Readout from MCC Board of Directors June Meeting
For Immediate Release
June 19, 2018
WASHINGTON, D.C., June 19, 2018 – At its quarterly meeting, the Millennium Challenge Corporation (MCC) Board of Directors addressed a proposed MCC compact with Mongolia. The Board authorized the $350 million Mongolia Water Compact while requesting ongoing communication as the compact moves toward implementation.
In less than three decades, the population of Mongolia’s capital city of Ulaanbaatar has nearly tripled in size. If the sustainable supply of water is not increased, MCC estimates that the city’s demand for water may exceed the current supply as soon as next year, hindering economic growth and quality of life.
The investment aims to provide a sustainable supply of water, stemming the impact of an impending water crisis and supporting private sector-led economic growth. By strengthening the economic ties between the countries, MCC’s investment enables a more prosperous Mongolia which supports U.S. national security and increases access to developing markets.
MCC’s compact will expand the available water supply for people and businesses through the Water Supply Project, which supports:
- The construction of new groundwater wells downstream from Ulaanbaatar and introduces a state-of-the-art water purification plant;
- The construction of a new freshwater recycling plant and pipelines to provide high-quality treated freshwater;
- Policy reforms, capacity building, and technical assistance to improve the long-term sustainability of Ulaanbaatar’s water supply.
Together, these investments will increase the supply of water to Ulaanbaatar by more than 80 percent, putting the city on a better footing to sustain its future economic growth. In addition to the $350 million USD from MCC, the Government of Mongolia will also contribute $111.8 million USD to support the investment, which is among the largest country contributions in MCC’s history.
New Regional Compact Authority
At the meeting, the Board of Directors also received an overview on MCC’s new authority to engage in regional compacts concurrent with bilateral compacts.
On April 23, 2018, President Trump signed into law the AGOA and MCA Modernization Act (H.R. 3445) permitting MCC to make cross-border, concurrent regional investments to promote economic growth, maximize poverty reduction, and facilitate trade and investment. The Board of Directors received an update on the new authority and discussed the path forward for evaluating, selecting, and developing regional investments.
This new authority equips MCC to become an even more valuable strategic tool for the U.S. to promote trade and investment, creating new opportunities for the private sector while increasing stability and security around the world.
The Millennium Challenge Corporation is an independent U.S. Government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to poor countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights. Learn more about MCC at www.mcc.gov.