The United States Government concluded its Foreign Assistance Review and reaffirmed its support for projects and programs implemented under the Water Compact, signed between U.S. Millennium Challenge Corporation (MCC) and the Government of Mongolia. This decision ensures continued funding for the program, which directly supports economic growth and private enterprise.  This contributes to the safety, strength, and prosperity of the American people through time-limited investments that promote business growth and stability around the world.  
Jointly financed by a generous $350 million contribution from the American people (approximately 1.2 trillion MNT) and an additional $112 million from the Government of Mongolia, the Water Compact is a cornerstone of the strategic engagement between the United States and Mongolia.
Compact projects draw on U.S. expertise in water infrastructure, engineering, and technology, with firms such as Tetra Tech, Inc. and AECOM leading the design and oversight of major construction initiatives. These projects highlight the quality, innovation, and technical leadership that American companies bring to global development challenges. Across its portfolio, MCC has engaged U.S. firms in contracts totaling more than $1.4 billion, reflecting the strong role of American private enterprise in delivering sustainable infrastructure solutions.
By addressing Mongolia’s urgent need for a reliable water supply, the compact projects support long-term economic growth and regional stability—conditions that strengthen Mongolia’s role as a dependable trade and investment partner. The program reinforces U.S. leadership abroad, underscoring a commitment to results-driven, cost-effective partnerships that deliver tangible benefits for both nations.
During a recent visit to the Compact site, U.S. Ambassador to Mongolia Richard Buangan hailed the U.S.- Mongolia MCC Water Compact as one of the largest public works projects in the Indo – Pacific region, and a testament of the commitment and engagement of the United States in Mongolia.
“This comprehensive program supports long-term water security for the residents and businesses of Ulaanbaatar—home to nearly half of the country’s population—and advances Mongolia’s development toward greater self-reliance and private sector investment. This high-impact investment in infrastructure helps position Mongolia as a reliable trade and business partner,” said the Ambassador.
Upon completion, it will significantly enhance water security and resilience for the city’s growing urban population of more than 1.5 million. The decision to continue funding reflects the United States’ commitment to supporting programs that deliver real returns, supporting programs that are results-driven, cost-effective, and aligned with American foreign policy.
Together, Mongolians and Americans are advancing pro-growth solutions that promote mutual benefit, advancing our shared priorities in economic development, and responsible resource management.

Published Date:2025-08-19