Countries and Regions

	Table of Contents
p. 18 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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VII. ADB’s Operational Program

A. The Proposed Program

106. The 2001-2003 program has a sharper sector focus, a significantly higher proportion of projects in the areas of human development and direct poverty reduction, and a shift in the balance away from program towards project lending, while retaining the flexibility provided by the sector development modality. The technical assistance is programmed to operationalize the monitoring mechanisms and indicators identified in the COS and Partnership Agreement, notably through planned capacity building at the National Statistical Office. Appendix 5 shows pipeline projects classified according to their poverty impact and contribution to other cross-cutting objectives. About 75 percent of the projects are expected to be poverty interventions. The 2001-2003 pipeline includes projects classified as core poverty interventions. The pipeline shows significant support for projects with cross-cutting concerns. During 2001-2003, 86 percent of projects will support human development and governance concerns. The proposed loan and TA pipeline for 2000-2003 is summarized in Table 1 and detailed in Appendix 4. Project profiles for firm 2001 loans are attached as Appendix 6.

107. The proposed lending program for 2001-2003 ranges to a total of $175 to $186 million, which is within the absorptive capacity of the Government. The focus of the ADB’s operations in Mongolia in the program period 2001-2003 will be firmly on poverty reduction within the five core sectors identified in the COS. The proposed projects will provide support for priority investments in the agriculture, financial, governance reform, social sectors, and urban development and housing. Special emphasis will be given to enhancing the policy reform agendas in these sectors, while policy based lending will continue for the financial sector and governance reform to ensure the sustainability of the transition to a market economy.

108. Technical assistance is programmed at an average of $4.0 million a year during 2001-2003 and will be directed to the priority sectors and to support the continued analysis of poverty and social indicators. The program includes 7 PPTAs and 12 ADTAs. The ADTAs in the program will support capacity-building initiatives to strengthen the Government’s ability to implement its development agenda in a more effective manner.

B. Resident Mission

109. ADB approved on 1 August 2000 the establishment of a resident mission in Mongolia. The resident mission, in Ulaanbaatar will build up to full strength in the first quarter of 2001. It will strengthen policy dialogue with the Government, improve project implementation, and strengthen coordination with other funding agencies. A Host Country Agreement was signed on 27 November 2000.

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