Mongolia: Customs Modernization Project

Evaluation Document | 15 July 2016
Mongolia: Customs Modernization Project

The project was approved on 20 December 2006 to improve the efficiency, transparency, and sustainability of Mongolia’s customs services and administration. The project included three outputs: (i) migration and upgrading of the automated data processing system to an internet-enabled environment and central database; (ii) infrastructure improvement at selected major border crossing posts, including provision of inspection equipment and laboratory apparatus; and (iii) institutional strengthening, consisting of business process reengineering, capacity building, interagency coordination, regional cooperation, and public–private partnership.

The project is assessed relevant. Envisaged activities generally reflected conditions related to trade facilitation, especially in customs administration. The project was also in line with the development strategies of the government and ADB. The initial project design was significantly improved with the introduction of an entirely new Customs Automated Information System (CAIS). The project is assessed effective. The intended project outcomes were achieved. There have been marked improvements in customs operations. Envisaged outputs have likewise been achieved. The project is assessed efficient in the use of resources. The economic viability indicator was re-estimated at 16.4%. Physical completion of the project was delayed by almost a year. The project is assessed most likely sustainable since it is technically sound, and sufficient maintenance and operating procedures and budget are in place. A recently approved project will include upgrading of the CAIS, including the integration of new applications and an increase in capacity.

Overall, the project is assessed successful. Key factors for the project’s success were (i) the government’s strong ownership of the project, (ii) the decision to set up an entirely new information and communication technology (ICT) system instead of just upgrading the existing one, and (iii) a strong partnership with the private sector.