A working meeting between Alexey Miller Chairman of the Gazprom Management Committee, and Battsetseg Batmunkh, Minister of Foreign Affairs of Mongolia, took place today at the St. Petersburg International Economic Forum 2021.

The parties discussed the construction project for the Soyuz Vostok gas pipeline, which is meant to provide supplies of Russian gas across Mongolia to China. Particular attention was paid to, among other things, the results of the approved feasibility analysis for the project and the ongoing preparation of the corresponding feasibility study, which is planned to be completed before the end of this year.

Background

The St. Petersburg International Economic Forum 2021 is being held at the EXPOFORUM Convention and Exhibition Centre from June 2 to 5. This year's main theme is “A Collective Reckoning of the New Global Economic Reality.”

On December 5, 2019, Gazprom and the Government of Mongolia signed a Memorandum of Understanding. The document provides for a joint assessment of the feasibility of the project for pipeline gas supplies from Russia to China across Mongolia.

In April 2021, the feasibility analysis regarding the construction project for the Soyuz Vostok gas trunkline was approved. The Soyuz Vostok gas pipeline will become an extension of Russia's Power of Siberia 2 gas pipeline in Mongolian territory.

In the course of the feasibility analysis, the basic technical and technological parameters of the project were established. These include the optimal route for the gas pipeline in Mongolian territory, the pipeline's length and diameter, the working pressure, and the number of compressor stations.

The feasibility study regarding the construction project for the Soyuz Vostok gas trunkline includes a detailed breakdown of the associated investment and operating costs. The feasibility study is being prepared by the Gazoprovod Soyuz Vostok special-purpose vehicle.

Anglo American said on Thursday that it has restarted underground mining at its Moranbah North coal mine in northern Queensland state after it withdrew its workforce from the mine following a reading of elevated gases on Feb. 20.

Mining development activities at its Grosvenor mine, in central Queensland’s Bowen Basin, have also resumed this week, as part of the mine’s staged restart of underground mining operations following an explosion in May 2020 that critically injured five workers, it said in a statement.

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“I would like to thank our workforces at Moranbah North and Grosvenor mines for their patience and dedication in actioning a range of measures to ensure a safe return to mining activities,” Chief Executive of Anglo American’s Metallurgical Coal business, Tyler Mitchelson, said.

He said that Anglo would continue with its plans to improve safety via automation and instituting remote working operations.

The two mines accounted for almost half of Anglo American’s met coal, or steel-making coal, production in 2019. Grosvenor produced 4.7 million tonnes in 2019. Moranbah North produced 4.43 million tonnes of met coal in 2020, down from 6.15 million tonnes in 2019.

(By Melanie Burton; Editing by Tom Hogue and Muralikumar Anantharaman)

60-70 percent of Mongolia’s total cashmere is exported after primary processing. Increased focus is being given to reducing and eventually stopping export of washed cashmere and increasing production and export of value-added products.

Today, 20 tons of cashmere that meets international quality requirements and standards was shipped to Italy. 10 of the 20 tons of cashmere holds the Mongolian Noble Fibre certification mark, which certifies that the product is made with 100 percent high quality wool and cashmere sourced from Mongolia, meets Mongolian and international standards for textiles and woven products, and fully complies with quality standards in environmentally-friendly manufacturing.

Khanbogd Cashmere company has previously been exporting its cashmere to Italy in 90 days through China and this time, by land, the cashmere will reach its destination in around 20 days.

The International Bank for Economic Co-operation (IBEC) has supported the Green Loan Program (GLP) of the Trade and Development Bank of Mongolia (TDBM) for small and medium-sized enterprises in Mongolia. IBEC has provided loan in the amount of USD 10 million for a period of up to 3 years.

The total green financing volume under the GLP program is USD 50 million and is formed both from TDBM funds and with the support of a number of other banks, including international development institutions. The full implementation period of the Program is 5 years.

Participation in the program is fully consistent with the new IBEC strategy and confirms the Bank's pathway towards financing sustainable development, stimulating green investments, promoting social stability and supporting the SME sector.

