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Mongolia|business|June 16, 2017 / 04:34 PM
World Bank approves new $54.4-million energy project in Mongolia

AKIPRESS.COM - World Bank’s Board of Executive Directors approved June 15 the Second Energy Sector Project, which will contribute $54.4 million in financing to help the government of Mongolia address key bottlenecks in select electricity distribution companies by upgrading aging assets and expanding distribution capacity, WB said in a statement. 

The project will also support the development of solar power.

Obsolete and inefficient distribution networks have led to significant distribution losses, which are as much as 25 percent in many networks. The regional distribution systems have reached their capacity limit and are in critical need of renovation and expansion.

The project will finance investments to upgrade and expand the capacity of power distribution infrastructure in the Baganuur-Southeast and the Erdenet-Bulgan distribution networks, which supply electricity to nine of Mongolia’s 21 provinces.

It will also help scale up production of renewable energy in remote rural areas by designing and building the first large-scale solar photovoltaic 10 MW power plant in Mongolia outside the Central Energy System. The plant will supply affordable and clean energy to the country’s western region, which currently imports 70 percent of its power supply.

The project will be funded by a $42 million loan on concessional terms from the World Bank’s International Development Association and a $12.4 million grant from the Scaling-Up Renewable Energy Program under the Strategic Climate Fund.

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