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Ulaanbaatar-Regional Development Forum: Amendments to the Law on Public-Private Partnerships to open up space for the private sector

During the preliminary discussion of the Ulaanbaatar-Regional Development Forum, the basic information of Ulaanbaatar city, current infrastructure, and public-private partnership was given.

Electricity consumption growing by 7-8 percent per year

Presenting the current state of infrastructure in Ulaanbaatar, thermal energy consumption exceeds the installed capacity of the stations by 67 percent, and the lifespan of 24-67 percent of the pipelines of clean and dirty water, heat, electricity, and flood dams has expired. Thermal power stations II, III, IV and "Amgalan" thermal station provide heat to more than 13,450 buildings. In Ulaanbaatar city, about 300 buildings with an average annual consumption of 221-244 MW are newly connected to the centralized heat supply per year. Consequently, electricity consumption is growing by 7-8 percent per year.

Until 2040, it is planned to increase the capacity of existing sources, make new sources of electricity available, and increase the power generation capacity to 3989 MW. First Deputy Governor in charge of Economy and Infrastructure P.Sainzorig said, 6.6 trillion MNT will be needed for the construction of a 300 MW power plant in Buuruljuut and a 400 MW power plant in Baganuur, as well as the construction of substations and networks.

In 2028, renewable energy sources are planned to be built in eight locations. Specifically, it is planned to build a 75 MW water storage tank at one location, a 100 MW solar power plant at three locations, a 150 MW power storage at one location, and a garbage incinerator at three locations.

Private sector investment to be used mainly in manufacturing, agriculture and housing sectors

During the discussion, amendments to the Law on Public-Private Partnership were introduced. First Deputy Governor in charge of Economy and Infrastructure P.Sainzorig said, "Private sector investments will be used mainly in manufacturing, agriculture, and housing sectors. The budget investment will be spent on infrastructure development and urban improvement. In the further development of the city's economy, it is assumed that the private sector will operate based on the development of the legal framework and infrastructure by the government. I believe that the reform of the bill presented today will open up space for the private sector."

State Secretary of the Ministry of Energy N.Tavinbekh:

-Major projects related to energy are stagnated due to financial difficulties. For example, 53 trillion MNT is needed for eight energy source projects. This budget has not been resolved at all. It should be done by the government, but everyone knows that it is financially impossible. Private sector investment in the energy sector is low. It is related to tariffs. It should be liberalized. This will solve many problems.

Member of the Citizens’ Representative Khural D.Enkhtuya:

-It is time to discuss about regional development in order to solve many problems in Ulaanbaatar. This work should not be made into an empty declaration on paper, but should be focused on supporting the green economy and production, and maintainance of the balance of the eco-system in regional development.

MEDIA AND PUBLIC RELATIONS DEPARTMENT OF THE GOVERNOR’S OFFICE OF THE CAPITAL CITY

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