WORKS UNDER A CONTRACT FOR THE CONSTRUCTION OF THE CONVEYANCE SYSTEM AND CHPP-3 AND CHPP-4'S MODIFICATION AND SCADA KICKS OFF

[Ulaanbaatar city, August 25, 2023] – A Kick-off meeting to start works under the Contract for the Construction of the Conveyance System and CHPP-3 and CHPP-4's Modification and SCADA, one of the main components of the Wastewater Recycling Activity under the MCC-Mongolia Water Compact signed between the Government of Mongolia and the U.S Millennium Challenge Corporation (MCC), was held on August 25, 2023 at Crystal Hall, Blue Sky Hotel. This is the start of the last of the four major construction works to be carried out with the Compact funding.

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In addition to representatives of Millennium Challenge Account - Mongolia (MCA-Mongolia), the U.S MCC States MCC Resident Country Mission, the Program Management Consultant "Tetra Tech" and "MCS International" LLC, the contractor for the Construction of the Conveyance System and CHPP-3 and CHPP-4's Modification and SCADA, officials from the Ministry of Construction and Urban Development, Ministry of Energy, Capital City Urban Planning and Development Department, Capital City and Songinohairkhan District Land Management Office, Tuul River Basin Administration, Water Supply and Sewerage Authority, CHPP-3, CHPP-4 and "MCS Property" LLC, the contractor for the Construction of Water Recycling Plant,  took part in the meeting.

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MCA-Mongolia Chief Executive Officer Ms. E.Enkhgerel, in her opening remarks, emphasized the time constraints for the Compact implementation, including the completion of this project, once again and expressed her confidence that works under this contract will completed in a quality manner within its time frame.

She also highlighted the utmost importance of unified support and cooperation of all the stakeholders to ensure the successful implementation of this green project, which will pave the pathway to introduce recycled water use in Mongolia's energy sector and save precious underground water resources.

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MCC Deputy Resident Country Director Mr. Burak Inanc underlined that it is remarkable the two of the contractors for the four major construction contracts are local the Mongolian companies and they are selected through international open procurement.

He notes that with this experience in completing large-scale construction works in accordance with the International Federation of Consulting Engineers or FIDIC contract under the Compact, Mongolian companies will be developed even further and will be able to compete on a global level.

The meeting discussed the general scope of the work to be performed, specific features of the construction site, the composition of the project team, work plan and schedule, as well as potential challenges and solutions and required engagement and support of stakeholders, and further answered questions from the participants.

The Construction of the conveyance system and CHPP-3 and CHPP-4's Modification and SCADA is a part of the Wastewater Recycling Activity, one of the three major projects under the MCC-Mongolia Water Compact signed between the Government of Mongolia and the U.S Millennium Challenge Corporation. It will allow the delivery and the use of recycled water from the Water Recycling Plant, which is also being built with the Compact funding, to the CHPP 3 and 4 for their technical use.

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MCS International LLC, a leading national project management, construction and consulting company, selected as the contractor for the Construction of the Conveyance System and CHPP-3 and CHPP-4's Modification and SCADA through international open procurement and signed the contract with the MCA-Mongolia on July 28, 2023. The construction work is planned to be completed in the last quarter of 2024 and then testing and adjustment will start.

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Once in full operation, the Conveyance System and the Water Recycling plant, which is the first of its kind in Mongolia, will treat 50,000 cubic meters/day of effluent from the new CWWTP and deliver this recycled wastewater to the combined heating and power plants, the city’s largest consumers of water. As a result, it will reduce the need for freshwater by up to 18 million cubic meters/ year, thereby making freshwater available for household and industrial consumption.

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About the MCC-Mongolia Water Compact

This $462 million project is a partnership between the American and Mongolian people made possible by $350m in MCC grant funding and the $111.76m contribution from the Government of Mongolia which demonstrates their commitment to working together to achieve economic growth and poverty reduction in Ulaanbaatar. The Mongolia Water Compact is funding major infrastructure projects, including the construction of new wellfields and two large plants - an Advanced Water Purification Plant and Water Recycling Plant which will be the first of their kind in Mongolia. In addition, the Compact will invest in policy measures to create a financially and environmentally sustainable future for the water sector of Ulaanbaatar. As a result, the water system in Ulaanbaatar will have been expanded to deliver 80% more drinking water, allowing for the city’s future expansion.