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 Levels

Country Strategy and Program Update 2005-2006: Mongolia

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III. Portfolio Management Issues

A. Portfolio Performance

25. As of 31 December 2003, the active portfolio totaled $235.8 million, for 16 ongoing loans at various stages of implementation, comprising four program loans, nine project loans, and three sector development programs. By many performance indicators, the loan portfolio is performing well, and both contract awards and disbursements ratios are above ADB average. All projects have satisfactorily progressed toward development objectives and only one, Loan 1743: Second Financial Sector Program, was rated partly satisfactory for implementation progress. In terms of disbursements, some projects substantially exceeded projections while others disbursed less. Detailed data are in Tables A1.6-A1.9.

B. Performance Monitoring and Evaluation

26. Following the 2002 Country Portfolio Review Mission’s (CPRM) Action Plan, the Government made efforts to rationalize the use of loan funds and introduce mechanisms for better monitoring of implementation progress. The Government has completed 16 of the 20 project-specific actions agreed upon during the 2002 CPRM, and established a working group to amend the Public Procurement Law of Mongolia. In addition, Parliament approved the Aid Coordination Law in 2003. To strengthen portfolio management, a quarterly portfolio review mechanism has been introduced. This mechanism, conducted at Mongolia Resident Mission, has proven an effective means to enable project managers to share experiences and highlight portfolio issues for attention and timely remedial actions by the Government or the concerned offices at ADB headquarters. In late 2003, in the context of the most recent CPRM, a new action plan was agreed upon with the Government to address the remaining implementation concerns. The plan set out general and project-specific measures including the following: (i) streamlining procurement procedures, (ii) improving financial management within project management units; (iii) selecting qualified private sector audit firms for project audits and (iv) preparing more accurate and timely quarterly progress reports.

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