Technical Assistance Report Project Number: 51136-001 Knowledge and Support Technical Assistance (KSTA) September 2017 Mongolia: Developing an Information System for Development Policy and Planning This The views document expressed is being herein disclosed are those to of the the public consultant in accordance and do not with necessarily ADB s Public represent Communications those of ADB s Policy members, 2011. Board of Directors, Management, or staff, and may be preliminary in nature.
CURRENCY EQUIVALENTS (as of 8 August 2017) Currency unit togrog (MNT) MNT1.00 = $0.00041 $1.00 = MNT2452 ABBREVIATIONS ADB Asian Development Bank IMF International Monetary Fund IT information technology NDA National Development Agency TA technical assistance NOTE In this report, "$" refers to United States dollars. Vice-President S. Groff, Operations 2 Director General A. Konishi, East Asia Department (EARD) Director Y. Fernandez Lommen, Country Director, Mongolia Resident Mission (MNRM), EARD Team leader Team members D. Magee, Senior Country Economist. MNRM, EARD K. Batsaikhan, Project Analyst, MNRM, EARD B. Enkhbaatar, Operations Assistant, MNRM, EARD A. Lkhagvasuren, Economics Officer, MNRM, EARD X. Zhao, Information Technology Specialist, Office of Information Systems and Technology In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
CONTENTS KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE Page I. INTRODUCTION 1 II. ISSUES 1 III. THE TECHNICAL ASSISTANCE 2 A. Impact and Outcome 2 B. Outputs, Methods, and Activities 2 C. Cost and Financing 2 D. Implementation Arrangements 3 IV. THE PRESIDENT'S DECISION 5 APPENDIXES 1. Design and Monitoring Framework 6 2. Cost Estimates and Financing Plan 8 3. List of Linked Documents 9
Project Classification Information Status: Complete KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE 1. Basic Data Project Number: 51136-001 Project Name Developing an Information System for Department EARD/MNRM Development Policy and Planning /Division Nature of Activity Capacity Development Executing Agency Modality Regular Country Mongolia National Development Agency 2. Sector Subsector(s) ADB Financing ($ million) Public sector Public administration 0.10 management Information and communication technology ICT strategy and policy, and capacity development 0.40 Total 0.50 qq 3. Strategic Agenda Subcomponents Climate Change Information Inclusive economic Pillar 1: Economic opportunities, Climate Change impact on the growth (IEG) including jobs, created and expanded Project Low qq 4. Drivers of Change Components Gender Equity and Mainstreaming Governance and Organizational development No gender elements (NGE) capacity development (GCD) Knowledge solutions (KNS) Knowledge sharing activities qq 5. Poverty and SDG Targeting Location Impact Geographic Targeting No Household Targeting No Nation-wide SDG Targeting Yes SDG Goals SDG1, SDG9, SDG17 Qq 6. Risk Categorization Low Qq 7. Safeguard Categorization Safeguard Policy Statement does not apply qq 8. Financing Modality and Sources Amount ($ million) ADB 0.50 Knowledge and Support technical assistance: Technical Assistance 0.50 Special Fund Cofinancing 0.00 None 0.00 Counterpart 0.00 None 0.00 Total 0.50 qq Qq High Source: Asian Development Bank This document must only be generated in eops. 12052017143634280907 Generated Date: 29-Sep-2017 9:06:43 AM
I. INTRODUCTION 1. The Government of Mongolia requested knowledge and support technical assistance (TA) from the Asian Development Bank (ADB) to support the National Development Agency (NDA) in preparing a web-based information system with an integrated information database. The proposed TA will strengthen coordination and planning of development policy in Mongolia in line with the objectives of the Mongolia Sustainable Development Vision 2030. 1 The TA will reduce duplication and overlap in government policy and provide a stronger basis for prioritizing and allocating scarce government resources to development priorities. Increasing the efficiency with which available resources are used is particularly important given Mongolia s current economic challenges, which have resulted in drastic fiscal consolidation of the government budget. The TA is closely aligned with ADB s country partnership strategy for Mongolia, 2017 2020, and is included in ADB s country operations business plan, 2017 2019 for Mongolia. 2 II. ISSUES 2. The NDA was established in 2016 under the Prime Minister s office with the mandate to coordinate the implementation of the Mongolia Sustainable Development Vision 2030 (footnote 1). As such, the NDA is the key regulatory agency tasked with ensuring the country s economic stability through the development and implementation of an integrated socioeconomic and investment policy. The NDA is responsible for identifying and integrating national, sectoral, regional, and investment policies in Mongolia; this involves working with over 300 existing sectoral, subsectoral and regional development policy documents and coordinating closely across all line ministries and with the governor s office in each aimag (province). 