Ulaanbaatar city, August 25, 2022 – The Groundbreaking ceremony for the Water Recycling Plant, to be built under the MCC-Mongolia Water Compact was held on August 25, 2022 at the project site right next to the new Central Wastewater Treatment Plant, which is currently under construction.

The President of Mongolia Khurelsukh Ukhnaa, Millennium Challenge Corporation’s (MCC) Acting Vice President of Compact Operations Cameron Alford and the U.S. Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink joined the ceremony to break the project ground. U.S Ambassador Extraordinary and Plenipotentiary to Mongolia Michael Klecheski, Director for the Korean Peninsula and Mongolia, National Security Council Adam Farrar, Director for the Korean Peninsula and Mongolia, Member of Parliament Tsogtbaatar Damdin, Members of Parliament elected from Ulaanbaatar city, Members of Parliament and Budget Standing Committee, Minister for Foreign Affairs of Mongolia and Chairperson of the Board of MCA-Mongolia Battsetseg Batmunkh, Minister of Construction and Urban Development Mukhbaatar Begzjav, Minister for Energy Tavinbekh Nansal and advisors to the President of Mongolia, other representatives of the United States State Department, Millennium Challenge Corporation, members of the Board of Directors of the MCA-Mongolia, heads and representatives from the cooperating agencies and organizations were present.

“Today, we are here to witness the start of a major infrastructure development that will be marked in the history of Ulaanbaatar city - the construction of the Water Recycling Plant, the first of its kind in Mongolia,” said President of Mongolia Khurelsukh Ukhnaa during his opening remarks. “This time last year, we broke the ground for the Mongolian first Advanced Water Purification Plant, to be built under the Mongolia Water Compact signed between the Government of Mongolia and U.S Millennium Challenge Corporation, at the eastern valley of the sacred Songinokhairkhan Mountain starting the construction work. Today, right here, where we have gathered, one of the two large plants – Water Recycling Plant (WRP) will be built”.

He also highlighted that the construction of the plant will open a new page in the history of the water industry in Mongolia, “The plant will bring us a great opportunity to save fresh underground water by treating the wastewater that we have been talking about for many years and reusing it in the industrial sector. In other words, Mongolians will now consciously give “rebirth” of used water without waiting for mother earth’s natural rebirth of water. We are learning a new culture and attitude to live more environment-friendly and responsible, and becoming more resilient to the impacts of climate change. I am happy to say here that the goal of the “Billion Tree” national movement, which we initiated and announced from the platform of the United Nations, is in line with the Compact objectives,” he said. In the end, he also emphasized the importance of the active participation and close coordination and cooperation of all relevant government agencies and professional associations in the smooth and successful implementation of the Compact projects.

"I am proud to be here in this beautiful city with President Khurelsukh to usher in the next chapter in the partnership between the United States and Mongolia,” said MCC Acting Vice President of Compact Operations Cameron Alford. “Ulaanbaatar is one of the world's most water-scarce cities, and extremely vulnerable to the impacts of climate change. This plant will help contribute to providing a safe and sustainable supply of water to households and businesses, while also strengthening the capital city’s climate resilience and water security."  

“The Mongolia Water Compact truly symbolizes the strong partnership between our two nations, a $462 million investment in the future” said the U.S. Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink.

President of Mongolia U.Khurelsukh, MCC Acting Vice President of Compact Operations Cameron Alford, U.S. Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink, U.S. Ambassador to Mongolia Michael Klecheski, Minister of Foreign Affairs and Chairperson of the Board of Directors of MCA-Mongolia B. Battsetseg,  Minister of Construction and Urban Development B.Munkhbaatar, Minister for Energy N.Tavinbekh and President of “MCS Group” J.Od formally broke the ground at the WRP project site marking the beginning of the construction.

MCS Property LLC was chosen as the contractor of the Water Recycling Plant project, with two French world-renowned, industry-leading companies, “Egis Water and Maritime” and “Veolia Water Technologies”, as the subcontractors.    

MCS Property LLC is one of the leading construction engineering, and project management company in Mongolia, having successfully delivered more than 60 projects, including the Shangri-La Complex, Coca-Cola factory plant, Sky Resort ski and golf resort, Intermed hospital, aircraft maintenance hangar at the new international airport, Oyu Tolgoi Underground critical facilities’ construction, and the Ukhaa Khudag Mining developments.

Mr. Davaa-Ochir.B, the CEO of MCS Property LLC remarked that “MCS Property LLC being selected as the EPC contractor from the international contenders, based on the high expectations and standards of MCA, to build and design the WRP project is a testament that Mongolian companies are now one step closer to becoming globally competent.”

Construction of the Water Recycling Plant will be completed in the first quarter of 2025 and commissioned in the second quarter of 2025, after the completion of testing and adjustment. once the Wastewater Recycling Plant is in full operation, it will treat 50,000 cubic meters/day of effluent from the New Central Wastewater Treatment Plant and deliver this recycled water to the Combined Heat and Power Plants #3 and #4, the city’s largest consumers of water, and emphasized that it will reduce the need for freshwater by up to 18 million cubic meters/ year, which is enough to supply 50% (102,247 households living in apartment buildings) of annual water consumption of all households living in apartment buildings in UB City in 2021, thereby will save the precious underground water resource and making it available for the water supply of UB city.

The project will also be the first experience of reusing recycled water in energy sector of Mongolia and will help to pave the path for efficient and responsible management of the limited water resources of Ulaanbaatar city.

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This $462 million project is a partnership between the American and Mongolian people made possible by $350m in MCC grant funding and the $111.76m contribution from the Government of Mongolia which demonstrates their commitment to working together to achieve economic growth and poverty reduction in Ulaanbaatar. The Mongolia Water 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.