B.Choijilsuren: Loan agreement with China on Erdeneburen hydropower plant agreed www.gogo.mn
B.Choijulsuren, Minister of Energy, reported:
- U.Khurelsukh, President of Mongolia will attend the "Belt and Road" international forum in China next week. During the forum, Mongolia and China will sign several documents. One of them is a loan agreement for the Erdeneburen hydropower plant. And relevant decisions of Chinese government agencies have been made. Preparations from Mongolian side have been made.
Loan of USD 253 million, 95% of the total cost of the Erdeneburen hydropower plant construction project which is USD 266 million, will be received from China. The loan term is 20 years, and the interest rate is 2%. The loan repayment will start after seven years.
According to the government resolution, I will sign the loan agreement. The Ministry of Finance will represent the government as the client, and the energy system of the western region will participate as the borrower. If the loan agreement is concluded in October, the plant will be operational after five years. This means that the loan will start to be repaid two years after its commissioning.
Published Date:2023-10-12