Ulaanbaatar
Darkhan thermal power plant project requires additional fund
Politics
Ulaanbaatar /MONTSAME/ During its regular meeting on May 24, Wednesday, the Cabinet discussed and approved draft documents on the 2016-2017 agreement between the Governments of Mongolia and Germany for financial cooperation on ‘Energy Efficiency’ project and agreement on additional loan between the Ministry of Finance and KfW Bank based in Frankfurt.
The Cabinet resolved to consult with Parliamentary standing committees, and in case of approval, a Prime Ministerial ordinance will be issued to authorize the signing of these agreements.
In frames of the ‘Energy Efficiency -1’ project, a turbine renovation work began at Darkhan Thermal Power plant in 2012, with total funding of EUR 13.35 million, co-financed by the KfW Bank (EUR 10.5 million) and Government (EUR 2.85 million).
But the Ministry of Finance has estimated that around EUR 11 million additional fund is required for completion of the project which is expected this year. The additional fund is required because the technical and economic assessment projected an insufficient fund, and equipment and material prices increased since the establishment of the agreement as the contractor slowed down implementation of the project.
The additional fund will finance the purchase of equipment and installation of new equipment and other works. Darkhan Thermal Power Plant is running for the 52nd year, with its main generators overworking their capacity 2.5 times.
When completed with the help of the additional fund, the project will facilitate stable and reliable energy supply for the next 20 years. The Ministry of Finance estimates that the project will make up for its expenditure in 12 years.
The Cabinet resolved to consult with Parliamentary standing committees, and in case of approval, a Prime Ministerial ordinance will be issued to authorize the signing of these agreements.
In frames of the ‘Energy Efficiency -1’ project, a turbine renovation work began at Darkhan Thermal Power plant in 2012, with total funding of EUR 13.35 million, co-financed by the KfW Bank (EUR 10.5 million) and Government (EUR 2.85 million).
But the Ministry of Finance has estimated that around EUR 11 million additional fund is required for completion of the project which is expected this year. The additional fund is required because the technical and economic assessment projected an insufficient fund, and equipment and material prices increased since the establishment of the agreement as the contractor slowed down implementation of the project.
The additional fund will finance the purchase of equipment and installation of new equipment and other works. Darkhan Thermal Power Plant is running for the 52nd year, with its main generators overworking their capacity 2.5 times.
When completed with the help of the additional fund, the project will facilitate stable and reliable energy supply for the next 20 years. The Ministry of Finance estimates that the project will make up for its expenditure in 12 years.
Kh.Aminaa
