JAPAN INTERNATIONAL COOPERATION AGENCY (JICA)

MINISTRY OF INFRASTRUCTURE
AND DEPARTMENT OF ROADS
THE GOVERNMENT OF MONGOLIA

THE FEASIBILITY STUDY

ON
CONSTRUCTION OF EASTERN ARTERIAL ROAD
IN
MONGOLIA

FINAL REPORT

SUMMARY

JUNE 2002

PACIFIC CONSULTANTS INTERNATIONAL

JAPAN OVERSEAS CONSULTANTS
The following foreign exchange rate was applied in the study:

US$1.0 = JP¥133 = Tg1,100 (as of January 2002)

 PREFACE

In response to the request from the Government of Mongolia, the Government of

Japan decided to conduct the feasibility study on construction of eastern arterial road in
Mongolia and entrusted the study to Japan International Cooperation Agency (JICA).

JICA dispatched a study team headed by Mr. Kenji Maruoka of Pacific Consultants
International and consisting of Pacific Consultants International and Japan Overseas
Consultants Co., Ltd. to Mongolia, four times between March 2001 and March 2002. In
addition, JICA set up an Advisory Committee headed by Mr. Kenichiro OI of Metropolitan
Expressway Public Corporation between March 2001 and March 2002, which examined the
Study from specialist and technical point of view.

The team held discussions with the officials concerned of the Government of
Mongolia and conducted field surveys at the study area. Upon returning to Japan, the team
conducted further studies and prepared this final report.

I hope that this report will contribute to the promotion of this project and to the
enhancement of friendly relationship between our two countries.

Finally, I wish to express my sincere appreciation to the officials concerned of the

Government of Mongolia for their close cooperation extended to the team.

June 2002

Takao Kawakami
President
Japan International Cooperation Agency
 June 2002
Mr. Takao Kawakami
President
Japan International Cooperation Agency

Letter of Transmittal

Dear Sir,

We are pleased to submit herewith the Final Report of “The Feasibility Study on Construction
of Eastern Arterial Road in Mongolia”.

The report contains the results of the study, which has been carried out by Pacific Consultants
International in association with Japan Overseas Consultants between March 2001 and June
2002. The report consists of four volumes, Summary, Main Report, Appendix, and Drawings.

The Summary briefly illustrates the findings in the study. The Main Report consists of 17
chapters and presents traffic demand forecast, engineering designs, road maintenance system,
environmental impact assessments, project implementation plan, economic and financial
analysis and conclusion and recommendations for the project implementation. It recommends
that the institutional arrangements for project implementation should be organized as soon as
possible.

We wish to express our greatest appreciation to officials of the Ministry of Infrastructure and
the Government of Mongolia for their assistance extended to the Study Team, and also to the
personnel of your Agency, the JICA Advisory Committee, the Ministry of Foreign Affairs, the
Ministry of Land, Infrastructure and Transport, and the Embassy of Japan in Mongolia. The
Study Team sincerely hopes that the results of the Study will contribute to the development of
the road network in Mongolia.

Yours faithfully,

Kenji Maruoka
Team Leader
The Feasibility Study on Construction of
Eastern Arterial Road in Mongolia
 ROAD NETWORK OF MONGOLIA Study Area

Khankh
Khandgait
Ulaanbaishint
Ulaangom Sukhbaatar Altanbulag
Tsagaannuur Ereentsav
Baga ilenkh
A 0305
Ulgii Murun Bayan-uul
Khavirga
Darkhan
Dorgon Norovlin
Dayan Khovd
Zavkanmandal Erdenet Sumber
Bulgan Choibalsan
Bayanchandman Baganuur Berkh
Mankhan Tosontsengel Ulaanbaatar

Uliastai Lun
Kharkhorin Undurkhaan
Yarantai Erdenesant
Erdenetsagaan
Bulgan A0304 Tsetserleg Zuunmod Maanti Baruun-urt Bichigt
sum

Choir
Arvaikheer
Altai Bayankhongor Mandalgobi Legend:
Paved road
Sainshand
Burgastai Zamin-Uud Gravel road
Bogd sum
Dalanzadgad
Formed earth road
A0203
MILLENNIUM ROAD Earth road
Center of province
VERTICAL ARTERIAL ROAD Gashuun-Suhait
Shivee huren

Map of Study Area

 ABBREVIATIONS

Authorities and Agencies

AASHTO : American Association of State Highway and Transportation Officials

ADB : Asian Development Bank
AZZAN : Road Repair and Maintenance Corporation
DNE : Department of Information, Inspection of the Ministry of Nature and Environment
DOR : Department of Roads
GOM : Government of Mongolia
JICA : Japan International Cooperation Agency
MFA : Ministry of Foreign Affairs
MIT : Ministry of Industry and Trade
MJIA : Ministry of Justice and Internal Affairs
MNE : Ministry of Nature and Environment
MOFE : Ministry of Finance and Economy
MOI : Ministry of Infrastructure
NSOM : National Statistics Office of Mongolia
TTT : Equipment Lending Company within AZZAN
WB : World Bank

