Salkhit Wind Park Project (Debt)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 38344

Status Repaying

Location

Mongolia

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 38344

Status Repaying

Location

Mongolia

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

13 Mar 2012

Disclosure date

20 Jan 2012

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Mongolia

Project Description

The EBRD is considering providing a senior loan of up to a US$ 40 million to Clean Energy LLC to support the development, construction and operation of a 50MW wind farm to be constructed and operated 70 km from Mongolia’s capital Ulaanbaatar.

The project will be the first renewable energy project and the first privately-owned generator connecting to the Central Grid in Mongolia.

This EBRD investment follows an early development equity investment made by the Bank in 2009.

Transition Impact

The transition impact of the project stems primarily from the following:

The project has the potential to generate significant demonstration effects as this will be the first renewable energy project to be implemented in Mongolia. As such it has the potential to set an important precedent for further development of renewable energy, unlocking the exploitation of Mongolia's large renewable energy resources.
The Project would result in a private owner of generating capacity, in an otherwise state-dominated sector. It would thus set a model for further involvement of private investors in the sector and thus support further commercialisation and liberalisation of the Mongolian power sector.

The Client

Clean Energy LLC is a special purpose vehicle incorporated in Mongolia solely to develop the project. It is 75 percent owned by Newcom Group, one of Mongolia's leading commercial groups, and 25 percent owned by EBRD.

EBRD Finance

A US$ 40 million senior secured loan to Clean Energy LLC. Debt co-financing is expected to come from other development institutions.

Project Cost

US$ 115 million.

Environmental Impact

The Project was categorized as B level, initially for the debt financing project under the Bank's 2003 Environmental Policy and then the equity financing under the 2008 Environmental and Social Policy. The environmental and social due diligence was designed to meet the requirements of both policies. Potential impacts of the Project are readily identifiable and able to properly mitigated. Due diligence determined the Company has the capacity to fully implement the Bank's Performance Requirements throughout the wind farm development, construction, operation and decommissioning.

An international consultant completed an Environmental and Social Impact Assessment (ESIA) in 2008, with a 60-day disclosure and comment period. The ESIA package - ESIA, Stakeholder Engagement Plan, NonTechnical Summary, and Environmental and Social Action Plan (ESAP) - are available on Newcom’s website, with links to the documents also found on EBRD’s website. The ESIA evaluated the potential impacts of construction and operation of the wind turbines and the associated substation, access roads, and transmission line. The assessment included surveys of large birds. The ESAP included tailored measures to mitigate potential impacts on birds and from construction-related erosion, and also a robust monitoring program during bird migration and breeding seasons during operation. The Bank will monitor implementation of the ESAP throughout the life of the project.

Non Technical Summary

Technical Cooperation

The Government of Japan, through the Japan-Europe Cooperation Fund, provided €290,000 to assist the Mongolian government and energy regulator to develop the regulatory framework for renewable energy.

The Government of Luxembourg provided €76,000 to assist in the preparation of the ESIA for the windfarm.

Company Contact

Neal Detert
Project Manager
Tel: (+976) 11-313-183 Ext. 61
E-mail: neal@newcom.mn

Transition impact

ETI Score:100

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search