Ulaanbaatar City, May 15, 2026 - The inauguration ceremony of Mongolia’s first Advanced Water Purification Plant, constructed under the Mongolia Water Compact signed between the Government of Mongolia and the U.S. Millennium Challenge Corporation (MCC), was held on May 15, 2026, officially commencing the plant’s operations. Under the compact program, the Ulaanbaatar Bulk Water Supply Project, comprised of three strategically interrelated projects, has been implemented to increase the water supply of Ulaanbaatar, the capital city of Mongolia, improve access to water services, and help prevent potential water shortages in the near future.
The inauguration ceremony was attended by high-level representatives from both countries, including President of Mongolia Khurelsukh Ukhnaa, U.S. Ambassador Richard Buangan, and Acting Chief of Staff of the U.S. Millennium Challenge Corporation Dan Petrie, along with representatives from the Government of Mongolia, the capital city administration, the U.S. Millennium Challenge Corporation, Millennium Challenge Account–Mongolia, Ulaanbaatar Water Supply and Sewerage Authority (USUG), project contractors, partner organizations, and other distinguished guests.
President Khurelsukh Ukhnaa and U.S. Ambassador Richard Buangan, together with other distinguished guests, officially launched the operations of the Advanced Water Purification Plant by opening the plant’s water intake wheel.
In his opening remarks, President Khurelsukh Ukhnaa emphasized, “Today’s event marks far more than the opening of a single plant. It is a historic milestone that helps lay the foundation for Mongolia’s sustainable development, improves the quality of life for our citizens, and supports the continued growth and expansion of Ulaanbaatar. The Mongolia Water Compact stands out for its comprehensive approach to addressing the challenges facing Mongolia’s water sector through the implementation of interconnected hard and soft infrastructure projects that have helped advance the sector to a new level of development. I am truly pleased to have stood alongside all of you throughout this journey — from the groundbreaking ceremonies of these two major plants to witnessing their completion and commissioning today.”
He further noted, “Since the early 2000s, researchers and scientists have warned that Ulaanbaatar faced a growing risk of water shortage, prompting the Government of Mongolia to actively seek long-term and sustainable solutions. It was at that critical time that Mongolia and the U.S. Millennium Challenge Corporation launched the Mongolia Water Compact Program — a strategic and forward-looking decision by the Government of Mongolia.
Today, as Head of State, I am proud to say with confidence that Mongolia and the United States have successfully implemented a major program that will deliver lasting benefits, support the future development of our country, and help ensure our citizens’ right to live in a healthy and safe environment. The Mongolia Water Compact stands as a tangible expression of the strategic partnership between Mongolia and the United States and as a symbol of our shared success.”
The U.S. Ambassador Richard Buangan underscored in his remarks that "When infrastructure is built carefully, transparently, and sustainably, it delivers real benefits to the people. This plant is a great example of the partnership between our two countries. It represents good planning, strong leadership, and robust collaboration."
Speaking at the ceremony, MCC Acting Chief of Staff Dan Petrie stated, “As Mongolia pursues a diversified, private sector-led economy, reliable infrastructure and the right policy frameworks will be essential. Water security facilitated through this compact will support industry, reduce uncertainty, and ensure Ulaanbaatar remains dynamic and competitive… Today’s commissioning marks the completion of an important chapter, but it is not the end of our story. It is a transition. A transition from development to delivery, from construction to operation, and from partners in building to partners in economic growth.”
Under the Downstream Wells Activity, two new wellfields with 30 groundwater wells were established in the Biokombinat and Shuvuun Fabrik areas, and Mongolia’s first Advanced Water Purification Plant (AWPP) was constructed together with transmission pipelines and a supervisory control and data acquisition (SCADA) system. Equipped with advanced treatment technologies, the AWPP and new wellfields will supply up to 50 million cubic meters of water annually for Ulaanbaatar’s domestic consumption, becoming the city’s eighth water source and the largest source of potable water supply in Ulaanbaatar.
Located on the eastern slope of Songinokhairkhan Mountain, construction of the plant began in 2021 and progressed rapidly until its inauguration today. Twenty-seven engineers and technical staff from the Ulaanbaatar Water Supply and Sewerage Authority, who will be responsible for operating the facility, began hands-on training during the equipment installation and commissioning stages and officially assumed their positions on August 1, 2025.
Through a total investment of $461 million — consisting of a grant from the U.S. Millennium Challenge Corporation and a contribution from the Government of Mongolia — Millennium Challenge Account–Mongolia successfully implemented the Ulaanbaatar Bulk Water Supply Program, aimed at ensuring a long-term, sustainable water supply for the residents of Ulaanbaatar. The program comprised three strategically interconnected projects: the Downstream Wells Activity, the Wastewater Recycling Activity, and the Water Sector Sustainability Activity, all of which were completed within the scheduled timeframe and approved budget.
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