In October 2007, the Millennium Challenge Corporation signed a five-year, $285 million compact with the Government of Mongolia aimed at reducing poverty and promoting sustainable economic growth through investments in four projects. The compact in Mongolia entered into force in September 2008, formally initiating the five-year timeline for project implementation.
Subsequently, at the request of the Government of Mongolia, the compactâ€™s rail project was canceled, and its funds were formally reallocated to expand the existing projects and the addition of two new projects. The Mongolia Compact was amended in January 2010 to reflect these changes.
The strategic investments of the compact will increase economic activity through improving the land registration system, helping people in poorer urban areas register their land, and providing for sustainable management and utilization of rangelands in selected peri-urban areas; improve vocational training to help Mongolians qualify for more demanding and financially rewarding market-oriented jobs, ensuring that they become healthier and more productive as they enter the marketplace; increase the adoption of energy-efficient and lower-emission appliances and homes in the ger districts and support the development of renewable energy; and improve the road in the critical north-south economic corridor.