The GLP program, developed by one of the country's leading banks, reflects Mongolia's active interest in addressing environmental issues and commitment to the UN's Sustainable Development Goals (SDGs). GLP implementation is in line with the following SDGs: clean water and sanitation, affordable and clean energy, decent work and economic growth, industrialization, innovation and infrastructure, sustainable cities and towns, responsible consumption and production, and combating climate change.

The country has approved the National Green Development Policy, in accordance with the Paris Agreement, Mongolia has committed itself to reducing greenhouse-gas emissions by 22.7% by 2030. The systematic approach of the Mongolian authorities is proved by the creation of the Committee on Green Taxonomy in 2019, whose task is to develop methodological principles and approaches to the implementation of the green agenda and its financial support. Under the auspices of the Mongolian Sustainable Finance Association (MSFA), the Central Bank of Mongolia, and the Ministry of Environment and Tourism, the Green Taxonomy Committee focused on the following key industry areas: energy, green buildings, environmental pollution, water and waste, sustainable agriculture.

These priorities are the key to the GLP program, the implementation of which is supposed to inform small and medium-sized businesses about green business models, the development of environmentally friendly products and services, and stimulate green consumer behavior, including through the introduction of green credit products, and, of course, – expanding the access of small and medium-sized businesses to long-term loans. The focus on the SME sector is not accidental.

In Mongolia, these are key economic agents in all sectors of industry and service, with the exception of mining. This is 77% of all registered companies, 72% of the working population, and 17.8% of GDP. It is the SME sector that can become the green locomotive in Mongolia, provided that financial and information support is provided. The availability of medium and long term financing is one of the key challenges for the development of Mongolian SMEs.

The Trade and Development Bank of Mongolia expects that the launch of GLP will result in a reduction in air pollution, a decrease in heat loss in buildings, an increase in the share of hybrid and electric vehicles, support for traditional Mongolian animal husbandry from an environmental perspective, and the creation of new jobs in the national economy. Among the projects and contracts already being worked out by the bank are purchases of equipment for solar energy, deep processing of waste, projects of organic animal husbandry. At the same time, the program also provides support for the foreign economic activity of SMEs in the implementation of green financing transactions.

IBEC participation in such an important and strategically-focused program places the Bank alongside with international financial organizations and development banks aimed at implementing the tasks of climate action, targeted support for the sector of small and medium-sized enterprises, including their foreign economic activity.

“We expect not only the successful implementation of the project in Mongolia and the achievement of the stated ambitious goals, but also that the Green Loan Program will become a success story for other countries and financial institutions. IBEC is interested in the development of such socially and environmentally significant projects and will continue supporting them”. - Denis Ivanov, Chairman of the IBEC Board

“We are truly delighted to have launched our Green Loan Program together with our well-established partner and leading international financial institution – IBEC, which is a milestone event for both IBEC and TDBM since this first-of-a-kind Program aims to support sustainable and green growth in Mongolia. Especially in the context of COVID-19 recovery, supporting green and resilient growth of the economy by building capacities and financing innovative green projects, products, and technologies of SMEs, together with IBEC, we are opening a window of new possibilities for our customers to shift their mindset and business models into a “green” new normal”. - Erdenebileg Doljin, Chairman of the TDBM Board.

Tokyo 2020 president Seiko Hashimoto is "100%" certain the Olympics will go ahead, but warned the Games "must be prepared" to proceed without spectators in the event of a coronavirus outbreak.

There are 50 days until the delayed Tokyo Games begin on 23 July.

Japan is dealing with a fourth wave of coronavirus cases, with 10 areas of the country under a state of emergency.

Hashimoto told BBC Sport: "I believe that the possibility of these Games going on is 100% that we will do this."

Speaking to BBC Sport's Laura Scott, she added: "The question right now is how are we going to have an even more safe and secure Games.

"The Japanese people are feeling very insecure and at the same time probably feel some frustration at us talking about the Olympics and I think that is giving rise to more voices opposing having the Games in Tokyo.

"The biggest challenge will be how we can control and manage the flow of people. If an outbreak should happen during the Games times that amounts to a crisis or an emergency situation then I believe we must be prepared to have these Games without any spectators.

