Strengthening Institutional Framework and Management Capacity Project

Basic governance and project management capacity are needed for the success of institutional development projects. This first loan to a state-owned enterprise in Mongolia has demonstrated several lessons. First, having a stable and consistent governance in place within the executing agency is critical prior to pursuing reforms. Second, clarity in the legal status of the implementing agency and the applicable rules and regulations would help mitigate political risks. Third, an established management and dedicated project team with project management capacity would help ensure continuity throughout the project cycle.