The Compact Agreement

The Government of Mongolia and the MCC signed the $350 million second Millennium Challenge Compact which aims to reduce poverty through economic growth in Mongolia on July 27, 2018, in Washington. The Parliament of Mongolia approved the Law on the ratification of the Compact Agreement on January 31, 2019. The Government also committed to making a contribution of up to 111.8 million to the Compact implementation under the Compact Agreement which will help to achieve an even greater impact.

Under the Mongolia Water Compact, Millennium Challenge Account – Mongolia, a state-owned accountable enterprise will implement a Water Supply Project that comprises three closely related investment activities and the Program aims to address the problem of limited long-term sustainable supplies of water for the capital city, Ulaanbaatar, as described below.

1. The Downstream Wells Activity supports the development of two new wellfields downstream of Ulaanbaatar, including the construction of 32 new wells in the two downstream wellfields, associated pumps, local collection pipelines, equalization tanks, and a transmission line to convey the water from the wellfields, an advanced water purification plant located at the western edge of the city to remove contaminants and storage facilities, pumping station, and conveyance pipeline to transport finished water from the purification plant into the existing municipal water network of Ulaanbaatar

2. The Wastewater Recycling Activity supports the recycling and reuse of a large quantity of wastewater effluent from the central wastewater treatment plant (“CWWTP”) through the construction of a wastewater recycling plant, pumping stations and associated pipelines to convey the recycled water to water storage facilities near combined heating and power plants (CHP) and internal piping, storage facilities, and control systems to facilitate the use of recycled wastewater for certain processes within CHP-3 and CHP-4

3. The Water Sector Sustainability Activity supports interventions that address improvements in policy, legal, regulatory, and institutional framework and build capacities of water sector organizations and will improve the long-term sustainability of the water sector in Ulaanbaatar

It was estimated that the Water Supply Project will add 64 million cubic meters to Ulaanbaatar’s long-term supply of water, an 83 percent increase over current levels. This increased supply will put the city on a better footing to sustain its growing population and its future economic growth.

For further details, please click on the link below.

Mongolia Water Compact  Folder