Japan and ADB Support Heating Supply in Mongolia's Remote Rural Areas
MANILA, PHILIPPINES - The Government of Japan and the Asian Development Bank (ADB) are supporting efforts to ensure remote rural areas in Mongolia are provided with efficient heating supply during the harsh winter season. The Community-Based Heating Supply in Rural Remote Areas project will improve the heating facilities of 12 of Mongolia’s remote rural areas through the installation of 25 heat-efficient boiler systems, each with a minimum capacity of one megawatt. They will replace existing heat-only boilers. The project will be managed and monitored to ensure that the boiler designs meet selected air emission standards. The Government of Japan will cover most of the project cost estimated at $2.3 million, through a $2 million grant from the Japan Fund for Poverty Reduction. The Government of Mongolia will contribute in kind. “Following the completion of the project, residents will benefit from better quality heating services during winter. Boiler efficiency is also expected to increase from 40% to 70%, and this will help reduce coal consumption and carbon dioxide emission, resulting in reduced air pollution and government savings,” said Teruhisa Oi, Social Development Specialist of ADB’s East Asia Department. A preliminary assessment of the project determined that it has the potential for applying Clean Development Mechanism (CDM) as the project reduce emissions in the range of 55,000 to 75,000 tons of CO2-equivalent from 2009 to 2012. The estimated revenue gained from this savings could be $412,000 to $750,000, or equivalent to 41% to 75 % of the cost of purchasing the equipment. In winter, Mongolia’s temperatures can drop to -40 degrees Celsius. Heat is provided to households, government buildings, schools, hospitals, and industries primarily by district heating, which is distributed from central heating plants in larger cities and from smaller boiler houses in provincial areas. “The harsh climate and long winter season make heating an absolute requirement for sustaining life,” said Mr. Oi. Mongolia has about 450 boiler houses, with 1,200 mainly Russian-made boilers in operation since the 1980s. The condition of these boilers has deteriorated since the collapse of the former Soviet Union in 1991, and the heat efficiency is currently at about 40%, resulting in poor heating services. About ADB | 
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