AKIPRESS.COM - At its regular meeting on December 18, the Cabinet approved the draft special loan agreement on the Ulaanbaatar District Heating Project to be implemented under the General Financing Agreement between the Government of Mongolia and European Bank for Reconstruction and Development, Montsame reports.

Under the project, USD 10 million will be spent on maintenance and replacement of heat pipes, installation of pumps and dashboard with energy efficiency mode, refurbishment of central substations, establishment of energy center, and installation of accumulators that would store the heat produced at nighttime and excess heat of thermal power plants and improvement of heat distribution efficiency .

The 15-year loan with a moratorium period of 3 years has an interest rate of LIBORr+1 (London Inter-Bank Offered Rate plus 1 percent). Moreover, EBRD has decided to provide non-refundable aid of EUR 4.5 million and technical assistance worth USD 1.5 million for the implementation of the project.