The Asian Development Bank (ADB) funded transaction advisory services to support the Government of Mongolia in carrying out recommendations for institutional reforms in the urban services sector. As part of the reforms, the Government solicited private sector operating companies to provide water and sanitation service in the Omnogovi and Dornogovi Aimags, and established a national independent regulator for water and sanitation services. Improved provision of urban services is particularly important in Omnogovi and Dornogovi because the population in these aimags is expected to double within the next ten years as a result of increased economic activity from mining and cross-border trade with the People’s Republic of China. Existing infrastructure is inadequate to serve even current populations.