Closed Compact Report: Mongolia Compact | October 2015

Property Rights Project

  • $23,062,286Original Compact Project Amount
  • $28,543,830Total Disbursed

Estimated Benefits

Estimated Benefits for the Property Rights Project
Time Estimated Economic Rate of Return (ERR) over 20 years Estimated beneficiaries over 20 years Estimated net benefits over 20 years
At compact closure 21.9 percent 102,168 $28,200,000

Estimated benefits corresponds to $28.2 million of project funds, where cost-benefit analysis was conducted.

Project Description

Many low-income rural Mongolians abandoned traditional nomadic herding practices and migrated to cities in search of better jobs and educational opportunities for their children. The bulk of these migrants moved to Mongolia’s three biggest cities—Ulaanbaatar, Erdenet and Darkhan—where they either settled in suburban (ger) districts, rural or peri-urban areas in between urban and rural districts.

Mongolian law allows ger district residents the right to obtain ownership of the land upon which they live. The complexity and expense of the registration process made it difficult for these people to become property owners and fully realize the benefits of property ownership. The Property Rights Project sought to improve the national property registration system and help poor households obtain titles to land in ger districts. The project also facilitated the leasing of pastureland to herder groups in peri-urban areas and invested in infrastructure and training to improve livestock productivity and herder incomes in peri-urban areas.

By the end of the compact, 15 land registry office buildings had been renovated and received modern equipment, new processes for registering land rights had been introduced, and registry office personnel had been trained.  19357 poor households received land titles directly from the project.  MCC also put in place  a new land-leasing system for pasture areas around cities. This system provided 15-year pastureland leases to approximately 1,300 herder households, installed 346 wells on leased lands and provided water to most of these households, and trained herder groups on sustainable pasture use and livestock productivity.

Evaluation Findings

MCC is conducting four evaluations on the Property Rights Project, including an evaluation on each of the urban activities and two evaluations to cover the two phases of the peri-urban land leasing activity.

  • A performance evaluation of the Land Registration System Activity attempts to measure changes in the time it takes to process a land transaction, including changes in time for the General State Registry (GASR) to approve land transactions and changes in time to access a loan using land and property as collateral.  Baseline data was collected in 2013 and follow-up data will be collected in 2018.
  • An impact evaluation of the Privatization of Ger Area Land Plots Activity aimed to measure changes in tenure, investments and land values.  However, due to lower than expected numbers titled by the Property Rights Project combined with continued registration by non-Project control areas, there was insufficient power to continue the evaluation.
  • Two impact evaluations of the peri-urban land leasing activity’s two phases to analyze the effects on herder group and household behaviors, herd composition, grazing patterns, livestock productivity and rangeland quality.  Baseline and interim data was collected in 2010-2011 and 2012-2013 for Phase 1 areas and in 2012 and 2014 for Phase 2 areas.  Interim findings for Phase 1 areas found some evidence that herder behavior is changing as measured by shifts in herd composition toward improved breed milking cows and complementary reduction in percentage of goats, reduced herd size, reduced mortality of sheep and goats, increased likelihood to grow fodder crops and increased investment in immovable property. The shift toward improved breed cattle and more use of fodder is a crucial short-term behavioral impact that is expected to produce longer-term returns in the form of higher income, although at this stage no significant project impacts were found on livestock productivity or household incomes.  Project impacts are expected to manifest over a period of several years and will be assessed in future survey rounds.  The final data collection for Phase 1 and Phase 2 areas occurred in 2017 with a final report expected December 2018.

Key performance indicators and outputs at compact end date

Key performance indicators and outputs at compact end date
Activity/Outcome Key Performance Indicator Baseline End of Compact Target Quarter 1 through Quarter 20 Actuals (as of Dec 2013) Percent Compact Target Satisfied (as of Dec 2013)
Improvement of Land Privatization and Registration System Activity Legal and regulatory reforms adopted 0 6 5 85%
Official cost prescribed for property transactions (first-time) 51.5 No Target 58.7 No Target
Stakeholders trained 0 465 1,586 341%
Peri-Urban Land Leasing Activity Leases awarded 0 465 387 83%
Project herder groups limiting their livestock population to the carrying capacity of their leases on farms in 3 central aimags (Ulaanbataar, Darkhan and Erdenet) (%) 40 100 40.5 1%
Stakeholders trained 0 1,515 2,334 154%
Wells completed 0 420 346 82%
Privatization of Ger Area Land Plots Activity Household land right formalized 0 52,995 19,357 37%
Official cost prescribed for property transactions (first-time) 51.5 No Target 58.7 No Target
Stakeholders trained 0 465 1,586 341%