LOAN AGREEMENT FOR POWER STATION RENOVATION SIGNED

Ulaanbaatar /MONTSAME/ Economic Development Minister N.Batbayar and JICA Mongolia Office Chief Representative Kato Toshinobu signed a soft loan agreement of JPY 4.2 billion on November 15. Within a loan to be granted under the above agreement between the Government of Mongolia and Japan International Cooperation Agency (JICA), the power plant-4 renewal project includes equipment and facilities renovation to increase the energy production efficiency and to ensure reliable energy supply. The project will be completed in 2017. This project aims at not only increasing economic benefits, but also reducing its negative impacts to the environment. The loan agreement, established as a part of the Mongolia-Japan middle-term strategic partnership program, was also affirmed in the "Erch" initiative that was proposed during the Japanese PM Shinzo Abe’s visit to Mongolia in March of 2013. The power plant meets seventy percent of the total energy needs of Ulaanbaatar.