A 36-year promise, 3 years to prove it www.ubpost.mn

It is one of the longest-running sagas in Mongolian infrastructure history. In 1990, as the democratic revolution swept away the Soviet-era order and left the country’s energy sector dangerously exposed, then Prime Minister D.Byambasuren stood up and said what everyone already knew that Ulaanbaatar needed a thermal power plant (TPP) No. 5. That was 36 years ago. What followed was a masterclass in institutional inertia, feasibility studies that went nowhere, foundation stones in Baganuur, land designations in Uliastai and enough ministerial promises to wallpaper the State Palace. This year, the Government says it is different. And this time, at least, the bulldozers have arrived.

The long-awaited TPP No. 5 has been officially greenlit for construction on 15.3 hectares of land in Bayangol District’s 20th khoroo, on the ash storage site of the existing TPP No. 2. The site was cleared last week. If the timeline holds, the plant will be commissioned by the third quarter of 2028, giving Mongolia a facility capable of generating 300 megawatts of electricity and 340 Gcal/h of heat, which is enough to power 100,000 households and businesses, and provide a heating source for an additional 40,000 to 50,000 homes in Ulaanbaatar’s chronically underserved northwestern districts, including Tavan Shar, the 21st khoroo, Khilchin and Bayankhoshuu.

The price tag is 600 million USD, or approximately 2.1 trillion MNT at the current exchange rate. The financing structure is a public-private partnership - 20 percent from the capital city’s budget and 80 percent from the private sector. Cambodia’s Mitime International was selected in 2025 as the private partner and project implementer, and construction is now officially underway with the 2028 target locked in. 

On paper, it is an impressive package. In practice, the numbers raise more questions than they answer. The Ulaanbaatar city administration’s 20 percent share, just over 400 billion MNT, is itself a formidable sum for a municipal budget to absorb. Last month, the Ulaanbaatar Mayor’s Office issued a three-year “Niislel” bond at 14 percent interest, raising 200 billion MNT. That covers roughly half of the city’s committed share, and barely 10 percent of the plant's total cost. Where the remaining funds will come from - and precisely what financial stake Mitime International is putting on the table - remains, for now, unanswered.

Both the Ministry of Energy and the Ulaanbaatar Mayor’s Office declined to respond when asked directly about the outstanding financing. The Energy Regulatory Commission, for its part, offered a statement that shed little additional light, saying “The Ulaanbaatar City Administration is responsible for the entire power plant project. According to the information we have, the remaining portion of the project financing will be provided by Mitime International through a public-private partnership and put into operation.”

It is, to put it charitably, a confidence-inspiring project with a less than confidence-inspiring financial disclosure. A 600 million USD plant serving a city of nearly two million people deserves a clearer accounting of who is paying for what and when. Ulaanbaatar has been waiting 36 years for this power plant. It can wait a few more weeks for a straight answer.

In addition, a feasibility study and environmental impact assessment have been completed, with the project’s potential effects on the surrounding area, such as ecosystem, soil, water resources, air quality and flora and fauna, all accounted for. Officials say TPP No. 5 will be built with environmental safeguards that set it apart from its ageing predecessors. In particular, ash from the plant will either be repurposed as a building material or disposed of through dry storage rather than wet dumping, and a flue gas filtration system is designed to capture up to 99.9 percent of volatile ash before it reaches the atmosphere. The plant is also expected to reduce the nation’s dependence on energy imports and improve the overall stability and flexibility of the national energy system. During construction, 1,600 jobs will be created, and once operational, approximately 370 permanent positions will follow.

On its own terms, the project makes a compelling case. A city that chokes on coal smoke every winter, that blacks out under peak load, and that has patched and re-patched the same Soviet-era infrastructure for three and a half decades, clearly needs this plant. The question is not whether to build it, but whether Mongolia can actually see it through.

The financing gap is the elephant in the room. With capital expenditure exceeding 2.1 trillion MNT, TPP No. 5 ranks among the largest infrastructure projects in the country’s history. Even under the rosiest scenario, where Mitime International delivers its committed share in full and on time, a significant financing hole remains. If that hole cannot be plugged, officials and analysts have outlined what comes next: a scramble for loans from the Development Bank or foreign creditors, attempts to negotiate a concession agreement, a reduction in the plant’s designed capacity to cut costs, phased construction that stretches the timeline, or some combination of all four. None of these are painless options. And each day the financing remains unresolved, the bill grows because Mongolia manufactures almost nothing. Every piece of equipment, every component, every nail, as one analyst put it bluntly, will have to be purchased from abroad.