"We are trying to create as complete a bubble situation as possible so we can create a safe and secure space for people who come in from overseas as well as people who are in Japan, the residents and citizens of Japan."

Will the Tokyo 2020 Olympics go ahead?

Olympics will go ahead even under state of emergency, says IOC

Tokyo 2020 president Seiko Hashimoto

The 2020 Olympic Games were postponed by one year because of the Covid-19 pandemic

No international fans will be permitted this summer at the Olympics or Paralympics, which begin on 24 August.

A new wave of infections began in April in Japan, where some areas face restrictions until 20 June.

The country began vaccinating its population in February - later than most other developed nations - and so far only about 3% of people have been fully vaccinated.

Hashimoto said it was a "very painful decision" to have no overseas spectators present, but one necessary to ensure "a safe and secure Games".

"[For many] athletes it's a once-in-a-lifetime opportunity that they can compete in the Games. To not be able to have family members and friends who have supported them all along must be a very painful thing and that has caused me pain too," she said.

On the possibility of some countries being prevented from travelling, Hashimoto added: "Who can come to Japan is something the Japanese government will decide.

"If it should happen that a country cannot come to Japan because they do not meet the minimum requirements that the government set, I think that is something we have to listen to what the IOC and IPC feel about that."

Hashimoto was appointed Games president in February after her predecessor Yoshiro Mori quit over sexist comments he made.

The former Olympics minister is a seven-time Olympian herself, having competed as a cyclist and a speed skater.

"Athletes must be thinking 'even if it we put so much effort into preparing for the Games, what if those Games don't happen, what happens to all that effort and all the lifetime experience and all that we've put into it?' said Hashimoto.

"What is important for me is to have my voice directly reach those athletes. One thing the organising committee commits and promises to all the athletes out there is that we will defend and protect their health."

Former Games president Mori said that if the number of female board members increased, they would have to "make sure their speaking time is restricted somewhat, they have difficulty finishing, which is annoying".

He later apologised for his "inappropriate" comments.

Following her appointment, Hashimoto said she wanted the legacy of the Tokyo Games to be a society that accepted people regardless of gender, disability, race, or sexual orientation.

"Japanese society still has an unconscious bias. Unconsciously, domestic roles especially are clearly divided by the sexes. It's deep rooted and it is very tough to change this," said Hashimoto.

"The former president's gaffe, the sexist remarks, actually became a trigger, an opportunity, a turning point within the organising committee that made us all aware we have to change this.

"That was a big push to go forward with this. For a woman to assume the top position of such a huge organisation I believe had some impact on society itself."

'We are doing everything we can'

With 50 days to go until the opening ceremony in Tokyo, the first international athletes arrived in Japan this week.

Recent polls in Japan have shown nearly 70% of the population do not want the Olympics to go ahead, while on Wednesday, Japan's most senior medical adviser said that hosting the Olympics during a pandemic was "not normal".

But no major countries have spoken out against the Games taking place and Team GB remain "fully committed" to sending a full team.

"At this point, I am very confident we will have these Games," said Hashimoto. "We are doing everything we can, we are being very thorough about that.

"I know we have very limited time to deal with anything that might come up but we will do everything we can to improve the situation and we will see these things through.

"If the pandemic once again accelerates across the world, and so it should happen that no country can come to Japan, then of course we cannot have those Games.

"But I think we have to be very careful in reviewing the current situation and deciding what to do depending on what we consider to be right."

Ivanhoe Mines said on Wednesday its copper mining joint venture in the Democratic Republic of Congo, which started production last week, had signed a 10-year deal to process some of its copper concentrate at a nearby smelter.

Congolese authorities last week reiterated a long-standing ban on copper concentrate exports, and said only mining companies with waivers would be allowed to export concentrate.

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The ban has been in place since 2013 to encourage domestic processing.

The Lualaba smelter, majority-owned by China Nonferrous Mining Corp Ltd (CNMC), will treat up to 150,000 wet metric tonnes of concentrate a year from the Kamoa-Kakula mine Ivanhoe is developing with Zijin Mining in return for a treatment charge and market-based realization fee.