Other Abbreviations

AADT : Annual Average Daily Traffic

AC : Asphalt Concrete
ALT : Alternative
BST : Bituminous Surface Treatment
CBD : Central Business District
CBR : California Bearing Ratio
EAR : Eastern Arterial Road
EIA : Environmental Impact Assessment
EIRR : Economic Internal Rate of Return
ESAL : Equivalent Single Axle Load
GDP : Gross Domestic Product
GRDP : Gross Regional Domestic Product
ha : Hectare
∆H : Clearance under Girders
ICB : International Competitive Bid
IEE : Initial Environmental Examination
IP : Implementation Plan
IRI : International Roughness Index
kgf/cm2 : Kilogram-force per Square Centimeter
kgf/mm2 : Kilogram-force per Square Millimeter
km or KM : Kilometer
km2 : Square Kilometer
LCC : Life Cycle Cost
m : Meter
m2 : Square Meter
m3 : Cubic Meter
m3/h : Cubic Meter per Hour
m3/s : Cubic Meter per Second
mm : Millimeter
N : N. Value
NPV : Net Present Value
OD : Origin Destination
ODA : Official Development Assistance
PC : Prestressed Concrete
RC : Reinforced Concrete
RF : Road Fund
RRMC : Road Rehabilitation & Maintenance Center
SN : Pavement Structure Number
SPA : Special Protected Area
Tg : Togrogs
US$ : United States Dollar
VOC : Vehicle Operating Costs
σck : Concrete Design Stress
σpy : Concrete Yield Point Stress
φ or Φ : Diameter
% : Percent
PROJECT SUMMARY
1. COUNTRY Mongolia
2. NAME OF STUDY The Feasibility Study on Construction of Eastern Arterial Road in Mongolia
3. COUNTERPART AGENCY Department of Roads, Ministry of Infrastructure
4. OBJECTIVE OF STUDY To carry out a feasibility study on construction of Eastern Arterial Road and transfer technology to Mongolian counterparts.

1. STUDY AREA Road section from Erdene to Undurkhaan on State Road A0501, approximately 250km in length and four eastern provinces.
2. TARGET YEAR Year 2015 3. ECONOMIC Population in Study Area Thousand 544.1
4. TRAFFIC DEMAND 1,417∼994veh./day FRAMEWORK GRDP per person M Tg./Person 0.507
Annual Growth Rate ％ 4.45
FORECAST (1,986∼1,484 PCU/DAY)
5. OUTLINE OF FEASIBILITY STUDY AND PRELIMINARY DESIGN
(1) ROAD
• First the route selection was made to select the crossing point of the Kherlen River. The existing bridge and its surrounding was selected
as the most suitable point somewhere in 20 km stretch, considering river morphology, scale of required structures, maintenance, etc.
• Referring to the existing tracks along the study route, alternative routes were found in three sections, namely Baganuur, Kherlen East and
Tsenkhermandal West. The proposed route was selected through quantitative and qualitative comparison at each section.
(2) PAVEMENT
• ALT-1: (The whole of the project road paved by asphalt concrete) is selected compared with ALT -2: (The road stretch up to Tsenkhermandal
will be paved by asphalt concrete and the remaining road stretch will be paved by bituminous surface treatment). The design of pavement
was conducted every 10km assuming the design CBR (8, 10 & 12 according to ground condition and fill material) and cumulative ESAL.
(3) BRIDGE
• Case-3: (Use of existing bridge for non-motorized traffic + new parallel bridge) was selected because of advantages such as high economy,
short construction period and utilization of existing bridge as temporary bridge during construction.
• PC-T shape girder (33.6m in span length) is applied to the super-structure of Kherlen Bridge because of high economy, short construction
period and less influence of obstacle against river stream. RC-T shape girders (15m & 17.5m in span length) are applied to other bridges.
6. ROAD IMPROVEMENT PLAN
• Study Road Length: 258.8 km between Erdene and Undurkhaan ● Highway Classification: Category III (as per Mongolian Standards)
• Road Width: 7m [email protected] (total 10m) ● Major Road Facilities: Five road stations and two observation platform
• Kherlen Bridge: Location: 30m down stream of existing bridge
Superstructure: 8-span PC T Girder with 8m effective width and span length [email protected] = 268.8m
Substructure: RC wall shaped elliptical column and beams
• Other Bridges: Superstructure: RC T Girder with 8m effective width, Khujirut River: 15.0m (Replacement due to lack of strength), Khutsaa
River: 17.5m, Tsenkher River: 52.5m, Murun River: 52.5m(Replacement due to wooden bridge), Urt Valley: 15.0m(New Construction)
• New Box Culvert: 29 locations ● New Pipe Culvert: 197 locations
• Establishment of Road Rehabilitation and Maintenance Center with procured equipment in AZZAN and construction of operation depot in
Khentii province for strengthening road maintenance capability.
7. ENVIRONMENTAL ASPECTS（IEE and EIA）
The assessment result concluded the Project is moderate negative impact thought IEE and EIA. Environmental management plans for each major
item of environmental parameters and environmental monitoring programs for the same are made.
8. PROJECT IMPLEMENTATION PLAN AND EVALUATIONS
(1) Project Implementation Plan
The study road is divided into six construction sections based on consideration of the villages and connecting roads. The period of 4-year
construction may be justified considering the achievements of other previous projects. Following two schemes are considered within the
project implementation plan excluding Section I which is being constructed by DOR using the Government’s own fund.
Scheme-I: Construction by international contractors selected through tendering in a competitive environment (The highest priority should
be given to Section II and VI because relatively high economic return is anticipated due to the higher traffic volumes.)
Scheme-II: Construction by DOR as a pilot project (Section III, IV and V should be implemented by DOR using the proposed road
rehabilitation and maintenance center.)
Construction Road Project Cost EIRR
(2) Comprehensive Evaluation Section
Period Length (ALT-1) ALT-1 ALT-2
The result of economic analysis, both IP Section 1 (I, II) 2001 - 2005 67.6 km 9,780,675 US$ 17.3% 17.3%
alternatives has sufficient EIRR and IP Section 2 (III, IV) 2003 - 2006 94.4 km 22,053,292 US$ 9.4% 10.6%
is confirmed high feasibility for the IP Section 3 (V) 2003 - 2006 50.0 km 10,229,784 US$ 17.6% 19.0%
project implementation. ALT -1 is IP Section 4 (VI) 2003 - 2005 46.8 km 8,134,068 US$ 23.2% 25.6%
suitable for the project in Total Section 258.8 km 50,197,819 US$ 15.7% 16.8%
consideration of qualitative Notes: ALT-1: The whole of the project road will be paved by asphalt concrete.
advantages compared with BST. ALT-2: The road stretch up to Tsenkhermandal will be paved by AC and remaining will be paved by BST.
9.CONCLUSION AND RECOMMENDATIONS
It is concluded that the Study reveals high feasibility for the project implementation. Namely, the project has high technical feasibility, the EIA
concluded there is no substantial or irreversible adverse environmental impacts arising form the project, and it is concluded that the project is
economically viable based on the economic analysis. It is recommended that the institutional arrangement for project implementation should be
taken without delay.
OUTLINE OF THE PROJECT
The Feasibility Study on Construction of Eastern Arterial Road in Mongolia
・Study period :Mar. 2001 - Jun. 2002
・Counterpart Agency :Department of Roads, Ministry of Infrastructure, The Government of Mongolia