Economist and investment consultant Ch.Batsaikhan did not mince words. “In the 2010s, companies from South Korea, Japan and China were all interested in building TPP No. 5. We were unable to make the right decision at the time and lost the interest of well-funded, experienced partners. We could not build it ourselves, and we could not close a deal with foreign companies. That has been going on for years, and a large-scale project that requires serious capital, hamstrung by policy instability,” he said. He warned that the 2.1 trillion MNT figure currently being cited is almost certainly a floor, not a ceiling. “If this stretches to four or five years instead of three, costs will increase by 30 to 50 percent. Exchange rate movements and freight costs alone will see to that.”

His sharpest warning, however, was directed at the opacity surrounding Mitime International’s role. “If the Cambodian company that won the tender has not signed a clear investment agreement and has not stated exactly how much it is responsible for, it should be required to put its money on the table immediately,” Ch.Batsaikhan said. Without that clarity, he argued, the risk of the project being quietly frozen is very real as has happened before. “There is a bitter lesson from the oil refinery. That project has been limping along on borrowed money for nearly 10 years. The Government and the capital need to sell assets if necessary, stop non-essential spending, and direct everything toward finishing this plant on time,” he expressed.

‘Energy war will occur’  

Energy engineer G.Argabileg puts the trajectory in a global context, and the picture is sobering. “Energy consumption will increase not only in our country but around the world. The use of AI, data centers and mining activities has already tripled globally compared to 10 years ago. All of these eat energy. In the next decade, data centers and AI alone are expected to grow three to four times, and the energy demand to run them will increase four to five times. That means energy war will occur,” he shared.   

His prescription is equally direct. “We need to build power plants before we build roads and bridges and replace curbs,” G.Argabileg said. He is careful to argue that TPP No. 5 alone is not the answer. Mongolia needs to develop its energy industry across three parallel tracks simultaneously.

The first is exactly what TPP No. 5 represents: a combined heat and power plant capable of handling peak loads at temperatures below minus 30 degrees Celsius. It is a low-profit, long-term investment, but it is the backbone of a reliable system and the kind of unglamorous infrastructure that keeps the lights on when everything else fails. The second track is renewable energy paired with battery storage. Solar and wind can generate electricity cheaply during daylight hours, and stored overnight, that power can serve evening demand. Mining companies could purchase directly from such facilities, creating a sustainable revenue stream that makes the model commercially viable. The third track is the one that tends to be overlooked entirely, which is the transmission network. “Our problem is not just a single source. It also has weak transmission and distribution capacity. A country can build all the power plants it wants, but if the grid cannot move electricity from where it is generated to where it is needed, those plants are stranded assets. High-voltage lines, substations and smart grid management are not optional extras, they are the connective tissue without which everything else fails. If we do not invest in these, we will not be able to build new plants, establish a renewable energy center, or make a profit as a whole. It will fail,” he underlined. 

Against that backdrop, Ulaanbaatar Mayor Kh.Nyambaatar has been characteristically ebullient about TPP No. 5’s launch. “I got ‘hated’ by having the courage to solve the pressing problems of the capital, launching mega projects and issuing bonds. I will resign out of envy for doing so much work,” he said. It is the kind of line that lands well at a press conference. Whether it ages as well as the plant itself remains to be seen.

Because Mongolia has formed exactly this pattern. Mega projects announced with fanfare, construction started with ceremony and then quietly, incrementally frozen, underfunded, delayed, or abandoned as political winds shift and financing gaps widen. TPP No. 5 has already survived 36 years of that cycle. The site is cleared. The bonds are issued. The excavators are running.

And here, finally, is a detail worth sitting with: according to sources with knowledge of the agreement, Mitime International did not enter this project on the understanding that the Mongolian side would foot the bill and hand it a construction contract. The Cambodian company reportedly committed to financing, building and delivering the plant itself, handing over the keys upon commissioning, and will then remain as operator, selling power and heat to recover its investment over time. The model is DBFOM: Design, Build, Finance, Operate, Maintain. If that arrangement holds, it is a meaningfully different proposition from the half-baked public financing structures that have sunk previous attempts. If it holds. Mongolia has heard that word before.

