Mongolia: Ulaanbaatar Low Carbon Energy Supply Project Using a Public-Private Partnership Model

Sovereign Project | 43357-012

Summary

The proposed CHP 5 by the Government is in line with the (i) Mongolia Energy Sector Master Plan 2002, (ii) State Policy on Fuel and Energy 2008, and (iii) Action Plan of the Government of Mongolia for 2008?2012 (footnote 4). It is also in line with Asian Development Bank's (ADB's) sector priorities and the Strategy 2020 to address environmental sustainability of a key infrastructure project. ADB's Country Strategy and Program (CSP) 2006?2008 also identifies inclusive social development and stable broad-based economic growth as the two strategic pillars, and absence of reliable electricity and heating services in the capital city could be a major constraints to achieve these two strategic pillars.

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Project Name Ulaanbaatar Low Carbon Energy Supply Project Using a Public-Private Partnership Model
Project Number 43357-012
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7502-MON: Ulaanbaatar Low Carbon Energy Supply Project Using a Public-Private Partnership Model
Japan Special Fund US$ 1.50 million
Japan Fund for Poverty Reduction US$ 1.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy The proposed CHP 5 by the Government is in line with the (i) Mongolia Energy Sector Master Plan 2002, (ii) State Policy on Fuel and Energy 2008, and (iii) Action Plan of the Government of Mongolia for 2008?2012 (footnote 4). It is also in line with Asian Development Bank's (ADB's) sector priorities and the Strategy 2020 to address environmental sustainability of a key infrastructure project. ADB's Country Strategy and Program (CSP) 2006?2008 also identifies inclusive social development and stable broad-based economic growth as the two strategic pillars, and absence of reliable electricity and heating services in the capital city could be a major constraints to achieve these two strategic pillars.
Impact Improved security of energy supply for Ulaanbaatar
Project Outcome
Description of Outcome Suitably designed PPP model for the implementation of the CHP plant 5
Progress Toward Outcome Project outcome will be achieved.
Implementation Progress
Description of Project Outputs The key outputs of the TA include (i) determining the technical design of CHP 5, (ii) identification of sector risks in constructing CHP 5, (iii) identification of project financing options, and (iv) dissemination of knowledge in the implementation of CHP 5.
Status of Implementation Progress (Outputs, Activities, and Issues)

Assessment of the current heating network system, including heat transmission and distribution facilities, for the proposed CHP5 site location has been completed. A preliminary survey was conducted, new pipeline route suitable for CHP5 under CHP3 site option has been identified.

A preliminary financial evaluation was carried out and an international Cost Engineer was engaged to review the detailed project financing.

Preliminary assessment on environment, land acquisition, and resettlement were also conducted. Review on the initial analysis on environmental impacts and proposed mitigation measures, as well as preliminary estimated projected emission reduction, coal savings and other environmental benefits of the Project has been completed.

Geographical Location Ulaanbaatar
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The officials from the MMRE, the World Bank, JICA, USAID, and the Embassy of Japan in Mongolia were consulted for the concept paper preparation.
During Project Implementation
Business Opportunities
Consulting Services

ADB will seek an innovative approach whereby the consultant's selection will be done through advance action, i.e. in parallel to TA processing, which will substantially reduce the upfront delays in engaging the consultants. ADB will also seek Government upfront support to minimize the TA Fact-Finding time by agreeing to a combined Reconnaissance and Fact-Finding Missions, which will allow ADB to seek the TA concept paper clearance first and immediately proceed with the TA paper finalization. The associated TA agreement letter shall be signed by the Government without delays so that the consultant's engagement can proceed quickly. The implementation period will be for 9 months from December 2009 to August 2010.

The TA will engage international and national design institutes in CHP plant. The total input will be 105 person-months of consulting services, of which 38 person-months of international and 67 person-months of national. The required experts consist of (i) boiler and turbine specialist; (ii) power specialist,; (iii) combustion specialist; (iv) district heating specialist; (v) financial specialist; (vi) economist; (vii) environmental specialist; (ix) civil engineering specialist; (x) resettlement specialist; and (xi) PPP specialist. An international consulting firm will be recruited by ADB in accordance with the ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) following quality- and cost-based selection in a quality and cost ratio of 80:20 and a full technical proposal will be required for shortlisted firms. The consultants will work in close collaboration with the MMRE and Energy Agency and ensure effective knowledge transfer. The proceeds of the TA will be disbursed in accordance with ADB's Technical Assistance Disbursement Handbook.

Responsible ADB Officer Teruhisa Oi
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Ministry of Mineral Resources and EnergyTudev Tserenpurevceren002@yahoo.comGovernment Building-2, United Nation
Timetable
Concept Clearance 24 Aug 2009
Fact Finding 06 Jul 2009 to 09 Jul 2009
MRM -
Approval 26 Feb 2010
Last Review Mission -
PDS Creation Date 03 Aug 2009
Last PDS Update 14 Dec 2011

TA 7502-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Feb 2010 19 Mar 2010 19 Mar 2010 31 Jan 2011 31 May 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 1,500,000.00 200,000.00 0.00 0.00 0.00 3,200,000.00 26 Feb 2010 1,477,013.92

Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

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