1. Background of the Study

Transport plays a crucial role in the efficient functioning of the domestic economy as well as
development of international trade due to dependence on both coal-based energy production and
imports. However, the issues in the transport sector of Mongolia are mainly derived from the
salient features of a landlocked country with a low population and a long distance between
population centers.
A major characteristic of transportation in Mongolia is the collection and distribution by road of
both passenger traffic and cargo transport from the north-south transport axis centering on
Ulaanbaatar. The main north-south axis comprises both rail and road. Within road transport,
the density of the arterial road network remains very low and unpaved earth roads or multiple
shifting tracks occupy a large portion of arterial roads. More than 30% of population and a half
of the national car ownership are concentrated in Ulaanbaatar City, while very low level of
mobility is found in rural area because non-motorized traffic such as horse and cart prevails.
Recently, such gap of mobility level is increasing and under such circumstances, it is necessary
to reverse this trend by reducing the gap. One method of achieving this is to develop the
strategically important east-west arterial road by constructing to an all weather and international
standard paved road.
Due to the road construction work in between Erdene and Baganuur which is being undertaken
by Government of Mongolia (GOM), the agreed scope of work was amended in September 2001
to exclude the area where GOM have commenced the road construction work. Accordingly, the
work items such as preliminary design, construction plan and cost estimation were carried out
excluding the road section between Erdene and Baganuur. However, the Study still
incorporates the work items such as environmental impact assessment, road maintenance plan,
economic and financial analysis and implementation plan as these have a close relationship to the
study context as a whole.

2. Objective of Study
Objective of Study is to carry out a feasibility study on construction of Eastern Arterial Road and
to transfer technology to Mongolia counterparts.

3. Study Area
The study area of the Eastern Arterial Road is the road section from Erdene to Undurkhaan on
State Highway No. A0501, approximately 250 km in length. The area influenced by the study
road consists of four eastern provinces of Tuv, Khentii, Dornod and Sukhbaatar as well as the
Kherlen river basin. The target year of the plan is the year 2015, which accords with that of
relevant studies and projects implemented by the Government of Mongolia.

4. Outline of the Project

4.1 Selection of Route Alternatives

Selection of Route had been carried out by two methods. One is to establish the alternative
routes and select the optimum route from these and the other is to improve the existing

-I-
 multi-shifting tracks. The crossing point of the Kherlen River was set in the area of the existing
bridge for both economical and technical reasons. This proposal was agreed with the
Mongolian government in August 2001. The alternative routes were set in the three sections
and the details are given below.
(1) Section A: Baganuur
There are two alternatives in Baganuur area that detour the Baganuur coal mine.
Alternative A-1 is the southern route with railway crossing and A-2 is the northern route
that goes through urban area of Baganuur city. The study team has selected A-2 as the
optimum selection for economical and construction reasons.
(2) Section B: Kherlen East
This is located on the southern end of Nogoon Modot Mountains. Alternative B-1 passes
Ust Valley (south side of the Mountains) and B-2 passes Jargalant Valley (north side of the
Mountains). B-1 was selected as the optimum route for economical and construction
reasons.
(3) Section C: Tsenkhermandal West
This section is located on Khunkh Mountain area. Alternative C-1 passes Bor Khujirt
Pass which is located on the south side of the mountain and C-2 passes Naran Pass on the
north side. C-2 was considered as the optimum route for economical and construction
reasons.