3. However, at present there is no integrated database that serves as a repository for such policies. This challenges NDA s capacity to oversee policy coherence and ultimately support better allocation of resources to government priorities. It also complicates monitoring of policy implementation and the dissemination of new and existing policies across government. The problem is accentuated by Mongolia s political cycle, where a change in government results in extensive changes at senior levels across ministries; in the absence of an integrated database, the result is a loss of institutional memory, which hinders effective policymaking. 4. Creating an efficient database platform and ensuring that the government has the skills needed to maintain it are important steps in supporting better policymaking. The TA will facilitate the timely dissemination of relevant policies and evidence, which is burdensome and inefficient under the current manual system. The TA will support efforts by NDA to improve policy coherence at the state, sectoral, and regional levels through a more effective and efficient system to collate, review, and engage with policy development, and in this way help improve the allocation of resources to government priorities, and alignment with the Sustainable Development Goals. 5. This TA is particularly important given the current context in Mongolia. Falling commodity prices combined with a lack of fiscal discipline have significantly worsened Mongolia s fiscal position and undermined debt sustainability. This resulted in the negotiation of an International Monetary Fund (IMF)-led program, 3 backed by ADB and other development partners, which will enhance medium-term growth prospects. However, implementation of this program will require 1 Government of Mongolia. 2016. Mongolia Sustainable Development Vision 2030. Ulaanbaatar. 2 The TA first appeared in the business opportunities section of ADB s website on 7 July 2017. ADB. 2017. Country Partnership Strategy: Mongolia, 2017 2020. Manila; and ADB. 2017. Country Operations Business Plan, 2017 2019. Manila. 3 The IMF program was approved on 24 May 2017.
2 discipline in restoring debt sustainability and improving fiscal management, and underlines the importance of (i) effective policy planning and coordination; and (ii) the role of the NDA in determining Mongolia s development priorities and allocating government expenditures accordingly, within the constrained fiscal environment. III. THE TECHNICAL ASSISTANCE A. Impact and Outcome 6. The TA will help the government develop a web-based platform with an integrated information database to support sectoral policy makers in development policy planning, and develop and implement a comprehensive capacity development plan to use and maintain the database. 7. The TA is aligned with the following impact: development policy and planning strengthened. The TA will have the following outcome: monitoring and oversight of development policy improved. 4 B. Outputs, Methods, and Activities 8. The TA will have the following outputs. 9. Output 1: Integrated database software platform with web-based interface created. An integrated database platform will be created to link two existing government databases (the industry information system and the sector information system databases) with three proposed databases (for policy documents, project management, and research and analysis). The platform will include a web-based user interface to facilitate the easy input and extraction of data. The platform should facilitate the extraction of data that is relevant to the mandate of the NDA. The platform will be designed to (i) allow additional databases to be easily integrated into it, and/or (ii) be easily integrated into other government data- or information technology (IT)-based initiatives. 10. The focus of the TA is the creation of the database platform that links databases and has a web-based interface. The TA will not populate or build the five databases to be integrated that will be the responsibility of the NDA or the government department or agency that owns the database(s) concerned. 11. Output 2: Capacity of government staff to use and maintain database enhanced. Capacity development will include (i) day-to-day use and maintenance of the platform, such as data input, platform and interface use, system maintenance, and other activities required to successfully maintain and use the platform; and (ii) the extraction of relevant data from the system, and statistical analysis of the data to support policy decisions. A comprehensive capacity development plan for the required staff and skills will be prepared, and technical training workshops and seminars conducted, with skilled trainers recruited to develop and run the training. C. Cost and Financing 12. The TA is estimated to cost $550,000 of which $500,000 will be financed on a grant basis by ADB s Technical Assistance Special Fund (TASF 6). The key expenditure items are listed in Appendix 2. The government will provide $50,000 of counterpart support in the form of office 4 The design and monitoring framework is in Appendix 1.
