Independent Evaluation

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Evaluation on the Rapid Sector Assessment of the Urban Development Sector in Mongolia
Completed: 2008

  Introduction

This report provides an independent assessment of ADB's assistance to the Mongolian urban sector and identifies key areas for further improving the effectiveness of its operations. The findings of the report will also be used as inputs to the broader county assistance program evaluation update for Mongolia.

  Summary of Findings

This rapid sector assessment finds that ADB contributed significantly to improvements in Mongolia's urban sector. ADB's assistance for housing finance led to a fledgling mortgage market that exceeded the sector development goal expectations. In addition, it appears that ADB's interventions have had a modest impact, albeit indirectly, on the reduction of poverty in the selected aimag centers.

Overall, ADB's assistance to the Mongolian urban development sector is rated successful, on the high side. The performance of the urban sector strategy is rated successful, based on separate assessments of strategic positioning, responsiveness of ADB's performance, and contribution to development results. The performance of the urban sector program is rated successful, based on separate assessments of relevance, effectiveness, efficiency, sustainability, and impact. In terms of assistance modality, the Japan Fund for Poverty Reduction grants are found to be highly successful, while loans and technical assistance are found successful.

  Recommendations

The evaluation made recommendations in relation to the following strategic areas of ADB's operations in Mongolia:

• Focus more on the urban environment. ADB may consider providing assistance for the formulation of urban environment plans/programs in the aimag centers. It may also consider increasing its involvement in tackling Ulaanbaatar's urban environmental issues, possibly through collaboration with other development partners on new urban sector programs.
• Increase aid coordination and make more use of bilateral resources.
• Formulate a more detailed sector roadmap. The next country program should formulate a more detailed urban development sector roadmap and identify monitorable indicators for each of the sector outcomes and outputs that are linked to the urban-related Millennium Development Goals.
• Carry on policy dialogue to reform district heating services.