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

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 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 February 19, 2020, via Resolution No. 71 of the Government of Mongolia, Amgalan Thermal Power Plant LLC became a 100% state-owned Mongolian company.

Additional details

1. This project is also known as the 3x116MW Amgalan Thermal Power Plant Construction Project. The Chinese project title is 阿木古郎供热站 or 阿木古郎供热站项目 or 司蒙古阿木古郎项目. The Mongolian project title is Амгалан дулааны станцын төсөлд or Амгалан дулааны станц. 2. The CDB loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
 3. There are some indications that the CDB loan may have first been issued to the state-owned Development Bank of Mongolia and then on-lent to Amgalan Thermal Power Plant LLC. This issue requires further investigation.

Number of official sources

15

Number of total sources

22