Ulaanbaatar /MONTSAME/. As part of the Utility Operations Sub-activity of the Bulk Water Supply Project under the Mongolian Water Compact, operations of Ulaanbaatar Water Supply and Sewerage Authority (USUG) and Ulaanbaatar Housing and Public Utilities Authority (OSNAAUG) was evaluated by the AquaRating. It is an international assessment and benchmarking tool for utility operations developed by the International Water Association (IWA). USUG and OSNAAUG AquaRating Certification Workshop was held virtually on January 26 and 27, 2021, respectfully. 

The First Deputy Governor of the Capital city J.Sandagsuren, General Manager of Ulaanbaatar City and Head of the Governor's Office T.Gantumur, Head of USUG Ts.Turkhuu, Ambassador Extraordinary and Plenipotentiary of the United States of America to Mongolia Michael S. Klecheski, MCC Resident Country Director Alex Russin, Deputy Resident Country Director Eric Guetschoff, MCA-Mongolia Deputy Chief Executive Director S. Zorigt, and other officials participated in the event. IWA AquaRating Manager Kizito Masinde, co-author of AquaRating Francisco Cubillo and MCA-Mongolia Water Sector Sustainability Activity Director L.Unurjargal co-facilitated the virtual event and the certification ceremony.

In his opening remarks, Ambassador Michael Klecheski said he is delighted to be taking part in this important event and noted that “This performance assessment utilizing the AquaRating system lays a foundation for strengthening the operational and financial sustainability of water utilities”. 

“I want to highlight here the $350 million MCC program among all of the other ongoing projects, which will change life in Ulaanbaatar a lot and contribute significantly to social and economic development of the Capital city of Mongolia. An important thing I should mention here is that this is a grant, but not a loan. The second thing is local ownership, which means a MCC provides an opportunity for grant receiving countries to make proposals about what to do with this grant for supporting their economic growth,” the Ambassador said. 

“The MCC Compact is, first of all, funding major infrastructure projects, including the construction of new wellfields and two large plants, including Advanced Water Purification Plant and Wastewater Recycling Plant. In addition, the Compact will invest in policy measures to create a financially and environmentally sustainable future for the water sector of Ulaanbaatar. In other words, not just the major infrastructure improvement to the Ulaanbaatar water sector, it will bring good governance and best management practices into Mongolia. Today's event testifies to the fact that all this is happening from the beginning.” 

Then, Ambassador Michael Klecheski presented the organization certificate of AquaRating assessment to Head of USUG Ts.Turkhuu.

Mr. Ts.Turkhuu, in his closing remarks, stated that “Over one year time starting from 2019, we worked quite intensively on this AquaRating exercise. And we are glad to receive this certificate today after all. It is essential for us to work according to certain standards. We have a noble responsibility to support the health and hygiene of our citizens by providing water services. Therefore, we will continue to work hard to take the quality and standards of our operations and services to a higher level and to bring them in line with international standards.”

MCA-Mongolia Deputy Chief Executive Director S.Zorigt extended his gratitude to all those who have contributed in this important and time-consuming work in the past two years and underlined that the current assessment rate UGUG has been obtained is quite close to the average rates of similar water utilities from the other countries. He also said that the MCA-Mongolia will continue to work together with USUG and U.S Embassy to Ulaanbaatar to improve the sustainability of the water sector based on this assessment.

Following the certification ceremony, the AquaRating assessment report was presented in detail to USUG management, engineers and technicians.

The AquaRating, a system based on an international standard for the evaluation and improvement of water and sanitation utilities, evaluates and analyzes the water and sanitation services in an integrated way through several assessment elements organized in eight operational areas, identifies areas for further improvement and provide support during the improvement process as briefed by Mr. Kizito Masinde. 

As a part of the Utility Operations Sub-activity of the Bulk Water Supply Project under the Mongolian Water Compact, AquaRating performance assessment to operations of USUG and OSNAAUG started in May 2019. An internal audit was conducted in the first quarter of 2020, followed by an external audit from the IWA in the third quarter of 2020. An evaluation report was prepared in the fourth quarter of 2020.

Based on the assessment results, a comprehensive plan for further improvement will be developed and implemented, including a comprehensive partnership between USUG and an experienced water utility from a developed country that operates in similar conditions or deals with similar concerns.

The validity of the certification will last until 2024 and by then another assessment will be done.

Background

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.