MCC Water Compact with USD 350 million investment introduced

2019-10-04 18:00:18

Ulaanbaatar /MONTSAME/. In September 2018, Government of Mongolia and Millennium Challenge Corporation (MCC), an independent US government agency signed USD 350 million MCC Water Compact aimed at improving water supply of Ulaanbaatar city. This is the second MCC Compact to be implemented in Mongolia. On October 4, Millennium Challenge Account – Mongolia (MCA Mongolia), program implementing agency, held a press briefing to introduce the Water Compact in Mongolia and to share how Mongolia decided on clean water as the priority for a USD 350 million US government grant.. 

The Compact’s Water Supply Project comprises three closely related investment activities in Mongolia: a downstream wells activity, a wastewater recycling activity, and a water sector sustainability activity. It will support the construction of new groundwater wells and a state-of-the-art plant for purifying drinking water, the construction of a new plant for treating and reusing wastewater, and the development and implementation of policy, legal, regulatory and institutional reforms that enhance the long-term sustainability of Ulaanbaatar’s water supply. 

During the event, Alex Russin, MCC Resident Country Director for Mongolia highlighted that the USD 350 million of implementation for the Water Compact is a non-refundable aid to Mongolia. Executive Director of the MCA Mongolia E.Sodontogos said “Prior to and throughout the implementation of the Water Compact, the Government of Mongolia is responsible for providing support through long-term exemption on water taxation, pursuing full cost recovery through water and wastewater tariffs and fees and other sources and approving detailed plan in this regard.

Moreover, the government’s other responsibilities include an adoption of a detailed plan for industrial wastewater pre-treatment, commissioning of a new central wastewater treatment plant, submitting corresponding documents to the MCC and contribution of USD 111.8 million to support the investment. Executive Director E.Sodontogos further continued that the MCA Mongolia is an independent legal entity and a primary agent of the Mongolian Government to implement the Program and to exercise and perform the Government’s right and responsibility to oversee, manage and implement the Program. 

“The USD 350 million investment will be spent for complex actions to increase the water supply of Ulaanbaatar city, prevent from a potential risk of water scarcity, enhance legal framework and policy coordination to maintain long-term sustainability in the water sector and improve public awareness and understanding of the scarcity of water resources available to Ulaanbaatar and water use behaviors of the public." she added.

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 low-income countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights.  

Photo: US Embassy in Ulaanbaatar