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Energy

Mongolia opens the 450 MW Tavan Tolgoi plant to private builders on a 30 to 70 split

Tavan Tolgoi’s 450 MW thermal power plant will be built as a public-private partnership in which the state-owned Tavan Tolgoi company invests up to 30 per cent and private capital the rest, with the selection to go to the Cabinet next week, Economy and Development Minister J. Enkhbayar told the Economic Standing Committee on Thursday, by ikon.mn. On Wednesday the Cabinet backed investment agreements for three more plants.

The lower rim of a cooling tower seen from the ground, concrete ribs curving away and one section painted amber.

Private firms will compete on the criterion of building the plant quickly and handing it back in the shortest possible time, the minister said in answer to the committee member M. Enkhtsetseg, who asked when the selection would be announced and why ministers were absent while their budget was debated, ikon.mn reported at 14:51 Ulaanbaatar time. Whoever wins builds, operates and returns the plant to the state in full, he said, and the preparations are complete for presenting the selection to the Cabinet next week. A tender for the same plant was first announced in July 2023, the agency recalls.

At Wednesday’s Cabinet meeting the Booroljuut plant of 600 MW and the Bayan and Shivee-Ovoo plants of 660 MW each were backed for investment agreements under public-private partnership, Enkhbayar said, and when these projects are carried out Mongolia can fully secure its energy independence by 2030. Four plants of 2,370 MW in two days of statements, and a tender first announced in July 2023.

His committee was holding the second discussion of the 2027 budget draft as he spoke, and the plenary took up the 2026 budget revision on Friday morning, by the agency’s running text of the sitting. That revision carries the 2 per cent deficit cap the committees settled on 6 October, as CAW reported on Wednesday, and the Cabinet’s zero fuel duty at three Chinese crossings from 21 October, reported on Thursday, sits in the same week’s decisions.

Four plants of 2,370 MW in two days of statements, and a tender first announced in July 2023.

What the 450 MW plant costs and who owns the state company’s shares are on neither the minister’s lips nor the agency’s page.