This is the first Country ProcurementAssessment Report (CPAR)prepared by the WB for Mongoliasince it commenced assisting the country's developmentprogram in 1993. Starting in 1998 Mongolia has achieved agreat deal in developing a fair and transparent publicprocurement system, and even during the timeframe of thisCPAR preparation, further positive steps have been taken.With a few more relatively straightforward refinements overthe next few years, the system can mature further to serveMongolia's rapid transition to a market economy. Themain objective of this CPAR is to review the efficiency ofprocurement processes in Mongolia in all sectors and, inclose cooperation with the Government, to develop an actionplan to address areas found to need strengthening in orderto improve efficiency and transparency of procurement thatwould in turn promote higher rates of economic growth.Included in the scope of the work is an analysis of thecurrent public and private sector procurement framework andpractice, including the law; an assessment of risks incurrent procurement practices and recommendations foralleviating these risks; and an identification of areaswhere beneficial improvements to framework and practice maybe made and development of an action plan for implementingthese improvements.