On May 22-26, ten high-level delegates from Ulaanbaatar City (UB) agencies, the City Council, and relevant national ministries of Mongolia visited Beijing and Manila as part of a knowledge exchange program to catalyze private and climate finance for UB City’s green infrastructure, particularly for the building sector.
The Municipal Government of UB City has partnered with GGGI to prepare and procure 10 education buildings and to develop a project for energy efficient residential retrofitting. Due to limited fiscal resources, UB City is seeking innovative ways to finance and fund the growing demand for its essential municipal infrastructure and services, with a stated desire to utilize PPP for financing and achieving these initiatives.
During the program, participants had constructive dialogues with high-level government officials and representatives of research institutes, international organizations, and sectorial associations, namely the Beijing Municipal Commission of Development and Reform, Public-Private Partnership (PPP) Center of China’s Ministry of Finance, PPP Center of Philippines, China Academy of Building Research, ESCO Committee of China Energy Conservation Association, ICLEI and GIZ. In addition, delegates visited successful projects such as the residential retrofitting of Building 12 Huixin West Street in Beijing, and PPP for Schools Infrastructure and Bulucan Bulk Water Supply Projects in Bulucan province of Philippines.
As an immediate follow-up of this 5-day knowledge exchange program, UB City is aiming to procure its first model PPP for green public buildings by the end of 2017. If proved successful, this model will be further scaled up.
GGGI’s collaborative approach is enabling its Member countries to learn from each other, with knowledge traveling not only from developed to developing countries, but also from developing to other developing countries. This south-south knowledge exchange helps decision and policy makers to realize their potential and learn from the success stories of their counterparts with similar limited resources.
With support from GGGI’s China Office, Mongolian delegates established a new relationship with Government of China in utilizing its green technology, financing and private companies, beyond the building sector. Specifically, Beijing Municipal Commission of Development and Reform and the Municipal Government of UB City have mutually agreed to cooperate on air pollution abatement and the reduction of coal usage in UB City.
Similarly, in the Philippines, the PPP Center shared their detailed technical knowledge and experience on how to structure projects to attract private financing and to benefit from their innovative capabilities, efficiency, and expertise while protecting government interest through effective risk allocation. This knowledge exchange was directly applicable to the preparations of proposed bankable projects, as delegates obtained appropriate solutions on how to monitor the performance of a private partner in education building PPPs.
Mr Ulziibayar Gonchig, Head of the Delegation and Director-General at the Governor’s Office said that “UB City has been trying to implement PPPs since 2013, however, no performance-based PPP project has reached financial closer,” said Mr Ulziibayar Gonchig, Head of the Delegation and Director-General at the Governor’s Office. “From this knowledge exchange program, delegates understand that infrastructure provision does not end with the construction of the asset, but extends to the services it provides to the residents of the UB City. It is vital to engage private sector during the operation of the assets in order to maintain quality of assets and services. Therefore, preparing attractive projects for private partners is a success factor of PPPs”.
As a result of this south-south knowledge exchange, UB City has agreed to exchange official letter of cooperation with several partners to continue and strengthen the newly formed relationship and future cooperation. Delegations also expressed that they will apply and share acquired knowledge and best practices to enhance the pipeline of bankable projects in UB City.