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  • Closed Compact Report:  Closed Compact Report: Mongolia Compact
  • October 2015


The Millennium Challenge Corporation (MCC) and the Government of Mongolia signed a five-year, $284.9 million compact in October 2007, designed to increase the country’s economic growth and reduce poverty, by investing in five project areas:

  • property rights;
  • health;
  • vocational education;
  • energy and environment; and
  • transportation.

Mongolia is a landlocked country in Asia covering 1.56 million square kilometers, roughly the size of Western Europe. Mongolia’s limited, aging transportation infrastructure and young governing institutions have been shown to be significant constraints to economic growth and development. These constraints are acute given the pressures of the country’s abrupt transition to a market economy, the loss of financial support from the Soviet Union, and the rapid urbanization of a population that was highly dispersed and pastoral. Nearly half of Mongolia’s 2.6 million people live in the capital city of Ulaanbaatar, and approximately 60 percent are located along the north-south rail corridor between Russia and China.

In developing their proposal, Mongolia’s National Council, the team formed by the government to develop their compact proposal, relied on the national development plan and poverty reduction strategy papers and on targeted consultations with sector experts and stakeholders. All five projects were designed to increase the productive capacity of Mongolians—both individuals and enterprises—and unlock opportunities for growth in domestic and regional economies. By the end of the compact in September 2013, the Government of Mongolia and MCC had spent 94 percent of the anticipated compact funds to increase land security, reduce impacts of non-communicable diseases and injuries, provide enhanced vocational training, expand distribution of energy-efficient household products, and construct roads for commercial traffic. The Government of Mongolia and MCC expect more than 2 million people to benefit over the 20-year lifetime of the investment. Further details of the compact results and impacts will be shared in forthcoming impact and performance evaluations.