In less than three decades, the population of Mongolia’s capital, Ulaanbaatar, nearly tripled in size. If the supply of water is not increased, MCC estimates that the city’s demand for water may soon exceed the current supply, hindering economic growth and quality of life.
MCC’s compact built infrastructure and increased fiscal stability to establish a viable supply of water that will stem the impact of an impending water crisis and lay a foundation for private sector-led economic growth in Ulaanbaatar. The MCC compact increased the available supply of water by building new wellfields, new water facilities, and supporting workforce development. The compact’s Water Supply Project supported the construction of new groundwater wells and a state-of-the-art plant for purifying drinking water, the construction of a new plant for treating and recycling wastewater, and the development and implementation of policy, legal, regulatory and institutional reforms that enhance the long-term capacity of Ulaanbaatar’s water supply. These investments increased the supply of water to Ulaanbaatar by nearly 80 percent, putting the city on a better footing to support its future economic growth.
The Government of Mongolia also contributed up to $111.8 million to support the compact. This ranks among the largest partner country contributions in MCC’s history.
The compact started in March 2021 and closed in March 2026, finishing on-time and on-budget.
Financials
Financials as of October 1, 2025
Program Budget
Milestones
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Signed:
July 27, 2018 -
Entry Into Force:
March 31, 2021
Program Projects
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$313,168,322
Project Total Amount -
$302,622,207
Project Amount Committed -
$255,964,615
Project Amount Expended
The Water Supply Project expanded available water supply through three components supporting:
- 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 wastewater recycling plant and pipelines to provide high-quality treated wastewater that can be used by industries; and
- policy reforms, workforce development, and technical assistance to improve the long-term use of Ulaanbaatar’s water supply.
Progress and Achievements to Date
All construction activities—including testing and commissioning for both the Advanced Water Purification Plant and the Wastewater Recycling Plant—were completed prior to the Compact End Date. The plant will support the increased supply of purified drinking water to Ulaanbaatar. The Government of Mongolia will host a final ribbon cutting event in May 2026.
Projected Long Term Results at the Time of Program Signing
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2,427,656
Estimated Beneficiaries -
10.9%
Estimated Economic Rate of Return
Independent Evaluations
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Results to Date
The full set of performance indicators is detailed in the Monitoring and Evaluation Plan.
Program Benefits
MCC conducts cost-benefit analysis of proposed MCC projects prior to investment to determine likely economic impact and costs. The resulting estimates inform investment decisions. MCC updates these estimates when a project concludes and when data and evidence from independent final evaluations becomes available.
| Project | Estimated Beneficiaries | Estimated Benefits |
|---|---|---|
Water Supply Project
ObjectiveThe objective of the Water Supply Project is to meet the projected demand for water for industrial, commercial, and residential consumers and users. |
2,427,656 |