THE LUALABA SMELTER, MAJORITY-OWNED BY CHINA NONFERROUS MINING CORP (CNMC), WILL TREAT UP TO 150,000 WET METRIC TONNES OF CONCENTRATE A YEAR

The 400,000 tonnes per year capacity smelter, which is around 40 kilometres (25 miles) from the mine by road, will produce blister copper ingots containing around 99% copper. The Ivanhoe-Zijin joint venture, Kamoa Copper, will then collect these from a storage area, Ivanhoe said in a statement.

The processing deal “will account for just under 40% of the total volumes of concentrates produced by Phase 1, making the most of available in-country smelter capacity,” said Kamoa Copper Chief Financial Officer Rochelle de Villiers, who is leading concentrate offtake and marketing negotiations.

The first delivery was made on Tuesday, she added.

Ivanhoe expects Kamoa-Kakula to be the world’s highest-grade major copper mine. Production started ahead of schedule on May 26, and Ivanhoe expects output of 80,000 to 95,000 tonnes of copper in concentrate this year and peak annual output of over 800,000 tonnes after several phases of expansion.

In a separate statement, CNMC said the tolling agreement would allow both sides to realise synergies upstream and downstream, without elaborating.

Kamoa Copper is also evaluating the construction of a smelting complex which would produce blister and anode copper as well as sulphuric acid as a by-product.

(By Tom Daly and Helen Reid; Editing by Mark Potter)

The World Health Organization (WHO) has approved China's Sinovac Covid vaccine for emergency use.

The WHO said it prevented symptomatic disease in 51% of those vaccinated and prevented severe symptoms and hospitalisation in 100% of samples.

Some evidence and data gaps are still lacking though, according to WHO experts.

It is the second Chinese vaccine to receive the green light from the WHO, after Sinopharm.

The approval opens the door for the jab to be used in the Covax programme, which aims to ensure fair access to vaccines.

The vaccine, which has already been used in several countries, has been recommended for over 18s, with a second dose two to four weeks later.

The emergency approval means the vaccine "meets international standards for safety, efficacy and manufacturing", the WHO said.

A study in a Brazilian city saw a 95% drop in Covid deaths after it vaccinated almost all of its adults with Sinovac.

Serrana, in the Southeastern Brazilian state of Sao Paulo, is home to 45,000 residents. Once 75% of its population was vaccinated, the number of cases and hospitalisations fell, according to the study.

Brazil has the second deadliest outbreak of Covid infections in the world.

It is hoped that the decision to list the Chinese vaccine for emergency use will give a boost to the Covax initiative, which has been struggling with supply problems.

"The world desperately needs multiple Covid-19 vaccines to address the huge access inequity across the globe," said Mariangela Simao, the WHO's assistant director general for access to health products.

"We urge manufacturers to participate in the Covax facility, share their know-how and data and contribute to bringing the pandemic under control," she said.

China says it has already produced 10 million doses of Covid vaccines for the Covax scheme and that it aims to hit 3 billion doses by the end of the year.

As well as China, the vaccine is already being administered in countries including Chile, Brazil, Indonesia, Mexico, Thailand and Turkey.

One of Sinovac's main advantages is that it can be stored in a standard refrigerator at 2-8 degrees Celsius.

This means Sinovac is a lot more useful to developing countries which might not be able to store large amounts of vaccine at low temperatures.

The emergency approval came as the heads of the WHO, the World Trade Organisation, the International Monetary Fund and the World Bank appealed for a $50bn (£35bn) investment fund to help end the pandemic.

In a joint statement they said the world had reached a perilous point, and that inequalities in access to vaccines risked prolonging the pandemic, and many more deaths.

They have called for the money to be invested in areas including vaccine production, oxygen supplies, and Covid-19 treatments, ensuring they are distributed fairly.

They also called on wealthy countries to donate vaccine doses immediately to developing nations.

Mongolia on Tuesday reopened its air border to resume international passenger flights after more than a year of closure because of the COVID-19 pandemic.

