Tony Whitten and Giovanna Dore

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The Netherlands - Mongolia Trust Fund for
Environmental Reform (NEMO TF) A New Approach
to Environmental Partnerships for IDA Countries

• Tony Whitten and Giovanna Dore
• January 18th, 2007
• Washington D.C.

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Outline

• Context
• Environmental Challenges
• The NEMO TF
• Lessons Learned

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Mongolia - Context

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

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Mongolia Environmental Challenges

• By the standards of many other countries,
  Mongolias environment is relatively unspoilt.
  However, emerging areas of concern include
• Growing population and changing lifestyles are
  intensifying pressure on the countrys fragile
  ecosystems
• Overgrazing is degrading significant areas and
  displacing wildlife from his habitats
• Pollution from industrial and urban sources is
  negatively affecting environmental quality
• Human and financial resources for environment and
  natural resources management are limited, and
  institutional capacity is weak

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Environmental Hotspots
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NEMO TF

• NEMO TF was established in November 2004, with an
  endowment of US 5.88 million from the Dutch
  Government, and a disbursement timeline of 12
  months
• NEMO TF I had three components
• Bank-executed technical assistance ( 1.1 million
  0. 380 million for contingency)
• Government-executed support for on-going projects
  ( 3.6 million)
• Government-executed preparation of new projects
  ( 0.8 million)
• NEMO TF was an outstanding opportunity to achieve
  progress on environmental governance in Mongolia
• Phase I focused on strengthening the existing
  knowledge-base and filling knowledge gaps, raised
  the visibility of environmental affairs, and
  broadened the pool of environmental practitioners
  
• Phase II aims at establishing a multi-year,
  thematic program focusing on few key areas

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Component I Self-standing TA

• AAA activities under this component focused
• Natural Resources Management
• Illegal Wildlife Trade in Mongolia
• Forest Cover Mapping of Arkhangai, Khuvsgul
  Bulgan Aimags
• Assessment of the Success of Reforestation
  Projects
• Updating Nomenclature of Selected Groups of
  Animals and Plants of Economic and Conservation
  Importance
• Conference on Buddhism and the Environment
• Environmental Management
• Social and Environmental Impacts of Tourism
  Development
• Moving up the value-chain in livestock-based
  industries Implications for Env. Policy,
  Regulations and Management
• Urban Environmental Services in Secondary Cities
  in Mongolia
• Review of Toxic Chemicals Used in Mongolia
• Environmental Footprint of the Infrastructure
  Strategy
• NEMO TF Independent External Review

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Component I - Highlights
Mongolia An Innovative Approach to Toxic and
Hazardous Substance Management
Mongolia Investment Climate Assessment 2007
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Highlights - Conference on BuddhismEcology and
Development

• June 20-24, 2005, attended by 230 people,
  including 100 monks from Mongolia and 30 others
  from neighboring countries
• Active Presidential involvement
• The Conference featured sessions about the ways
  in which Buddhists are engaging in environmental
  management as well as education, governance,
  transparency and financial management

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Component II Co-financing of Environment
Components in WB Projects

• Second Urban Services Improvement Project
• Total Loan Amount US 20 million (an IDA Credit
  of US16 M an AusAID Grant of US3.35 M, and an
  UB Municipality contribution of US2.3 million)
• Total Dutch Co-financing US 1,850,000 for
  Community Development Sanitation in Ger Areas of
  Ulaanbaatar and the Geser Sum Sacred Urban
  Landscape Protection Initiative
• Sustainable Livelihood Project
• Total Loan Amount US 22 million (APL)
• Total Dutch Co-financing US 200,000 for
  assessment of Impacts of Well Rehabilitation
  (such as those financed under the project) on
  Wild Ass in the Gobi Desert

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Highlights - Second Urban Services Improvement
Project

• The implementation of the co-financed activities
  under USIP 2 was one of the two most successful
  sub-components
• The MNE signed an MOU with the Ulaanbaatar
  Municipality to formalize the collaboration
  between the two agencies
• Covered drainage works, park rehabilitation,
  plant nurseries, urban greening, hayfever study,
  ger camp sanitation

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Component II Co-financing of Environment
Components in WB Projects (II)

