MCC COMPACT UNDER PREPARATION FOR APPROVAL IN 2018

Ulaanbaatar /MONTSAME/ A delegation from the U.S. government’s Millennium Challenge Corporation (MCC) visited Mongolia on May 08-09 and discussed with Mongolian relevant officials on progress in developing an MCC compact with the government of Mongolia to prepare for approval in 2018. During their visit, the U.S. delegation led by Fatema Z. Sumar, Regional Deputy Vice President for Europe, Asia, the Pacific, and Latin America, met with senior Mongolian government officials – including Minister of Foreign Affairs Ts.Munkh-Orgil, Minister of Environment and Tourism D.Oyunkhorol, Deputy Minister of Finance Kh.Bulgantuya, and Ulaanbaatar City Mayor S. Batbold. The meetings focused on priority areas for investment in the water sector, including needed policy and institutional reforms as Ulaanbaatar, the capital of Mongolia, faces imminent water supply and water treatment shortages, and demand for water is expected to exceed the supply of safe water by 2021. “We are pleased to be back in Mongolia as we continue our work with the government to design an investment program that will improve sources and availability of water over the long term,” Ms. Sumar said. “Our work together is strengthening the relationship between Mongolia and the United States around our shared goal of building sustainable institutions that can deliver much-needed services to the Mongolian people.” MCC and the Government of Mongolia signed a five-year, $284.9 million compact in October 2007, designed to increase the country’s economic growth and reduce poverty, by investing in five project areas: property rights; health; vocational education; energy and environment; and transportation. The MCC Board of Directors selected Mongolia as eligible to develop a second compact in 2014. Mongolian and MCC team together conducted a diagnostic analysis to identify the country’s economy and constraints to growth and introduced the analysis last August. The Constraints to Growth Analysis allows to determine compact activities most likely to contribute to sustainable, poverty-reducing growth. Compact development includes a consultative process, engaging civil society and the private sector. B.Ooluun