At its meeting held on October 16, 2025, the Citizens’ Representative Khural of the Capital City approved a resolution to grant authority to the Mayor of Ulaanbaatar to conclude a partnership agreement for the “Combined Heat and Power Plant No. 5 (CHP-5)” project.
This marks the commencement of a historic infrastructure development, the first mega-project in Mongolia’s energy sector to be implemented through a public-private partnership. The project is a strategic development aimed at meeting the Capital city’s electricity and heat demand, improving the reliability of energy supply, and reducing air pollution. The plant, with a capacity of 2×150 megawatts, will employ modern circulating fluidized bed combustion technology to generate 2.2 billion kilowatt-hours of electricity and 4.8 million gigajoules of heat annually. Equipped with a flue gas filtration system, it will feature an environmentally friendly solution capable of reducing particulate emissions by up to 99.9 percent.
The selection process for the private sector partner to implement the project has been organized in stages in accordance with the Law on Public-Private Partnership and the procedures approved by Government Resolution No. 210 of 2024. Based on the evaluation results, a working group was established to negotiate with the highest-ranked bidder, and mutual agreement was reached on September 25, 2025. With the Citizens’ Representative Khural granting the authority to conclude the agreement, the project has now reached the stage of practical implementation.
During the implementation of the CHP-5 project, more than 1,600 jobs will be created, with 369 permanent positions upon commissioning. In addition, the project is expected to provide multiple benefits, such as training engineers and technical specialists and supporting domestic production and service sectors. The total investment amounts to USD 658.6 million, of which 80 percent will be financed by the private sector and 20 percent by the Capital city budget in phases.

Published Date:2025-10-17