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

Energy / Energy sector development and institutional reform

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.

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.