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Lesson
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.

Project Number: 49409-001
Project Name: Strengthening Institutional Framework and Management Capacity Project
Report Date:
Lesson
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.

Project Number: 49409-001
Project Name: Strengthening Institutional Framework and Management Capacity Project
Report Date:
Lesson
It is important to minimize if not completely prevent the need for design changes that could exacerbate implementation challenges. The project as delivered differs significantly from that expected at appraisal. A memorandum of understanding following the April 2013 loan review mission had made extensive and critical comments on the conceptual and detailed design of the project.

Project Number: 41192-013
Project Name: Regional Logistics Development Project
Report Date:
Lesson
The use of lump sum construction supervision contracts under conditions of frequent design changes is disadvantageous for the consultant and could jeopardize project implementation. The use of a lump sum contract between the EA and consultant for this project was not suitable. Lump sum contracts work well when tasks are precisely defined and the risks to both parties are well understood. In this case, the project had frequent design changes that resulted in extended discussions on the variations and severe implementation delays.

Project Number: 41192-013
Project Name: Regional Logistics Development Project
Report Date:
Lesson
The One ADB approach facilitates the preparation of successful programs.

Project Number: 51054-001
Project Name: Banking Sector Rehabilitation and Financial Stability Strengthening Program
Report Date:
Lesson
The complex challenges involved in reducing the NPL ratio in Mongolia’s banking sector require continuing dialogue and close coordination and cooperation among development partners.

Project Number: 51054-001
Project Name: Banking Sector Rehabilitation and Financial Stability Strengthening Program
Report Date:
Lesson
A well-considered, deliberate, and cumulative approach, built on lessons learned, and continued engagement by ADB, are needed to sustain the banking reform process in Mongolia.

Project Number: 51054-001
Project Name: Banking Sector Rehabilitation and Financial Stability Strengthening Program
Report Date:
Lesson
Implementation of finance sector reforms is a long process requiring the commitment and coordination of many stakeholders.

Project Number: 51054-001
Project Name: Banking Sector Rehabilitation and Financial Stability Strengthening Program
Report Date:
Lesson
The provision of technical assistance (TA) should match the scope of targeted policy reforms and the capacity of implementing agencies. In addition, it appears from the evaluation of the program that ADB's great reliance on TA consultants to develop much of its policy and advisory input affects its ability to develop sustainable internal capacity on policy issues. It has thereby reduced ADB's ability to quickly respond to government requests for policy advice and to engage in long-term dialogue.

Project Number: 34135-013
Project Name: Financial Regulation and Governance Program
Report Date:
Lesson
In general, it is proposed that program loans should either not include highly complex and far-reaching policy reforms or build on enhanced policy dialogue, comprehensive technical assistance, and intensive monitoring and review by ADB. Lack of technical understanding on the part of political decision makers requires support for comprehensive and consistent advisory technical assistance throughout the drafting and approval process of new legislation.

Project Number: 34135-013
Project Name: Financial Regulation and Governance Program
Report Date:
Lesson
The evaluation offers some lessons regarding the need to (i) properly adapt the scope and time frame of comprehensive and sensitive policy reforms to institutional capacity, (ii) carefully sequence reforms, and (iii) take a long-term approach to development. Developing capital markets is a long-term process, for which 10-20 years may be considered a realistic time frame. Capital market reform should focus on a limited set of highly selective and sequenced reforms that are within reach of government implementation capacity.

Project Number: 34135-013
Project Name: Financial Regulation and Governance Program
Report Date:
Lesson
In general, program loans should either exclude highly complex and far-reaching policy reforms or build on intensive policy dialogue and enhanced monitoring and review by ADB. Corrective action regarding the scope and implementation arrangements of the program should be considered at an early stage if implementation is observed to fall behind schedule or government capacity, ownership, and commitment show signs of receding.

Project Number: 35376-023
Project Name: Second Phase of the Governance Reform Program
Report Date:
Lesson
The evaluation offers lessons regarding the need to properly adapt the scope and time frame of reforms to institutional capacity and to sequence reforms. Budget reform should be regarded as an evolving process and should focus on a more limited set of reforms that are within the reach of government institutions.

Project Number: 35376-023
Project Name: Second Phase of the Governance Reform Program
Report Date:
Lesson
The issue of tariffs is complicated by (i) the high cost of servicing in some areas, particularly the ger area settlements; and (ii) the government's willingness to subsidize service tariffs. The project supported a dialogue between ADB and the government around urban service reform, tariff issues, the application and targeting of government subsidies, and the development of more transparent, efficient and equitable mechanisms for directing such subsidies in public services.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date:
Lesson
The project had only limited, uneven success in raising tariffs, resulting in underfunding of operation and maintenance (O&M). This raises the need for wider institutional and policy reform. The support of ADB and other development partners has focused on helping the government to rebuild assets but has placed less emphasis on building the institutions and systems required to ensure these assets are maintained and used efficiently.

Project Number: 31243-013
Project Name: Integrated Development of Basic Urban Services in Provincial Towns Project
Report Date: