Desert Solar Power Project



Project number:


Business sector:

Power and energy

Notice type:


Environmental category:


Approval date:

26 Apr 2018



PSD disclosed:

21 Dec 2017

Translated version of this PSD: Mongolian

Project Description

A limited recourse senior secured A/B loan of up to USD 30.7 million to Desert Solar Power One LLC (the "Company") to support the development, construction and operation of a 30MW solar photovoltaic ("PV") power plant to be located approximately 450km to the south east of Ulaanbaatar in the Gobi desert (the "Project").

Project Objectives

The operation will contribute to reducing Mongolia's carbon intensity, meeting its increasing power demand and achieving the Mongolian strategic goal of renewable energy accounting for 20 % of all power by 2020, and 30 % by 2030. It will also increase the private share of generation, in a sector still largely state-dominated.

Transition Impact

The transition impact stems from the fact that the Project will assist Mongolia in diversifying its coaldependent power sector and reducing CO2 emissions. The Project will be in line with the Bank's Green Economy Transition approach (GET).

Client Information


The Company is a special purpose limited liability company incorporated in Mongolia for the sole purpose of developing, constructing and operating the Project. The Company is ultimately owned by United Green Group, a group of companies involved in a range of activities including renewable energy projects, and theTucher Group GmbH .

EBRD Finance Summary

USD 10,206,750.00

A senior A/B loan of up to USD 30.7 million to the Company on a limited-recourse project finance basis.

Total Project Cost

USD 47,520,250.00

The total project cost is USD 47.5 million.

Environmental and Social Summary

Categorised B (2014 ESP). The national Environmental Impact Assessment (DEIA) was approved by the Ministry of Environment and Urban Development in 2013 and project construction is expected to commence in 2018.  An independent environmental and social consultant reviewed the project against the Bank’s requirements and confirmed that the project has been structured to comply with relevant national & European legislation and EBRD’s Performance Requirements. The DEIA, Stakeholder Engagement Plan (SEP), Non-Technical Summary (NTS) and Environmental and Social Acton Plan (ESAP) are disclosed on the Bank’s and Company’s websites. The Project is 100% GET and is expected to result in a reduction of greenhouse gas emissions of approximately 47,606 TCO2e annually.

Impacts associated with the 30MW Solar PV Plant are considered to be site specific and readily addressed through on-site mitigation and management. The project will not impact any sensitive areas (including biodiversity and/or cultural heritage) and will not result in any land acquisition and/or resettlement.  According to Mongolian legislation, public consultation was not required as part of the DEIA; nevertheless, a Stakeholder Engagement Plan (SEP) has been developed in line with EBRD PR 10 requirements. An ESAP has been agreed with the Client and includes but is not limited to: (i) development and implementation of construction Environmental and Social Management Plans (ESMPs), (ii) requirement for pre-construction biodiversity surveys within the project footprint / transmission line corridor to refine, where necessary, proposed mitigation measures included in the DEIA, (iii) development and implementation of a Chance Find procedure, should any objects of cultural heritage significance be identified during construction and (iv) update and implement SEP during construction and operations.  The Client has also committed to providing EBRD with regular reports during construction /operations to demonstrate compliance with project standards and its ESAP requirements.

An independent environmental and social consultant reviewed the project against the Bank's requirements and confirmed that the project has been structured to comply with relevant national & European legislation and EBRD's Performance Requirements. The Project's EIA, SEP, Non Technical Summary (NTS) and Environmental and Social Acton Plan (ESAP) are disclosed on the Bank's and Company's website.

Technical Cooperation


Company Contact Information

Klaus Merz
+44 7824 508288
P40, 2 Lansdowne Row
Mayfair W1J 6HL
United Kingdom

Business opportunities

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