"Our country is officially reopening its air border starting today," Tseden-Ish Ganzorig, head of the government's press office, said in a statement.

However, people who have received two doses of the COVID-19 vaccine will be only allowed to enter the country.

Mongolia suspended international passenger flights in mid-February 2020 to prevent the spread of COVID-19.

So far, Mongolia has registered 59,229 COVID-19 cases, with 297 deaths. Among all patients, 50,763 have recovered from the disease.

The Asian country, with a population of around 3.3 million, reported its first imported COVID-19 case in March 2020 and confirmed its first locally transmitted case in November.

On June 9, Mongolia will elect its next president. It’s been a messy campaign season, with all sides claiming that the fate of Mongolia’s democracy is at stake in the upcoming vote. For a rundown of the state of the race, and the larger issues at play, The Diplomat spoke to Bolor Lkhaajav, a book editor at The Mongolia Society, Indiana University Bloomington, and a frequent commentator on Mongolia’s foreign policy and politics. Bolor is also a co-host of the “77 Nation” podcast based in Washington, D.C.

It’s been an especially contentious campaign season, with the MPP passing laws banning the incumbent president from running, and President Battulga attempting to disband the MPP. Can you walk us through the major developments of the past few months?

Since its peaceful democratic revolution in 1990, Mongolia has successfully held five presidential elections in a multi-party system. This year’s presidential election, to be hold on June 9, 2021 has been contentious for a number of reasons, including but not limited to the Mongolian People’s Party (MPP) holding a majority of seats in the parliament, the outbreak of COVID-19 and the government’s response, and the weakening of major opposition party, the Democratic Party. It is especially contentious because the opposition parties and observers fear one-party rule in Mongolia, resulting in hunger strikes to warn against that path.

When the DP lost in a landslide to the MPP in 2016 – retaining only nine out of 76 seats in the parliament (Great Ikh Khural) – the battle for the office of the president began for both the DP and MPP. For the DP, the ambition for the office of the president was to hold some high-level power in the government, since they only hold nine seats in the parliament. For the MPP, the goal was to hold the power of all three branches of the government – the parliament, the office of the president, and the cabinet.

Following its landslide victory in the parliamentary election, the MPP has hoped for the office of the president. One week before Mongolians last headed to the presidential polls, on May 9, 2017 an audio recording was released to the public. It appeared to be a recording of a 90-minute conversation involving the chairman of the parliament, Enkhbold Miyegombyn, who was also the MPP’s 2017 presidential candidate. The audio, allegedly recorded in 2014, preceded Mongolia’s parliamentary elections of June 2016. The recording became famous for its discussion of the MPP’s “60 million tugrik” ($20 million) deal to take bribes to shuffle government positions as part of a plan to empower its party grip. The political atmosphere right before the 2017 presidential election was almost at a boiling point.

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When MPP lost the presidential election to DP candidate Battulga Khaltmaa, they pursued an amendment to the constitution. The president has called for a national referendum, and used his veto power. But his actions were ignored by the MPP majority parliament. In 2019, the parliament approved the third discussion of the draft amendments to the Constitution of Mongolia, under which the newly elected president will serve a single, six-year term. Previous presidents all have served two terms, except Enkhbayar Nambaryn and, now, Battulga.

This is not to say that these legislative decisions are only directed toward banning former president Enkhbayar and Battulga from running, however. Amendments to the constitution, Mongolia’s balance of power, the semi-presidential system, and the question of how much power should a president have – all of these topics have been part of an ongoing political discussion in the Mongolian political arena for the past decades.

It is important too that the election law requires the president-elect to suspend their party membership in order to fully serve the people and country. The weakening of the DP since the 2016 parliamentary election might have indirectly pressured the incumbent president to stay in power as president.

Moreover, legal studies scholars have been extremely unhappy with the Constitutional Court overriding its power to micromanage the election system. For example, advisors to the president Dr. Enkhbaigali Byambasuren and Dr. Gunbileg Boldbaatar emphasized that “Restricting the right to elect and be elected means restricting the rights of political parties to nominate and the rights of all supporters, the rights of all the people to elect their President. The people’s right to vote is guaranteed by the Constitution and it should not be restricted. The Constitution cannot be interpreted for political purposes.”

