To encourage desired investment outcomes under the compact, MCC and the Government of Mongolia agreed that the following conditions precedent (CP) needed to be met before disbursing project funds.
|Key Compact Component(s)||Major Condition Precedent or Policy Reform Required||Rating|
LeaseCo Operation Activity
Prior to investment in the Rail Project, UBTZ, owned jointly by the Government of Mongolia and the Government of Russia, shall allow its books to be audited.
NCDI Capacity Building Activity
Provide increased budget allocations for NCDIs beginning 2013, which budget allocation shall be at least $1,000,000 per year.
|Property Rights Project||
Privatization of Ger Area Land Plots Activity
|North-South Road Project||
Road Operations and Maintenance Budget
|Vocational Education Project (TVET)||
TVET National Framework Activity
Prior to any disbursement for the Creation of Skills Standards and Competencies System Activity the Competency-Based Training System Activity or the Career Guidance System Activity, the Government shall develop a legal and policy framework to support a modern vocational technical education system.
|Energy and Environment Project (EEP)||
Prior to any disbursements for the subsidy component of the Wind Activity, the Government shall provide a plan for increasing electricity tariffs that will eliminate the need for subsidies by 2015, including an initial increase to take place at the time the power purchase agreement for the wind farm begins and a second increase the following year.