• Dynamics of Biodiversity Loss and Permafrost Melt
  in Lake Hovsgol National Park Project
• Total Grant Amount US 1 million (GEF MSP)
• Total Dutch Co-financing US 250,000 for the
  organization of the Workshop and Associated
  Training Program on Ecosystem Dynamics and
  Environmental Management
• Strengthening Environmental Management Capacity
  at National and Local Level Project
• Total Grant Amount US 270,000 (IDF Grant for
  IDA Countries)
• Total Dutch Co-financing US 1.2 million for
  Small Grants Program through Open Society Forum

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Ill insert a hovsgol pic or two
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Highlights Impacts of Well Rehabilitation on
Wild Ass in the Gobi Desert
Internationally-renowned lead consultants, a
Mongolian team, and a supplier for appropriate
radio collars performed the forage and the
tracking parts of the work
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Highlights The NEMO Small Grants Facility

• A 1 million dollars, small-grant facility was
  established, managed on behalf of MNE by the Open
  Society Forum
• Grants for outcome-oriented capacity building
  activities at national/local levels
• 400 proposals submitted, 62 chosen, ranging from
  reviews of legislation, to childrens cartoon
  books, to soil pollution, to conservation of
  deer, to EIA training for banks, and recycling of
  plastic bottles and bags to make fences, etc.
• The OSF team travelled 20,000 km across Mongolia
  to advertise and explain the small grant program,
  and supervise the activities
• Grantees participated in networking fairs, and TV
  series have further disseminated the
  accomplishments of the program

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Component III Project Development

• The main objective of this component was to
  facilitate the development of environment and
  natural resources management projects
• Effort focused on
• Forest Resources Management Project
• Proposed Loan Amount US 5 million IDA GEF
• Total Dutch Co-Financing US 300,000
• Retrofitting of Polluting and Inefficient
  Heat-only Boilers in Ulaanbaatar and Selected
  Aimags
• Proposed Grant Amount US 4 million (GEF grant)
• Total Dutch Co-Financing US 150,000

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NEMO TF Lessons Learned

• Where there is a will there is a way NEMO I
  disbursed 95 of its total endowment in 18 months
  but
• The Bank-executed activities (all under Component
  I) were complex however, their implementation
  has been straightforward and on schedule
• The implementation of the Government-executed
  activities involved six agencies, experienced
  same delays, and extensive supervision
• A one-year timeline to complete the
  implementation of the activities and
  disbursements of funds proved to be challenging
  in the context of a country like Mongolia

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NEMO TF Lessons Learned

• Flexibility is a key for the success of
  partnerships (Flexibility is the charm of the
  NEMO program)
• allowed to meet the demand of clients and also
  support additional activities not originally
  included in the program
• helped strengthen cross-sectoral linkages with
  the ongoing urban, energy and rural development
  agendas

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NEMO TF Lessons Learned

• Broad coverage initiatives are effective
• raised the visibility of environmental affairs,
  both at national and local level
• strengthening the existing knowledge-base and
  filling knowledge gaps
• supported MNE shifting toward a more consistent
  and outcomeoriented approach to addressing key
  issues in the natural resources and environment
  sectors well aligned with governments
  development policies
• helped broaden the pool of environmental
  practitioners accessing resources to improve
  their skills and fund small and medium-size
  activities at the local level, with the
  participation of local communities

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NEMO TF Next Steps

• NEMO II is in its preparation stage and it is
  likely to
• Be structured across a four-year period, be
  launched in January 2007, and have a total
  endowment of 5 million dollars, with an annual
  allocation of 1.25 million dollars
• Emphasize mainstreaming and cross-sectoral
  coordination on the environmental agenda,
  supporting capacity building of government
  agencies and working in partnership with civil
  society organizations and local communities
• Focus on two to three key themes per year, which
  could be repeated and/or carried over subsequent
  years (if appropriate/needed)
• Include a contingency window to allow support for
  additional activities (no more than one and/or
  two), not originally included in the program

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NEMO TF Next Steps

• Discussions with MNE and Dutch counterparts have
  identified Natural Resources Management,
  Pollution Management, and Environmental
  Governance as themes for NEMO II
• These are areas of interest because
• Mongolia still needs to make significant progress
  to be able to meet its MDG targets
• there remains substantial knowledge, technical,
  institutional and financial gaps in spite of the
  various lending and non-lending programs being
  developed and implemented by the Bank and other
  donors