ADB was selected to prepare Tender Bid References that meets with the international standard and requirement and conclude the tender bids of Ulaanbaatar Power Plant V project. As the result, the agreement was signed by Minister D.Zorigt, Chairman D.Sugar from the State Property Committee and Mr. Shane Rosenthal, Officer-in-Charge and Principal Portfolio Management Specialist of ADB.
Ulaanbaatar is considered as the coldest capital city in the world, and its electricity usage increased by 5-6% annually, due to the migration from countryside to the city. Therefore, Power Plant V with capacity of 450 megawatt production is required to be built through the private and public partnership.
During the signing ceremony of the agreement, Mr. Shane Rosenthal said that it is really in demand to have the new Power Plant in order to support the economy of Mongolia and decrease air pollution in Ulaanbaatar City. “If it is built through the funding and know-how of private and public partnership, its effect will not be limited only by Mongolia, but to the energy sector in Asia and Pacific region also” he added.
ADB funded important legal projects in forming legal environment and its related regulations supporting the private and public partnership in Mongolia and Law on Concession. Besides, it funded the feasibility study of the Power Plant V and its initiation. Shortly after the signing ceremony, Minister D.Zorigt answered to questions from media.
Q: How much fund will be required for the plant and when t is expected to be built?
D.Zorigt: Power Plant V construction will have two phases; the first phase will be completed by 2015, providing all new demands in electricity with building capacity of 450 megawatt and the second phase will be expected to complete in 2020, upgrading its capacity up to 800 megawatt production level. The first phase of development will require US$600 million and the reason of selecting ADB as consultant, it will pay attention of granting soft loan after tender selection.
Q: When the tender selection will be made?
D.Zorigt: We have intention of completing selection procedure within this year. The State Property Committee will play vital role in this part.