1 DRAFT RESOLUTION SUBMITTED TO AMEND IMPORT CUSTOMS DUTY RATES WWW.MONTSAME.MN PUBLISHED:2026/03/20      2 CAMBODIA JOINS ETHIOPIA, MONGOLIA, MOZAMBIQUE, NICARAGUA, TUNISIA AND OTHERS AS U.S. EXPANDS FIVE THOUSAND TO FIFTEEN THOUSAND DOLLARS VISA BOND REQUIREMENT TRAVELERS AND BUSINESS OPERATIONS STARTING APRIL 2 WWW.TRAVELANDTOURWORLD.COM PUBLISHED:2026/03/20      3 MONGOLIA SUPPORTS CIVIC SPACE REFORMS BUT KEY RESTRICTIONS REMAIN WWW.CIVICUS.ORG PUBLISHED:2026/03/20      4 MONGOLIA, RUSSIA TO COOPERATE IN RAILWAY PROJECT AND RESTORATION OF DIRECT FLIGHT WWW.MONTSAME.MN PUBLISHED:2026/03/19      5 THE GOVERNMENT HAS DECIDED TO LIQUIDATE LLC "ERCHIST MONGOLIA," A STATE-OWNED ENTERPRISE WWW.OPEN.KG PUBLISHED:2026/03/19      6 HILTON TO ENTER MONGOLIA WITH CONRAD ULAANBAATAR SIGNING WWW.LATTELUXURYNEWS.COM PUBLISHED:2026/03/19      7 MONGOLIA IS RAPIDLY MOVING TOWARDS A DIGITAL FUTURE WWW.OPEN.KG PUBLISHED:2026/03/19      8 $462M INFRASTRUCTURE INVESTMENT DELIVERED ON TIME AND ON BUDGET WWW.MONTSAME.MN PUBLISHED:2026/03/19      9 THE GOVERNMENT HAS DECIDED TO LIQUIDATE LLC "ERCHIST MONGOLIA," A STATE-OWNED ENTERPRISE PUBLISHED:2026/03/19      10 CHINESE PRESIDENT XI JINPING EXPECTED TO VISIT MONGOLIA IN 2026 WWW.GOGO.MN PUBLISHED:2026/03/18      МОНГОЛ УЛС АРДЧИЛЛЫН ИНДЕКСЭЭР ЗУРГААН БАЙРААР УРАГШИЛЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/03/20     АЖ АХУЙН НЭГЖИЙН ОРЛОГЫН АЛБАН ТАТВАРЫН ТУХАЙ ХУУЛЬД НЭМЭЛТ ОРУУЛАХ ТУХАЙ ХУУЛИЙН ТӨСЛИЙГ ӨРГӨН МЭДҮҮЛЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2026/03/20     СҮҮЛИЙН ЗУРГААН ЖИЛД ОРОН СУУЦНЫ ЗАЛИЛАН НЭМЭГДЭЖ, 216 ТЭРБУМ ТӨГРӨГИЙН ХОХИРОЛ УЧИРЧЭЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/03/19     ДЭЛХИЙН УЛС ОРНУУДЫН ШАТАХУУНЫ НИЙЛҮҮЛЭЛТИЙН ХЯМРАЛЫН ЭСРЭГ БОДЛОГО БА МОНГОЛД ҮЗҮҮЛЭХ НӨЛӨӨ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/03/19     “СТАНДАРТ ХАНГААГҮЙ“ ХАЯГ, ЗАР СУРТАЛЧИЛГААНЫ БАЙГУУЛАМЖУУДИЙГ БУУЛГАЖ ЭХЛЭВ WWW.NEWS.MN НИЙТЭЛСЭН:2026/03/19     ШАТАХУУНЫ ГААЛИЙН ТАТВАРЫГ ТЭГЛЭХ ТОГТООЛЫН ТӨСЛИЙГ ӨРГӨН БАРИЛАА WWW.NEWS.MN НИЙТЭЛСЭН:2026/03/19     "МЭДЭЭЛЭЛ, ХАРИЛЦАА ХОЛБООНЫ ТЕХНОЛОГИЙН САЛБАРЫГ" ХӨГЖҮҮЛЭХ ТӨСӨЛ АЛБАН ЁСООР ЭХЭЛЛЭЭ WWW.EGUUR.NM НИЙТЭЛСЭН:2026/03/19     МОНГОЛ УЛСЫГ АНУ-ЫН “ВИЗИЙН БОНД” ХӨТӨЛБӨРТ ХАМРУУЛЛАА WWW.NEWS.MN НИЙТЭЛСЭН:2026/03/19     С.МӨНХСҮХ: ТАТВАРЫН АКТЫН МӨНГИЙГ БАЙРШУУЛСАН НЬ ХҮЛЭЭН ЗӨВШӨӨРСӨН ГЭСЭН ҮГ БИШ WWW.ITOIM.MN НИЙТЭЛСЭН:2026/03/19     ХЭТ ХОТЖИЖ, СОЁЛЖСОН АЯЛАЛ ЖУУЛЧЛАЛААС ӨӨРИЙГ ЭРЭЛХИЙЛДЭГ ЗАЛУУ АЯЛАГЧДЫГ МОНГОЛ УЛС ХҮЧТЭЙ ТАТАЖ БАЙНА WWW.EGUUR.MN НИЙТЭЛСЭН:2026/03/19    
Англи амин дэм Монгол улсад албан ёсоор бүртгэгдлээ.

