In less than three decades, the population of Mongolia’s capital, Ulaanbaatar, has 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 investment aims to provide a sustainable supply of water that will stem the impact of an impending water crisis and sustain private sector-led economic growth in the capital city, Ulaanbaatar. The MCC compact will increase the available supply of water through infrastructure for development of new wellfields and capacity building. The compact’s Water Supply Project will support 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 wastewater, and the development and implementation of policy, legal, regulatory and institutional 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 up to $111.8 million to support the investment. This ranks among the largest partner country contributions in MCC’s history.
Financials as of December 31, 2023
July 27, 2018
Entry Into Force:
March 31, 2021
Project Total Amount
Project Amount Committed
Project 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 wastewater recycling plant and pipelines to provide high-quality treated wastewater 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.
Monitoring & Evaluation
Results to Date
The full set of performance indicators is detailed in the Monitoring and Evaluation Plan.
Impact Evaluation Framework
In addition to careful monitoring of implementation performance and measurement of preliminary results, MCC will be funding several independent evaluations that will assess the results of the MCC-funded activities. More information is available in the Monitoring and Evaluation Plan.