Loading grant details…
China Eximbank provides $49.12 million preferential buyer’s credit for 35MW Erdenet Thermal Power Plant Expansion Project (Linked to Record ID#49148)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Mongolia |
| Country | Mongolia |
| Start Date | Apr 09, 2018 |
| End Date | Sep 06, 2029 |
| Duration | 4,168 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 88207 |
Grant Description
China Eximbank provides $49.12 million preferential buyer’s credit for 35MW Erdenet Thermal Power Plant Expansion Project On November 10, 2015, China Eximbank and the Government of Mongolia signed a general loan agreement regarding the utilization of a $1 billion preferential buyer's credit (PBC) loan for various projects (captured via Umbrella Record ID#49148).
Then, on April 9, 2018, China Eximbank and the Government of Mongolia signed a subsidiary PBC agreement [CHINA EXIMBANK PBC 2018 (13) TOTAL NO. (470)] worth $49,120,000 for the 35MW Erdenet Thermal Power Plant Expansion Project.
The proceeds of the PBC were to be used by the borrower to finance 95% of the cost of a $51.8 million commercial (EPC) contract between Mongolia’s Ministry of Energy, China Energy Engineering Group Hunan Power Construction Co., Ltd, and Hunan Industrial Equipment Installation Co., Limited, which was signed on January 17, 2017.
The remaining 5% of the commercial contract cost was to be directly funded by the Government of Mongolia. The PBC (loan) agreement went into effect on July 27, 2018.
The purpose of the project was to expand the coal-fired Erdenet Thermal Power Plant (Эрдэнэт ДЦС or Эрдэнэтская ТЭЦ or Эрдэнэтийн дулааны цахилгаан станцын) by installing a 35MW turbine generator with a CC-50 engine, refurbishing chemical and water purification facilities, constructing a water-cooling tower, and building a 110 kV overhead transmission line (measuring 3 km in length) and substation.
This power plant is located in Erdenet, capital of Mongolia's northern province of Orkhon.
Upon completion, this project was expected to increase the power plant's electricity production two-fold (from 36MW to 71MW).
A groundbreaking ceremony took place on March 22, 2019 and construction originally expected to conclude by the end of 2019. However, a project completion and power plant commissioning ceremony did not take place until September 3, 2021.
Staff Comments
- This project is also known as the Erdenet Thermal Power Plant 35 MW Generator Installation Project. The Mongolian project title is “Эрдэнэтийн дулааны цахилгаан станцын өргөтгөл” төсөл or Эрдэнэтийн дулааны цахилгаан станцын шинэчлэл төсөл or Эрдэнэтийн дулааны цахилгаан станцын шинэчлэлтийн төсөл.
- The China Eximbank loan for this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
- Hunan Industrial Equipment Installation Company previously conducted an expansion of Thermal Power Plant No. 3 in Ulaanbaatar.
- The PBC (loan) agreement can be accessed in its entirety via https://www.dropbox.com/s/a9zqkgbb1qnho1y/Mongolia%202018%20China%20Eximbank%20Loan%20for%20Erdenet%20Thermal%20Power%20Plant%20Modernization%20Project.pdf?dl=0.
- The July 27, 2018 notice of the effectiveness of the April 9, 2018 loan agreement can be accessed via https://www.dropbox.com/scl/fi/jf5yaxdvzmufyoisbndwm/Notice-of-Effectiveness-of-Loan-Agreement-Erdenet-Power-Plant.pdf?rlkey=zqisqct2mepjhxmfbhrr88js1&dl=06. The November 10, 2015 general loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/6517ecol3fwzuqo536c54/Government-of-Mongolia-and-China-Eximbank-General-Loan-Agreement-November-2015.pdf?rlkey=9r8cibj3kt0v3d891n6hy33rb&dl=0. A May 4, 2017 amendment to the November 10, 2015 general loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/1055dq0pvwpxm45fk2fmk/Government-of-Mongolia-and-China-Eximbank-General-Loan-Agreement-2015_May_4_2017_Amendment-1.pdf?rlkey=hbj7c8wgm6udzr0icw8tufnwa&dl=0.
