CONCESSION AGREEMENT SIGNED FOR POWER PLANT 5

Ulaanbaatar /MONTSAME/ A concession agreement for 415 MW power plant in the capital city was signed by Economic Development Minister N.Batbayar and "Fifth Combined Heat and Power (CHP) plant" LLC executive director Ribesse Benoit. The consortium comprises GDF SUEZ of France, Sojitz Corp of Japan, Posco Energy of South Korea and Newcom LLC of Mongolia. This important step allows the international consortium to enter into exclusive negotiations for a 25-year Power Purchase Agreement (PPA) with the Government of Mongolia. Following the signing of the PPA and financial agreements, the consortium will build and operate a coal-fired CHP plant with electricity capacity of 415MW and steam capacity of 587MW. The entire output from the plant will be purchased by the Mongolian government and the steam produced will be used for the UB city heating. The plant will also help meet the rising energy demand in Mongolia, which is largely driven by the mining sector and a growing population. The project is expected to create 648 jobs.