7th ADB Business Opportunities Fair

Public Management and Finance

East Asia Regional Department
By: G.Giannetto
16 March 2016

Region/Country Strategy
EARD operates in two countries:
Mongolia
Peoples Republic of China

EAPF also leads in trade facilitation

initiatives of Central Asia Regional
Economic Cooperation (CAREC)
Program

EAPF Portfolio
Administer 35 technical assistance
programs valued at $21.8 million
8 in Mongolia
5 Regional
20 in the PRC

4 Loans (1 in PRC and 3 in Mongolia)

Priority Areas - Public Management

Achievements

Key Challenges

Fiscal reforms
Continued support in budget, tax, debt,
treasury, (local) government bonds,
accounting and audit, and fiscal policies,
etc.

Results vary, most in studies less in policies

Concerns over quality of TA implementation

Public private partnership (PPP)

Knowledge sharing
project preparation

Innovation and mainstreaming are needed

for PPP

Governance
National audit, corporate governance of
SOEs, anti-monopoly, etc.

Sector risk assessment for next Country

Partnership Strategies

Social security
SSS reforms, pilots, rural pensions, legal
system

Financial challenges despite rounds of

reforms

Priority Areas - Financial Sector

Achievements

Key Challenges

Financial inclusion
Reforms of RCCs, MCC pilots, regulatory and
supervisory framework, legal framework, credit
rating, wholesale mechanism, rural CDD, micro
insurance, SME finance, etc.

Private sectors role

Two-tier regulatory framework
Inconsistent approaches

Innovative & green finance

Carbon exchange, EE for SMEs, financing of
ESCOs, Innovating financing workshop

Inadequate legal framework

Lack of know-how

Financial stability & regional integration

Reforms of SOCBs, AMCs, legal frameworks,
deposit insurance, Basel III, macro-prudential,
financial conglomerates, RMB regionalization, etc.

Innovation vs. stability

Weak capacity at FI level
Gaps in policy, legal and regulatory, and
market mechanisms

Priority Areas - Regional Cooperation

Achievements

Key Challenges

Supporting PRC and MON participation in

regional cooperation programs

Lack of local government participation

Lack of programing support (esp.
investments)
Weak capacity (esp. in MON)

CAREC Customs cooperation

Customs procedures and best practices
(RKC accession)
Joint customs control and coordinated
border management
Development of regional transit

Slower than expected accession due to

resistance to reform and vested interests
Difficulty in inter-agency coordination

Integrated trade facilitation and private sector

participation
Single window development
SPS improvement

Moving beyond customs to ITF

Cross-sector institutional coordination

Lending Pipeline, 2016-2017

MON Payment System Modernization Project

26-Nov-13

20,000,000

Mongolia Upgrade of Sanitary and Phytosanitary

Measure for Trade (MUST)

12-Nov-15

15,000,000

Enhancement of the Credit Guarantee System

MON Supporting Small and Medium Sized Enterprises'
Project

27-Nov-15

60,000,000

CAREC Regional Improvement of Border Services

(RIBS)

Pending

MON

MON

27,000,000

Note: Projects are indicative, pending ADB Management and Board approval, and approval timelines are
subject to change.

Nonlending Pipeline, 2016-2017

MON

Institutional Strengthening for the Development Bank of Mongolia

MON

Financial Sector Development

MON

Upgrading of SPS Measures for Trade Facilitation

MON

Financial Market Infrastructure Upgrading

MON

Public Asset Management Mechanism Development

PRC

PRC

China-Vietnam Dongxing-Mon Cai Cross-border Economic Cooperation Zone

Construction and Development Subject Study and Capacity Building Taking
Advantage
Supporting Reform of the Role of the People's Bank of China

PRC

Study on Key and Difficult Issues on China's Futures Law Legislation

PRC

Regional Cooperation and Integration (RCI) Promotion (Guangxi)

Valued at $5.4 million

Note: Projects are indicative, pending ADB Management and Board approval, and approval timelines are
subject to change.

Opportunities
Unique division with less lending and
many technical assistance programs
Nature of counterparts and countries in
portfolio

Issues for your consideration

Unique, challenging and demanding countries
PRC with strong capacity
MON with frequent government changes
Occasional weak planning and implementing capacity

Needs
Practical experience
Comprehensive support required to localize
Need to be flexible
Experts with regional experience (incl. language)
Up to date on developments in the region

Contact person:
Ying Qian, Director, yqian@adb.org