3 accommodation, communication facilities for consultants, conference and training venues, a fulltime dedicated staff officer, data entry costs, tax exemptions on any equipment purchased, administrative support, and other in-kind contributions. D. Implementation Arrangements 13. The TA will be implemented from 1 October 2017 to 31 December 2019. The NDA will be the executing agency. ADB will engage a full-time TA coordinator and a part-time IT specialist to form a project implementation unit, oversee the TA and help manage the software development consulting firm. ADB will engage a software development firm to undertake software development as well as testing, training, and any other activities deemed necessary to ensure the software is operational. ADB will also engage a short-term expert to support the development of a regulation concerning data input and disclosure, as planned under the Development Policy and Planning Law. 14. The NDA will form a TA steering group to guide the TA, composed of senior officials from government departments and agencies that are affected by the TA. The group will be chaired by the NDA chairperson. The group s proposed composition will be sent to ADB for no-objection approval prior its formation. The TA coordinator will act as secretary to the steering group. In addition, the TA coordinator will form, participate in, and lead a working group composed of the IT specialist, one full-time NDA staff officer, and other relevant working-level staff from the NDA as appropriate. The working group will be responsible for managing the TA on a day-to-day basis and liaising with relevant staff within the NDA and other agencies. Training on data input, platform and interface use, maintenance of the system, and other issues needed to enable successful maintenance and use of the platform will be included in the consulting firm s contract. The firm will also be responsible for developing a capacity development plan, which will include training on the extraction of relevant data from the system, and statistical analysis of the data to support policy decisions. There will be three workshops (inception, midterm, and closing) in addition to the training. 15. TA support for workshops may include costs related to the venue, equipment rental, translation, printing and copying, meals, transportation, lodging, logistics and administrative support, and other expenditures with prior agreement from ADB. In line with standard ADB procedures, the TA will not support the executing agency s management fees or related costs such as staff salaries and allowances, and use of executing agency resources (such as office accommodation), which will be provided as part of the counterpart contribution. 16. The executing agency will provide office space, and server and other equipment required to run the system once setup is complete. It will also provide access to utilities and telecommunications (including a broadband internet connection) for the consultants. It will supply data and documents as required under the TA, and cover the cost of office utilities for consultants. The executing agency will designate a TA focal point with strong English speaking and writing skills, and will facilitate all TA activities and links to local government representatives and providers to ensure effective implementation of TA activities. 17. The project implementation unit will establish a separate advance payment facility in US dollar at a commercial bank acceptable to ADB in coordination with the Ministry of Finance in accordance with ADB s Technical Assistance Disbursement Handbook (2010, as amended from time to time).
