Regional Deputy Vice President for Europe, Asia, Pacific and Latin American of Millennium Challenge Corporation’s (MMC) Department of Compact Organizations, Ms. Fatema Z. Sumar has informed the Mongolia Minister of Foreign Affairs Mr. Ts. Munkh- Orgil that MCC’s Board of Directors have decided to include Mongolia in a list of countries eligible to sign the Second Compact Agreement.
Mongolia’s first MCC compact, a five-year, $285 million infusion of targeted development assistance from the United States was concluded on September 17, 2013.
The MMC’s second compact agreement will be focused on creating comprehensive ways to create sustainable and suitable solutions for Mongolia’s long-term development.
The MCC will cooperate with Mongolia to improve sanitation and water supply facilities serving the ger districts of Ulaanbaatar. The Board of directors of MCC believes that maintaining efforts to combat corruption in Mongolia will yield improvements for the economy. The preparations for the signing of the Second compact are underway and it expects to sign in 2017.
This is seen as an important development for Mongolia, as securing clean water and sanitation is a key element to attract Foreign Direct Investment. It is expected that new water and sanitation facilities will help to bring in new investments and help to diversify the Mongolian economy.