Fourth thermal power station to be renovated with JPY 4 billion

Ulaanbaatar /MONTSAME/ The parliamentary Standing committee on budget Tuesday discussed and then backed a draft credit agreement on a project related to the effectiveness of the fourth thermal power station. This agreement will be established between the government of Mongolia and the Japan International Cooperation Agency (JICA). Another matter will be discussed by the Standing committee on security and foreign policy on a loan for renovation of necessary facilities. This power station has been working since 1983, its technical facilities and mechanisms have become out-dated. In order to renovate the equipment, Mongolia took soft loans of JPY 10 billion from Japan in 1997-1999 and in 2001-2005. This time, Mongolia intends to receive a loan of JPY 4.2 billion for running a master repair at the station. By the credit agreement, Mongolia will take the 40-year term loan with an yearly interest of 0.3%. The project will launch this year to continue until 2017. The government maintains a policy to increase capability of power stations because of that the energy consumption is likely to increase by 5-7% next five years.