Ulaanbaatar Sustainable Urban Transport Project Additional Financing

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Relationship between the Parent Project and the AF. The AF will add US$2.7 million of financing from the KWPF Trust Fund, allocated as a recipient-executed trust fund (RETF). The PDO of the AF will be the same as the PDO of the Parent Project. No extension will be made to the project closing date.The AF will finance activities that are already scheduled under the parent project, for the design and implementation of Intelligent Transport System (ITS) and parking activities, and the freed-up funds will be used to finance any eligible activity under the same Component 1. Integrated Corridors, of the parent project. Therefore, only the costs of such project component will be scaled up by the same amount of the AF, bringing it from US$81 million to US$83.7 million. AF activities. All four Parent Project components and their content would remain the same. The proposed AF would scale up the available funds under the parent project Component 1. With the framework approach project design, the Project Implementing Entity is expected to complete the selection of all road works (Subcomponent 1.1. Corridor-specific infrastructure investments) based on their possible changing priorities, subject to the use of the same criteria used during the project preparation and to the World Bank review of their methodology. The additional funds may also further finance Subcomponents 1.2 Intelligent Transport Systems (ITS) and 1.3 Smart Parking Management System (SPMS), which are already eligible under the AF. The direct beneficiaries of the AF will be Municipality of Ulaanbaatar, especially the Traffic Control Center, and their technical staff who will benefit from improved capacity to manage the new IT City. The indirect beneficiaries are the city’s residents, especially the road users who will benefit from improved and more efficient traffic management system. The remaining three components remains unchanged. Those are: Component 2. Sustainable Public Transport System (US$10 million); Component 3. Effective Institutions for Transport Planning and Management (US$9 million); and Component 4. Zero-allocation Contingent Emergency Response Component.