Ulaanbaatar
Ulaanbaatar Signs Public-Private Partnership Agreement for Waste-to-Energy Plant
Economy
Ulaanbaatar, October 27, 2025 /MONTSAME/. Under the Public-Private Partnership Law, Ulaanbaatar city signed a Public-Private Partnership Agreement on Waste-to-Energy Plant Construction on October 24, 2025.
The Agreement was signed by Nyambaatar
Khishgee, the Governor
of the Capital City and Mayor of Ulaanbaatar, and Tang
Ya Yu, the Project Manager and the Director for the Ulaanbaatar
Waste-to-Energy Plant, and Chairman of the Board of Renshou Sichuan LLC, the
company selected as the project contractor, specialized in energy investment
and environmental protection.
The USD 206.5 million plant will
process 1,500 tons of waste per day, and is scheduled for completion in 30
months, after which ownership will be transferred to the state in 28 years.
The plant is expected to
operate 8,000 hours annually, generating 35 MW of electricity. The
electricity production cost is estimated to be around 14 cents per kWh, with
electricity to be sold to the Ministry of Energy at around 8.4 cents per kWh.
The remaining 5.6 cents will be covered by compensation fees collected from businesses
that generate large amounts of industrial waste, serving as waste disposal fees
transferred to the investor, according to the Governor's Office of the Capital
City of Ulaanbaatar.
The plant will incinerate waste not
only from Ulaanbaatar but also from Zuunmod, Hunnu city, Altanbulag, and
Sergelen soums of Tuv aimag, free of charge. Additionally, waste buried
in Ulaanchuluut and Tsagaandavaa landfills over the past 10 years will
be excavated and incinerated to help restore the local environment and ecology.
Mayor Kh. Nyambaatar emphasized the
project’s ecological importance, stating, “To transform Ulaanbaatar into a
modern city, we need an engineering supply unit. It will enable a shift to financing
through consumer tariffs and covering investment costs with revenues. The Waste-to-Energy
Plant project is unique as the private sector provides 100 percent of the
funding, and for the first time, the Government guarantees the public-private
partnership. Globally, the concept of ‘urban mining’ is expanding, excavating
previously buried waste, converting it to energy, and restoring the
environment.”
Currently, Ulaanbaatar generates an
average of 1,500 tons of household and industrial waste daily, which is
buried at two nearby landfill sites.
