The Netherlands Mongolia Trust Fund for the Environment

1
The Netherlands Mongolia Trust Fund for the
Environment

• Progress Review Meeting
• Ulaanbaatar
• June 22nd, 2005

2
Outline

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

3
Mongolia - Context

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

4
Mongolia Environmental Challenges

• 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

5
Environmental Hotspots
6
The Netherlands Mongolia Trust Fund for the
Environment (NEMO TF)

• NEMO TF was established in November 2004, with an
  endowment of US 5.88 million from the Dutch
  Government
  
• It has three components
• Bank-executed technical assistance ( 1.1 million
  0. 380 million for contingency)
  
• Government-executed support for on-going projects
  ( 3.6 million)
  
• Government-executed preparation of new projects
  ( 0.8 million)
  
• NEMO TF represents an outstanding opportunity to
  achieve progress on environmental governance in
  Mongolia

7
Component I Self-standing Technical Assistance

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

8
Disbursements Commitmentsfor Component I
9
Component II Co-financing of Environment
Components in WB Projects

• Activities under this component complement
  already on-going loans and grants activities
  specifically
  
• Second Urban Services Improvement Project
• Total Loan Amount US 20 million (an IDA Credit
  of 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 Well
  Rehabilitation on Wild Ass in the Gobi Desert
  

10
Component II Co-financing of Environment
Components in WB Projects (II)

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

11
Disbursements Commitmentsfor Component II
12
Component III Project Development

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

13
Disbursements Commitmentsfor Component III
14
Implementation Issues

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

15
Next Steps

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