[Ulaanbaatar, July 22, 2020] – Stakeholder consultation workshop on the draft version of Cost Recovery Plan, one of the conditions precedent to Entry into Force of the Mongolia Water Compact, was held among water sector professionals on Wednesday, July 22, 2020 in Novotel Ulaanbaatar Hotel.

The development and approval of the Cost Recovery Plan, a detailed plan to ensure financial sustainability through full recovery of depreciation, operations, and maintenance costs with an aim to improve the long-term sustainability of water services, including the water supply, wastewater collection, and wastewater treatment system in Ulaanbaatar city, is one of the responsibilities to be fulfilled by Government of Mongolia before the Compact enters into force. 

The Water Services Regulatory Commission (WSRC), in accordance with its regulatory and planning responsibilities over the operation and maintenance of Ulaanbaatar’s water and sanitation infrastructure, has played a leading role in developing the draft version of the Cost Recovery Plan.

The stakeholder consultation workshop was co-organized by Millennium Challenge Account-Mongolia (MCA-Mongolia) and WSRC, to introduce the draft plan and gather comments and recommendations from water sector professionals.

The workshop was attended by representatives from the Ministry of Construction and Urban Development, Mayor’s Office of Ulaanbaatar city, Governor’s Office of the Capital City, Municipality of Ulaanbaatar’s Department of Property Utilization and Management Department, Ulaanbaatar Water Supply and Sewerage Authority (USUG), Ulaanbaatar Housing and Public Utilities Authority (OSNAAUG) and private utility service providers as well as co-organizers.

In his opening remarks, Mr. Batsuuri.J, Chairperson of the WSRC, noted the importance of the Cost Recovery Plan in addressing pressing issues in the water sector and appreciated the contribution of leading sector professionals in this endeavor to develop the plan. Ms. Lkhagvatseden.O, Head of the Public Utilities Policy Implementation and Coordination Department at the Ministry of Construction and Urban Development, also opened the workshop. She remarked that the forthcoming Cost Recovery Plan is expected to be a critical policy document, not only applicable for the water supply and wastewater system of Ulaanbaatar city, but also serving as a model for the systems across the country.

During the workshop, a series of presentations were delivered. Ms. Unurjargal.L, Director of Water Sector Sustainability Activity at the MCA-Mongolia, presented the projects to be implemented under the Mongolia Water Compact. Ms. Gerelchuluun.J, Head of the Tariff and Rate Department at the WSRC presented on the needs of developing the plan to cover costs of water and wastewater services as well as water sector policy and coordination issues and introduced the draft version of the Cost Recovery Plan. Afterwards, individual consultants, who are supporting the WSRC in developing in the Cost Recovery Plan, presented their study findings. Ms. Lkhamaasuren.L, an Honored economist and one of the individual consultants, presented findings of her analysis of private utility service providers. Ms. Surmaa.L presented a summary of findings of the study on USUG, OSNAAUG and private utility service providers. During her presentation, Ms. Surmaa.L remarked that water sector in Mongolia should take full advantage of the opportunity provided by the Compact investments to build upon and solidify its past accomplishments.

The workshop continued with the presentation by Mr. Odkhuu.N, Head of the Engineering Policy Department of USUG, who introduced USUG’s Strategic Plan 2030 towards Sustainable Growth. On a related-note, Mr. Odkhuu remarked that in the coming few years, historically significant investments are committed for Ulaanbaatar’s water and sanitation sector, and the implementation of some projects has already started. Mr. Marcus.N, Consultant of the Cost Recovery Technical Assistance (CRTA) activity implemented as part of the Water Sector Sustainability Activity, also attended the workshop online and presented the main tasks under the CRTA activity and especially, on the policy review of customer assistance programs in the water sector in Mongolia and internationally. Developing the options for a Customer Assistance Program to support the poor and vulnerable communities in Ulaanbaatar is a part of the technical assistance to the Water Service Regulatory Commission (WSRC) to improve its future policies and operations under the Compact.

The workshop concluded with Q&A session and water sector professionals asked questions from the presenters and shared their opinions and insights.

Mr. Batsuuri.J closed the workshop, expressing his hopes that the result of these efforts to develop and approve the Cost Recovery Plan would be significant progress in the water sector, ensuring long-term, sustainable operation of water utilities and increased customer satisfaction with water and wastewater services.

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Millennium Challenge Account - 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 Section 3.2 of the Compact to implement the Program under the 350 million USD Mongolia Water Compact signed with the Millennium Challenge Corporation, a U.S. government foreign aid agency. 

The Millennium Challenge Corporation 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 poor countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights.  Learn more about MCC at www.mcc.gov.