Selection of the most suitable modality to support institutional development requires adequate consideration of the various factors intricately linked to it, including the prevailing political dynamics, incentive structures in public administration, and commitment of the relevant development agencies. In the case of this project, frequent changes in the senior management of the Erdenes Mongol jeopardized project ownership and seriously affected implementation. Three changes in responsible project officers on the ADB’s side, combined with limitations in in-house financial management capacity, resulted in occasional weaknesses in the monitoring of some of the project’s financial management aspects. The choice of the TA loan modality to support a large package of advisory and capacity development services in a politically volatile environment proved ineffective.
Strengthening Institutional Framework and Management Capacity Project