4.2 Selection of Optimum Pavement Structure

Pavement structure was designed in 2 sections based on the traffic demand forecast, the first is
Baganuur - Jargaltkhaan and the second is Jargaltkhaan - Undurkhaan.
To make the pavement structure economical, the Life Cycle Cost (LCC) was taken into account.
LCC analysis was carried out in the 2 sections which are Erdene - Baganuur and Murun -
Undurkhaan as a model case. The former represents high embankment section with heavy
traffic and the latter represents low embankment with non-heavy traffic.
1) Analysis period is 20 years for both AC pavement and BST pavement.
2) Routine maintenance including thermal cracks filled with asphalt emulsion slurry for both
AC pavement and BST pavement.
3) Overlay at 7 years interval on AC pavement as the result of comparison with 4 cases.
4) Surface dressing at 3 years interval on BST pavement due to the need to keep similar
roughness as AC pavement and to avoid surface treatment problems.
The results of LCC analysis as shown below indicate that both pavement types are expected to
have sufficient economic return and in the section of Erdene to Baganuur, both have almost equal
EIRR.
Section Length Type Initial Investment (M. $) NPV (Thousand $) EIRR
AC 9,310 4,239 17.6%
Erdene - Baganuur 33 km
BST 8,619 4,610 18.4%
AC 7,834 11,895 26.7%
Murun - Undurkhaan 67 km
BST 6,691 12,833 29.4%

The following two alternative schemes are examined for the purpose of optimum implementation
plan in economic analysis, considering results of LCC analysis, equipment availability and ease
of maintenance.

- II -
 Type of Pavement
Section
Alternative - 1 Alternative - 2
Erdene - Tsenkhermandal AC Pavement AC Pavement
Tsenkhermandal - Undurkhaan AC Pavement BST Pavement

4.3 Selection of the Type of the Kherlen Bridge

The alternatives set in the area of the existing bridge are as follows:
Alternative Location Contents
1 Existing Route Utilize the existing bridge after reinforcing it.
2 New Route Construct a new bridge 1km downstream of the existing bridge
Utilize the existing bridge for light vehicles after repairing it and construct a
3 Existing Route
new bridge beside the existing bridge.

After study, Alternative-3 was considered to be the optimum selection considering economical,
technical and periodical reasons. The new bridge to be constructed is planned to be 268.8m
long with 8 spans of 33.6m. It will be located 30 m downstream of the existing bridge. It will
have a carriage way of 8m width. It is also designed to have the structure that is able to satisfy
the design river section (360m long) in the future. Super-structure type is pre-stressed concrete
(PC) T-shaped girder and sub-structure is elliptical shaped re-enforced concrete (RC) wall type
pier with spread foundation.

4.4 Other Bridges and Culverts

5 other bridges, 29 box culverts and 197 pipe culverts are planned in this study based on research
covering the geology, geography and hydrology. Of the 5 other bridges, 3 will be replacements
of wooden bridges, 1 replacement of an RC bridge and 1 new construction of an RC bridge.
Super-structure was standardized due to the similar conditions. 2 types of RC T-shaped girder
were set as standard girder and these are 15m and 17.5m long. The shape of girder is simplified
considering the need for reducing the cost while at the same time satisfying the quality and
construction difficulties.
The other types of standard girder are proposed in this study so as to be used for bridges in any
other projects in Mongolia, which are RC T-shaped girder of 15 to 22.5m and PC T-shaped
girder of 25 to 35m long.
Culverts for this project were also standardized to 4 boxes and 3 pipes. Mongolian current
standards were taken into consideration to propose these culverts. The section of box culvert is
also designed to be large enough for the livestock and big natural animals to go through.

4.5 Environmental Impact Assessment

The project of The East Arterial Road has moderate negative impact.
In the implementation of the project, it is necessary to set up a protection management plan to
mitigate negative impacts both on the social and natural environment and on the pollution such
as impacts to urbanized area, quarry sites, construction sites, permafrost, wastes and endangered
species. Also it is imperative to set the control and monitoring program of the project and
follow its criteria. It is also required to carry out the most appropriate mitigation measures by
checking the differences between monitored values and control index. The two following
instructions are especially needed to be carried out.

- III -
 a) To provide adequate traffic and warning signs and information at the crossing points.
These are provided to allow children and elder people to cross the road with safety and to
avoid possible risks for drivers and passengers.
b) To use community leaders and public relations to inform the public especially drivers
about safe use of the road during the construction and operation period.

4.6 Road Maintenance System

The Nalaikh branch of the state-owned Road Repair and Maintenance Corporation “AZZAN”
maintains 70 km from the beginning point and also the Kherlen River Bridge. The State
Stock-shared Road Maintenance Company of Khentii Province maintains the remainder of the
project road. These two entities have similar problems such as follows:
- shortage of road and bridge construction equipment and machinery
- shortage of local engineers well-qualified in managing and supervising the operation
- lack of skillful construction equipment operators, mechanics, and electricians
- lack of repair facility and tools
The road rehabilitation/maintenance center is proposed to set in the AZZAN as a training center
to solve the problems above and strengthen road maintenance capacity. The targets of the road
rehabilitation/maintenance center are:
a) To establish one road rehabilitation/maintenance center that will serve as a training facility
for construction operators and mechanics.
b) To procure equipment and machinery necessary for training and road
rehabilitation/maintenance.
c) To train operators, mechanics, road-maintenance personnel, and managers.
d) To upgrade and update the existing technically skilled operators, mechanics,
road-maintenance personnel, and managers.
e) To utilize and accumulate those skills through actual practices as a pilot model.
f) To establish regional sub-centers for further development.

