Ulaanbaatar
Umnugobi to Become the First Aimag to Issue Bonds of Up to MNT 500 Billion
Economy
Ulaanbaatar, August 15, 2025 /MONTSAME/. The Government of Mongolia issued approval to the Governor of Umnugobi aimag, Enkhbat Nasanbuyan, for the phased issuance of provincial securities worth up to MNT 500 billion in the domestic market to finance the construction of a 50-megawatt (MW) thermal power plant in Dalanzadgad soum.
Minister of Finance Javkhlan Bold and Governor of Umnugobi aimag Enkhbat Nasanbuyan were instructed to include the issuance of provincial securities in the annual budget draft. Additionally, Governor Enkhbat was directed to allocate the funds raised through the securities strictly for the purposes outlined in the Cabinet resolution, ensure the inclusion of repayment obligations in the aimag’s budget, and guarantee that repayments are made within the scheduled timeframe.
Energy consumption in Dalanzadgad soum, the capital of Umnugobi aimag, which has been steadily increasing in recent years, is expected to reach 105.8 million kilowatt-hours (kWh) in 2033, from 59.2 million kWh in 2023. The peak load of the centralized energy system reaching 1,636 MW in 2023 marks an 11.3 percent increase from 2022, highlighting the urgent need for a reliable energy source to support and sustain basic consumption.
The current 9-MW power plant in Dalanzadgad is outdated and can only handle an annual consumption of 30.6 million kWh. The supply of the remaining demand by the centralized energy system is considered unreliable. As a result, there is a pressing need to construct a 50-MW combined heat and power plant to accommodate the aimag’s growing energy consumption and ensure a stable supply.
The proposed plant is
considered crucial not only for meeting the energy needs of Dalanzadgad soum
but also for reducing the energy load in the region, establishing an
independent power supply, and supporting essential infrastructure for mining
operations, tourism, and local economic growth. According to the Media and
Public Relations of the Government, Umnugovi aimag will be the first aimag in
Mongolia to issue a bond.
