“It will be project preparatory technical assistance for the loan project to be implemented,” Mandar Jayawant, ADB Deputy Country Director in Mongolia told MonInfo.

“The agricultural sector development of Mongolia is planned to be discussed by the ADB Board of Directors in 2007,” he added.

E. Khanimkhan, Head of the Foreign Cooperation division of the Ministry of Food and Agriculture said, “The project preparatory technical assistance (PPTA) team will consist of international and national experts and they will help writing documents and providing preparation work for the loan project of US $13 million in agriculture sector development.”

Based on the Government’s request, a 2007 loan for the Agriculture and Rural Development Project (ARDP) was programmed in the 2006-2008 country strategy and program (CSP) which was published in 2005.

“This technical assistance grant will assist 8 to 10 private agricultural enterprises to develop their investment plans. Most of the money of the loan is planned to be spent on financing those investment plans and useful branding campaigns. A small amount of the loan will be utilized for public services and rural infrastructure,” said Jayawant.

“The technical assistance will prepare a branding campaign to provide a distinct identity or ‘brand’ that differentiates Mongolia’s agricultural products from those of other countries. The branding campaign will be considered for funding through an ADB loan project and through grants from other development agencies,” the news release said.

The ADB Technical Assistance report ‘Preparing the ARDP’ published in October 2006 said that agricultural and rural development is vital to economic growth and poverty reduction in Mongolia. It said almost half of the rural population is poor and vulnerable because agricultural incomes are low, unstable and heavily rely on outside factors.

Ministry officials said that Adrian Ruthenberg on behalf of the ADB and N. Bayartsaikhan, Minister of Finance, and N. Terbishdagva, Minister of Food and Agriculture on behalf of the Mongolian Government signed the grant agreement on Monday, November 13, with other officials in attendance.

“We believe that PPTA will start before the new year under the ADB’s procedure to select experts for the project team at the Ministry of Agriculture,” Z. Munkh-Orgil, Officer of Loan Aid Coordination Regulatory department at the Ministry Finance said in a phone interview.

“The sector could offer production processes such as chemical free methods, environmentally friendly practices and free range livestock. Combined with its unique culture of nomadic lifestyle, family production, traditional relationship with animals and nature, and boutique practices that contrast with the mass production methods of its neighbors,” said the press release.