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[Ulaanbaatar city, April 5, 2021] – The Government of Mongolia and the U.S Millennium Challenge Corporation celebrated the entry into force of the $350 million Mongolia Water Compact and the official start of the five-year timeline for the program implementation. The celebration ceremony to announce the Compact entry into force was held on April 5, 2021 in the “Zuvshiltsul Hall” of the Ministry of Foreign Affairs of Mongolia under the strict rules and regulations issued by the Government and the State Emergency Commission due to the Covid-19 pandemic situation.
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"We are delighted to announce the entry-into-force of the Mongolia Water Compact, which aims at enhancing the water supply of Ulaanbaatar and ensuring sustainable economic development. The entry-into-force today marks the official start of a five-year timeline to implement the Compact Program," said B. Battsetseg, Minister of Foreign Affairs and Chairperson of the Board of Directors of MCA-Mongolia in her welcome speech at the ceremony. She further emphasized, “Over the past two years, we have worked to successfully meet the Conditions Precedent to the Compact entry-into-force, while undertaking necessary preparations for projects and activities to be funded by the Compact. Despite numerous challenges posed by the global pandemic, the Government of Mongolia was able to fulfill its responsibilities and enable the timely commencement of the Compact Program, as a result of efficient risk assessment practices and a focus on operational continuity.”
She also congratulated and extended sincere gratitude to all the stakeholders, including MCUD, MET, Ministry of Finance, Ministry of Energy and other ministries, Mayor’s Office of Ulaanbaatar City, Governor’s Office of the Capital City and the other relevant agencies and public utility organizations, including Water Services Regulatory Authority, Water Agency, Water Supply and Sewerage Authority, Ulaanbaatar Housing and Public Utilities Authority and everyone who worked together and provided support to reach this important milestone.
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“The $350 million grant to the water supply program is one of the largest single commitments the U.S. has made in the Indo-Pacific. It will bring new jobs over its five-year lifespan and increase Ulaanbaatar’s water supply by 80 percent” noted Ambassador Extraordinary and Plenipotentiary from the United States of America to Mongolia Michael Klecheski.
Photo from "MPA" agency
Photo from "MPA" agency
"It is nice to be with you virtually to recognize this important moment in the partnership between the United States and Mongolia,” said Mahmoud Bah, the Acting Chief Executive Officer of the United States Millennium Challenge Corporation, in his virtual greetings. “We are committed to ensuring this compact is a success while MCC funding is only available for five years. It creates a pathway for the government to build on these investments and put Ulaanbaatar on a better footing to sustain its future private sector-led growth.”
At the end of the ceremony, all the distinguished guests signed on the calligraphy statement on which it is written that “Water sustains life, trust builds friendship” in traditional Mongolian script for the entry-into-force of the Mongolia Water Compact.
Photo from "MPA" agency
Photo from "MPA" agency
Photo from "MPA" agency
Photo from "MPA" agency
Photo from "MPA" agency
Photo from "MPA" agency
Photo from "MPA" agency
“A period of heightened responsibility is ahead of us to undertake the physical construction of two new water infrastructures in Ulaanbaatar,” noted E. Sodontogos, CEO of MCA-Mongolia told the media after the event. “We have to complete the projects within five years. In order to achieve that, MCA-Mongolia must always consider two critical factors: Schedule and Quality. Unlike other Compact countries, the construction season in Mongolia is substantially short. Therefore, we must plan and implement our work with great precision to race against time. Quality is of the essence. To ensure quality, contractors with both dedication and experience have to be selected to anticipate, mitigate, and manage the risks related to the Covid-19 and others. We are confident that we will overcome potential challenges and successfully implement the Mongolia Water Compact through joint effort and mutual understanding of our stakeholders, including the Government of Mongolia, the Capital City authority, the private sector, the academia and the general public.”
The Government of Mongolia and the U.S. Millennium Challenge Corporation signed the $350 million Mongolia Water Compact on July 27, 2018. The Compact is funding major infrastructure projects, including the construction of new wellfields and two large plants - an Advanced Water Purification Plant and Wastewater Recycling Plant which will be the first of their kind in Mongolia. In addition, the Compact will invest in policy measures to create a financially and environmentally sustainable future for the water sector of Ulaanbaatar. By 2026, the water system in Ulaanbaatar will have been expanded to deliver 80% more drinking water, allowing for the city’s future expansion.