The Mongolian energy industry: filling in the gap

Mongolia is attracting great interest thanks to its unprecedented mineral wealth and rapid economic development: the International Monetary Fund forecasts
Mongolia’s Gross Domestic Product will grow on average by 14% per year between 2012 and 2016. There is now a critical need to modernise the country’s ageing energy infrastructure and to expand its power and heat distribution systems. Since the third-quarter of 2009, indigenous power generation has failed to meet the everincreasing electricity needs of the country.

The Government of Mongolia (GoM) and the private sector are actively addressing this shortfall. Significant opportunities exist for developers and financiers looking to participate in the modernisation of the country’s energy sector through a range of procurement methods, including Public-Private Partnership (PPP) or purely private financing models.

Two major power projects currently under development - the Combined Heat and Power Plant Number 5 (CHP#5) in the capital city of Ulaanbaatar (to be developed in two phases, with phase one being a 450MW CHP) and the Salkhit wind farm (Salkhit) in the Tuv region approximately 75 kilometres south of Ulaanbaatar - illustrate the scale of this effort and the diverse procurement methods being promoted by the GoM…

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