Effective governance assistance in Mongolia


With its wealth of natural resources, Mongolia has the potential for major economic expansion over the coming decade. However, it faces a range of challenges in harnessing this resource wealth for sustainable and equitable development. These challenges include: high levels of poverty (currently around 27 per cent); rapidly rising living costs for the poor owing to rising inflation; environmental degradation; and the narrowing of the country’s economic base. The Mongolian Government has identified key areas of need as: improved mining-sector governance; human-resource development to provide qualified employees; and a more inclusive growth model.

Beginning in 2014–15, the Extractives Program brings together existing Australian-funded extractives activities, such as a groundwater management project ($5 million) and a minerals sector vocational training project ($4 million) and provides some additional assistance to improve the management of resources by the Government of Mongolia.

Related initiatives

Australia-Mongolia Extractives Program

$12 million (total including pre-existing activities), 2014–2018

The extractives sector will be a focus of Australia’s development cooperation with Mongolia in the years ahead. The Australia-Mongolia Extractives Program (AMEP) is the main vehicle for our engagement. The program uses Australian and global expertise to assist the sustainable development of Mongolia’s mining sector by assisting Mongolian Government agencies to improve regulation and governance.

Related documents*

Name of document Year published Type

Australia Mongolia Extractives Program Investment Design Document


Design document

Mongolia Vocational Training in the Minerals Resource Sector

$4 million, 2014–2018

Australia contributes funding to the GIZ (German aid agency) Cooperative Vocational Training in the Mineral Resource Sector Project. The project provides institutional support to the Dalanzadgad TVET (Technical Vocational Education and Training) Centre in South Gobi (Omnogovi) province. Our investment builds on GIZ’s model, piloting new approaches to improve the Centre’s capacity to provide demand-driven training (based on industry needs) to the South Gobi community. This will help ensure the local community is better equipped to gain employment in the mining industry and other related industries. The investment will also provide lessons at the national level for scale-up in other areas of the country affected by mining.

Name of document Year published Type

Vocational Training in the Mineral Resource Sector: Project document


Project document

Cooperative Vocational Training in the Mineral Resource Sector


Fact sheet

Related links

GIZ – Cooperative Vocational Training in the Mineral Resource Sector

Groundwater Management in Southern Mongolia

$5 million, 2012–2019

Australia provides support to strengthen groundwater management in Mongolia’s south through a partnership with the World Bank. Delivered as part of the World Bank’s Mining Infrastructure Investment Support Project, the investment strengthens the capacity of Mongolian authorities to manage non-renewable groundwater resources. This will be achieved by piloting new institutional structures for groundwater management in three provincial capitals and by strengthening the Mongolian Water Authority’s ability to monitor groundwater.

Access to water is the linchpin of Mongolia’s long-term economic development. Without access to large, reliable quantities of water, mining operations and large-scale infrastructure in mining areas such as the southern Gobi region will not be possible.

Related documents*

Name of document Year published Type

Groundwater Management in Southern Mongolia: concept note


Concept note

Groundwater Management in Southern Mongolia Quality at Entry Report


Quality at entry report

Groundwater Management in Southern Mongolia Project Design Document


Project design document

Related links

World Bank Mongolia – Mining Infrastructure Investment Support Project



* The Department of Foreign Affairs and Trade (DFAT) is committed to high standards of transparency and accountability in the management of the Australian aid program through publishing information on our website, including policies, plans, results, evaluations and research. Our practice is to publish documents after the partner government and any other partners directly involved in the delivery of the initiative have been consulted. Not all material published on this site is created by the Australian aid program and therefore not all documents reflect our views. In limited circumstances some information may be withheld for reasons including privacy and commercial sensitivity.



Last Updated: 7 October 2016