What is the Millennium Challenge Account - Mongolia (The MCA-Mongolia)?
“Millennium Challenge Account – Mongolia” or MCA-Mongolia is a state-owned enterprise established by the decision of the Government of Mongolia on October 3, 2018, pursuant to Government Resolution No 297 in accordance with the Section 3.2 of the Compact in to implement the Program under the Mongolia Water Compact signed with the Millennium Challenge Corporation (MCC), a U.S. government foreign aid agency. MCA-Mongolia is governed by a board chaired by Minister for Finance of Mongolia. The Board will have independent decision-making authority and will have ultimate authority and responsibility (a) for the oversight, direction, and decisions of MCA-Mongolia, and (b) for the overall implementation of the Program in accordance with the Compact, the Program Implementation Agreement, and all other Supplemental Agreements. The Board is comprised of 9 voting members, and 2 non-voting observers. The voting members consist of Minister for Finance of Mongolia, state secretaries of Mongolian government line ministries, representatives from the private sector and civil society, and the non-voting observers are the MCA-Mongolia Chief Executive Officer and the MCC Resident Country Director.
MCA-Mongolia’s day-to-day operations are managed by the Management Unit led by the Chief Executive Officer.
What is the U.S Millennium Challenge Corporation?
The Millennium Challenge Corporation (MCC) is an independent U.S. government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to developing countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights. A Compact is a large-scale, five-year grant given by MCC to countries that meet its eligibility criteria. Learn more about MCC at www.mcc.gov.
What is a Compact? What is the Mongolia Water Compact?
A Compact is a large-scale, five-year grant given by MCC to countries that meet its eligibility criteria. Mongolia concluded its first Millennium Challenge Compact on September 17, 2013, included investments in property rights, health, vocational education, energy and environment, and transportation, and was selected in December 2014 as an eligible country to develop the second compact. The Government of Mongolia and the MCC signed a $350 million USD Compact on July 27, 2018, 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 of Mongolia, Ulaanbaatar through a single Bulk Water Supply Project. In addition to the $350 million MCC investment, the Government of Mongolia has committed $111.76 million to the Compact, one of the largest partner country commitments in the history of MCC. The Bulk Water Supply Program is composed of three activities, including Downstream Wells Activity, Wastewater Recycling Activity, and Water Sector Sustainability Activity.
MCC estimates that the Bulk Water Supply Project will add some 64 million cubic meters of water to Ulaanbaatar’s long-term water supply, an 80 percent increase over the current level. This increased supply will put the city on a better footing to sustain its growing population and its future economic growth.
What is the Five-year Timeline and Entry-into Force?
In accordance with the MCC rule, all the Compact projects are required to be implemented within a five-year timeline. This timeline starts when certain pre-conditions listed in the Compact (Conditions Precedent) have been met, and the Compact officially enters into force.
All Compact-related work that is incomplete at the end of the five-year timeline will not be funded by MCC as per MCC rule. Thus, it is essential that all projects are completed within the timeline to maximize the funds received from MCC and the impact of those funds. Therefore, MCA-Mongolia is required to plan and work in a very time-sensitive way to complete all projects under the Compact within the timeline since the construction season in Mongolia is substantially shorter than in other countries.
What is the Downstream Wells Activity?
This activity will expand Ulaanbaatar’s bulk water supply through the development of two groundwater wellfields located downstream from the city along the banks of the Tuul River, along with the storage facilities, pumping stations and conveyance pipeline needed to deliver water to the city. The Downstream Well Activity will also support the construction of a new, state-of-the-art water purification plant to ensure the treatment to the highest drinking water quality standards. The activity is expected to supply up to 50 million cubic meters of groundwater per year, adding nearly 65 percent to the city’s current water supplies.
What is Wastewater Recycling Activity?
This activity will reduce the demand for freshwater among Ulaanbaatar’s largest industrial facilities through the reuse of the city’s wastewater. To make reuse possible, the Wastewater Recycling Activity will support the construction of a recycling plant to further treat some of the effluent from the city’s central wastewater treatment plant, along with pipelines, storage tanks and control systems to deliver this recycled wastewater to the combined heating and power plants, the city’s largest consumers of water. Recycled wastewater will reduce the need for freshwater by up to 18 million cubic meters, thereby making the freshwater available for household and industrial consumption. In this way, the activity is expected to increase the effective supply of water by nearly 18 percent. The wastewater recycling plant will be the first of its kind in Mongolia, helping to pave the path for efficient and responsible management of the scarce water resources of Ulaanbaatar.
What is the Water Sector Sustainability Activity?
This activity will enhance the long-term sustainability of water supplies to the capital city through critical policy, legal, regulatory and institutional changes, with an emphasis on improving the operations and maintenance practices at the city’s primary water utility and achieving full cost recovery. This activity will help to ensure that the benefits of the Compact are sustained over the long term.
How do I find out about consulting and other contract opportunities at MCA-Mongolia?
All procurement notices will be posted on the MCA-Mongolia website (www.mca-mongolia.gov.mn) Procurement page, as well as on the dgMarket (www.dgmarket.com), UNDBOnline (https://devbusiness.un.org/), and mainstream media. Please check back frequently to see new opportunities. All interested firms and organizations can request to be included in the mailing list of MCA-Mongolia by sending the request to the Procurement Agent of MCA-Mongolia. There is no nationality preference, and MCC Program Procurement Guidelines establish the procurement rules and process for the MCA-Mongolia procurements that ensure open and fair competition. Additionally, if you have any procurement-related questions or would like to know more about MCA-Mongolia procurement, please feel free to email us at info@mca-mongolia.gov.mn.