Mongolia: Sermsang Khushig Khundii Solar Project
The project involves the construction, operation and maintenance of a 15-megawatt (MW) solar power plant in Khushig valley, Tuv aimag, which is located 40 kilometers (km) from Mongolia''s capital, Ulaanbaatar, and 17 km from the new international airport. It will also entail the construction of a 110/10kV substation, a 14-km long 110kV double circuit overhead electricity transmission line, as well as the extension of the 110/10kV Khushig substation owned by the National Power Transmission Grid SOJSC.
Pascual, Francis Mark A.
Private Sector Operations Department
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|Project Name||Sermsang Khushig Khundii Solar Project|
|Borrower / Company||Tenuun Gerel Construction LLC
|Country / Economy||Mongolia
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Energy / Renewable energy generation - solar
|Gender Equity and Mainstreaming||Some gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Pascual, Francis Mark A.|
|Project Sponsor(s)||Sermsang Power Corporation Public Company Limited
|Description||The project involves the construction, operation and maintenance of a 15-megawatt (MW) solar power plant in Khushig valley, Tuv aimag, which is located 40 kilometers (km) from Mongolia''s capital, Ulaanbaatar, and 17 km from the new international airport. It will also entail the construction of a 110/10kV substation, a 14-km long 110kV double circuit overhead electricity transmission line, as well as the extension of the 110/10kV Khushig substation owned by the National Power Transmission Grid SOJSC.|
|Objectives and Scope||ADBs assistance will support the development of a solar power project in Mongolia with the benefit of technical and operational expertise from Japan and Thailand. The project is expected to generate clean electricity totaling 22.3 gigawatt-hours annually and enable the country to reduce its carbon dioxide (CO2) emissions by 26,400 tons per year. The electricity is expected to be utilized by the new international airport and Ulaanbaatar city.|
|Status of Development Objectives||The project is on track to meet development objectives.|
|Status of Operation/Construction||The project has been operating satisfactorily and has delivered more than 27GWh annually to the grid since COD on 6 July 2019.|
|Linkage to Country/Regional Strategy||
The project is consistent with ADB's Strategy 2030 in supporting two of the seven key operational priorities identified, including (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; and (ii) fostering regional cooperation and integration and also contributes to ADB's private sector operations in the renewable energy sector
The project is aligned with ADB's country partnership strategy for Mongolia, 2017-2020, which aims to address climate change impacts and environmental degradation in the country and sustain inclusive growth in a period of economic difficulty, and two of the three strategic pillars of the strategy: (i) developing infrastructure for economic diversification and (ii) strengthening environmental sustainability.
The project is aligned with ADB Energy Policy, which states that (i) support for renewable energy projects will be prioritized and broadened; (ii) effective regional cooperation in the energy sector will be promoted; and (iii) private sector participation will be encouraged.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as Category B for environment. An initial environmental and social examination (IESE) was conducted for the power plant and transmission line, including an audit of existing construction activities. The IESE found that potential impacts during construction and operation are considered temporary site-specific, and can be prevented and mitigated. The environmental and social management plan prepared by external experts and implemented by TGC included mitigation measures monitoring and reporting requirements, and grievance redress mechanism, among others, during the construction and operation phases. Public consultation was conducted, which confirmed that the current construction and future operation of the project will not have significant environmental or public health impacts. TGC annually reports the environmental and social performance of the solar power plants to ADB.|
|Involuntary Resettlement||In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as Category C for involuntary resettlement. A land possession agreement was executed between Tenuun Gerel Construction LLC (TGC) and Sergelen soum over the 40 hectares of public pasture land where the Project is situated. No private land or assets will be acquired and the IESE confirmed that no physical or economic displacement will result from the land possession awarded to TGC.|
|Indigenous Peoples||In compliance with ADB's Safeguard Policy Statement (2009), the project is classified as Category C for Indigenous Peoples. The project components are sited on land not identified as traditional land or land over which customary rights exist. The IESE confirmed that no indigenous community is present in the project area.|
|Stakeholder Communication, Participation, and Consultation||In accordance with ADB's Safeguard Policy Statement (2009), stakeholder consultations were conducted with a two-prong approach consisting of: (i) individual consultations with herder families at their homesteads on the steppe near the project site; and (ii) formal consultation meeting at the Sergelen soum center with residents, business owners, and municipal workers.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||16 May 2018|
|Credit Committee Meeting||03 Dec 2018|
|Approval||28 Jan 2019|
|Last PDS Update||23 Sep 2022|
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Loan and Administration of Loan Tenuun Gerel Construction LLC Sermsang Khushig Khundii Solar Project: FAST Report||Faster Approach to Small Nonsovereign Transactions||Jan 2019|
|Sermsang Khushig Khundii Solar Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Sep 2018|
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.
|Title||Document Type||Document Date|
|Sermsang Khushig Khundii Solar Project: Environmental and Social Monitoring Report (January-December 2021)||Environmental and Social Monitoring Reports||Aug 2022|
|Sermsang Khushig Khundii Solar Project: Environmental and Social Monitoring Report (January-December 2020)||Environmental and Social Monitoring Reports||Jun 2021|
|Sermsang Khushig Khundii Solar Project: Environmental and Social Monitoring Report (April-December 2019)||Environmental and Social Monitoring Reports||Dec 2019|
|Sermsang Khushig Khundii Solar Project: Environmental and Social Monitoring Report (May 2018-March 2019)||Environmental and Social Monitoring Reports||Sep 2019|
|Sermsang Khushig Khundii Solar Project: Initial Environmental and Social Examination||Initial Environmental Examination||Jan 2019|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
ADB Supports Private Sector Solar Power Development in MongoliaADB and LEAP Fund today signed an $18.7 million loan with SSP and TGC to build, operate, and maintain a 15-megawatt solar power plant supplying electricity to Mongolia’s central grid system.