4.7 Road Improvement Plan

The study area is planned to be improved based on following design criteria:
1) Highway Classification : Category III (as per Mongolian Standards)
2) Road Width : 7m + [email protected] (total 10m road width)
3) Design Speed : 100 km/h (flat terrain), 80 km/h (rolling) and 60 km/h (mountainous)
Road ancillaries such as road markings, guard posts, regulatory & warning signs, guide signs,
kilometer posts and approach slope for domestic animals will be installed as traffic safety
measures.

4.8 Project Implementation Plan

The project implementation plan covers the road stretch between Baganuur - Undurkhaan and
totals 221.8 km. It excludes the Erdene - Baganuur 37 km long road section which is being
constructed by the Department of Roads using the Government’s own fund. However, since
traffic demand forecast has been carried out to cover the road stretch between Erdene -
Undurkhaan, the project implementation plan is made in recognition of the work to be done on
the road stretch between Erdene - Undurkhaan. This is done particularly for the economic
analysis based on the estimated benefit to be accrued from the forecasted traffic demand.

- IV -
(1) Construction Section
The study area is divided into the six construction section as shown on the table in the next
page. The following conditions were assumed considering the characteristics of this
project.
1) Asphalt pavement work is limited to the period of 5 months (May to September) and
earthwork is limited to the period of 7 months (April to October).
2) Stockpiling of aggregates, pre-cast concrete structures and other preparatory works are
carried out through the year.
3) The period of 4-year construction to cover 221.8 km long road improvement may be
justified considering the achievements of the previous projects by other donors.
(2) Implementation Plan for Sections II to VI
Following two schemes are considered within the project implementation plan:
Scheme-I: Construction by contractor selected through tendering.
The highest priority should be given to Section II and VI because they are
located in the surroundings of urban area and relatively high economic return
is anticipated due to the higher traffic volumes. Accordingly, these sections
should be implemented by international contractors in a competitive
environment.
Scheme-II: Construction by DOR as a pilot model
The remaining sections of Section III, IV and V should be implemented by
DOR using the proposed road rehabilitation/ maintenance center.
Scheme-I has advantages in the aspects of using effective, efficient and accountable
procedures to realize the project by fast track method and with less financial burden on the
government. However, no resource except the constructed facilities will be developed and
road maintenance on the constructed section may face both technical and financial
difficulties.
Scheme-II has the possibility to cope with institutional requirements that are issued in the
administration of road. It envisages the growth of the construction industry through actual
practices to cope with incremental demand brought about by the government policy of road
improvement, especially development of the “Millennium Road”.
(3) Implementation Plan for Economic Analysis
The implementation plan for the economic analysis is made to cover the entire road stretch
between Erdene - Undurkhaan because it should coincide with the sections set by traffic
demand forecast. This will allow comparison of the estimated costs and benefit that will
accrue from forecasted traffic demand. The IP section is newly set for the proposed
project implementation plan for the economic analysis. Section-I that is funded and being
constructed by DOR is planned to be completed in 2006. The other sections are assumed
to be done in 4 years as mentioned above. Table below shows the relationship between
traffic section, construction section and the IP section.
Jargaltkhaan -
Traffic Erdene - Baganuur Baganuur - Jargaltkhaan Murun - Undurkhaan
Murun
Section-I Section -II Section -III Section -IV Section -V Section -VI
Construction Erdene - Baganuur - Kherlen Kherlen River East - Tsenkhermandal - Jargaltkhaan - Murun West -
Baganuur River East Tsenkhermandal Jargaltkhaan Murun West Undurkhaan
IP Section IP Section-1 IP Section-2 IP Section-3 IP Section-4

-V-
4.9 Economic Analysis
Project cost as a financial cost is estimated based on the results of preliminary design, quantity
take-off of each work item, and the studies on construction planning and method.
The basic premises of project cost estimates are as follows:
1) The cost is estimated on US Dollar basis, considering the fluctuation of exchange rates
against foreign currencies.
2) The unit cost of each cost component is determined based on the economic conditions
prevailing in January 2002 (US$ 1.0 = ¥ 133 = 1,100 Togrog).
3) Detailed design and supervisory service costs is assumed to be 7 % of construction cost.
4) Unit prices of fill materials and fine/coarse aggregates are estimated by every 10 km,
considering hauling distance of materials from individual borrow pits and quarry sites.
5) Equipment cost is based on the local market price as far as they are available. The cost
analysis is made in case of special equipment that is not available in Mongolia.
The financial project costs for economic analysis including the cost of road section between
Erdene and Baganuur are shown in table below and assumptions of the analysis are as follows:
- The economic analysis was conducted based on IP sections mentioned above.
- The economic costs include the capital and maintenance costs of the project valued in
economic prices.
- The source of quantified benefits from the project is savings in VOCs. To be conservative,
benefits attributable to savings in travel time were not considered. The VOC estimates are
based on the Roads Economic Decision VOC model developed by the World Bank.
Project Cost Construction
Section Road Length AT-1 ALT-2
(Thousand US$) Section
IP Section 1 Erdene-Kherlen River East 67.6 km 9,781 17.3% 17.3% I, II
IP Section 2 Kherlen River East -Jargaltkhaan 94.4 km 22,053 9.4% 10.6% III, IV,
IP Section 3 Jargaltkhaan-Murun West 50.0 km 10,230 17.6% 19.0% V
IP Section 4 Murun West -Undurkhaan 46.8 km 8,134 23.2% 25.6% VI
Total Section Erdene-Kherlen River East 258.8 km 50,198 15.7% 16.8% -

