At its regular session, the Cabinet resolved to grant the capital city the authority to issue bonds worth MNT 200 billion required to finance the project on the Combined Heat and Power (CHP) Plant No.5.

The project has met the requirements of the Law on Debt Management, including compliance with the medium-term budget framework statement, inclusion in development policy and planning documents, and approval of its feasibility study and environmental impact assessment. The project will be implemented under the Public-Private Partnership Law in the form of “design, build, operate, and transfer” (DBOT). It is considered significant for creating a long-term sustainable solution in the energy sector.

Once operational, the project will ensure the stability of Mongolia’s energy system and reliably meet growing energy demand. It will supply heating to Tavanshar, the 21st Microdistrict, Khilchin Town, Bayankhoshuu, and the 3rd, 4th, and 1st micro-districts. In addition, it will reduce the load on existing power plants and strengthen the reliability of the system’s infrastructure.

In addition, the plant will provide electricity to approximately 100,000 households and thermal energy to about 40,000 households.

During the construction phase, around 1,600 jobs will be created, and once operational, the project will provide more than 370 permanent jobs.

Published Date:2026-02-12