As for former president Enkhbayar, who was jailed for abuse of power and corruption in 2012, he has lost the support of the majority of the people. Since being released from jail, he has been seeking office and has been rejected by the General Election Committee. The more he tries to be in political life again, the more people are suspicious.

The family-feud-like political game between the MPP and DP forced Enkhbat Davaasuren to run for office from the Mongolian Labor Party (MLP). In his latest interview, Enkhbat stated that he is running for president not because of political ambition or career; he is running for office because he is different from the other candidates who have been in politics for too long and have political life or party affiliations to lose.

Mongolian youths played a key role in the country’s transition to democracy. What role are young Mongolians playing in the current political atmosphere?

A new nationwide ​poll conducted by the International Republican Institute (IRI) “surveyed Mongolians between the ages of 18 and 40, capturing youth perspectives prior to the June 2020 parliamentary elections and amid the fallout of the COVID-19 pandemic.” According to this latest research, “94 percent of Mongolian youth believe it is important that all members of the country’s adult population are included in political decision-making. Ninety-four percent of Mongolian youth believe it is important that all members of the country’s adult population are included in political decision-making. More specifically, 97 percent of Mongolian youth find the inclusion of young adults important, and 91 percent think the inclusion of women and people with disabilities is crucial as well.”

Unemployment was by far the biggest concern of Mongolian youth, with 54 percent of those surveyed listing it as one of the three most important problems facing Mongolia today. Corruption was the second-most common response (22 percent of respondents), followed education (18 percent) and poverty (18 percent).

IRI’s survey also found that “Young Mongolians have very little confidence in political parties, with 60 percent expressing either a ‘very’ (10 percent) or ‘somewhat’ (50 percent) negative opinion of the parties.” But their disillusionment is not limited to the political parties: “More than half hold a ‘very’ (11 percent) or ‘somewhat’ (40 percent) negative opinion of courts, and 56 percent have either a ‘very’ (9 percent) or ‘somewhat’ (47 percent) negative view of the parliament.” Over half of respondents also rated the national government as performing “very” or “somewhat” poorly in providing economic opportunity, jobs, and opportunities for citizen engagements in politics.

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Yet IRI noted that “Despite the current obstacles facing the country, the poll found overwhelming support among Mongolian youth for maintaining a democratic system (76 percent) – a promising sign for Mongolia’s future.”

Moreover, in the past two decades, Mongolians abroad have been increasingly active in Mongolia’s political life. As of 2020, there are approximately 150,000 Mongolians studying and living abroad. With modern technology and free flow of information, these people are ever connected to Mongolia. There has been an increase in petitions submitted by Mongolian abroad on a number of pressing issues such as battling air pollution, corruption, offshore accounts, and most recently, the Chinese government’s crackdown on Mongolian language in the Inner Mongolian school system.

What does the election of 2021 tell us about the health of democracy in Mongolia? What markers should we watch for in the last week of the campaign, and on poll day itself?

In recent years, Mongolia’s high politics, corruption, and bribery cases have dampened many people’s trust in the government and the law enforcement. Just look at the IRI poll above. We are talking about a two-party dominated political system that has been scratching each other’s back since 1990. Between 2014 and 2016, Mongolia experienced large numbers of social mobilization both at home and abroad, protesting against poor air quality, mining on sacred land in Noyon-Uul, and offshore accounts that involved high-level government officials — some are still in office. Earlier this year, the public outrage over a mistreatment of a hospital patient resulted in the resignation of Prime Minister Khurelskh Ukhnaa. Whether he resigned too easily in order to run for president is another argument. However, in a recent podcast talk, current Prime Minister Oyun-Erdene Luvsannamsrai stated, “The people, the public are always watching and they are no fools. If the people don’t want you, you will not be elected.”

