Mongolia: Regional Road Development Project
During project preparation stage, Mongolia’s underdeveloped road system constrained access to markets and social services, and hindered investment and job creation. Despite some improvements in recent years, budgetary allocation for road maintenance remained inadequate. Government funding for the road sector was deemed likely to remain insufficient over the medium-term, given the fiscal deficits being experienced by the government. Also, the potential of private financing to develop road infrastructure was limited since large capital investments for road infrastructure were generally beyond the private sector’s present capacity to mobilize resources. The project was selected to complement the Asian Development Bank’s (ADB) previous support for paving road sections along the north–south corridor at the Russian Federation border, by extending the road corridor south to the border with the People’s Republic of China (PRC).
This report validates the completion report’s assessment of the project. IED overall assessment: Less than successful.