On Tuesday, concession agreement holders of the Thermal Power Plant V project signed an electricity purchase agreement with the Government of Mongolia.
National Dispatching Center LLC and National Electricity Transmission Network JSC signed the agreement on behalf of the Cabinet, while Engie (formerly known as GDF Suez, 30 percent owner of the concession agreement), Sojitz Corporation (30 percent owner), POSCO Energy (30 percent owner), and Newcom Group (10 percent owner) signed the agreement as the investing consortium.
Thermal Power Plant V will be a combined heat and electricity plant with the capacity to produce 450 megawatts of energy, and 587 megawatts of heat per year. Industry analysts say that the plant will significantly mitigate its emission of sulfur dioxide and nitrogen oxide. It will generate heat and power through three stoves with a control system, and an air-cooled condenser will be installed, which will reduce water consumption.
The project will be implemented with 25-year build-operate-transfer conditions in accordance with the concession agreement, and represents the first of public and private partnership in Mongolia. It is also the first project to develop a combined power and heating plant since 1984. The construction of the new plant will create 2,700 jobs and multiple opportunities for domestic sub-contractors.
Engie is a French multinational electric utility company headquartered in La Defense, Courbevoie. It operates in the fields of electricity generation and distribution, natural gas and renewable energy.
Sojitz Corporation is engaged in a wide range of businesses globally, including buying, selling, importing, and exporting goods, manufacturing and selling products, providing services, and planning and coordinating projects in Japan and overseas.
Posco Energy is the largest private energy producer in South Korea, and a member of the Posco consortium.
Newcom Group is a Mongolian investment company. Its portfolio includes MobiCom Corporation, the first and the largest mobile telecommunications company in Mongolia. The company built the first wind farm in Mongolia.
The agreement signing took place in the presence of State Secretary of the Ministry of Energy D.Delgertsogt and other government officials.