Events

Name organizer Where
MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2025 London UK MBCCI London UK Goodman LLC

NEWS

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Draft Resolution Submitted to Amend Import Customs Duty Rates www.montsame.mn

On March 19, 2026, Minister of Industry and Mineral Resources Damdinnayam Gongor submitted to Speaker of the State Great Khural Uchral Nyam-Osor a draft parliamentary resolution to amend Resolution No. 27 of 1999, “On Approving the Rates and Amounts of Customs Duties on Imported Goods.”

According to the initiator, if adopted, the draft would grant the Government the authority to set the customs duty rate on gasoline, a widely consumed public commodity, thereby enabling more flexible regulation of duties in line with market conditions. Mongolia currently meets 100 percent of its fuel demand through imports, with approximately 95 percent sourced from the Russian Federation and the remainder from the People’s Republic of China.

Last December, the State Great Khural ratified the Interim Trade Agreement between Mongolia and the Eurasian Economic Union and its member states. The sector minister noted that once the agreement is ratified by the other member states, customs duties on automotive gasoline will be reduced to zero. The draft resolution has been initiated as a responsive measure pending the agreement’s entry into force, and in light of volatility in global petroleum product prices influenced by the situation in the Middle East.

Under Resolution No. 27 of 1999, the customs duty on fuel had been set at five percent but was subsequently reduced to zero. The initiator emphasized that adoption of the draft would further contribute to lowering retail fuel prices. For instance, the current customs duty on AI-92 gasoline stands at MNT 125,633 per ton; reducing this to zero would lower the price by MNT 106 per liter, yielding an estimated benefit of MNT 57 per liter.

The draft resolution consists of two articles and includes provisions specifying its effective date and duration, according to the Press and Public Relations Department of the State Great Khural.

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Cambodia Joins Ethiopia, Mongolia, Mozambique, Nicaragua, Tunisia and Others as U.S. Expands Five Thousand To Fifteen Thousand dollars Visa Bond Requirement Travelers and Business Operations Starting April 2 www.travelandtourworld.com

Starting April 2, Cambodia, alongside Ethiopia, Mongolia, Mozambique, Nicaragua, Tunisia, and others, will be subject to the U.S. Department of State’s expanded visa bond program, requiring travelers to pay between five thousand to fifteen thousand dollars. This move, designed to address the growing issue of visa overstays, will have a significant impact on both individual travelers and businesses that depend on U.S. visits, adding financial complexity and delays to  travel plans. The expansion underscores the U.S. government’s effort to ensure compliance with visa terms, placing an additional burden on international travelers and corporate operations.