It is now clear that this project can obtain sufficient EIRR (Economic Internal Ratio of Return)
with any of the pavement structure alternatives

5. Conclusion and Recommendations

The project will realize the strategic transport axis in the eastern part of the country as a part of
“Millennium Road Plan” by construction of arterial road to an all-weather international standard.
(1) Implementation of the Project
1) It is recommended that Section VI (Murun West - Undurkhaan L=46.8 km) be given
the highest priority in the implementation plan due to its necessity and urgency together
with high feasibility. This section is located in the surroundings of urban area and
relatively high economic return is anticipated due to the higher traffic volumes.
2) Section II (Baganuur - Kherlen River East L=30.6 km) involves the construction of
Kherlen River Bridge for which the superstructure type is designed as PC girder
totaling 268.8m (span 8@ 33.6m) in length. It is recommended that this section
should also be given the highest priority in the implementation plan due to its necessity
and urgency together with high feasibility.

- VI -
 3) It is recommended that Section III (Kherlen River East - Tsenkhermandal L=49.7 km),
Section IV (Tsenkhermandal - Jargaltkhaan L=44.7 km) and Section V (Jargaltkhaan -
Murun West L=50.0 km) be implemented by MOI/DOR using the proposed scheme of
the road rehabilitation / maintenance center.
(2) It is proposed that the project road should be implemented using the recommended
alternative of ALT-1. This will mean that the whole of the project road is paved by
asphalt concrete pavement. Asphalt concrete pavement has many advantages compared to
bituminous surface treatment, especially for high durability and certainty of performance.
(3) It is crucial for MOI/ DOR to levy a toll on Kherlen River Bridges and charge the private
sectors for the privilege of utilizing the roadside spaces to cope with the increased fund
requirement and alleviate the financial burden of the Government. Furthermore, MOI/
DOR should seize the initiative to withhold the revenues from equipment leasing at the
proposed road rehabilitation/ maintenance center and earmark them for road maintenance.
(4) It is important that the development within and along the proposed route should be
effectively controlled to prevent indiscriminate development and to facilitate the realization
of road and road related facilities such as road station and observation platform.
(5) It is recommended that the Government request a donor country to assist in the realization
of the project including procurement of equipment at the proposed road rehabilitation/
maintenance center, using bilateral ODA or loan from a multi-lateral lending agency so as
to alleviate the financial burden of the Government.
(6) The scheme for a road rehabilitation / maintenance center aims to establish personnel
training with construction equipment and machinery required for the road development
within AZZAN and to restructure the existing organization. It is recommended that the
Government request a donor country to assist in the strengthening of a road rehabilitation/
maintenance center by utilizing the system of technical cooperation in the fields of road
maintenance.

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THE FEASIBILITY STUDY ON CONSTRUCTION OF EASTERN ARTERIAL ROAD IN MONGOLIA

Photographs of Study Area (1)

1) Current Road Condition

Multiple shifting tracks are

widely spread on plane area. It
heavily affects vegetation and
often leads to desertification. It
also extends vehicle operating
distance and time, resulting high
transport cost.

2) Road Condition in Winter

Multiple shifting tracks are

covered with snow in winter and
become slippery due to uneven
surface together with compacted
snow. Vehicular movement
becomes risky and travel speed
is forced to decrease
considerably

3) Existing Wooden Bridge

Existing wooden bridge is

severely deteriorated and danger
always exists for heavy vehicles
to go across. This is serious
cause of disruption for traffic to
cross the river. Heavy vehicles
go across the river only when the
flow is shallow.
THE FEASIBILITY STUDY ON CONSTRUCTION OF EASTERN ARTERIAL ROAD IN MONGOLIA

Photographs of Study Area (2)

4) Existing the Kherlen River &
Bridge

The flow of the Kherlen River

narrows at the point of the picture.
River flow has been stable as it is
on the photograph for several
decades. Revetment has set on
the west bank (right side in the
photograph) when the existing
bridge was constructed.

5) Resting Area Formed by Ger

beside the Existing Road

Ger (Mongolian traditional

portable housing) forms resting
area at several locations on the
route. It serves meal, bed,
toilette and others for the
travelers. Present sanitary
condition is not clean and it is
wanted and needed to be
improved.

6) Dust Raised by Vehicles

Current unpaved road surface

produce considerable raised dust
by running vehicles. It deprives
drivers’ sight and makes
dangerous situation for the other
vehicles. It also covers leaves
and shuts the sunlight off. It can
cause serious effects to vegetation.
 SUMMARY

TABLE OF CONTENTS

PREFACE
LETTER OF TRANSMITTAL
PROJECT AT A GLANCE
MAP OF STUDY AREA
ABBREVIATIONS
PROJECT SUMMARY
OUTLINE OF PROJECT
SITE PHOTOGRAPHS

Page
CHAPTER 1 INTRODUCTION

1.1 Introduction ............................................................................................................. S - 1

1.2 Study Objectives ...................................................................................................... S - 2
1.3 Scope of the Study ................................................................................................... S - 2
1.3.1 Study Area .................................................................................................. S - 2
1.3.2 Target Year ................................................................................................. S - 2

CHAPTER 2 NATURAL CONDITIONS AND ROAD TRANSPORT

2.1 Natural Conditions ................................................................................................... S - 3

