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Press Release

MCC Mongolia Water Compact Starts 5-Year Timeline with Entry Into Force

For Immediate Release

April 5, 2021

WASHINGTON, D.C., April 5, 2021 – Today, the Millennium Challenge Corporation (MCC), a U.S. Government agency, and the Government of Mongolia celebrated the launch of the $350 million Mongolia Water Compact. The partnership between MCC and the Government of Mongolia directly tackles the impending water crisis in the capital city of Ulaanbaatar, with the aim of expanding the sustainable supply of water and enhancing the long-term financial, institutional, and environmental sustainability of the water sector. The Government of Mongolia is also investing up to $111.8 million to support the investment. This significant contribution ranks among the largest ever made by a partner country in the history of MCC. It symbolizes the strong commitment and ownership of the Government of Mongolia to this priority compact.

“Access to water is a critical human need. In less than three decades, the population of Mongolia’s capital, Ulaanbaatar, has nearly tripled in size and the data indicates the city’s demand for water will soon exceed supply,” noted Acting Chief Executive Officer of MCC Mahmoud Bah. “Enhancing water access in an environmentally sustainable way is critical to achieving poverty reduction and economic growth. MCC is proud to mark the compact’s entry into force with our Mongolian partners for this five-year project that aims to improve the quality of life of millions of Mongolians.”

The MCC Mongolia Water Compact will increase the available supply of water through the construction of new groundwater wells, a state-of-the-art plant for purifying drinking water, and a new plant for treating and recycling wastewater. The compact will also institute policy, legal, regulatory, and institutional reforms to enhance the long-term sustainability of Ulaanbaatar’s water supply.

"The $350 million grant to the water supply program is one of the largest single commitments the U.S. has made in the region,” said U.S. Ambassador to Mongolia Michael S. Klecheski. “It will bring new jobs over its five-year lifespan and increase Ulaanbaatar’s water supply by 80 percent."

“We are delighted to celebrate the official start of the implementation of the MCC Mongolia Water Compact with our American partners,” added the Chief Executive Officer of Millennium Challenge Account-Mongolia, E. Sodontogos. “We are confident our partnership will surmount any challenges to successfully implement programs that will pave the way for a sustainable, more economically prosperous future for the Mongolian people.”

MCC provides large grants to developing countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights, as evaluated by MCC’s scorecard. MCC takes a business-like approach, with bedrock commitments to data, accountability, and evidence-based decision making.