Prime Minister of Mongolia Khurelsukh Ukhnaa, during his visit to the United States of America, met with the Heads of the World Bank Group, International Monetary Fund (IMF) and representatives of Millennium Challenge Corporation. Jim Yong Kim, President of the World Bank Group, expressed his satisfaction towards economic recovery of Mongolia following the joint programs and policy measures. Prime Minister Khurelsukh noted that the Government of Mongolia is giving special importance in expanding the first phase of Economic Management Program and efficiently implementing its second phase. He then announced to focus on intensifying joint projects, stabilizing the economy and increasing accessibility.

IMF WARNS TO INCREASE FX RESERVE

On the same day, the PM Khurelsukh discussed the results and further actions of Extended Fund Facility (EFF) program with Christine Lagarde, the Managing Director and Chairwoman of the IMF. Ms. Lagarde expressed contentment towards successful implementation of the program thanks to Mongolia’s strong commitment to the program, fiscal stability, and significant progress on reducing debts and upgrading credit ratings, highlighting that the implementation of the EFF remains satisfactory with key targets met. Thanks to the program, Mongolia’s economy grew 6.3 percent in the first half of 2018 from 1.2 percent in 2016 and the IMF expects 8 percent growth in 2018. However, Ms. Lagarde warned that Mongolia remains vulnerable to external and internal shocks and signified the necessity to create favorable environment for investment, reduce fiscal deficit and further increasing FX reserve, and advised Mongolia to outline preparatory actions for potential shock.

MILLENNIUM CHALLENGE CORPORATION ADDRESSES WATER SUPPLY IN UB

On the sideline meeting with the delegation of Millenium Challenge Corporation, the Prime Minister had an au fait with the Millennium Challenge Corporation's plan on improving water supply in Ulaanbaatar city. According to Kumar Ranganathan, Practice Lead and Senior Director for Water and Sanitation nfrastructure at the Millennium Challenge Corporation, the water supply in Ulaanbaatar city has reached a level of concern. Ulaanbaatar city has less than 20 years of water supply with the current methodology for surface and deep water consumption. The runoff of Tuul river, the key source of drinking water in Ulaanbaatar, is in danger of diminishing several times than the normal size. Therefore, the Millennium Challenge Corporation settled USD 350 million in non-refundable aid for a project on a 5-year comprehensive solution to water supply issues. "We hope the implementation of this project will have multiple positive impact on Mongolia’s socio-economic situation," remarked Mr. Kumar Ranganathan. The project will be implemented in three phases between 2019 and 2023, increasing and cleansing deep water reserve, as well as installing filters, in 50 locations. Within the frame, a water purifier will be established, which will also allow industries to use greywater. For instance, thermal power plants will have annual access to 15 million square meters of greywater. Purifying technology will be installed in ger district drinking water wells, which is estimated to save 70 million square meters of water reserve.

Published Date:2018-09-25