Ulaanbaatar, March 16, 2026 – The Government of Mongolia and the U.S. Millennium Challenge Corporation (MCC) marked the official opening and launch of operations of Mongolia’s first large-scale Wastewater Recycling Plant, built under the Wastewater Recycling Project—one of the three main components of the Mongolia Water Compact. The ceremony took place at the newly built Wastewater Recycling Plant on March 16, 2026.
The opening ceremony brought together high-level representatives from both countries, including the President of Mongolia Khurelsukh Ukhnaa, U.S. Assistant Secretary of State for East Asian and Pacific Affairs Michael G. DeSombre, as well as other senior officials from the Governments of Mongolia and the United States. Representatives from the Municipality of Ulaanbaatar, the U.S. Millennium Challenge Corporation, Millennium Challenge Account–Mongolia, the Ulaanbaatar Water Supply and Sewerage Authority (USUG), the project contractors, partner organizations, and other stakeholders were also present at the event.
In his opening remarks, President Khurelsukh Ukhnaa stated, “Today we gather here to witness a historic moment—the opening of Mongolia’s first large-scale Wastewater Recycling Plant, one of the two major infrastructure projects under the Water Compact, which symbolizes the strategic partnership between Mongolia and the United States. The commissioning of this plant represents the achievement of a major objective outlined in Mongolia’s National Security Concept, long-term development policies, and water policies in the Government's Action Plan, enabling our country to recycle wastewater and use it in energy production.”
He further emphasized, “This initiative not only represents the first ever large-scale use of recycled water in Mongolia’s energy sector, but also paves the way for other industries to reuse wastewater in the future. By doing so, we will conserve our groundwater resources for future generations.”
President Khurelsukh Ukhnaa, U.S. Assistant Secretary of State for East Asian and Pacific Affairs Michael G. DeSombre, Member of the State Great Khural, Minister of Finance and Chair of the Board of Millennium Challenge Account–Mongolia Javkhlan Bold, Member of the State Great Khural and Minister of Foreign Affairs Battsetseg Batmunkh, and the Governor of the Capital City and Mayor of Ulaanbaatar Nyambaatar Khishgee jointly pressed the ceremonial launch button, officially inaugurating the Wastewater Recycling Plant operations.
During his remarks, U.S. Assistant Secretary of State for East Asian and Pacific Affairs Michael George Desombre highlighted, “This $462 million-dollar Water Compact will give Mongolia the ability for large-scale re-use of water for industrial use for the first time. The positive impact of this project does not stop there. Ensuring a reliable source of both fresh and recycled wastewater unlocks future commercial investment opportunities for both domestic and American investors to explore larger opportunities in Ulaanbaatar.”
“Throughout the lifecycle of the Water Compact, our mantra has remained “on time and on budget” and we have achieved that goal, completing the compact without needing additional funding or years added to the construction. This is no easy feat and is evidence of what we can achieve when U.S. and Mongolian talent and expertise come together to work toward a common goal.”
Under the Wastewater Recycling Project, the first large-scale Wastewater Recycling Plant in Mongolia was constructed along with 12 kilometers of water transmission pipelines, a water storage tank, a booster pumping station, modifications at Combined Heat and Power Plants No. 3 and No. 4, and other infrastructure.
The plant will receive up to 50,000 cubic meters of treated wastewater per day—up to 18 million cubic meters annually—from the new Central Wastewater Treatment Plant and supply the recycled water for technical uses, including ash handling and cooling tower operations, at Combined Heat and Power Plants No. 3 and No. 4.
The project is notable for being financed by the Government of Mongolia’s contribution to the Compact, constructed predominantly through the dedication and expertise of Mongolian engineers and workers, and supported technically by American experts.
Through this project, recycled water will be introduced on a large scale for the first time into Mongolia’s energy sector—the city’s largest water consumer—helping to improve management of Ulaanbaatar’s limited water resources while strengthening resilience to future challenges such as urbanization and population growth.
Furthermore, wastewater recycling will create a new water source for Mongolia, helping preserve valuable groundwater reserves for future generations while also providing significant ecological benefits to the Tuul River ecosystem.
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