Mongolia: Transaction Advisory Services for the Combined Heat and Power Plant 5

Sovereign Project | 47091-001 Status: Active

The TA will support the completion of negotiations on the CHP5 transaction. This will both finalize project preparation and develop the capacity for PPP implementation through a _learning-by-doing' approach. The TA will complement other assistance provided by ADB to strengthen the legal, policy and institutional framework for PPPs.

Project Details

Project Officer
An, Bo East Asia Department Request for information
Country
  • Mongolia
Modality
  • Technical Assistance
Sector
  • Energy
  • Public sector management
 
Project Name Transaction Advisory Services for the Combined Heat and Power Plant 5
Project Number 47091-001
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8637-MON: Transaction Advisory Services for the Combined Heat and Power Plant 5
Technical Assistance Special Fund US$ 1.20 million
TA 8637-MON: Transaction Advisory Services for the Combined Heat and Power Plant 5 (Supplementary)
Technical Assistance Special Fund US$ 250,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy - Energy sector development and institutional reform

Public sector management - Economic affairs management

Gender Equity and Mainstreaming No gender elements
Description The TA will support the completion of negotiations on the CHP5 transaction. This will both finalize project preparation and develop the capacity for PPP implementation through a _learning-by-doing' approach. The TA will complement other assistance provided by ADB to strengthen the legal, policy and institutional framework for PPPs.
Project Rationale and Linkage to Country/Regional Strategy
Impact Delivery of improved public services to poorly serviced populations in Ulaanbaatar

Project Outcome

Description of Outcome Track record in completing a competitive tender process for a PPP inclusive of contract negotiations
Progress Toward Outcome This TA will support completing the project preparation and developing the capacity of public sector officials in Mongolia for the implementation of future PPP.
Implementation Progress
Description of Project Outputs

1. Technical studies of rail infrastructure, coal resources, water resources, and ash management

2. Legal support

3. Financial analysis support

4. Negotiation support

Status of Implementation Progress (Outputs, Activities, and Issues)

Regular missions from ADB and consultants were fielded.

The consultants outputs have (amongst other things) helped the Government to i) substantially finalize Power Purchase Agreement, Heat Purchase Agreement and Coal Supply Agreement, and agree the forms of ancillary documents; ii) conduct further negotiations with the Concessionaire and to prepare the Concession Agreement; iii) prepare and negotiate an advanced version of Coal Affreightment Agreement and Water Use Agreement; and iv) prepare issues lists, explanatory notes and correspondence for the purpose of having informed discussions with its various agencies.

During the review mission held by the mandated transaction advisor in December 2015 and in January 2017, the government requested significant support to progress with the contractual documentation and in particular to assist various Government agencies address and resolve many of the key bankability concerns related to the project.

Due to government's request, additional time is required to provide the necessary support to achieve financial close (which includes finalizing the heat and electricity tariff), thus the TA was extended for another years to 31 December 2018.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The Ministry of Economy and Development actively participated in the design of the TA, which also drew on consultation with other central government agencies, the Ulaan Baatar Municipal Government and academic institutions.
During Project Implementation

Business Opportunities

Consulting Services The TA will engage international and national consultants to prepare technical studies and provide advice on the technical parameters of the project agreements specific obligations arising from the PPP.
Procurement none

Responsible Staff

Responsible ADB Officer An, Bo
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Ministry of Economic Development
Government Building-2
United Nation's Street-5/1
Ulaanbaatar-15160 Mongolia

Timetable

Concept Clearance 15 Feb 2013
Fact Finding 14 Jan 2013 to 18 Jan 2013
MRM -
Approval 09 Apr 2014
Last Review Mission -
Last PDS Update 17 Mar 2017

TA 8637-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Apr 2014 03 Oct 2014 03 Oct 2014 31 Dec 2015 31 Dec 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,450,000.00 0.00 50,000.00 0.00 0.00 0.00 1,500,000.00 09 Apr 2014 1,269,844.16

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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