Countries and Regions

	Table of Contents
p. 20 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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IX. Local Cost Financing

111. The Government has made considerable effort to mobilize limited domestic savings and borrow external resources to finance its recurrent and capital expenditures. Although the macroeconomic stabilization program is expected to improve the Government’s fiscal position in the medium term, the availability of counterpart funds will remain constrained. ADB will continue financing up to 80 percent of total project costs, including the provision of local cost financing. Since the beginning of its operations in Mongolia, ADB financing has covered 72 percent of total project costs. About 10 percent of ADB financing has been for local currency costs. The remainder of the project costs has been met by concessional cofinancing (12 percent) and by domestic resources (16 percent). ADB will continue to mobilize concessional cofinancing and use ADB-financed local cost financing to minimize the fiscal impact of project lending in Mongolia.

Back VIII. Economic and Sector Work Program	Country Assistance Plans - Mongolia