Mongolia and Germany have signed a €17 million concessional loan agreement aimed at reinforcing the reliability of the power grid in the central region of Ulaanbaatar, a project set to secure stable electricity for more than 11,000 consumers.

The funding will support Phase III of the "Project to Improve the Efficiency of the Central Region Power Transmission and Distribution Network." Under this initiative, development plans include constructing a brand-new substation and a double-circuit cable line in the 1st khoroo of Sukhbaatar district, alongside the comprehensive expansion and modernization of the existing Tuul Substation.

Financed through Germany's KfW Development Bank, the infrastructure upgrades will directly enhance the operational capacity and resilience of the capital's core distribution network. The project is expected to stabilize the power supply across 14 khoroos spanning the Sukhbaatar, Chingeltei, Bayangol, Khan-Uul, and Bayanzurkh districts. Crucially, the modernization will safeguard uninterrupted energy access for vital healthcare institutions, including the First State Hospital, the Second State Hospital, and Urgoo Maternity Hospital.

The official signing ceremony was attended by Mongolian Minister of Finance Z.Mendsaikhan, B.Nyamsambuu, Executive Director of the National Power Transmission Grid JSC, and the Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Mongolia, Helmut Kulitz, alongside representatives from the KfW Development Bank.

During the event, Minister Z.Mendsaikhan commended the long-standing and highly effective development cooperation between Mongolia and Germany across the energy, environment, education, and healthcare sectors. He expressed deep gratitude to the German Government and KfW for their sustained financial and strategic support in driving forward essential reforms across Mongolia's energy infrastructure.

Published Date:2026-06-16