Ulaanbaatar is home to more than half of Mongolia’s population, largely due to the influx of migrants from rural areas. Half of the city’s population (750,000 people) reside in semi-urban ger[1] areas. Ger areas are characterised by high rates of poverty, substandard service delivery and obsolete or insufficient infrastructure particularly heating systems, social infrastructure, water and sewage, as well as roads and public transport. The root causes are politically driven decision-making for public investment and weak public finance management capacity. At present, no criteria exist for investment project prioritisation at any level; the only guidance is provided by a Ministry of Finance regulation. In addition, there are duplications of planning responsibilities among line ministry branches and subnational governments. Saving heat through energy efficiency is a top priority investment for local communities due to the benefits for (i) the health of citizens, particularly children, (ii) environment and climate, and (iii) the effective management of public finances. Retrofitting buildings has proved to be cost effective and relevant to people needs.

[1] The Mongolian term ger means portable, round tents covered with skins or felt that are used as a dwelling by nomads on the steppes of Central Asia or – in this context – by most of the recent immigrants into the semi-urban belt areas on the outskirts of Ulaanbaatar.

• Parents, particularly mothers, children and teachers using the thermo-retrofitted schools and kindergartens.
• Local governments (UB, districts).
• Relevant departments/or executing agencies of the MUB.
• Private construction companies.
• Education ministry and its agencies
• Academic institutions

1. Transparent, effective and gender-sensitive Public Investment Management for social infrastructure with a focus on schools and kindergartens has been sustainably introduced in the Municipality of Ulaanbaatar (MUB).
2. Energy efficient thermo-technical technology is introduced and mainstreamed for sustainable replication in the MUB education sector.

Expected results:  

• Guidance based on clear criteria for a transparent Public Investment Management (PIM) cycle are developed and applied in MUB.

• Effective and transparent PIM is achieved for the retrofitting of 20 education buildings.

• MUB’s capacities are improved to independently carry out PIM projects in a transparent, effective and gender-sensitive way.

• Evidence-based policy dialogues for replication, upscaling and dissemination of PIM, PFM and EE with MUB and national stakeholders are carried out.

• 20 thermo-technical retrofitted buildings are completed, which are BNBD 2009 compliant and have improved water and sanitation facilities.

• Blueprints for the retrofitting of seven standard types of school and kindergarten buildings are developed and approved for wider dissemination and replication.

• The advantages of retrofitting technology are mainstreamed in MUB and applied to education and other public buildings and transferred to the private sector.

Results from previous phases:  

PIE1 was implemented in two rural provinces (aimags) and was assessed as very successful by an external review: 

Local Development Fund (LDF) Management and Local Democracy: PIE1 established a fully-fledged capacity development programme for administrative and local democracy processes. It improved existing systems by strengthening standard structures and processes in Khovd and Zavkhan aimags. Democratic and participatory processes, and the inclusion of traditionally marginalised groups such as herders, women and ethnic minorities, were successfully introduced and applied at bagh, soum and aimag levels. PFM procedures related to the LDF were introduced and officials are now able to manage the entire project cycle, from selection to tendering, procurement, implementation and monitoring.

Demonstration of Energy Efficiency in Public Buildings: PIE1 thermo-technically retrofitted 16 public buildings (twice the target), namely schools, dormitories, kindergartens and health centers in remote rural soums of the two aimags. The retrofitted buildings serve as demonstrations of benefits of better insulation, namely financial benefit of up to 40% budget cost saving from reduced coal consumption, health benefit of up to 30% reduction in sickness among children and wellbeing benefit in terms of reducted cost by 1/3 for families of caring for sick children.

Municipality of Ulaanbaatar city as a lead partner.

Others are MUB departments of Education, Procurement and Investment, Ministries of Education and Construction, Construction Development Centre, Songinokhairkhan and Bayanzurkh districts of UB, National Academy of Governance, professional association on construction.

• Vocational Skills Development (GIZ)
• Strengthening Representative Bodies in Mongolia (UNDP)
• Mainstreaming Social Accountability in Mongolia (World Bank Group)
• ENEV3+ (BMZ, GiZ)

Phase 2 01.12.2017 - 31.12.2021   (Completed)