Under the Millennium Challenge Compact made between the Government of Mongolia and the U.S. Millennium Challenge Corporation, MAPA Group of Turkey has been awarded as the General Contractor of “Construction Works of an Advanced Water Purification Plant (AWPP) and SCADA Controls” (the project) in Mongolia. Golomt Bank in cooperation with T.C. Ziraat Bankasi A.S. has successfully issued Green Guarantees on behalf of the General Contractor.
Green guarantee is a type of bank guarantee that local and international banks issue at the lowest financing cost to support environmentally friendly projects that reduce greenhouse gas emission. Golomt Bank has issued green guarantees worth over USD 30 million so far in 2021.
Although the population of Ulaanbaatar has increased dramatically, the water supply remains the same, creating the conditions for a severe water crisis. The Millennium Challenge Compact will build the critical infrastructure necessary to sustain this limited natural resource, and implement a comprehensive wastewater-recycling program over the next five years. With the completion of the project, up to 140,000 cubic meters per day of safe and high-quality drinking water and up to 50 million cubic meters per year will be delivered from the two new groundwater wellfields in Biokombinat and Shuvuun areas to the central water supply network of Ulaanbaatar. This will support long-term and sustainable water sector policies and increase the city’s water supply production capacity by more than 80 percent.
Golomt Bank continues to seek opportunities to support social and environmentally impactful projects and focuses on growing its green financing opportunities. The project is a prime example of the Bank’s commitment to its green objectives and will be of great importance to the society and economy of Mongolia. As part of its sustainable development policy, Golomt Bank employs sustainable development goals and mission at all levels of the Bank’s operations, in addition to providing green loan financings.
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