In order to manage the implementation of immense establishment projects financed through government bonds as well as to manage the power needs of the Mongolian Central and Southern Gobi regions, The Government of Mongolia has approved the following resolutions in 2013 with respect to the establishment of the 450MW TTPP project:
• Government resolution of Mongolia no.71 (Regarding the activities in implementation of immense establishment projects)
• Government resolution of Mongolia no.80 (Regarding the financing of the project)
• Government resolution of Mongolia no.129 (Regarding the establishment of the government entity)
• Government resolution of Mongolia no.261(Regarding the intensification of the TTPP)
TTPP Project Unit is established by the Order of the Minister of Energy no.36 on March 19, 2013. Establishment of the TTPP will offer various advantages such as providing secure, reliable, cost effective long term source of power to South Gobi region, minimizing the costs of the transportation of coal associated to the operation of the power plant and stabilizing the power supply of the region.
Social, economic, and environmental significance of the TTPP project:
• Implementing the TTPP project will bring positive change to the economic development, not only in the southern region of Mongolia, but also in the whole country. Today, the Oyutolgoi project is importing power from China and the annual cost of the power import is 160-200 billion tugrik. Operation of the TTPP will offer the opportunity to avoid such cost. Moreover, the project will bring foreign investment in total of approximately USD 1 billion.
• The Tavan Tolgoi coal deposit is rich in coking and energy coal resources. However, the economically viable coking coal is exported and energy coal is not used so far. This situation can create natural disasters caused by the self-destructive processes of waste rock dumps, in addition to the inefficient consumption of the natural resources. Disposal of waste rocks also pollutes soil, vegetation and water, and releases elements such as sulfur and nitrogen into the air, negatively affect air quality. Therefore, implementing the power plant project will have a significant impact in preventing loss of natural resources, environmental pollution and possible natural disasters.
• Introducing new technology, improving the skills of the personnel, creating new jobs
• Becoming a successful model of public private partnerships will have positive impacts in bringing investments in various immense projects in the future.
• Bringing opportunities to attract foreign investment to various business sectors
• The project will be an efficient way to spend the government bond and the loan from the Development Bank of Mongolia will be paid back after the investment funding of the project is raised.