Water pricing in Mongolia (WWDR2, 2006)
In 2004, 40% of the population of Mongolia lacked access to safe water resources and only 25% of the population had adequate access to sanitation facilities, mainly because of poverty. Almost half of the poor live in urban areas and one-quarter of the urban poor is located in the capital city Ulan Bator.
Although the Mongolian Government gives priority to the interests and water needs of the poor, weak regulations have led to a pro-industry and pro-wealthy pricing scheme. The charges applied to rural consumers for 1,000 litres are 84 times higher than what industries and mining companies pay. As a result, those with the lowest income pay the most and consume the least: the decentralization of water tariffs has promoted economic growth by providing low-costs water to business and industry but disregarded the needs of the poor. The government of Mongolia is committed to implementing reforms in management of water resources and protection of environment.
- Read the summary case study [bookmark pointing to full WWDR1 - PDF - 16 MB]