This zero-dollar component is designed to provide swift response in the event of an eligible crisis or emergency, by enabling Ulaanbaatar to request the World Bank to reallocate project funds to support emergency response and reconstruction where needed in accordance with the Project Operation Manual (POM). A Contingent Emergency Response Component (CERC) annex will be included in the above mentioned POM, specifying the implementation arrangements for the component, as well as all environmental and social aspects, and fiduciary arrangements.

When the Mongolian Government has determined that an eligible crisis or emergency has occurred, it can seek approval from the World Bank to restructure project funds to support reconstruction/development measures in response to crises.