2.1.1 Topography................................................................................................. S - 3
2.1.2 Meteorology ................................................................................................ S - 3
2.1.3 River and Hydrological Conditions............................................................... S - 4
2.1.4 Geology and Sub-surface Soil Conditions..................................................... S - 4
2.2 Road and Road Transport ........................................................................................ S - 5
2.2.1 Road Network ............................................................................................. S - 5
2.2.2 Road Length................................................................................................ S - 6
2.2.3 Traffic Characteristics ................................................................................. S - 6
2.3 Conditions of Existing Road Facilities ...................................................................... S - 9
2.3.1 Road Conditions .......................................................................................... S - 9
2.3.2 Bridge and Structure Conditions .................................................................. S -10

CHAPTER 3 SOCIOECONOMIC CONDITIONS AND TRAFFIC DEMAND

FORECAST

3.1 General Situation of Mongolia.................................................................................. S -12

3.2 Socioeconomic Conditions........................................................................................ S -14

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3.3 Socioeconomic Framework....................................................................................... S -16
3.4 Traffic Demand Forecast.......................................................................................... S -17

CHAPTER 4 SELECTION OF ALTERNATIVE PLANS AND PRELIMINARY

DESIGN

4.1 Establishment of Design Criteria .............................................................................. S -18

4.1.1 Design Criteria for Road.............................................................................. S -18
4.1.2 Design Criteria for Bridge............................................................................ S -22
4.2 Selection of Route Alternatives................................................................................. S -24
4.2.1 Crossing Point of Kherlen River................................................................... S -24
4.2.2 Alternative Route Study............................................................................... S -26
4.2.3 Route Selection in Baganuur (Section A)...................................................... S -26
4.2.4 Route Selection in Kherlen East (Section B) ................................................. S -32
4.2.5 Route Selection in Tsenkhermandal West (Section C)................................... S -32
4.3 Selection of Optimum Pavement Structure................................................................ S -33
4.3.1 Design of Pavement Structures..................................................................... S -33
4.3.2 Consideration of BST (Bituminous Surface Treatment) ................................ S -34
4.3.3 LCC Analysis and Establishment of Alternatives
for the Implementation Plan ......................................................................... S -34
4.4 Selection of Bridge Structure Types.......................................................................... S -36
4.4.1 Kherlen Bridge ............................................................................................ S -36
4.4.2 Other Bridges and Box Culverts................................................................... S -39
4.5 Preliminary Design................................................................................................... S -42
4.5.1 Preliminary Design for Road........................................................................ S -42
4.5.2 Preliminary Design for Bridge and Structure ................................................ S -44

CHAPTER 5 ENVIRONMENTAL ASPECTS

5.1 Objectives of Environmental Impact Assessment....................................................... S -47

5.2 Socioeconomic Environmental Impact Assessment .................................................... S -47
5.3 Natural Environmental Impact Assessment ............................................................... S -50
5.4 Environmental Impact Assessment on Pollution ........................................................ S -53
5.5 Summary of Impact Assessment ............................................................................... S -55

CHAPTER 6 IMPROVEMENT OF ROAD MAINTENANCE SYSTEM AND ROAD

DEVELOPMENT FUND

6.1 Road Maintenance Practices..................................................................................... S -57

6.1.1 Road Maintenance Works ............................................................................ S -57
6.1.2 Present Situation.......................................................................................... S -57
6.2 Present Maintenance System and its Organization..................................................... S -58

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6.3 Evaluation of Road Maintenance System .................................................................. S -58
6.3.1 System Improvement Measures .................................................................... S -58
6.3.2 Capacity Building of Road Maintenance ...................................................... S -59
6.4 Estimated Cost of Routine Maintenance for the Project ............................................. S -64
6.5 Road Development Fund .......................................................................................... S -64

CHAPTER 7 ROAD IMPROVEMENT PLAN

7.1 Project Component of Road Improvement Plan......................................................... S -66

7.2 Road Improvement ................................................................................................... S -66
7.3 Bridge and Structure Improvement ........................................................................... S -66
7.4 Strengthening Road Maintenance Capability............................................................. S -68

CHAPTER 8 PROJECT IMPLEMENTATION PLAN AND PROJECT COSTS

8.1 Introduction ............................................................................................................. S -69

8.2 Construction Planning .............................................................................................. S -69
8.2.1 Construction Section.................................................................................... S -69
8.2.2 Construction Time Schedule ....................................................................... S -71
8.3 Project Implementation Plan..................................................................................... S -71
8.3.1 Implementation Plan for Sections II to VI..................................................... S -71
8.3.2 Implementation Plan for Economic Analysis................................................. S -75
8.4 Project Costs............................................................................................................ S -75

CHAPTER 9 ECONOMIC AND FINANCIAL ANALYSIS

9.1 Economic Analysis................................................................................................... S -78

9.2 Financial Analysis.................................................................................................... S -79

CHAPTER 10 CONCLUSION AND RECOMMENDATIONS

10.1 Conclusion............................................................................................................... S -80

10.2 Recommendations .................................................................................................... S -80

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 LIST OF TABLES

CHAPTER 2
Table 2-1-1 Temperature in the Study Area..................................................................S - 3
Table 2-1-2 Observed Daily Precipitation ....................................................................S - 4
Table 2-1-3 Design Discharge......................................................................................S - 4
Table 2-2-1 Road Length by Each Province (2000) ......................................................S - 6
Table 2-2-2 Main OD Pairs .........................................................................................S - 8
Table 2-3-1 Length by Type of Road Surface by Province (2000) ................................S - 9
Table 2-3-2 Overall Evaluation Results for Project Bridges ..........................................S -11

