China Development Bank provides $75.9 million loan for 348MW Amgalan Thermal Power Plant Construction Project

Project narrative

On April 12, 2013, the Government of Mongolia’s Ministry of Energy and the Ministry of Economic Development signed a concession agreement with China Machinery Engineering Corporation (CMEC) for the 348MW Amgalan Thermal Power Plant Construction Project. China Development Bank subsequently issued a $75.9 million loan to a special purpose vehicle — called Amgalan Thermal Power Plant LLC (also known as “Амгалан дулааны станц” or “Дулааны IV цахилгаан станц”) — responsible for designing, financing, constructing and maintain the power plant. The borrowing terms of this loan are unknown. The purpose of the project was to construct a 348MW coal-firec thermal power plant with heating capacity of 300Gcal/h — in the 8th khoroo of Bayanzurkh district. CMEC was the contractor responsible for implementation. Construction began on August 21, 2013. The project had achieved an 88% completion rate as of December 2014. The power plant was ultimately put into operation on November 27, 2015. As early as September 2015, the power plant was reportedly helping to solve a heating problem for residents of eastern Ulaanbaatar and reduce air pollution in Ulaanbaatar during the winter. On November 19, 2015, the Government of Mongolia structured Amgalan Thermal Power Plant LLC as a subsidiary of Thermal Power Plant 4 JSC, which was also 100% owned by the Mongolian Ministry of Energy. Then, on February 19, 2020, via Resolution No. 71 of the Government of Mongolia, Amgalan Thermal Power Plant LLC was restructured to be its own 100% state-owned independent joint-stock company.