ODA LOAN SIGNED TO PROVIDE STABLE POWER TO ULAANBAATAR --Gives Support to Mongolia's Economy--
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today at its head office in Tokyo an ODA loan agreement totaling 6,139 million yen with the Government of Mongolia for phase two of the Rehabilitation Project of the 4th Thermal Power Plant in Ulaanbaatar. This will bring the cumulative ODA loan commitments by JBIC to Mongolia to eight, totaling 36.126 billion yen.
2. The 4th thermal power plant in Ulaanbaatar is the country's largest thermal power plant, supplying about 70% of the power and 60% of the heat for the capital. However, its facilities, designed and installed by the former Soviet Union, are outdated with low energy efficient boilers that consume too much coal and emit large amounts of pollutants, besides being prone to frequent breakdowns. As a result, power failures and a fall in the temperature of hot water supplied for heating are common occurrences. In particular, this has created difficulties for the city's population and industrial production during the winter when demand for power and heat peaks with temperature dropping as low as, 40 degrees Celsius below freezing.
3. The proceeds of this loan will cover procurement of materials and equipment, installation work and consulting services, including bidding assistance, construction supervision and environmental measures, for the modernizing of four out of the eight boilers at the plant. JBIC provided an ODA loan in October 1995 to finance the first phase of this project, which modernized four boilers. The present loan will cover the remaining four boilers.
4. This project will increase the reliability and safety of the plant, contributing to industrial development and the welfare of the people in Ulaanbaatar. In addition, the improved efficiency of the boilers is expected to reduce nitric and sulfur oxide emissions, thereby decreasing air pollution.