Millennium Challenge Account (MCA-Mongolia)
Millennium Challenge Account-Mongolia (MCA-Mongolia)
The Government of Mongolia has received a grant funding of 350 million US dollars under the Compact Agreement signed on July 27, 2018 with the USA Millennium Challenge Corporation with an aim to enable the Government to implement the Bulk Water Supply Program. Millennium Challenge Account-Mongolia, an accountable entity was established by the Government of Mongolia to oversee the implementation of the Compact.
The Bulk Water Supply Program is composed of three activities, as described below.
The Downstream Wells Activity
This activity will expand Ulaanbaatar’s bulk water supply through the development of two groundwater wellfields located downstream from the city along the banks of the Tuul River, along with the storage facilities, pumping stations and conveyance pipeline needed to deliver water to the city. The Downstream Well Activity will also support the construction of a new, state-of-the-art water purification plant to ensure treatment to the highest drinking water quality standards. The activity is expected to supply up to 50 million cubic meters of groundwater per year, adding nearly 65 percent to the city’s current water supplies.
The Wastewater Recycling Activity
This activity will reduce the demand for fresh water among Ulaanbaatar’s largest industrial facilities through reuse of the city’s wastewater. To make reuse possible, the Wastewater Recycling Activity will support the construction of a recycling plant to further treat some of the effluent from the city’s central wastewater treatment plant, along with pipelines, storage tanks and control systems to deliver this recycled wastewater to the combined heating and power plants, the city’s largest consumers of water. Recycled wastewater will reduce the need for freshwater by up to 14 million cubic meters, thereby making the freshwater available for household and industrial consumption. In this way, the activity is expected to increase the effective supply of water by nearly 18 percent. The wastewater recycling plant will be the first of its kind in Mongolia, helping to pave the path for efficient and responsible management of the scarce water resources of Ulaanbaatar.
The Water Sector Sustainability Activity
This activity will enhance the long-term sustainability of water supplies to the capital city through critical policy, legal, regulatory and institutional changes, with an emphasis on improving the operations and maintenance practices at the city’s primary water utility and achieving full cost recovery. This activity will help to ensure that the benefits of the Compact are sustained over the long term.