India Exim Bank and Mongolia’s Golomt Bank sign agreement www.bankingfrontiers.com

Export-Import Bank of India (India Exim Bank) has signed an Issuing Bank Agreement with Golomt Bank, Mongolia, under India Exim Bank’s Trade Assistance Program (TAP), for supporting trade transactions. The agreement was signed by Tarun Sharma, Dy Managing Director, India Exim Bank, and A. Odonbaatar, CEO, Golomt Bank on the sidelines of the Asian Development Bank (ADB) Annual Meetings at Samarkand, Uzbekistan.

Under TAP, India Exim Bank provides credit enhancement to trade instruments, thereby augmenting the capacity of commercial banks/financial institutions to undertake cross-border trade transactions involving markets where trade lines are constrained, or where the potential has not been harnessed. As per Government of India sources India’s total trade with Mongolia stood at around USD 36.9 million in FY 2026.

India Exim Bank has supported multiple trade transactions with several countries in Asia, Africa, Latin America, among others under TAP, covering a wide range of sectors including agriculture, automotive parts, capital and engineering goods, food, iron & steel, textiles, among others. With the increasing diversification of India’s global trade towards developing countries, African countries have emerged as significant trade partners for India.

E-mart to open three No Brand stores in Mongolia this year www.koreaherald.com

E-mart is opening standalone No Brand stores in Mongolia, starting with three outlets this year, as the South Korean retailer seeks to build on surging demand for its private-label products in the country.

The company said Thursday it plans to expand the No Brand specialty stores to 15 locations by 2028, while establishing a dedicated logistics cluster for the brand. In the long term, the company plans to expand its network within Mongolia, building up to 50 stores nationwide in the next 10 years.

The move comes as No Brand products have gained traction through E-mart’s existing operations in Mongolia, where the retailer has built a sizable presence since entering the market in 2016. E-mart currently operates six stores in the country, with weekend daily foot traffic nearing 30,000 visitors, according to the company.

Almost half of the country’s population lives near the capital Ulaanbaatar, making the city a critical hub for distribution networks and consumption. With long winters and constant traffic, there is high demand for one-stop shopping.

In 2025, No Brand recorded 50,000 sales in cheese snacks, 10,000 sales in cookie snacks and 400 metric tons of juice products. With a strong growth trend since its entry in 2016, the brand hit annual revenue of 10 billion won ($6.9 million) in 2025, proving its strength as a “K-private brand.”

Recent success in Southeast Asia, including Laos and Thailand, adds to expectations for the expansion into Mongolia. Laos has seen an early surge in customers since opening, while Thailand stores have maintained stable operation.

“The success in Mongolia proved the competitive edge No Brand has in terms of products and consumer appeal,” said Kang Young-seok, head of overseas business at E-mart.

“We will expand our reach and strengthen our position in the Mongolian distribution market based on local partnerships.”

stlee0329@heraldcorp.com

As rains approach, peacekeepers from Mongolia and Pakistan shore up civilian protection in Bentiu www.unmiss.unmissions.org

For the nearly 300,000 people who call the vast floodplains of Bentiu home, the difference between safety and displacement is no more than an earthen dyke.

In recent years, climate shocks across South Sudan have turned seasonal flooding into a clear and present danger to lives and properties. Entire communities have lost their homes to water; in Bentiu they live in the largest camp for internally displaced persons. Their protection: mud dykes continually shored and strengthened by engineering teams from the United Nations Mission in South Sudan (UNMISS).

A key factor in protecting these civilians from the overflow of the Nile waters is the partnership between peacekeepers from Pakistan and Mongolia.

Every week, the boat patrols led by the Mongolian battalion cut through murky waters. Onboard are technicians from Pakistan, measuring water levels and scanning surrounding dykes for subtle changes - water creeping above embankments, soil conditions, or the first signs of a breach waiting to happen. These patrols are not a routine feature but form a core frontline prevention effort by the UN Peacekeeping mission to ensure the people of Bentiu town and displaced communities are safe, secure. And they are a necessary complement to the hands-on engineering tasks.

