IPP TO BE BUILT IN GOBI OF TEVSH

Ulaanbaatar /MONTSAME/ A Mongolian "Mogul Power" LLC, which is invested by a US "Firebird" fund, inked a Memorandum of Understanding on November 18 with China’s state-owned company SEPCOIII on Implementation and Financing of the Gobi of Tevsh Electric Power Station Project. The signing ceremony ran at the Mongolian Embassy in Beijing. The two sides promised to cooperate with each other by all means towards successful implementation of this project. In a scope of the project, some one billion US dollars of foreign investment will come to Mongolia. The outcome will be a 600MW capacity electric power station based on brown coal deposit located in the Gobi of Tevsh and owned by the "Mogul power" LLC. The feasibility study, developed by a US energy consulting company “Burns and Roe” Ent. Inc., was approved by the Ministry of Energy of Mongolia in 2013. A permission for civil engineering has been issued by the Energy Adjustment Bureau, and a approval for the environmental assessment--by the Ministry of Environment and Green Development. “SEPCOIII” Corporation is an international independent contractor for energy projects, and is a subsidiary to the Chinese energy construction giant–Power China. The corporation has provided services for the total amount of 33,500 MW of projects and made income of CNY 13.5 billion or USD 2.23 billion alone in 2013. It expanded its strategies in 2013 and is seeking opportunities to invest in the Independent Power Producers (IPP) on an international level, particularly in Mongolia. Firebird Fund, headquartered in New York, started its operations in Mongolia in 2006 and has become the biggest foreign investor that participates in the trades of Mongolian Stock Exchange. A director of the Fund Mr James Passin appreciated this opportunity to implement an important energy project in frames of the new law on investments adopted in October of 2013. A vice president of SEPCOIII Zhang Hong Song said the project confirms the recent talks between Mongolia and China to cooperate in energy sector, mentioning that the President Xi Jinping and the Speaker of Mongolian parliament touched upon these matters during the latters’s visit to China. Present at this ceremony was the Ambassador Extraordinary and Plenipotentiary of Mongolia to the People’s Republic of China Ts.Sukhbaatar. He promised to support the implementation of the project and said the Government of Mongolia approves of this project. This station will be the first IPP to be built based on the deposit pass, and the project is the start of the two countries’ cooperation in this sector, he said.