Agriculture and Rural Development Project (Additional Financing)

Mongolia
Asian Development Bank
East Asia Department
state
B
30/06/1998
Proposed
A report and recommendation of the President to the Asian Development Bank (ADB) Board of Directors, approved on 29 September 2008, established the rationale for the original project, which remains the same for the project. Additional financing for Agriculture and Rural Development Project (the project ) will continue to help Mongolian agribusiness develop value chain to strengthen their international competitiveness. Agribusiness development is envisaged to provide a suitable path for economic growth for Mongolia, a country with a significant agriculture sector. It is also considered as a remedy for vulnerability of the mining sector-driven economy, which is highly susceptive to the volatile international market, through diversification of the economic structure. Improved performance of the agriculture sector will also result in effective employment generation and income increases in the rural areas, which is expected to alleviate the increasing inequality between urban and rural areas. While Mongolian agribusiness enterprises currently have little quality- or price-based comparative advantage in international markets, they do have a comparative advantage derived from the distinctive qualities of Mongolian agricultural products. This provides the basis for developing a brand that could command a premium value. However, realizing the premium value requires comprehensive coordinated value chain development. The original project has already demonstrated its impact on development of Mongolian agribusiness enterprises and its resultant value chain development. The project will continue to assist Mongolian agribusiness enterprises with significant potential for value chain development in financing value chain development investments.
See project site:
http://www.adb.org/projects/39229-033/main
0 USD 20,000,000

EastAgri is supported by:

EastAgri is supported by FAO, EBRD, and The World Bank