On March 18, the U.S. Department of State made a significant announcement regarding the expansion of its visa bond pilot program, which now affects an additional 12 countries. This expansion is part of the government’s ongoing efforts to combat visa overstays, a move initially reintroduced during the Trump administration. Starting April 2, nationals from these 12 newly added countries will be required to pay refundable cash bonds before their B-1/B-2 visa applications can be processed.

These bonds, which range from $5,000 to $15,000, must be paid in full via a wire transfer to a U.S. government escrow account or through a cashier’s cheque before the visa interview can take place. This initiative will significantly impact travelers from these 12 countries, as well as companies and organizations that often send employees to the United States on short-term visits.

New Countries Affected by Visa Bond Requirement
As of April 2, the following countries will be added to the list of nations subject to the expanded visa bond program:

Cambodia
Ethiopia
Georgia
Grenada
Lesotho
Mauritius
Mongolia
Mozambique
Nicaragua
Papua New Guinea
Seychelles
Tunisia
These countries join 38 others already subject to the program, bringing the total to 50 countries. Nationals from these countries, whose B-1/B-2 visa applications are processed, will now face the new requirement.

How the Visa Bond Program Works
The visa bond program requires that individuals from these countries pay a cash bond before their visa applications can be processed. The bond amounts vary, with some individuals required to pay $5,000, others $10,000, and some as much as $15,000, depending on their country of origin. This refundable bond is intended to deter visa overstays and ensure that individuals depart the United States within the allowed time frame.
The bond payment must be made prior to the visa interview, either by wire transfer to a U.S. government escrow account or via a cashier’s cheque. If the visa application is denied, the bond is refunded. However, if the visa is approved, the bond will be held until U.S. Customs and Border Protection (CBP) confirms that the traveler has left the United States in accordance with the terms of their visa.

The Rationale Behind the Visa Bond Program
The U.S. government reintroduced the visa bond concept in late 2025 as part of a broader effort to address the growing issue of visa overstays. According to data from the Department of Homeland Security (DHS), nationals from countries where more than 10% of travelers overstayed their B-1/B-2 visas in the previous fiscal year may be required to post a bond.

The program’s proponents argue that it has been successful in encouraging compliance, as nearly 97% of the 1,000 individuals who posted bonds last year left the U.S. before their authorized stay ended. This statistic is often highlighted by the government as evidence of the program’s effectiveness.

However, immigration lawyers caution that the data used to assess the program’s impact may be too limited. Small and medium-sized enterprises (SMEs), which rely on quick business trips to the U.S., are likely to feel the negative effects of the expanded program. These businesses will face higher upfront costs, longer visa processing times, and potential delays in securing necessary approvals for their employees.

The Financial Impact on Companies and Travelers
The introduction of the visa bond requirement will place a financial burden on both travelers and corporations. Businesses that frequently send employees to the U.S. from these affected countries should expect higher upfront costs due to the bond payments. Additionally, the processing time for visa applications may increase, causing delays that could impact operations and scheduling.

The bond must be paid in full before the visa interview, which may tie up working capital for companies in need of quick  travel approvals. Companies with employees in the newly added countries may also face employee relations challenges, as employees may need to wait weeks to receive refunds after their bonds are processed.

In a further complication, refunds of the visa bond are not immediate. Typically, refunds are processed within six to eight weeks, during which time businesses may experience significant cash flow constraints. The ability to recover the funds after the traveler has left the U.S. may affect some companies’ ability to operate smoothly, especially SMEs that depend on rapid business travel.

How VisaHQ Helps Travelers and Companies Navigate the New Requirements
For businesses and travelers navigating the complexities of the expanded visa bond program, VisaHQ offers comprehensive services to streamline the process. These services include document pre-screening, consular appointment scheduling, and real-time tracking of application status updates. Through VisaHQ’s platform, applicants can determine if they will be required to post a bond, understand how to send funds quickly and securely, and receive guidance on the refund process.

