Darkhan thermal power plant will be expanded by 200 million kWh www.mongolia.gogo.mn
Economic Standing Committee of State Great Khural will discuss below issues today;
2016-2017 Agreement between the Mongolian Government and the Government of the Federal Republic of Germany on Financial Cooperation,
Extra Credit and draft project agreement between Mongolian Government and the Reconstruction Credit Institute in Frankfurt
The Government of Mongolia submitted these draft agreements to State Great Khural on 29th of May. Budget Standing Committee supported the agreements at its yesterday`s meeting.
Mongolia will receive a total of EUR 5 million loans with 2 percent interest rate and 30 years period. Due to the fact that Mongolia will pay interest-only in the first ten years, the payment must be completed in 2056. The loans will be spent on the expansion of the capacity of Darkhan thermal power plant by 200 million kWh. Even the expansion of the power plant has started in 2012, it has drawn out until today. According to the first feasibility study, it is estimated that EUR 16-17 million will be needed for the project implementation. However, authorities of Ministry of Energy noted that the amount is insufficient.
The plant expansion will be performed by a Russian company while a German company will serve as a consultant. Operational cost will be EUR 1 million 350 thousand and the project will cover its cost for 12 years.
The Ministry of Energy considered that expansion of Darkhan power plant will reduce our energy dependence and ensure the demand of industries to be established in further as Darkhan is expected to be an industrial region.
Published Date:2017-06-07