ADB, Mongolia establish framework arrangement to support social sector, strengthen disaster resilience

The Asian Development Bank (ADB) and the Government of Mongolia signed a $475 million Financial Framework Arrangement to strengthen their partnership in advancing inclusive and sustainable growth. The arrangement was signed by Minister of Finance and ADB Governor Javkhlan Bold and ADB Country Director for Mongolia Shannon Cowlin at a ceremony in Ulaanbaatar, the press service of the Bank reported. 

photo: QAZINFORM

“The Financial Framework Arrangement will streamline project preparation and approval processes so that our partnership can deliver timely and lasting benefits for the people of Mongolia,” said Ms. Cowlin. “Through this arrangement, we will continue supporting projects in health, education, and skills development, as well as initiatives that strengthen disaster resilience.”

The new framework will support four projects that directly improve people’s lives and strengthen the country’s long-term development. The proposed Provincial Health Service Strengthening and Modernization Project will upgrade hospitals and diagnostic centers in 17 aimags with climate-resilient, energy-efficient facilities and modern equipment. It will also support the development and implementation of national health sector policies, improvements in hospital management, and enhancement of health workers’ skills. In addition, the project will be improving emergency medical and intensive care services, including cancer care, while also building capacity to ensure the sustainability of the national health insurance system.

Additional financing for the ongoing Sustaining Access to and Quality of Education During Economic Difficulties Project will support the construction of about 40 new schools and kindergartens in Ulaanbaatar and aimags across the country. This will create more than 10,000 new school and kindergarten seats, helping alleviate overcrowding and the need for schools to operate in three daily shifts - a system where a single classroom is used by three separate classes from morning until evening. These new facilities will feature energy-efficient, disaster-resilient, and age- and abilities-inclusive designs. The project will also develop digital learning materials for pre-primary curriculum and upgrade the digital school repository ahead of the new primary curriculum rollout in 2027.

The Developing Skilled Mongolian Workforce for Resilient Economic Growth Project will modernize technical and vocational education and training to better prepare the youth for the future labor market. This involves creating a model network of training institutions, updating curricula, and strengthening teacher training through collaboration with international institutions and industry partners. The project will focus on building market-relevant, future-ready skills that integrate digital, smart, and green technologies, while also improving sector management to make skills development more responsive to labor market needs.

Furthermore, the Strengthening Mongolia’s Disaster Resilience Capacity Project will strengthen the country’s disaster response mechanism and equip the National Emergency Management Agency with modern, high-capacity vehicles and specialized tools that meet international standards for firefighting, disaster response, search and rescue, mitigation, and recovery operations. The project will also establish a training complex to enhance the professional skills of agency personnel, ensuring safer, faster, and more efficient emergency responses. In addition, it will strengthen the preparedness and capacity of emergency services, local authorities, and communities across the country.

These four projects will be funded through ADB’s ordinary and concessional loans, as well as grants, and are expected to make a significant contribution to advancing the Government Action Plan 2024–2028 and ADB’s Country Partnership Strategy 2025–2028.

As reported previously, the Green Climate Fund (GCF) has approved $250 million for Glaciers to Farms - a flagship adaptation program led by the Asian Development Bank (ADB) to build resilient water and agriculture systems for vulnerable communities in glacier-dependent regions of Central Asia, the South Caucasus, and Pakistan.