By using VisaHQ’s services, travelers and organizations can ensure that their visa applications are processed in a timely manner, minimizing the disruption caused by the expanded visa bond program.

Preparing for the New Bond Requirements
Experts suggest that travelers and organizations take proactive steps to reduce the likelihood of being required to post a bond. To do so, travelers should provide consular officers with thorough documentation that demonstrates their intent to depart the U.S. at the end of their authorized stay. Recommended documents include return tickets, hotel reservations, meeting agendas, and proof of onward travel. This will help demonstrate to consular officers that the traveler has no intention of overstaying their visa.

Moreover, consular officers are granted broad discretion in determining whether a bond will be required. Travelers with a strong U.S. travel history, or those with urgent schedules, may still be able to avoid the bond requirement, depending on the specifics of their case.

Starting April 2, Ethiopia, Georgia, Mongolia, Mozambique, Nicaragua, Tunisia, and others will be subject to the U.S. visa bond program, requiring travelers to pay between five thousand to fifteen thousand dollars. This move aims to curb visa overstays and will significantly impact both individual travelers and businesses relying on U.S. visits.

What’s Next for the Visa Bond Program?
The State Department has indicated that it will review the visa bond program again in September 2026, at which point it may adjust the list of affected countries or make further changes to the program. Companies with a global workforce should closely monitor the program’s impact on their operations and compliance, especially in light of the potential for further expansion or modification in the future.

As the program continues to evolve, both travelers and organizations will need to remain agile, ensuring they are in compliance with the latest regulations and prepared for the financial and logistical challenges posed by the visa bond requirement.

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Mongolia Supports Civic Space Reforms but Key Restrictions Remain www.civicus.org

Geneva: Statement at the 61st Session UN Human Rights Council, Adoption of the UPR report of Mongolia

Delivered by Urantulkhuur Mandkhaitsetsen, Center for Human Rights and Development
Mr. President,

CIVICUS, ADN and CHRD welcomes Mongolia’s engagement in the UPR process. In this cycle, we note that Mongolia received 23 recommendations on civic space and supported 22 of them.

We welcome, that the government has supported recommendations to protect human rights defenders and journalists, ensure that laws are not misused to restrict them and protect them from all acts of harassment and intimidation. We also welcome its support towards repealing Article 13.14 of the Criminal Code on defamation and to ensure press freedom.

However, we are disappointed that the government chose not to support recommendations to review or repeal Article 17.6 and 19.11 of the Criminal Code, which has also been used to target activists and journalists

In recent years, our organisations have documented the harassment and criminalisation of activists and journalists. We are also deeply concerned by draft NGO laws that are inconsistent with international law and standards. We are further alarmed by proposed laws to control the internet, and restrictions in law and practice against peaceful protests.

Mr President, we urge the government of Mongolia to take concrete steps to implement the UPR recommendations by ensuring all laws are consistent with the ICCPR, that the 2021 Human Rights Defenders law is effectively implemented and to revise the Law on Organising Demonstrations and Public Gatherings so that they comply with international human rights law and standards.

We thank you.

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Mongolia, Russia to Cooperate in Railway Project and Restoration of Direct Flight www.montsame.mn

Within the framework of the Mongolia-Russia-China Economic Corridor Program, discussions will be held to consolidate the feasibility studies for the central railway corridor, and a relevant document is expected to be signed during the International Transport and Logistics Forum to be held in St. Petersburg this April.

Minister of Road and Transport Delgersaikhan Borkhuu held a virtual meeting with Russian Deputy Minister of Transport Dmitry Zverev, during which the parties agreed to finalize and sign documents related to this initiative, as well as Bagakhangai-Khushig Valley branch railway project, according to the Ministry of Road and Transport.

