Under the Public-Private Partnership Law, Ulaanbaatar city signed a Public-Private Partnership Agreement on Waste-to-Energy Plant Construction on October 24, 2025.
The Agreement was signed by Nyambaatar Khishgee, the Governor of the Capital City and Mayor of Ulaanbaatar, and Tang Ya Yu, the Project Manager and the Director for the Ulaanbaatar Waste-to-Energy Plant, and Chairman of the Board of Renshou Sichuan LLC, the company selected as the project contractor, specialized in energy investment and environmental protection.
The USD 206.5 million plant will process 1,500 tons of waste per day, and is scheduled for completion in 30 months, after which ownership will be transferred to the state in 28 years.
The plant is expected to operate 8,000 hours annually, generating 35 MW of electricity. The electricity production cost is estimated to be around 14 cents per kWh, with electricity to be sold to the Ministry of Energy at around 8.4 cents per kWh. The remaining 5.6 cents will be covered by compensation fees collected from businesses that generate large amounts of industrial waste, serving as waste disposal fees transferred to the investor, according to the Governor's Office of the Capital City of Ulaanbaatar.
The plant will incinerate waste not only from Ulaanbaatar but also from Zuunmod, Hunnu city, Altanbulag, and Sergelen soums of Tuv aimag, free of charge. Additionally, waste buried in Ulaanchuluut and Tsagaandavaa landfills over the past 10 years will be excavated and incinerated to help restore the local environment and ecology.
Mayor Kh. Nyambaatar emphasized the project’s ecological importance, stating, “To transform Ulaanbaatar into a modern city, we need an engineering supply unit. It will enable a shift to financing through consumer tariffs and covering investment costs with revenues. The Waste-to-Energy Plant project is unique as the private sector provides 100 percent of the funding, and for the first time, the Government guarantees the public-private partnership. Globally, the concept of ‘urban mining’ is expanding, excavating previously buried waste, converting it to energy, and restoring the environment.”
Currently, Ulaanbaatar generates an average of 1,500 tons of household and industrial waste daily, which is buried at two nearby landfill sites.

Published Date:2025-10-28