CHAPTER 3
Table 3-1-1 Current Population by Provinces and Capital City.....................................S -12
Table 3-1-2 Employed Population by Provinces During Past Decade ............................S -13
Table 3-1-3 Growth Rate and Share of Employed Population in Total Mongolia...........S -13
Table 3-1-4 GDP Composition by Sectors in Mongolia ................................................S -13
Table 3-1-5 Value of Imports and Exports in Mongolia ................................................S -14
Table 3-1-6 Share of Major Goods Exported/Imported in Mongolia..............................S -14
Table 3-4-1 Traffic Demand Forecast by Year .............................................................S -17

CHAPTER 4
Table 4-1-1 Summary of Geometric Criteria for the Eastern Arterial Road ...................S -19
Table 4-1-2 Minimum Vertical Curve Length...............................................................S -20
Table 4-1-3 Materials and Basic Strength ....................................................................S -23
Table 4-3-1 Design CBR and Pavement Structure by Sections......................................S -34
Table 4-3-2 Results of LCC Analysis...........................................................................S -35
Table 4-3-3 Salient Feature of Each Pavement .............................................................S -35
Table 4-3-4 Alternatives for Implementation Plan.........................................................S -36
Table 4-4-1 Evaluation of South Route C-1, C-2, and C-3 ...........................................S -37
Table 4-4-2 Characteristics of Super Structure Types for Kherlen Bridge .....................S -38
Table 4-4-3 Designated River Section for Bridges ........................................................S -39
Table 4-4-4 Standardized RC/ PC T Shape Girder for the Project.................................S -41
Table 4-4-5 Standard Scale of RC T Girder for the Project...........................................S -41
Table 4-4-6 Design Standard for Culverts (Pipe & Box)...............................................S -42
Table 4-5-1 Outline of Bridges.....................................................................................S -44
Table 4-5-2 Outline of Box Culverts ............................................................................S -45

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CHAPTER 5
Table 5-5-1 Summary of Environmental Impact Assessment of the EAR Project...........S -56

CHAPTER 6
Table 6-3-1 Budget and Personnel of DOR ..................................................................S -60
Table 6-3-2 Personnel of AZZAN Corporation and State Stock-shared Road
Maintenance Company of Khentii Province...............................................S -60
Table 6-4-1 Annual Required Fund for the Study Road ................................................S -64
Table 6-5-1 Revenue of the Road Fund ........................................................................S -65

CHAPTER 8
Table 8-3-1 Required Equipment List for Road Rehabilitation and Maintenance Center......S -73
Table 8-3-2 Relationship between Traffic Section and Construction Section .................S -75
Table 8-4-1 Financial Project Cost...............................................................................S -77

CHAPTER 9
Table 9-1-1 Construction Period by Each Section.........................................................S -78
Table 9-1-2 Vehicle Operating Costs in $ per vehicle km..............................................S -78
Table 9-1-3 EIRR Base Case.......................................................................................S -79
Table 9-1-4 EIRR Sensitivity Tests: Total Section of ALT-1........................................S -79

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 LIST OF FIGURES

CHAPTER 1
Figure 1-3-1 Study Area ...............................................................................................S - 2

CHAPTER 2
Figure 2-2-1 Road Network ..........................................................................................S - 6
Figure 2-2-2 Comparison of Daily Traffic Volume by Year...........................................S - 7
Figure 2-2-3 Desire Line of Existing OD Pairs ..............................................................S - 8
Figure 2-3-1 Result of IRI measurements between Erdene and Undurkhaan ...................S -10

CHAPTER 3
Figure 3-2-1 Mining to be Developed along the Project Road in Future..........................S -15

CHAPTER 4
Figure 4-1-1 Proposed Typical Cross Section................................................................S -21
Figure 4-1-2 Proposed Standard Cross Section of Bridge...............................................S -22
Figure 4-2-1 Conditions of Kherlen River......................................................................S -25
Figure 4-2-2 Location of Each Alternative Route...........................................................S -27
Figure 4-2-3 Detailed Location of Alternatives at Section A ..........................................S -29
Figure 4-2-4 Profile and Location of Main Structures of the Alternatives .......................S -30
Figure 4-4-1 View of C Routes Crossing Kherlen River.................................................S -36
Figure 4-5-1 Road Length and Location of Bridges and Box Culverts............................S -46

CHAPTER 5
Figure 5-2-1 Service Area with Gas Station and Restaurant...........................................S -47
Figure 5-2-2 Slope for Cattle Crossing and Signs ..........................................................S -47
Figure 5-2-3 Tree Planting near by Settlement Area for Environmental Mitigation .........S -49
Figure 5-2-4 Observation Deck and Panoramic View for Traveling Passengers..............S -50

CHAPTER 6
Figure 6-3-1 Proposed Road Rehabilitation & Maintenance Center in AZZAN ..............S -63

CHAPTER 8
Figure 8-2-1 Location of Each Construction Section......................................................S -70
Figure 8-3-1 Construction Planning for Sections II to VI ...............................................S -74
Figure 8-3-2 Project Implementation Time Schedule......................................................S -76

- vi -