4 Table 1: Implementation Arrangements Aspects Arrangements Indicative implementation period 1 October 2017 31 December 2019 Executing agency Implementing agency Consultants Procurement Disbursement National Development Agency National Development Agency To be selected and engaged by ADB TA coordinator 26 person-months $80,000 IT specialist 12 person-months $60,000 Software development and training consulting firm Data input regulation expert To be procured by consultants: Shopping (office equipment and database IT equipment) 40 person-months $200,000 4 person-months $20,000 1 contract $40,000 The TA resources will be disbursed following ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). ADB = Asian Development Bank, IT = Information Technology, TA = technical assistance. Source: Asian Development Bank. 18. Consulting services. In coordination with the executing agency, ADB will recruit a national TA coordinator and IT specialist (38 person-months in total) through individual consultant selection. The national data input regulation expert (4 person-months) will be recruited as an individual consultant and engaged by ADB, with the TA coordinator and IT specialists providing key inputs. The software development consulting firm (40 person-months in total) will be selected by ADB using quality- and cost-based selection with a 90:10 cost-quality ratio. Lump sum payments and output-based contracts for consulting services will be considered in line with ADB s Midterm Review of Strategy 2020 Action Plan nos. 2.9.2. and 2.10.2. 5 Both the TA coordinator and the IT specialist will provide key inputs to the process. ADB will engage consulting firms and individual consultants, and all TA-financed goods shall be procured in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated project administration and TA instructions. 19. The consultant team will be responsible for producing the TA outputs and deliverables in a timely and effective manner, and for organizing and carrying out all TA activities. Consultants will report to the ADB project officer. The progress of the TA will be evaluated during review missions and workshops, based on the performance targets and indicators defined in the design and monitoring framework specified in Appendix 1. The NDA will provide baseline data and will verify the data with other government authorities. 20. Social media and websites. The NDA agrees to fund the maintenance of the database platform, the underlying databases, and the web-based interface (including website) upon 5 ADB. 2014. Midterm Review of Strategy 2020: Action Plan. Manila.
5 completion of the TA. This will be budgeted and accounted for in the NDA s annual budget allocation. The NDA will also ensure that the website remains open and available to the public. IV. THE PRESIDENT'S DECISION 21. The President, acting under the authority delegated by the Board, has approved the provision of technical assistance not exceeding the equivalent of $500,000 on a grant basis to the Government of Mongolia for Developing an Information System for Development Policy and Planning, and hereby reports this action to the Board.
6 Appendix 1 DESIGN AND MONITORING FRAMEWORK Impact the Technical Assistance is Aligned with Development policy and planning strengthened (Mongolia Sustainable Development Vision 2030) a Performance Indicators with Targets and Results Chain Baselines Outcome By 2020: Monitoring and oversight of development policy improved Outputs By 2019: 1. Integrated database software platform with webbased interface created At least 60% of users report satisfaction in accessing information using the integrated policy database (2016 baseline: Not applicable) 1a. Database software installed to standards (Baseline: Not installed) 1b. Web-based interface installed to standards (Baseline: Not installed) Data Sources and Reporting Mechanisms Baseline survey of NDA staff will be conducted, with staff queried regarding their current satisfaction in accessing information contained in the five proposed databases. The survey will be repeated 3 months after the database system is operational 1a. and 1b. Testing of platform and interface performance as part of consultancy firm s contract 1a., 1b., and 2a. Periodic TA progress reports in line with project reporting Risks Staff turnover prevents adequate assessment of whether the system has improved. Change in key government personnel or in institutional setup undermines support for the use or presence of the database platform. Support by different parts of government is not sustained due to shifting priorities. 2. Government staff capacity to use and maintain database enhanced 2a. At least 50 government staff with new knowledge and skills in database use and maintenance (2017 Baseline: 0) 1a., 1b., and 2a. Accomplishment reports from consultants in line with project reporting 1a., 1b., and 2a. Minutes of meetings between the government and ADB during progress missions and other ad hoc meetings The three proposed underlying databases are not produced in a timely manner, undermining the usefulness of the database platform. 1a., 1b., and 2a. Minutes and outcomes of training proceedings, frequency of training to be determined by project inception 1a., 1b., and 2a. Memoranda of understanding signed between the government and ADB; frequency to be in line with project implementation and reporting requirements
