China Export and Credit Insurance Corporation (SINOSURE) has granted a credit guarantee to New Asia Group Mongolia for the construction of the Telem Thermal Power Station.
Chinese road and bridge construction company built 165 kilometers of road and 98 kilometers of asphalt paving in Khovd Province, from Darvi to Altai.
The road project was also guaranteed by SINOSURE. Many of Mongolian's large development projects are experiencing delays due to the Government of Mongolia's financing challenges.
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THE FIRST-EVER CONCESSION RIGHT TO PRIVATE SECTOR
Project Summary
New Asia Group LLC is developing the Telmen Coal-fired Power Plant Project (Telmen Power Plant Project) to construct a 100 MW (2x50 MW) coal-fired power plant in accordance with a BOT type Concession Agreement.
On May 11, 2011, the company was awarded a BOT type concession for the Project by the State Property Committee, Mongolia in accordance with the Law on Concessions of Mongolia, adopted on January 28, 2010.
The Revised Concession Agreement was signed by and between the Economic Development Ministry and New Asia group on June 28, 2013.
The proposed power plant will be located in Huren tal in Telmen Soum, Zavkhan province in Western Mongolia.
The power plant construction license was issued in 2011 by the Energy Regulatory Authority of Mongolia and is held by the New Asia Group. Land Use Agreement was received in 2011.
Telmen Power Plant project Milestones
|
License and approval |
|
Date |
Status |
|
Decision to grant a right on building 60MW power plant next to Mogoin gol coal mine |
Ministry of Mineral Resources and Energy, Mongolia |
2009 |
√ |
|
Construction Agreement for Mogoin gol Power Plant |
Former government implementing agency Energy Authority of Mongolia |
Dec 2009 |
√ |
|
Preliminary study |
|
|
√ |
|
Government resolution No40, |
GoM |
Feb 2011 |
√ |
|
Government resolution No127 |
GoM |
Apr 2011 |
|
|
Concession Agreement (BOT) |
The State Property Committee and The Economic Development Ministry |
May 2011 June 2013 |
√ |
|
Land use approval |
Telmen county governor office |
June 2011 |
√ |
|
Preliminary Feasibility Study approval |
Approved by the Science and Technological Council of energy sector |
Apr 2011 |
√ |
|
Detailed Environmental Impact Assessment and EIA Approval |
Approved by the Environmental Ministry |
2011 |
√ |
|
Geotechnical study /Engineering geology and topo-geodesy / |
|
2011 |
√ |
|
Hydro-geological study |
|
2011 |
√ |
|
Archaeological study |
Archaeological Institute |
2011 |
√ |
|
Construction special permit |
Ministry of Construction and Urban Development |
Jan 2012 |
√ |
|
Telmen Power Plant Construction licenses 100MW |
The Energy Regulatory Authority |
2012 |
√ |
|
Water use approval |
|
2011 |
√ |
|
Coal supply agreement |
Mogoin gol JSC |
2011 |
√ |
|
Power Purchase Agreement |
AUES and NETGC |
2012 |
√ |
Coal supply for the proposed power plant will be from the Mogoin gol coal mine, which is situated 72km northeast in Tsetserleg Soum, Khovsgol province.
Mogoin gol open-pit mine contains 11.2 million tonnes of coal reserve and adjacent Ovoot project area has been explored resulting in the delineation of maiden JORC compliant resource totaling 330.7Mt. Coal resource is sufficient for the proposed power plant operation.
In May, 2011, New Asia group signed a Coal supply agreement with “Mogoin gol” Joint Stock Company. As per CSA, the company has committed to purchase a minimum tonnes of coal on a “take or pay” basis.
The Environmental Impact assessment was approved in 2012.
The company signed a Power Purchase Agreements with the National Electricity Transmission Grid Company (NETGC) and Altia-Uliastai Energy system company.
Feasibility, geotechnical, seismic, water and other required studies have been completed.
Project Location
The project location is in Telmen Soum, Zavkhan Province in western Mongolia. The location is on the cross road of major unpaved highway to western provinces, 900km west of the capital city Ulaanbaatar and 170km east of Uliastai, provincial center of Zavkhan.
Project Financing
The company entered into the Investment Agreement with a partner company to jointly develop the proposed Power Plant Project. The company is in active discussions with international investment banks and private equity firms. Investors who are interested in the project are currently finalizing due diligence of the project.
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