Countries and Regions

	Table of Contents
p. 17 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Subregional Economic Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Mongolia

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VI. Cofinancing and Catalyzing External Resources

105. As agreed under the IMF PRGF program, the Government is limiting its external borrowing to concessional sources. ADB will seek grant or soft cofinancing for all projects included in the operational program. ADB has been active in arranging cofinancing which, by the end of 1998, amounted to $31.5 million (about 8.5 percent of total ADB lending to Mongolia) for projects in the telecommunications and energy sectors. Major sources of cofinancing have included Kreditanstalt fur Wiederaufbau, Nordic Development Fund, Norway, Danish International Development Authority, and Spain. Financing from the Japan Fund for Poverty Reduction is expected to provide additional resources commencing with the 2000 program. Four ADB projects in Mongolia have been co-financed. The cofinancing total is about $91.5 million, and this represents 21.4 percent of ADB lending. Cofinancing is being actively pursued and it is expected that the leverage ratio will be about 25 percent over the next three years.

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