“Ensuring the safety and security of civilians and enabling humanitarian partners to do their work is one of our key mandated tasks. Equally important is our coordination with our Pakistani engineering colleagues to ensure that the dykes are fortified, the main supply route open and functional, and that Bentiu residents are safe,” says Colonel Bat-Erdene Norov, the commander of Mongolian troops.

His words are echoed by Lieutenant-Colonel Usman, the commander of the Pakistan engineering contingent.

“Proactive boat patrols strengthen early warning, supports timely interventions, and helps protect local communities and infrastructure,” explains.

His team leads the work of constructing and reinforcing the sprawling network of dykes and berms that encircle the IDP camp and UN base, the main supply route, and the airstrip to enable consistent delivery of humanitarian aid to those who need it the most. It’s not an easy job, reveals the Lieutenant-Colonel. “Managing floods here demands coordination, shared responsibility, and continuous vigilance.”

The numbers alone hint at the scale of this life-saving operation. Kilometres of earthworks must be constantly monitored, repaired, and elevated. A single leak will allow water to surge through, undoing months of labour in hours.

Men, women and children walk along the dykes, watching as the patrolling boats pass; they know these are the people in blue helmets who keep them and their families safe. They’re aware that without these protections, delivery of humanitarian aid would be disrupted, and already vulnerable populations would face even greater hardship.

In Bentiu, crises are a constant. However, these joint efforts are proof that stability is forged through cooperation, vigilance, and a commitment to safeguard those most at risk.

--By Robin Giri

Mongolia Tourism Boom 2026: Record-Breaking 208,028 Arrivals in First Four Months www.nomadlawyer.org

Mongolia is witnessing an unprecedented surge in international arrivals, with the United Kingdom joining the US, Russia, and China in driving a record-breaking 35% increase in tourism for the first four months of 2026. Released on May 7, 2026, official data from the Ministry of Culture, Sport, Tourism, and Youth reveals that Mongolia welcomed 208,028 international visitors between January and April, marking a landmark recovery for the nomadic nation. In April 2026 alone, the country recorded 64,597 arrivals, as travelers increasingly seek out the rugged wilderness of the Gobi Desert and the cultural immersion of the Naadam Festival. With aggressive infrastructure investments in rural roads and eco-friendly glamping hubs, Mongolia is successfully repositioning itself as a premier global destination for adventure, heritage, and sustainable  travel.
The May 7, 2026, reports on Mongolia’s 35% tourism growth confirm the nation's emergence as a premier global destination. By capitalizing on its unique nomadic heritage and the untouched beauty of the Gobi Desert, Mongolia has successfully attracted a diverse array of travelers from the UK, China, and the US. The record-breaking 208,028 arrivals in early 2026 are not just a statistical achievement; they reflect a strategic success in infrastructure modernization and sustainable promotion. As Mongolia continues to upgrade its rural connectivity and eco-tourism offerings, it is setting a new global standard for adventure  travel that respects both culture and nature. For the international traveler seeking an experience "beyond the typical," Mongolia has firmly established itself as the world’s most compelling nomadic frontier.

Mongolia Pushes to Unlock Critical Minerals Amid Rising Global Demand www.devdiscourse.com

Mongolia is stepping into the global spotlight as demand for critical minerals surges alongside the clean energy transition. A recent assessment by the Asian Development Bank, supported by insights from institutions like the International Energy Agency and the World Resources Institute, highlights how the country could play a bigger role in supplying materials essential for electric vehicles, renewable energy, and battery storage.

The shift toward low-carbon technologies is rapidly increasing demand for minerals such as lithium, copper, cobalt, and rare earth elements. Electric vehicles, wind turbines, and solar panels all depend on these resources. As countries push to cut emissions, demand is expected to grow sharply over the next two decades, raising concerns that supply may not keep up.

Mongolia's Untapped Resource Potential
Mongolia holds large reserves of several key minerals, especially copper and rare earth elements. Much of its land remains underexplored, meaning there could be even more resources waiting to be discovered. Copper already plays a major role in the country's economy, contributing significantly to exports and government revenue.

But Mongolia's involvement in the global supply chain is still limited. Most of its activity focuses on extracting raw materials, with very little processing done within the country. This means it misses out on higher profits that come from refining and manufacturing.

Global Supply Chains Are Shifting
The global minerals market is changing fast. Processing of many critical minerals is concentrated in a few countries, especially China. This has raised concerns about overdependence, pushing other countries to look for new suppliers.

