Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.
Mongolia : World Bank funds new project to promote renewable power in Mongolia
Publish Date : 22-Jun-2017
The World Bank is funding a new project to promote renewable power in Mongolia.
In the face of the country's growing demand for power, the new project would boost the reliability and sustainability of electrical energy services in Mongolia.
The World Bank has approved the Second Energy Sector Project, which will provide $54.4 million to address hurdles in Mongolia's power supply by upgrading ageing assets and expanding distribution capacity.
Outdated and ineffective distribution networks have caused significant distribution losses, which are nearly 25 per cent in many networks.
The bank said regional distribution systems have achieved their capacity limit and are in crucial need of refurbishment and expansion.
The project will fund efforts to upgrade and enhance the capacity of power distribution infrastructure in the Baganuur-Southeast and the Erdenet-Bulgan distribution network which supply power to nine 21 provinces in Mongolia.
The project will be financed by a $42 million loan on concessional terms from the World Banks International Development Association and a grant of $12.4 million from the Scaling-Up Renewable Energy Program under the Strategic Climate Fund.
World Bank Country Manager for Mongolia, James Anderson, said: More reliable access to electricity will improve the lives of families and help businesses thrive. The World Bank is committed to continuing our partnership with Mongolia to strengthen the power sector and explore options for renewable energy to help the country pursue sustainable development.
Peter Johansen, senior energy specialist of the World Bank, added: We are encouraged by the governments target to increase the share of renewables to 30 per cent by 2030. With its abundant solar and wind power resources, the country is now considering to more effectively and efficiently incentivize renewable energy investment to fully use its potential.
