28 thousand hectares of area to be taken under state special needsPolitics
According to the decision made today by the Cabinet, 28 thousand hectares of
area that cover territories of Erdeneburen and Myangad soums of Khovd aimag,
Bayannuur soum of Bayan-Ulgii aimag and Umnugobi soum of Uvs aimag will be
taken under the state special needs with a purpose to establish ‘Erdeneburen’ hydro
Establishment of the hydro power plant which is expected to be complete within four years will create possibility to provide the country’s western region with domestically produced energy.
The western region where more than 390 thousand people reside imports 75 percent of its energy needs from Russia and China, which means it uses five or six-times expensive energy than that being produced at Durgun HPP.
The Government intends to make western region have reliable energy source, utilize larger deposits such as Asgat silver deposit and Khushuut coking coal deposit, and to establish cement, steel, meat and leather processing plants.
USD274 million out of 288.5 million, which is required to establish the HPP, will be financed with China’s soft loan, and the remaining will be funded with the State Budget.