the energy, transport, information technology and communications, water, housing and social sectors, logistics and border crossing facilities and value-added activities, including technical assessments, such as engineering designs, geotechnical surveys, economic and financial analysis, environmental and social impact evaluations.
- Develop business cases for projects proposed to be developed with private investment, including PPPs, including government commitments and obligations under various investment structures, developing investment and financing plans, reviewing Mongolia's legal and regulatory framework governing private investment, determining appropriate allocation of risks and underlying commercial principles for transactions, and undertaking market sounding to gauge investor appetite.
- Carry out activities in response to existing or emerging priority issues affecting the potential for private investment in infrastructure facilities and services, and facilitate the export of mineral resources, including support to, finalizing ongoing transactions with investors, strengthening the legal frameworks, developing national standards for infrastructure development, facilitating transnational agreements, and establishing mechanism to coordinate regional development and ensure that investors are adequately addressing their corporate social responsibilities. Component 1 is included in the following sub-projects:
Component II: Capacity Building and Knowledge Transfer
This component has the key objectives:
Training and Advocacy Programs:
- Carry out staff skills development, including Training and Workshops, for relevant ministries and agencies, on basic principles, practices techniques on project preparatory activities, including technical and engineering reviews, technical designs, drawings and specifications; economic evaluations and cost-benefit analysis; financial assessments and forecasting; environmental and social impact evaluations; legal and regulatory reviews; further assessments of potential PPPs to determine viability and market soundings,
- Carry out staff skills development, including Training and Workshops, for relevant ministries and agencies in preparation for transactions with investors, including PPP transactions, carry out conferences and other communication mechanisms to promote awareness of government officials and the local business community about investment opportunities and the use of PPPs.
Contract full-time and part-time consultants to strengthen abilities of government officials to prepare terms of reference and carry out feasibility studies, including support to, strategic planners, engineers, technical specialists, economists, and environmental and social experts.
Contract full-time and part-time consultants to develop the capacity of government officials to prepare transactions with the private sectors, including legal counsel, institutional specialists, economic and financial specialists, implementation specialist and local staff to support preparation of PPPs transactions,
Contract full-time and part-time consultants to develop a framework to manage contingent liabilities, develop methodology and criteria for issuing guarantees, a process for approving them, and structure to limit the Government’s overall exposure.
Component III: Strengthening Groundwater Management
Provide support to strengthen the capacity of local authorities to manage groundwater resources in Southern Mongolia by making operational a new institutional structure in Southern Mongolia with responsibility for establishing at least two (2) groundwater management councils and at least two (2) groundwater management administrations in water basins 17, 18 and 20, preparing groundwater management and monitoring plans, carrying out groundwater explorations, developing a data exchange protocol, monitoring borehole installations, monitoring and enforcing compliance with licenses to abstract groundwater and reviewing water resource pricing based on economic principles.