On March 31, the Government of Mongolia and the U.S. Millennium Challenge Corporation (MCC) announced the entry-into-force of the $350 million Mongolia Water Compact designed to sustain economic growth and reduce poverty through the expansion of bulk water supply in Ulaanbaatar, the capital city of Mongolia, and enhancing the long-term financial, institutional, and environmental sustainability of the water sector.

"We are delighted to announce the entry-into-force of the Mongolia Water Compact, which aims at enhancing the water supply of Ulaanbaatar and ensuring sustainable economic development. The entry-into-force today marks the official start of a five-year timeline to implement the Compact Program," said B. Battsetseg, Minister of Foreign Affairs and Chair of the Board of Directors of MCA-Mongolia.

She further emphasized, “Over the past two years, we have worked to successfully meet the Conditions Precedent to the Compact entry-into-force, while undertaking necessary preparations for projects and activities to be funded by the Compact. Despite numerous challenges posed by the global pandemic, the Government of Mongolia was able to fulfill its responsibilities and enable the timely commencement of the Compact Program, as a result of efficient risk assessment practices and a focus on operational continuity.”

“A period of heightened responsibility is ahead of us to undertake the physical construction of two new water infrastructures in Ulaanbaatar,” noted E. Sodontogos, CEO of MCA-Mongolia. “We have to complete the projects within five years. In order to achieve that, MCA-Mongolia must always consider two critical factors: Schedule and Quality. Unlike other Compact countries, the construction season in Mongolia is substantially short. Therefore, we must plan and implement our work with great precision to race against time. Quality is of the essence. To ensure quality, contractors with both dedication and experience have to be selected to anticipate, mitigate, and manage the risks related with Covid-19 and others. We are confident that we will overcome potential challenges and successfully implement the Mongolia Water Compact through joint effort and mutual understanding of our stakeholders, including the Government of Mongolia, the Capital City authority, the private sector, the academia and the general public.”

The Government of Mongolia and the U.S. Millennium Challenge Corporation signed the $350 million Mongolia Water Compact on July 27, 2018. The Compact is funding major infrastructure projects, including the construction of new wellfields and two large plants - an Advanced Water Purification Plant and Wastewater Recycling Plant which will be the first of their kind in Mongolia. In addition, the Compact will invest in policy measures to create a financially and environmentally sustainable future for the water sector of Ulaanbaatar. By 2026, the water system in Ulaanbaatar will have been expanded to deliver 80% more drinking water, allowing for the city’s future expansion.

Source: MCA Mongolia