WASHINGTON, D.C.—Today, Mongolia and the United States marked the successful completion of the $350 million Millennium Challenge Corporation Mongolia Water Compact, a landmark effort that strengthens a key U.S. partner and its capital city—Ulaanbaatar’s—long-term water security and economic growth. The Government of Mongolia contributed an additional $112 million to this compact.
The compact increased water supply and improved wastewater treatment and reuse in Mongolia’s capital city. Through building reliable water and wastewater systems in Ulaanbaatar, the compact addressed a binding constraint to economic growth—one that is essential to industrial expansion, business investment, and urban development.
With Mongolia’s capital facing mounting pressure on limited groundwater resources, the compact prioritized practical, results-oriented investments that reduce risk for businesses and ensure predictable access to water for industry and households alike.
Key achievements include:
- Construction and commissioning of a Wastewater Recycling Plant—the first of its kind in Mongolia—allowing industrial users, such as thermal power plants, to shift away from using scarce potable groundwater. The compact built 17 structures totaling more than 108 thousand square feet and 10 miles of pipeline.
- Construction and commissioning of a state-of-the-art Advanced Water Purification Plant, a major new water treatment plant showcasing American expertise, treating water from compact-funded new ground wells to feed the plant. The plant is expected to purify up to 50 million cubic meters of water per year—the equivalent to about 20,000 Olympic swimming pools. The compact built 6 structures totaling more than 139 thousand square feet and 34 miles of pipeline.
- Development of new groundwater sources to improve long-term supply reliability.
- Strengthening of water sector governance and utility management to improve accountability and financial viability.
- Public awareness initiatives to promote responsible water use and long-term system solvency.
At the March 16 commissioning of the Wastewater Recycling Plant, Assistant Secretary Michael George DeSombre stated, “Ensuring a reliable source of both fresh and recycled wastewater unlocks future commercial investment opportunities for both domestic and American investors…As Mongolia’s strategic third neighbor, the United States is committed to strengthening the economic ties with our fellow democracy and recognize the opportunity Mongolia represents for U.S. companies.”
Mongolia’s President Khurelsukh Ukhnaa further emphasized, “On behalf of the people of Mongolia, I express deep gratitude to all the engineers, technical staff, employees, partner organizations and American friends who have contributed to this noble mission of purifying precious water, meeting the growing demands of industry, and saving clean water.”
Reliable water infrastructure is a foundational requirement for economic growth. By reducing uncertainty in water supply, the compact supports job creation, industrial productivity, and a more stable environment for private investment.
In addition to infrastructure construction, the compact emphasized institutional reform and capacity building to ensure that utilities operate on financially viable footing. These interventions are essential to long-term service reliability and investor confidence.
The completion of the MCC-Mongolia Water Compact demonstrates how strategic infrastructure investments paired with strong governance and clear accountability can support economic growth and reinforce long-term bilateral partnership.
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The Millennium Challenge Corporation is an independent U.S. Government agency focused on unlocking growth through results-driven foreign assistance. MCC’s grants support large-scale infrastructure, strategic reforms, and economic modernization. MCC advances America’s economic and strategic interests by delivering measurable returns to both recipients and U.S. taxpayers—expanding commercial opportunities for U.S. businesses, reducing the influence of competitors, and reinforcing global environments aligned with American values.