AKIPRESS.COM - China’s National Development and Reform Commission, the China EXIM Bank and the government of Mongolia announced June 23 they have placed a temporary hold on constructing the proposed 315-MW Egiin Gol hydroelectric project on the Eg River in Mongolia, Russia, citing concerns over transboundary issues and “due diligence” related to downstream environmental concerns.

The project, which includes a dam, is estimated to cost US$1 billion and was scheduled to begin construction later this year.

According Russian and Mongolian media reports, the project’s director Odkhuu Durzee said Mongolia planned to spend about $828 million on the hydroelectric project and about $172 million on a highway to Ulaanbaatar.

The Egiin Gol project, if completed, could help Mongolia reduce payments to the federal government of Russia, which annually earns about $24 million from exporting energy to Mongolia, according to Odkhuu. Mongolia’s annual 700 MW of generation falls short of demand by about 200 MW during winter, he said.