The Advanced Water Purification Plant (AWPP), built with advanced technology, has been put into operation, increasing Ulaanbaatar’s water supply.

Under the Millennium Challenge Compact signed between the Government of Mongolia and the United States Millennium Challenge Corporation on July 27, 2018, the “Ulaanbaatar City Water Supply Enhancement Program” was launched with a grant of USD 350 million from the U.S. government and USD 111.7 million from the Government of Mongolia.

Within this framework, a new western water source for Ulaanbaatar was established based on groundwater resources around Biokombinat and the Shuvuun Factory area, and a deep water purification plant equipped with advanced technology was built and commissioned.

President of Mongolia Khurelsukh Ukhnaa, U.S. Ambassador to Mongolia Richard Buangan, Acting Chief of Staff of the U.S. Millennium Challenge Corporation Dan Petrie, Deputy Minister of Finance B.Khulan, and Capital City Governor and Mayor of Ulaanbaatar Kh.Nyambaatar officially opened the plant.

The Water Compact is a major project that has introduced and localized advanced global technologies and infrastructure in Mongolia for the first time, while also improving the policy and legal environment in the sector. It is not only the largest investment in Mongolia’s water sector in the past 30 years, but also a symbol of the Mongolia–U.S. strategic partnership.

The new western water source will increase Ulaanbaatar’s overall water supply by up to 80% compared with 2016 levels and provide the capital’s 2.4 million residents with sustainable access to clean water meeting standards for the next 30 years. It is also expected to help prevent future water shortages and create the basic conditions for Ulaanbaatar’s westward expansion, including the development of satellite cities and residential areas.

In addition, the wastewater recycling plant, which is scheduled to be commissioned in March 2026, will introduce Mongolia’s first experience in recycling wastewater for energy production. The project is expected to save 18 million cubic meters of groundwater annually for future generations.

To ensure the long-term benefits of the program, work was also carried out to improve the legal, regulatory, and policy framework for the water sector, revise water service cost and tariff policies, support wastewater pollution control and reduction, and strengthen the institutional capacity of water supply and sanitation organizations.

A total of 8,270 jobs were created during the construction phase of the program, 92% of them filled by Mongolian workers. In addition, 73 new jobs were created in newly established factories.

To strengthen the human resources of water supply organizations operating the new infrastructure, 187 engineers and technicians from water supply organizations were trained and certified.

The opening ceremony was attended by high-level representatives from the two governments, officials from the capital city, representatives of the U.S. Millennium Challenge Corporation, the Mongolian Millennium Challenge Fund, contractors involved in the project, and other guests.

Published Date:2026-05-20