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Mongolia Water Compact

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 March 31, 2024

Program Budget


  • Signed:
    July 27, 2018
  • Entry Into Force:
    March 31, 2021

Program Projects

  • $302,289,690
    Project Total Amount
  • $279,875,594
    Project Amount Committed
  • $147,184,976
    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.

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.

As of Fri Jun 30 2023 00:00:00 GMT-0400 (Eastern Daylight Time)