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.

Published Date:2026-04-02