City Launches Bond Trading for Thermal Power Plant Project www.montsame.mn
Under Article 10.3 of the 2026 State Budget Law and Article 28.1 of the Law on Debt Management, the ceiling for municipal bond issuance has been set at MNT 275 billion.
Accordingly, the capital city has decided to finance the Thermal Power Plant No. 5 project by issuing domestic bonds worth MNT 200 billion, in line with relevant laws and regulations. The primary market trading of the municipal bonds was officially launched on March 30, 2026, with a bell-ringing ceremony.
A total of 200,000 bonds—each with a face value of MNT 1 million—have been offered to the public. The bonds have a three-year maturity and carry an annual interest rate of 14 percent.
Speaking at the ceremony, Governor of the Capital City and Mayor of Ulaanbaatar Nyambaatar Khishgee noted that the revised Law on the Legal Status of Cities has enabled the capital to finance major infrastructure projects using diverse financial instruments. He highlighted that around 60 percent of Ulaanbaatar’s population currently lives in housing connected to engineering infrastructure, while about 40 percent reside in ger districts.
The mayor emphasized that expanding electricity and heat supply is a priority to transition residents from ger districts into apartments. He also noted that the city had fully repaid its previous domestic bonds issued two years ago, making it possible to issue new bonds to finance the long-planned Thermal Power Plant No. 5 project.
Once completed, the plant will provide reliable electricity to around 100,000 households and heat to 40,000–50,000 households. The first unit is expected to be commissioned in the first quarter of 2028.
The Thermal Power Plant No. 5 project is being implemented as a public-private partnership, with a contract signed with Mitime International. The total project cost is estimated at USD 658.5 million, of which the city’s share amounts to USD 131.7 million (approximately MNT 467.4 billion). Of this, MNT 200 billion will be financed through bond issuance in 2026, with the construction period set at 30 months.
Published Date:2026-03-30