This shift creates an opportunity for Mongolia. Its location near major Asian markets like China, Japan, and South Korea gives it a natural advantage. If it can develop its infrastructure and processing capacity, it could become a more important and reliable supplier in the region.

Big Challenges Still Remain
Despite its potential, Mongolia faces several obstacles. Infrastructure is one of the biggest challenges. The country's vast size and landlocked geography make transportation expensive and difficult. Limited power supply also restricts the growth of energy-intensive industries like mineral processing.

There are also financial and regulatory hurdles. Mining projects are becoming more expensive due to stricter environmental standards and longer approval processes. Investors are cautious, often requiring stronger commitments and clearer policies before funding projects. In addition, a shortage of skilled workers makes it harder to expand the sector quickly.

A Path to Economic Growth
If managed well, the critical minerals sector could transform Mongolia's economy. Expanding mining and adding local processing could increase export revenues, create jobs, and reduce dependence on a few commodities. It could also attract foreign investment and bring in new technology and expertise.

However, success will depend on more than just resources. Mongolia will need to improve its infrastructure, create stable and transparent regulations, and invest in skills and education. Strong environmental and social standards will also be key to attracting responsible investors and maintaining public trust.

In the coming years, Mongolia will have a clear choice. It can remain mainly a supplier of raw materials, or it can build a more advanced and diversified mining industry. With the world's demand for critical minerals only set to rise, the country has a real chance to become a key player in the global energy transition if it gets the strategy right.

Brigadier General of the British Army Clare O'Grady Visits Mongolia www.open.kg

Brigadier General Clare O'Grady, Deputy Commander of the 2nd Air Group of the United Kingdom, is visiting Mongolia, where she is meeting with local military leaders.

This week, Clare O’Grady met with Major General Baatar Balzhid, Deputy Chief of the General Staff of Mongolia. They discussed issues of cooperation between the United Kingdom and Mongolia in the field of defense, as well as gender equality and the role of women in security and peace.

With 27 years of military service, Clare O'Grady holds the position of Squadron Commander and previously commanded a Royal Air Force base in Brize Norton, ensuring air mobility operations.

Her experience includes participation in operations in Kosovo, the Middle East, Iraq, and Afghanistan, as well as advising foreign armies on personnel processes.

Mongolia Welcomes 65,000 Tourists in April 2026 www.montsame.mn

The flow of foreign tourists visiting Mongolia is steadily increasing, and the growth of the tourism sector continues intensively.

According to statistical data, a total of 208,028 foreign tourists visited our country in the first four months of 2026. This represents an increase of 35%, or 54,260 tourists, compared to the same period last year.

Of these, 64,597 tourists arrived in April 2026 alone, which is a 26% increase compared to April 2025.

With the onset of the peak tourism season, the Ministry of Culture, Sport, Tourism, and Youth, along with its affiliated organizations, plans to focus consistently on improving service quality standards, strengthening international promotion, and developing regional tourism infrastructure.

The HU to Kick Off Its Upcoming U.S. Tour www.montsame.mn

Mongolia’s Cultural Envoy, The HU, will kick off its upcoming U.S. tour on May 12.

As part of the tour, the band will first perform for Mongolian communities in the Washington, D.C. area, showcasing a unique blend of traditional Mongolian heritage and modern rock music.

Government aims to align Oyu Tolgoi interest rates with international standards www.gogo.mn

Minister of Industry and Mineral Resources G.Damdinnyam recently presented Cabinet decisions concerning the Oyu Tolgoi (OT) agreement, outlining the progress of two working groups established by the Prime Minister.

While the Ministry of Finance manages issues surrounding investment interest rates, Minister G.Damdinnyam is spearheading negotiations to reduce management fees and enhance project governance. He described the current dialogue as highly intensive, involving frequent communication and yielding concrete results.

A significant milestone in these discussions was the resolution of a seven-year deadlock regarding the project's loan agreement. The Minister affirmed that negotiations will continue until all government objectives are met, with a primary focus on ensuring that both interest rates and management fees are adjusted to meet international standards.

Furthermore, a new working group has been established to negotiate terms for the Entrée joint venture area. The government aims to conclude a new investment agreement that prioritizes Mongolia’s interests by shifting the fiscal framework.