The parties also agreed to advance discussions on restoring direct flights between Ulaanbaatar and Moscow and to intensify preparatory work.

The Mongolia-Russia-China Economic Corridor Program was approved in 2016, when the presidents of the three countries signed the agreement in Tashkent, Uzbekistan.

The central railway corridor of the trilateral economic corridor will span 5,975 km. China has completed the feasibility study for the 328 km Jining-Erenhot section, while Russia has prepared the feasibility study for the 254 km Naushki-Ulaan-Ude section. Mongolia, for its part, has included in its feasibility study the construction of a second railway line spanning 1,087 km between Sukhbaatar and Zamiin-Uud.

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The government has decided to liquidate LLC "Erchist Mongolia," a state-owned enterprise www.open.kg

The tasks of LLC 'Erchist Mongolia' included representing the interests of the state as a shareholder, including:

Participation in 34 percent of the shares of state joint-stock companies in the energy sector, as well as

Acting on behalf of the government in six different companies, such as MIAT Mongolian Airlines, the State Joint-Stock Company 'Mongolian Railways', the Road Repair and Maintenance Company, Auto Impex, LLC 'Information and Communication Network', and LLC 'State Housing Corporation'.

Operational expenses were financed through loans from commercial banks, resulting in the company accumulating a debt of ₮3.5 billion, which led to serious financial difficulties.

Founded in accordance with government decrees dated January 8, 2025, the purpose of creating the company was to ensure centralized management and control over state enterprises. However, despite these intentions, it failed to fulfill its assigned tasks and created additional financial problems. In this regard, the government decided to dissolve the company to prevent further deterioration of the financial situation.

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Hilton to enter Mongolia with Conrad Ulaanbaatar signing www.latteluxurynews.com

Hilton has inked its first hotel in Mongolia, signing a management deal to open the Conrad Ulaanbaatar in the nation’s capital in 2028. The 227-room hotel will rise within the Ulaanbaatar Eco Tower, a landmark mixed-use complex that brings together commercial, entertainment, hospitality and upscale lifestyle offerings in the capital city. 

“Entering Mongolia with Conrad Hotels & Resorts marks a significant milestone in Hilton’s continued growth in the region,” said Qian Jin, President, Greater China & Mongolia, Hilton. “This signing reflects our confidence in the long-term potential of Mongolia, and our commitment to partnering with owners to deliver meaningful, experience-led luxury for today’s discerning traveller.”

The luxury hotel will offer a prime location within walking distance of key cultural and commercial landmarks such as Sükhbaatar Square, the National Art Gallery, and the National Academic Drama Theatre.

“This landmark signing to bring Conrad Hotels & Resorts to Ulaanbaatar meets the city’s evolution as a gateway between tradition and modernity,” Candice D’Cruz, Vice President, Luxury Brands, Asia Pacific, Hilton, said. “Conrad’s bold design approach and intuitive service will bring a contemporary expression of luxury that resonates with globally minded travellers while celebrating the character and culture of the destination.”


Conrad Ulaanbaatar joins almost 100 trading and pipeline Conrad Hotels & Resorts properties across five continents in iconic destinations, 16 of which are located in Greater China. Conrad hotel openings this year include Saudi Arabia, Malaysia and Greece.

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Mongolia is Rapidly Moving Towards a Digital Future www.open.kg

As part of the government's strategy called "Vision 2050," Mongolia plans to use digitalization to promote socio-economic development while balancing regional influence with concerns for environmental protection and cultural heritage.

Mongolia, a country with unique natural landscapes, the Gobi Desert, and diverse flora and fauna, including the Przewalski horse, ranks first among landlocked countries, with its territory being four times larger than Germany.

With a population of 3.5 million people and neighbors Russia and China, Mongolia seeks to integrate into the global community through advanced technologies.

In May 2020, the Parliament of Mongolia, known as the Great State Khural, adopted the strategic document "Vision 2050," aimed at transforming the country into a regional leader and a high-income country by 2050.