The emergence of a third-party option, such as the presidential candidate Enkhbat Davaasuren is welcome amongst the youth. There has been significant social media support for Enkhbat, especially among Mongolians abroad and Mongolian youths in Mongolia. The former CEO and founder of Datacom, a computer engineer, and a scholar, Enkhbat is favored mainly because the people do not want cronies from the MPP and DP, especially not after Khurelsukh resigned during a tough time for his own personal political gain. The DP candidate, Erdene Sodnomzunduin, is running under the slogan of “Mongolia without dictatorship,” clearly fearing one-party dominance in Mongolia if he or Enkhbat loses the June 9th presidential election.

Whether it’s a parliamentary election or presidential election, the people are challenging those in power for better governance, a citizen-centered judicial system, human rights, and economic opportunities. Educated youth are increasingly frustrated with unemployment. All these issues need some support from the government. The government, by using democratic practices, must provide more opportunities.

Mongolia will be facing a major energy crisis in the next decade. As developed and developing countries move to renewable energy and away from coal-based energy, Mongolia’s economy must seek an alternative source. Mongolian politicians, policymakers, and its next president must avoid succumbing to the small-time domestic political game and really focus on the bigger issues. The country needs to move on in a healthy direction. In this pursuit, democracy, multi-party governance, a president that is elected by the people, and the participation of youths are the most important components.

MANILA, PHILIPPINES (2 June 2021) — The Asian Development Bank (ADB) has approved a loan and technical assistance package totaling $31 million to support the improvement of livestock production systems in 20 soums (districts) of four aimags (provinces) in Central Mongolia.

“Mongolia’s agriculture sector remains a key pillar of the economy, with a majority of the poor depending on agriculture and extensive livestock production—especially meat and milk—to sustain their livelihoods,” said ADB Senior Natural Resources Economist Jan Hinrichs. “A high incidence of poverty and food insecurity is particularly alarming in rural areas. There is great potential to boost exports and increase income generation significantly if the major constraints facing the sector are addressed in a sustainable manner.”

The lack of a regulatory framework, enforcement capacity, and coordinated policies to control livestock numbers has led to an increase in sheep units by 71%, from 69.5 million in 2009 to 119.0 million in 2019. Consequently, 70% of Mongolia’s pastureland is now degraded. These developments are exacerbated by extreme climatic events such as droughts and dzuds (episodes of extreme winter weather), which have resulted in significant livestock deaths and increased the risk of rural–urban migration. Further, a lack of appropriate water points, animal shelters, and feeding throughout the winter leads to the concentrated use of surrounding pasture and undermines pasture management.

Mongolia also faces challenges throughout the meat value chain, limiting access to export markets that are vital for lifting incomes and overall sector growth. Transboundary animal diseases are prevalent, and the veterinary system has been unable to manage outbreaks effectively. Food hygiene practices and sanitary standards have also fallen short of international standards.

ADB supports Mongolia’s economic diversification with several projects encouraging labor-intensive growth through utilizing and preserving Mongolia’s natural capital.

The new Climate-Resilient and Sustainable Livestock Development Project will build the climate resilience of herders against the increased frequency of severe weather, promote a reduction in livestock numbers, and increase the quality of livestock products. The project will also build the capacity of the public institutions of the Government of Mongolia to better assist the sector.

Specifically, the project will work toward pasture rehabilitation and carbon sequestration while increasing the incomes of herder households through forming pasture user groups and implementing rangeland user agreements. It will also construct or rehabilitate 382 wells and develop 466 water use agreements, while establishing hayfields and storage for herder groups.

To improve the quality and health standard of livestock herds and products, the project will better coordinate and integrate the respective livestock value chain participants through activities such as establishing standards for health and carcass quality, supporting veterinary units, cashmere marketing, and animal breeding

More than 38,500 people in the 20 soums, including 7,709 poor and vulnerable persons, are expected to benefit from the project, which is supported by a $1 million technical assistance financed by the Japan Fund for Poverty Reduction. The technical assistance will strengthen Mongolia’s food safety and traceability system, enhancing the livestock sector regulatory framework and capacity.

The project is financed by an ADB $23 million ordinary loan and $7 million concessional loan, with the government and beneficiaries providing $2.08 million and $2.42 million, respectively, toward the total project cost of $34.5 million. It is due for completion in June 2027.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.