Water Compact Implemented on Schedule and Within Approved Budget
Politics
Ulaanbaatar, April 2, 2026 /MONTSAME/. The implementation of the second Millennium Challenge Compact, known as the Mongolia Water Compact, between the Government of Mongolia and the Millennium Challenge Corporation of the United States has concluded, and its results were reviewed.
Under the project, Mongolia’s first large-scale wastewater
recycling plant was officially inaugurated, creating new opportunities to
conserve clean water and supply thermal power plants with treated water. This
marks the country’s first major use of recycled water in the energy sector and
is expected to expand into other industrial sectors, conserve groundwater
resources for future generations, and support the ecosystem of the Tuul River.
The project fulfills a key objective of Mongolia’s water policy and establishes
a completely new source of water supply.
In addition, as part of the project to build a new Western
Source for Ulaanbaatar’s water supply, the country’s first advanced water treatment
plant has been established. The facility is currently undergoing testing and is
expected to be opened next month. At present, residents of Ulaanbaatar consume
about 55 million cubic meters of water annually from seven sources. Once
operational, the new plant will supply up to 50 million cubic meters of water
per year to the central system, significantly enhancing the city’s water
security, supporting westward urban expansion, and contributing to economic
growth.
The project also included soft infrastructure initiatives
aimed at strengthening the sustainability of Ulaanbaatar’s water supply. Within
this framework, five sub-projects and activities have been successfully carried
out. These focused on improving the institutional framework, legal environment,
and policy regulation of the water sector; strengthening the capacity of sector
organizations; providing technical assistance; and enhancing the financial and
human resource capacity of the Water Supply and Sewerage Authority to
sustainably operate its services in the future.
Thus, the largest investment in Mongolia’s water sector over
the past 30 years has achieved tangible results, and this strategically
significant project that has elevated Ulaanbaatar’s water supply system to a
new level, has been successfully completed.
It is also worth noting that the Water Compact program, which entered into force on March 31, 2021, has been fully implemented on schedule and within its approved budget.
