Countries and Regions

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p. 3 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 2004-2006: Mongolia

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III. Portfolio Management Issues

A. Portfolio Performance

25. As of 31 December 2002, Mongolia has 16 ongoing loans at various stages of implementation. Portfolio performance is generally satisfactory (Appendix 1, Tables A1.6–1.9). While the ongoing program loans appear to be generally on track to meet their tranche release conditions, Mongolia is facing more challenges in project administration due to increases in both the number and complexity of project loans. To strengthen portfolio management, a quarterly portfolio review mechanism has been introduced. This mechanism, conducted at MNRM, has proven an effective means to enable project managers to share experiences and highlight the portfolio issues for attention and timely remedial actions by the Government or the concerned offices at ADB headquarters.

B. Performance Monitoring and Evaluation

26. In 2002, ADB undertook a country assistance program evaluation (CAPE)⁶ for a systematic review of its assistance programs and operations in Mongolia carried out since the country joined ADB in 1991. The CAPE concluded that overall, ADB programs contributed significantly to Mongolia’s ongoing transition, which was the primary goal of the first two country operational strategies. The CAPE noted that, although poverty reduction had been brought into the central focus of ADB strategy since 2000, the impact on the poverty level of the policy reforms and other ADB-supported initiatives remains to be evaluated on a quantitative basis, particularly in view of strong external shocks, which included the Asian and Russian financial crises and two severe winters. The CAPE highlighted the need, however, to further strengthen the link between strategic concepts and operational programs. The CAPE also provided specific operational recommendations for future strategy and programs. Some of the recommendations have been incorporated into operations. For instance, CAPE noted the importance of promoting an integrated perspective on public resource management, fiscal discipline, and output-based budgeting, which have been incorporated in the second phase of governance reform. The findings and recommendations of the CAPE will be valuable inputs to guide the planned CSP process.

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