In an interview with GovInsider, Ariunbold Shagdar, Director of the Census and Data Analysis Department of the National Statistical Office of Mongolia (NSO), noted that the country aims to achieve leadership in socio-economic development by 2050, "while it is important to preserve our national identity and care for the environment."

One of the key tasks of "Vision 2050" is to use digitalization for the economic diversification of Mongolia, reducing dependence on the mining sector.

The second goal is to create a comfortable living environment through the expansion of digital government services on the E-Mongolia platform, he adds.

According to Ariunbold, the NSO has become the foundation for decision-making in the country based on factual data.

THREE-STAGE DIGITALIZATION PLAN

Ariunbold outlines three stages in the country's digital roadmap.

"By 2030, we will focus on creating a legal framework and security system for digital government," he notes.

"Then, by 2040, we will move to the integration stage, implementing innovations in information and communication technologies (ICT) across all sectors of the economy to enhance productivity," he adds.

"By 2050, we aim to create a fully digital government that is citizen-centric, ensuring transparency, combating corruption, and placing citizens at the center of public service," emphasizes Ariunbold.

He views this transition as the final stage of a long-term progress that began with the establishment of the NSO in 1924.

According to him, the 1960s marked the time of establishing a scientific base, while the 1990s were a transition to a market economy.

DATA IN MANAGEMENT

"Mongolia has made significant progress in data-driven governance," emphasizes Ariunbold, adding that the country views data as a strategic resource alongside countries like Estonia, Canada, and the USA.

He mentions collaboration with the Ministry of Digital Development and Communications since May 2024 to develop an integrated state database and metadata.

"This has created a unified ecosystem where government agencies, businesses, and citizens can access quality data for research and policy development," he says.

Since 2020, the NSO has abandoned outdated data collection methods and transitioned to more efficient registry-based methods.

"For the interim census in 2025, we combined 30 databases from 14 different government agencies, verifying data for 570,000 households through digital systems," Ariunbold recounts.

In 2026, the NSO plans to conduct a census using "mixed methods," where more than half of the data will be collected from administrative records.

"Our goal is to create an e-government ecosystem where data is used to improve citizens' lives through smarter and faster decisions," he adds.

INTEGRATING BIG DATA INTO OFFICIAL STATISTICS

Ariunbold reports that the NSO is collaborating with the UN Global Platform for integrating big data into official statistics.

"We are transitioning from an 'analog' to a 'digital' future, focusing on three aspects: human potential, technical infrastructure, and data security," he explains.

He also emphasizes that traditional agricultural data collection in Mongolia poses a serious challenge.

Currently, 17,700 enterprises and households fill out paper questionnaires nine times a year, which slows down the data processing process.

With UN support, the NSO is pioneering the use of remote sensing for automating data collection.

During the 2022 agricultural census, the NSO collected "benchmark" data for training machine learning models.

Now the NSO applies the Spectral Angle Mapper (SAM) method for classifying crops, using satellite images and multispectral data obtained from drones.

After identifying crops, the NSO uses a random forest algorithm to estimate yields. "This allows us to identify crops like wheat and potatoes solely from satellite images," he adds.

In 2024, the NSO, together with PARIS21, launched a pilot project in the Arkhangai aimag, achieving an accuracy of 81.63% in identifying livestock and 98.11% for traditional Mongolian dwellings known as gers.

USING AI FOR COUNTING SHEEP

Last year, the NSO tested an AI-based application for counting sheep and goats from video footage during the grazing season.

Ariunbold noted that while the results are promising, "we recognize the complexities; obtaining quality images and working with drones require significant costs and specialized skills."

According to him, therefore, the country continues to invest in training specialists in image processing and AI for sustainable management of these technologies.

His agency also collaborates with the ministries of food, agriculture, and light industry to develop an open-source system, which will allow for the broader application of remote sensing methods across the country.

Ariunbold emphasizes that international cooperation is a key element of Mongolia's digitalization. In 2025, Mongolia joined the board of the UN Statistical Institute for Asia and the Pacific (SIAP).

