The United States Government has completed its Foreign Assistance Review and decided to maintain support for the Water Compact, a partnership between the U.S. Millennium Challenge Corporation (MCC) and the Government of Mongolia. The decision secures ongoing funding for the initiative, which aims to boost economic growth and private enterprise in Mongolia.
The Water Compact is funded by $350 million from the United States, alongside an additional $112 million from the Mongolian government. This joint investment marks a significant element of strategic cooperation between both countries.
American companies such as Tetra Tech, Inc. and AECOM are involved in designing and overseeing major construction projects under the compact. MCC has worked with U.S. firms on contracts totaling over $1.4 billion across its programs, highlighting American involvement in global infrastructure development.
The compact focuses on addressing Mongolia’s need for a stable water supply, supporting long-term economic growth and regional stability. It also aims to reinforce Mongolia’s position as a reliable trade partner.
During a recent site visit, U.S. Ambassador to Mongolia Richard Buangan described the project as “one of the largest public works projects in the Indo – Pacific region, and a testament of the commitment and engagement of the United States in Mongolia.”
“This comprehensive program supports long-term water security for the residents and businesses of Ulaanbaatar—home to nearly half of the country’s population—and advances Mongolia’s development toward greater self-reliance and private sector investment. This high-impact investment in infrastructure helps position Mongolia as a reliable trade and business partner,” said Buangan.
When finished, the project will improve water security for more than 1.5 million people living in Ulaanbaatar. The continued funding demonstrates U.S. support for initiatives that provide measurable results aligned with foreign policy objectives.
Both nations continue to work together on solutions aimed at economic development and responsible resource management.