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Lesson
A flexible approach to respond to evolving priorities is important in maintaining the relevance of a policy-based loan (PBL) program. At the beginning of this program, further development in the oil and gas sector was a priority. However, during the 8-year program period, the government’s priority shifted to energy transition. Some of the policy actions in subprogram 3 were revised accordingly, in consultation with cofinancing partners, to reflect this development.

Project Number: 49043-001, 49043-002, 49043-003
Project Name: Sustainable and Inclusive Energy Program 
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Lesson
Energy efficiency requires multisector engagement and broader coordination with different sectors of the economy, such as agriculture and industry, and with local government.

Project Number: 54269-001
Project Name: Power Sector Reform Program (Subprogram 1)
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Lesson
Technical assistance support and policy advice, coordinated across development partners and provided in parallel with budget support programs, can help push energy reform agenda and build capacity.

Project Number: 54269-001
Project Name: Power Sector Reform Program (Subprogram 1)
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Lesson
A simpler project and phased implementation need to be considered in future similar interventions to allow for sufficient time and attention to the design of subprojects and monitoring arrangements. The feasibility study for the Warangoi hydropower plant proposed short-term works (i.e., constructing a river training wall) and long-term works (i.e., further river retraining and diversion) which were contingent on hydraulic modeling. However, the modeling was not carried out despite water stream measurement being a loan covenant.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
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Lesson
ADB and its consultants should review the historical performances and previous challenges of similar projects when preparing implementation schedules at approval. The Tranche 1 project included a highly optimistic implementation schedule. The Tranche 2 project was also overly optimistic, although to a lesser extent. Several challenges in procurement, land acquisition, and construction led to significant delays.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
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Lesson
ADB may need to consider greater flexibility to allow an extension of the availability period of loans under the multitranche financing facility, where deemed appropriate. Because of various delays, the investment program's availability period was extended to 10 years and ended on 24 November 2020. Government requests to extend the availability beyond 2020 were declined by ADB.

Project Number: 41504-013, 41504-023, 41504-025
Project Name: Town Electrification Investment Program (Multitranche Financing Facility and Tranche 2)
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Lesson
Programs such as this should take a holistic approach to measuring and abating air pollution. Although substantial progress has been made, longer-term policy measures to address the ongoing air quality issue in Mongolia are still needed The increased concentrations of sulfur dioxide and nitrogen dioxide show shortcomings in the program’s overall achievements, along with the concentrations of small particulate matter which remain above World Health Organization’s guidelines, necessitating more policy actions.

Project Number: 53028-001
Project Name: Ulaanbaatar Air Quality Improvement
Program and Ulaanbaatar Air Quality Improvement
Program – Phase 2
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