Projects are more likely to be successful when feasibility studies are completed before the investment decision. First, the right projects are chosen. The feasibility studies give MCC necessary information to determine whether a project is a good, cost-effective investment. Second, completed feasibility studies give the project a head start and facilitate successful, timely subsequent steps. When the Rail Project was cancelled, MCC had to quickly find and vet a replacement. The North-South Road Project was very successful despite this fast development timeline because of the high-quality feasibility studies provided to MCC from the Asian Development Bank. These studies allowed MCC Economic Analysis to develop a Cost Benefit Analysis that was well-informed and accurate – the original Economic Rate of Return (ERR) is very close to the evaluation ERR. They also allowed the implementation team to hit the ground running and make the most of the short construction seasons in Mongolia.
Lesson Learned