Ulaanbaatar /MONTSAME/ A project to improve efficiency of transmission and distribution network of Central region will be funded with EUR 20.45 million soft loan granted by the Government of the Federal Republic of Germany.
The outdated and old equipment and devices including oil circuit breakers and protection relay being used in the 220 kV and 110 kV substations of the Central region electrical grid need to be replaced with modern advanced technologies. In this regard, the reconstruction work was agreed to be financed with soft loan of the Government of Germany according to Development Policy Cooperation Agreement established in 2014 and 2016. Therefore now Mongolia-Germany Intergovernmental Agreement, loan and project agreement between the Ministry of Finance of Mongolia and the Kreditanstalt für Wiederaufbau (KfW) should be concluded.
The Parliamentary Standing Committee on Budget discussed the Project and Loan agreements on June 19 and supported the agreements by a majority of its members. The loan term is 30 years with moratorium period of 10 years and annual interest rate of two percent.