"Our chair is part of the Executive Committee of PARIS21 and the Board of Directors of the Association of Directors of National Population and Housing Censuses and Statistics of the Americas, Asia, and the Pacific (ANCSDAAP)," he adds.

"These positions allow us to shape global data standards rather than just follow them," continues Ariunbold.

"Our data is the main evidence of progress," he emphasizes, adding that "thanks to adherence to national quality standards of the UN, our international rankings have reached record levels."

Mongolia ranked 11th in the world and second in East Asia in the Open Data Inventory (ODIN) for data openness.

In 2024, the World Bank's Statistical Performance Index placed the country 47th in the world, improving its position by five points.

"These achievements confirm that the National Statistical Office of Mongolia has become a world-class institution providing high-quality and transparent data in accordance with international standards," concludes Ariunbold Shagdar.

Author: Amit Roy Choudhury

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$462M Infrastructure Investment Delivered On Time and On Budget www.montsame.mn

As the Millennium Challenge Account–Mongolia Water Compact approaches its end on March 31, 2026, it stands out as a rare achievement in large-scale infrastructure. The compact faced significant odds, yet delivered on time and within budget—while also adhering to standards of transparency, accountability, and quality.

The Water Compact represents one of the largest infrastructure investments in modern Mongolian history—and one of the most urgently needed. For a capital city where water demand is expected to soon outpace supply, the Compact offers a critical lifeline for the future of Ulaanbaatar.

Foreign technical experts and independent oversight teams, both foreign and local, played a central role in ensuring the Compact followed international standards at every stage—from design and procurement to construction and final commissioning.

Both foreign contractors and local authorities commented on how everyone part of the compact helped reinforce transparency, fairness, and accountability while providing rigorous quality control and technical assurance throughout the implementation process.

The Compact itself is a $462 million partnership—one of the largest investments—between the Government of Mongolia and the United States development agency, the Millennium Challenge Corporation. The USA contributed $350 million, while Mongolia committed $111.76 million.

The Compact includes three main components: an advanced water purification plant drawing on groundwater deposits near Biokombinat, Shuvuun, Mongolia’s first large-scale wastewater recycling plant, and a long-term sustainability program designed to build the institutional capacity needed to operate both facilities long after the Compact closes. Yet the Compact almost failed to reach this point.

Last year, the Mongolia Compact was at risk of being terminated just a year before its completion when the Trump administration put a freeze on certain foreign aid programs as part of its “America First” policy. Beginning in May 2025, most Millennium Challenge Corporation compacts worldwide were paused, and recently, a few were terminated. But Mongolia's Water Compact emerged as a notable exception.

Michael J. Petti, a vice president at Tetra Tech, a US engineering firm overseeing the Compact’s construction as Program Management Consultant (PMC), arrived in Ulaanbaatar expecting to help close it down.

“I came here initially to assist with the closeout, because we believed the Compact was going to be terminated—like many others,” Petti said.

"I was impressed by the Compact, but more by the team's dedication and professionalism,"

“But as the US government completed its global review and assessment of Compacts around the world, the Mongolia Compact remained as one they [the administration] chose to keep—probably because of how close it was to completion.”

Petti said the decision reflected the value of the infrastructure—and the people behind it. "I was impressed by the Compact, but more by the team's dedication and professionalism," he said.

The need for the investment has long been clear. While Mongolia is not globally considered a water-scarce country, studies by the World Bank show the challenge lies in availability rather than overall supply. Water resources are often not located where demand is highest or available in the right condition. That imbalance is particularly evident in Ulaanbaatar, home to over half of the population in the country. 

Delivering the Compact required navigating two major crises that might have ended it. Construction began in 2021 during the height of the COVID-19 pandemic, when borders were closed and global supply chains were severely disrupted. The Compact later faced uncertainty again when the foreign aid freeze was announced.

