During the irregular governmental meeting on Wednesday, approval was given to the Development Bank of Mongolia’s Board of Directors to establish a 75 million USD contract with Vnesheconombank of Russia, the Bank of Foreign Economic Activity, in order to re-finance capital demanded for installing and buying a 100 Megawatt turbine generator to improve the capacity of Thermal Power Plant No. 4.
Vnesheconombank has requested to adjust the financing terms granted to the Development Bank of Mongolia with the term stated in the contract, “Financing project and managing pay back”. If the term of pay back stated in the contract and Governmental resolution No. 99 of 2012 is extended, financing can be granted from five to eight years correlating to the term in the contract.
Therefore, the opportunity has been created to receive long-term financing under conditions to be paid back in 2022, amending the contract and extending the loan term.
The capital required for improving the capacity of Thermal Power Plant No. 4 is being granted through the Development Bank of Mongolia, in compliance with the contract “Financing project and managing pay back” and other relevant construction and installation contracts and agreements. So far, financing of 48.5 million USD has been issued to the project.
Also, approval has been granted to the Board of Development Bank of Mongolia to make relevant agreements, and it has allowed banks and financial organizations to open loan lines equivalent to up to 10 percent of their own capital in order to raise financing sources for equipment and facilities required for implementing projects within the program to promote exports.
In accordance with an order of the Government of Mongolia, a total of 1,151 projects were received for the program to select industrial projects to replace imports and improve exports. Some 599 projects which require financing of less than two billion MNT have been transferred to the Fund to Develop SMEs at the Labor Ministry. It has been left to the authority of the Development Bank to provide for the 286 projects that require financing of more than two billion MNT. Some 161 of these 286 projects are planning to import facilities and equipment valued at 2.43 trillion MNT from overseas, and the Development Bank of Mongolia is to cooperate with ExIm banks of the United States, South Korea, China, Turkey, Japan, Russia and Italy.
Renovations in Soum Centers Project introduced
Working with the relevant local professional organizations, the Ministry of Construction and Urban Planning has developed general planning and infrastructure sketches for 16 soums which will undergo renovations.
With the implementation of the project, the 65 thousand residents of these 16 soums will be supplied with fresh drinking water and sewage systems, and conditions will be created to live and work in a pleasant environment connected to a central heating system.
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