Ulaanbaatar is the most polluted capital in the world in terms of air quality. There is an urgent need to implement a new combined heat and power plant (CHP) to address the vulnerability of power and heating supply in Ulaanbaatar caused by the growing demand and poor reliability of the very old and inefficient existing facilities which cause abundant PM2.5, SO2, NOx and CO2 emission. ADB financed the technical assistance to improve the security of energy supply for Ulaanbaatar and design public/private partnership model for the implementation of the CHP #5. The project construction will close a large number of inefficient coal-fired boilers and reduce the emission of CO2 and other pollutants.The project is estimated at $1.2 billion and will be a major energy project of Mongolian government. It will be co-financed by consortium of Europe groups and ADB. The PPP model was adapted.

The Consulting team provided services on the following tasks: (i) Technical Studies on all relevant major issues including the following areas: demands forecast, power plant justification, key system design, heat supply system analysis, pollution countermeasures, energy efficiency and energy conservation, economic analysis and socioeconomic analysis; (ii) Air emission control options, emission inventory and air quality dispersion modeling of the CHP #5 and its impact on local air quality; (iii) Sector Assessments on district heating, power supply, tariff setting methodology, coal resource and supply, water resource and supply and off-takers arrangements; (iv) Comparison of Project Financing Options; (v) Technical Training and Knowledge Dissemination; (vi) Report Preparation.

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