Mongolia Water Compact

In less than three decades, the population of Mongolia’s capital city of Ulaanbaatar has nearly tripled in size. If the sustainable supply of water is not increased, MCC estimates that the city’s demand for water may exceed the current supply as soon as next year, hindering economic growth and quality of life.

MCC’s investment aims to provide a sustainable supply of water, stemming the impact of an impending water crisis and supporting private sector-led economic growth. The MCC compact will expand the available water supply for people and businesses through infrastructure development and capacity building. The compact’s Water Supply Project will support the construction of new groundwater wells, introduction of a state-of-the-art water purification plant, construction of a new wastewater recycling plant and pipelines, and support policy reforms that enhance the long-term sustainability of Ulaanbaatar’s water supply. These investments will increase the supply of water to Ulaanbaatar by more than 80 percent, putting the city on a better footing to sustain its future economic growth.

The Government of Mongolia will also contribute $111.8 million USD to support the investment, which is among the largest partner country contributions in MCC’s history.


Compact Budget


  • Signed:
    July 27, 2018

Compact Projects

Water Supply Project

  • $302,700,000Project Total Amount
  • $0Project Amount Committed
  • $0Project Amount Expended

The Water Supply Project will expand available water supply through three components that will support:

  • the construction of new groundwater wells downstream from Ulaanbaatar and introduces a state-of-the-art water purification plant to remove contaminants and ensure that the water is ready for widespread municipal use;
  • the construction of a new freshwater recycling plant and pipelines to provide high-quality treated freshwater that can be used by industries; and
  • policy reforms, capacity building, and technical assistance to improve the long-term sustainability of Ulaanbaatar’s water supply.

As of July 30, 2018