Sources & References
- 2015 1 Billion China Eximbank Export Credit to Government of Mongolia.pdf, 2017 1 Billion China Eximbank Export Credit to Government of Mo…golia Supplement.pdf, 2018 Annual Report
- About Delivery of Official Letter
- AGREEMENT FOR CHINA'S USD 1 BILLION SOFT LOAN TO BE AMENDED
- BRI Progress in Mongolia
- China Eximbank Signed Loan Agreement with the Ministry of Finance of Mongolia
- China-funded thermal power plant expansion completed in Mongolia
- China-funded thermal power plant expansion completed in Mongolia
- Eleven cooperation documents signed between Mongolia and China
- Erdenent Power Plant Home Page
- Erdenet power station
- Erdenet Thermal Power Plant Begins Expansion Work
- Erdenet thermal power plant to be extended
- Examining the Debt Implications of the Belt and Road Initiative from a Policy Perspective
- Form of Notice of Effectiveness of Loan Agreement
- GOVERNMENT FOREIGN LOAN USAGE QUARTERLY DATA
- Government of Mongolia and China Eximbank General Loan Agreement 2015_May_4_2017_Amendment 1
- Government of Mongolia and China Eximbank General Loan Agreement November 2015
- Mongolia to receive USD 1 billion loan from China
- Mongolian thermal power plant to undergo China-funded expansion
- Parliament ratifies amendments to China’s USD 1 billion loan agreement
- Payment of 5% Counterpart Financing Contribution in March 2023
- Several documents on Mongolia-China cooperation signed
- Signing ceremony of Mongolia-China cooperation agreements held
- Ts.Sukhbaatar: Mongolia-China trade turnover will reach 10 billion USD by 2020
- US$49,210,000.00 PREFERENTIAL BUYER'S CREDIT LOAN AGREEMENT Individual Loan Agreement on Expansion Project of Erdent Thermal Power Station
- USD 1 billion loan from China approved
- Utilization Request, ЖАГСААЛТ: БНХАУ-ын нэг тэрбум ам.долларын зээлээр хэрэгжүүлэх бүтээн байгуулалтууд, ЗАСГИЙН ГАЗРЫН ГАДААДЫН ЗЭЭЛ, ТУСЛАМЖИЙН ХӨРӨНГӨӨР 2018 ОНЫ ТӨСВИЙН ЖИЛД ХЭРЭГЖҮҮЛЭХЭЭР ТӨЛӨВЛӨЖ БУЙ ТӨСӨЛ, АРГА ХЭМЖЭЭ, МОНГОЛ УЛСЫН ЗАСГИЙН ГАЗАР, БҮГД НАЙРАМДАХ ХЯТАД АРД УЛСЫН ЗАСГИЙН ГАЗАР ХООРОНДЫН ХАМТЫН АЖИЛЛАГААНЫ ТУХАЙ, МОНГОЛ УЛСЫН ЗАСГИЙН ГАЗРЫН ТОГТООЛ ХӨТӨЛБӨР БАТЛАХ ТУХАЙ Дугаар 140, ХЯТАДЫН БУЦАЛТГҮЙ ТУСЛАМЖ БА МОНГОЛЫН ЗЭЭЛСЭН ӨРИЙН ДҮН, ХЯТАДЫН БУЦАЛТГҮЙ ТУСЛАМЖ БА МОНГОЛЫН ЗЭЭЛСЭН ӨРИЙН ДҮН, Эрдэнэтийн дулааны цахилгаан станцын шинэчлэлтийн төсөл, “Эрдэнэтийн дулааны цахилгаан станц”-ыг өргөтгөх төсөл хэрэгжлээ, “Эрдэнэтийн ДЦС” ТӨХК-ийг өргөтгөлийг ашиглалтад орууллаа
- 新华社：中企承建蒙古国电厂改造项目竣工投产 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Government of Mongolia
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
