Millennium Challenge Account (MCA Mongolia)
In October 2007 an agreement was signed between the Mongolian and US governments for a five years, nearly USD 285 million ‘Compact’ for Mongolia to reduce poverty through economic growth, and targeting four sectors of society: property rights, vocational education, health, Road, and energy efficiency. The Compact Program is a US Government grant.
The Program is expected to have a significant direct impact on individuals living in poverty, and significant indirect and ancillary benefits by creating new economic opportunities and increasing the capacity of individuals and groups to participate fully in and benefit from economic growth.
The Parliament of Mongolia approved the Law on the ratification of the Compact Agreement and established a Board of Directors and the Government issued a resolution on MCA Mongolia establishment of MCA-Mongolia, an independent legal entity empowered to carry out the government’s obligations and to implement the program under the Compact Agreement and Program Implementation Agreement, responsible for the implementing the project within the Compact and for overseeing its Millennium Challenge Account (MCA).
The Government shall ensure that MCA-M take all appropriate actions to implement Program, including the performance of the rights and responsibilities designated to it by the government pursuant to the Compact and Program Implementation Agreement.
Property Rights Project
The inability of Mongolians to easily register and obtain clear titles to their land poses a serious obstacle to the Government of Mongolia’s promotion of real property ownership. The Property Rights Project will help Mongolian citizens obtain secure, long-term rights to the suburban and peri-urban land (the small plots of land located in the crowded suburbs around Ulaanbaatar and other cities) they occupy, and promote investments in home improvement, business activities and agricultural productivity. In a banking sector marked by high interest spreads, the Compact will encourage financial institutions to reduce the risk premium on credit by providing their customers with a more secure source of collateral and encourage the emergence of new mortgage-related and other asset-dependent financial products. The Property Rights Project will improve the accuracy, accessibility and efficiency of the formal system for recognizing and transferring land rights and will facilitate issuance of up to 75,000 privatized and registered land titles to suburban landholders.
Peri-Urban Rangeland Project
The Peri-Urban Land Leasing Activity of the Property Rights Project (Peri-Urban Activity) will introduce a system of leasing peri-urban pasture lands to herder groups, and provide key infrastructure and training so that they can improve livestock management, productivity and, ultimately, farm income. MCC funding has provided a budget of 23 million US dollars for the Property Rights Project of which 5.9 million has been allocated to the Peri-Urban Rangeland project component that will be used to identify and lease approximately 300 serviced tracts of pasture land to herder groups in the peri-urban areas of Darkhan, Erdenet, and Ulaanbaatar.
Vocational and Education Project
The Technical and Vocational Education and Training Project is designed to address the above problem, specifically seeking to increase the wages of poor Mongolians by improving their technical skills and productivity to meet labor market demands in key industries including, among others, construction, mining, electronics, mechanics, and transport. The total budget of the project is 47.6 million USD.
Mongolia has rapidly increasing rates of NCDIs, including cardiovascular disease, diabetes, cancers and injury-induced trauma. Mongolia’s mortality and morbidity rates from cardiovascular disease and cancers greatly exceed those of Western countries and now represent the major cause of death and disability, particularly in younger age groups (i.e., 35 to 55 years of age). Trauma response and emergency medicine are under-developed. At the same time, current NCDI programs in Mongolia are treatment based, with inadequate attention to cost-effective NCDI prevention, early detection, where relevant, and disease management. This has a negative impact on the productivity of the labor force, which is disproportionately affected by NCDIs, and is a significant drain on scarce public health investments. The Health Project focuses on extending the productive years and productivity of the labor force by reducing the incidence and severity of NCDIs such as cancer, cardiovascular disease, diabetes and preventable accidents and trauma, and reducing and refocusing total health expenditure.
The objective of the Energy and Environment Project is to reduce urban air pollution in Ulaanbaatar by increasing the adoption of energy efficient products and homes in the ger districts, and supporting the development of renewable energy. Three second order objectives are: (1) savings from reduced fuel consumption; (2) savings from reduced health costs; and (3) savings from increased productivity.
The project objectives are to establish full connection between north and south border of Mongolia; increase transit freight turnover, create favorable and safe conditions for transportation and travel, and strengthen capacity of personnel in road sector.See more