Appendix 1 7 Key Activities with Milestones 1. Integrated database software platform with web-based interface created 1.1 Recruit TA coordinator by Q4 2017 and IT specialist by Q1 2018. 1.2 Complete recruitment of software development team by Q4 2018. 1.3 Complete research, analysis, and design of system by Q1 2019. 1.4 Recruit national expert on data regulation by Q2 2019. 1.5 Develop and make software operational by the end of 2019. 2. Government staff capacity to use and maintain database enhanced 2.1 Complete training needs assessment by Q1 2019. 2.2 Make training program operational and recruit experts in line with ensuring software is operational, by the end of 2019. TA Management Activities Establish TA steering committee composed of NDA and other relevant ministries. The TA coordinator will also participate in the steering committee, either as a member or as secretary of the steering committee. Prepare inception (Q4 2017), annual (Q4 2018), and completion (Q2 2020) reports and associated workshops. Inputs ADB Technical Assistance Special Fund (TASF 6): $500,000 Note: The government will provide $50,000 of counterpart support in the form of office accommodation, communication facilities for consultants, conference and training venues, a full-time dedicated staff officer, data entry costs, tax exemptions on any equipment purchased, administrative support, and other in-kind contributions. Assumptions for Partner Financing Not applicable ADB = Asian Development Bank, NDA = National Development Agency of Mongolia, Q = quarter, TA = technical assistance a Government of Mongolia. 2016. Sustainable Development Vision, 2030. Ulaanbaatar. Source: Asian Development Bank.
8 Appendix 2 COST ESTIMATES AND FINANCING PLAN ($ 000) Item Amount Asian Development Bank a 1. Consultants a. Remuneration and per diem i. National consultants (82 person-months) 360.0 b. Out-of-pocket expenditures i. Local travel 10.0 ii. Surveys b 5.0 iii. Translation, reports, and communications c 10.0 iv. Miscellaneous administration and support costs d 15.0 2. Equipment (rental or purchase) e 40.0 3. Workshops and training costs a. Workshops (inception, midterm, and final) 20.0 b. Training workshops and seminars f 20.0 4. Contingencies 20.0 Total 500.0 Note: The technical assistance (TA) is estimated to cost $550,000, of which contributions from the Asian Development Bank (ADB) are presented in the table above. The government will provide $50,000 in counterpart support in the form of office accommodation, communication facilities for consultants, conference and training venues, a full-time dedicated staff officer, data entry costs, tax exemptions on any equipment purchased, administrative support, and other in-kind contributions. The value of the government contribution is estimated to account for 10% of the total TA cost. a Financed by ADB s Technical Assistance Special Fund (TASF 6). b Includes research and survey materials. c Includes all translation activities, necessary policy documents for desk review, production of technical reports for the main TA report, workshop reports, executive summary of the TA findings and policy note, and interpretation of workshops and conferences as needed. d Includes report editing, printing, and dissemination. Includes any other staff support costs. e Equipment Type Quantity Cost Computer/laptop/tablet 22 $21,500 Servers and router 4 $3,500 Display and data mapping equipment 6 $6,700 Other training and office equipment To be determined $8,300 Equipment will be procured according to ADB s Procurement Policy (2017, as amended from time to time) and the associated project administration and TA instructions, using the shopping method. Equipment will be used for connecting the software, enabling the staff of the National Development Agency to access the database platform, and capacity-building training sessions. Equipment purchased under the TA will be turned over to the executing agency upon completion of TA activities. f In addition to the inception, midterm, and final workshops, the TA expects to run four additional training workshops or seminars with a combined attendance of 100 participants. The workshops will take place in Ulaanbaatar. Source: Asian Development Bank estimates.
Appendix 3 9 LIST OF LINKED DOCUMENTS http://www.adb.org/documents/linkeddocs/?id=51136-001-tareport 1. Terms of Reference for Consultants