Countries and Regions

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p. 4 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Level

Country Strategy and Program Update 2003-2005: Mongolia

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IV. Country Performance and Assistance Level

32. Based on cross-country performance assessment under the policy of performance-based allocation of Asian Development Fund (ADF) resources and overall ADF resource availability, the annual indicative lending level is proposed to be maintained at $32 million to $34 million as the base-case scenario for 2003-2005, with a high-case scenario of up to $40 million, subject to the country's performance, which is to be evaluated against the country-specific performance targets (triggers) agreed upon with the Government. An annual TA program for $3.1 million is also proposed, which will be strengthened with proactive exploration of cofinancing.

33. The lending level for 2004¹⁷ will be determined based on the evaluation against the performance triggers as set in Appendix 1, Table A1.10.

34. The updated pipelines for the lending and nonlending assistance programs for 2003-2005 are in Appendix 1, Tables A1.11 and A1.12, respectively. Project concept papers for the proposed assistance are in Appendix 2 for lending assistance and Appendix 3 for nonlending assistance.

A. Summary of Changes to Lending and Nonlending Assistance Programs

35. The lending program has been rephased based on the processing status of the pipeline projects. The major change in the lending program is the replacement of the health sector development project with a new urban development project, tentatively titled Urban Development III, programmed for 2005. This change was introduced for two reasons: (i) rescheduling of the second health development project from 2002 to 2003 to strengthen dialogue on sector-wide policy interventions; and (ii) the need to develop local economic centers outside Ulaanbaatar to promote economic growth within them and in the hinterlands.

36. New TAs have been included in the nonlending assistance program, particularly to promote economic growth by helping the Government conduct policy study, strategic planning, capacity building, and project preparation. Most of these newly introduced TAs have been briefly discussed in the preceding paragraphs.

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