Luis Baires, the Compact’s Fiscal Agent Manager, USA, from Cardno Emerging Markets, said those challenges made the final outcome even more significant.

“These five years will end this month,” he said, “but there has been an enormous amount of work to reach this moment—especially with the pandemic, global conflicts, and disruptions to supply chains.” 

A key element in keeping the Compact moving was the independent oversight structure, which ensured procurement and financial management followed strict international rules.

Giorgi Tvalavadze, Procurement Agent Manager representing Charles Kendall & Partners, UK, oversaw roughly 270 contracts and coordinated contractors from 19 countries during the Compact.

All procurement decisions were accepted without formal challenge—a rare outcome for a compact of this scale.

There is a lot of human potential here That has been a decisive factor in delivering a Compact that is successful...

“I have experience working in many different countries,” Tvalavadze said. “Mongolians are perhaps the most motivated and very well-educated people I have worked with, and they have a strong sense of responsibility.”

Baires also agrees that the local team’s capability played a decisive role.

“There is a lot of human potential here,” he said. “That has been a decisive factor in delivering a Compact that is successful after five years of hard work.”

With foreign teams preparing to depart, responsibility for operating the new facilities will soon shift fully to the Mongolian side.

Odkhuu Natsag, head of the Engineering Policy Department at the Water Supply and Sewerage Authority (USUG), said local engineers began training early in the Compact, starting with theoretical instruction and moving to hands-on experience inside the facilities in 2024.

“Being physically present and working hands-on brings out the spirit of wanting to do things,” he said. Most of the engineers who will operate the facilities are young—a deliberate strategy to build long-term institutional capacity. “It will be a difficult undertaking, as we haven’t worked on such a facility before,” Odkhuu said. “But we are ready. We know there will be challenges, but we have taken many precautions to mitigate those risks.”

Looking back on the Compact’s journey through a pandemic, global supply disruptions, and a near cancellation, he pointed to one factor that kept it on track.

“They had very good management,” he said. “Without good managers, things can stall easily.”

As the projects close and the system begins operation, the Compact stands as a rare example of how strong international partnership, transparent governance, and rigorous quality oversight can deliver complex infrastructure—even under extraordinary circumstances.

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The government has decided to liquidate LLC "Erchist Mongolia," a state-owned enterprise

The tasks of LLC 'Erchist Mongolia' included representing the interests of the state as a shareholder, including:

Participation in 34 percent of the shares of state joint-stock companies in the energy sector, as well as

Acting on behalf of the government in six different companies, such as MIAT Mongolian Airlines, the State Joint-Stock Company 'Mongolian Railways', the Road Repair and Maintenance Company, Auto Impex, LLC 'Information and Communication Network', and LLC 'State Housing Corporation'.

Operational expenses were financed through loans from commercial banks, resulting in the company accumulating a debt of ₮3.5 billion, which led to serious financial difficulties.

Founded in accordance with government decrees dated January 8, 2025, the purpose of creating the company was to ensure centralized management and control over state enterprises. However, despite these intentions, it failed to fulfill its assigned tasks and created additional financial problems. In this regard, the government decided to dissolve the company to prevent further deterioration of the financial situation.

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Chinese President Xi Jinping expected to visit Mongolia in 2026 www.gogo.mn

Chinese President Xi Jinping is expected to visit Mongolia this year. It would be Xi Jinping’s first state visit to Mongolia since 2014, when he addressed a plenary session of the Parliament.

Mongolia and China marked a series of diplomatic milestones in 2024, including the 75th anniversary of diplomatic ties and the 30th anniversary of the renewed Treaty of Friendly Relations and Cooperation, milestones that have been highlighted by both governments as a basis for stepped-up high-level exchanges.

Mongolia previously sent its head of state to Beijing most recently in February 2020, when then-President Kh.Battulga met President Xi during an official visit to China.

Separately, Italy’s President Sergio Mattarella has accepted an invitation from President U.Khurelsukh and is scheduled to pay a state visit to Mongolia in 2026.

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