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Mongolia OBA pilot project brings modern ICT services to over 22,300 people in remote rural areas

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March 24, 2009 – A GPOBA-funded pilot project in Mongolia has closed, having achieved its goal of providing access to modern information and communication technology (ICT) services to over 22,300 people living in poor communities in remote, sparsely populated, rural areas of Mongolia.
 
Project benefits include not only reduced communication costs for people living in these communities, but also strengthened family ties, improved security and coordination associated with migration and response to harsh weather, increased economic activity, and more efficient governance and provision of social services (education, health, etc.).
 
Signed in July 2006, the Mongolia Universal Access Pilot Project was one of the first GPOBA grant agreements.  It was designed as a first step in rolling out the Government of Mongolia’s Universal Access program.
 
The project has more than halved the distance herders in its target areas have to travel to reach a phone and more than doubled the frequency with which they use the national communications network.
 
At closing on October 31, 2008, the project had completed three pilots:
 
  • Pilot 1 – Herder Public Access Telephony Network.  Public access telephony services for about 20,000 herders in remote rural communities.
  • Pilot 2 – Tariat Soum Center Wireless Network.  Access to modern ICT services including mobile telephony and Internet for about 1,315 residents of Tariat soum center.
  • Pilot 3 – Chuluut Soum Center Wireless Network.  Access to modern ICT services including mobile telephony and Internet for about 1,000 residents of Chuluut soum center.

The service providers for each pilot were chosen through a competitive, least-cost subsidy bidding process.  Savings generated through the bidding process for Pilots 1 and 2 were used to finance subsidies for Pilot 3.

GPOBA provided US$210,000 in Technical Assistance funding and disbursed a total of US$257,335 in subsidy funding for the project. 
 
The International Development Association (IDA) and the Government of Mongolia provided US$5.9 million and US$1.1 million respectively for the roll-out of the Universal Access strategy after the pilot project was successfully completed.
 
In line with the output-based approach (OBA), GPOBA subsidies were paid only after the services (or “outputs”) were delivered and verified by an independent expert.
 
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