Constructional project of thermal power plants advances

2018-12-12 17:02:33

Ulaanbaatar/MONTSAME/ At its regular meeting on December 12, the Cabinet decided to authorize the Minister of Finance Ch.Khurelbaatar to sign a loan agreement for ‘Project to construct thermal power plant in centers of 10 aimags’ to be established between the Ministry of Finance of Mongolia and the Export-Import Bank of Korea.

Within the project, thermal power plants will be constructed in Arkhangai, Bayankhongor, Gobi-Altai, Gobisumber, Dundgobi, Zavkhan, Uvurkhanga, Sukhbaatar, Khentii and Tuv aimags alongside expansion of heating network and modernization of equipment.

The plants will be built with the soft loan worth over USD148 million. The loan with 0.15 percent interest will be repaid within 40 years and will have a moratorium period of 10 years.

Moreover, the Cabinet made a resolution on authorizing to sign the Loan Agreement objecting to the reduction of air pollution of Ulaanbaatar city.

The agreement reflects that USD40 million out of USD60 million which is stipulated to be a budgetary support will be received this year and remaining USD20 million will be received in the third quarter of next year. The loan has repayment term of 30 years, interest of 1.5 percent and moratorium period of 10 years.