Erdeneburen HPP Project Implementation Unit Ministry of Energy Erdeneburen HPP Project Implementation Unit Dear Ladies and Gentlement, First of all, I would like to introduce myself. …. My name is Ganbat, and I’m the project coordinator of a project called Erdeneburen hydropower plant. Our project was established in July by the Ministry of Energy of Mongolia based on the Government Resolution which passed in March of this year. The ultimate goal of our project is to build a 64MW hydropower plant in Erdeneburen town of Khovd province. … Erdeneburen is a town located in the Western Region of Mongolia. So, let me give you some information about our project. Profile of the Erdeneburen Hydropower Plant project Khovd Province, Mongolia 2015-12-08

Table of Contents Project brief background Project location Western Region Energy System Main indicators of the Erdeneburen HPP Additional studies required Basic requirements for Potential Investors for EbHPP project

Project background 1964 Initial study conducted by Electroseti Institute, USSR 2010 Integrated Water Resources program of Khovd river basin was developed by WWF, March 2015 Government Resolution #86 to implement the EbHPP project July 2015 EbHPP Project Implementation Unit was established Conducting the feasibility study and Environmental and social impact assessment of the region, developing the engineering design Establishing the concession agreement with the investor(s) 2008 MCS, Kyushu Electric Power, West Japan Engineering Consultants, Industrial Design companies conducted the pre- feasibility study October 2014 Parliament Chairman visited the site in 2014. Afterward, the 2015 government budget was approved to establish the project implementation unit April 2015 EbHPP was reflected in the Concession List based on Government Resolution # 133 Finding the Investor(s) Approval of the feasibility study by the Ministry of Energy Approval of the Environmental and social impact assessment of the region by the Ministry of Environment Starting of Construction of the EbHPP As you can see on this timeline, the possibility of establishing a hydropower plant was initially studied long time ago in 1964 by an Institute of the former Soviet Union. Then in 2008, the pre-feasibility study was by Mongolian MCS company, in collaboration with by Kyushu Electric Power of Japan in collaboration with other Japanese organizations. … Starting from 2014, the Government of Mongolia paid concrete attention to this project and passed several resolutions to initiate the project. … and now, our job is to find potential investors, update the previous 2008 pre-feasibility study, and establish a concession agreement under BOT condition.

Proposed site for the EbHPP project Here, you can see the Erdeneburen town is located not far from Khovd city. Here is Khovd river, which flows into Lake Har Us. This is a satellite picture of the proposed dam site. The river flows (here) along natural canyons.

Dam and HPP construction site Ministry of Energy Erdeneburen HPP Project Implementation Unit Dam and HPP construction site The proposed 5 sites for the hydropower plant and dam construction located in narrow canyon along the Khovd river Based on the previous 2008 feasibility study, 5 different sites were proposed. These 5 sites are distanced about 500-700 meters from each other. Of these 5 sites, site A is considered the optimal. However, the potential investors could find a different, a more optimal site for dam construction that is more cost-effective.

Western Region Energy System (WRES), challenges As I previously said, Erdeneburen town is located in the Western Region of Mongolia, … in Khovd province which is bordered with Shanjin-Uighur (autonomic region of China). The total energy consumption in the Western Region has been increasing by 8-11% in the past years, and will continue to increase in the coming years. However, the local energy production can meet only 20% of the total demand. … in order to meet this energy demand the Western Region has to import the remaining 80% of energy (mainly from Russia), which costs 6 times more expensive than the local energy cost. In other words, there’s a very high demand on local energy production. Therefore, our plan is to build a hydropower plant on Khovd river. … Khovd river is one of the largest rivers in the Western Region of Mongolia and the average river flow is around 64 cubic meters per second. ... The River origin starts in Altai Mountain region of Mongolia, and flows into Lake Har-Us of Mongolia. The WRES – comprising of imported energy from Russia and China, and local energy production from Durgun HPP – supply energy to 52 soums (towns) and 40 baghs (villages) of Uvs, Khovd, Bayan-Ulgii, and Gobi-Altai aimags (provinces) The WRES total consumption growth during 2008-2014 averages at 8-11%. Of the total energy consumption, 22% is supplied by Durgun HPP, 76.5% is supplied by imports from Russia, and 1.5% is supplied from imports from China. The cost of the imported energy is 6 times the cost of local energy production.

Main indicators of Erdeneburen HPP Dam Dam height 90 m Dam crest length 395 m Dam crest elevation EL 1330 m Dam type Concrete gravity dam Reservoir High water level EL 1325 m Low water level EL 1305 m Effective reservoir capacity 1.2 billion m3 Reservoir area 98 km2 Installed capacity Turbine specifications Vertical axis Francis Turbine: 3 x 21MW Horizontal axis Francis Turbine: 1 x 1.2MW Annual generated energy 230 million kWh Here are the basic indicators for the Erdeneburen hydropower plant. … But please note, that these numbers are based on outdated 2008 pre-feasibility study, and I think the updated feasibility study will give us different numbers, especially in terms of the dam size.

Additional studies required 1. Updating the project feasibility study, including: Reviewing optimal dam location Updating the reservoir design Re-conducting the geological and drilling investigations Seismology Road and infrastructure study Environmental assessment Project cost, and financial and economic analysis 2. Environmental and social impact assessment of the region Besides updating the previous pre-feasibility study, the project will require Environmental and Social Impact Assessment. Local environmental NGOs and associations will strongly request such assessments. … Such assessment will also ensure the bankability of the project.

Basic Requirements for Potential Investors for EbHPP Project Experience in HPP construction Implemented HPP projects, number of constructions, and the capacity Number and amount of executed EPC contracts on HPPs abroad Financing types and amounts for the implemented HPP projects (BOT, Contractor) General information of the company Ownership type Average revenue in the past 3 years Average net income in the past 3 years Total assets Information about human resource capacity Capacity of HPP equipment and technology manufacturing, and installation Expression of interest and form of collaboration on EbHPP project Decision-making readiness Government support Readiness to collaborate under BOT terms Ability to invest and/or raise investment Comparative advantages over other companies In the past few months, we have been meeting and communicating with several potential interested companies. … but as of now, we have NOT officially started the selection process. When the selection process starts, the short-list of potential investors will be made based on these basic criteria. But until the selection process starts, we are open to meet and discuss with all interested companies. … so if anyone is interested, feel free to approach me, and I will be glad to answer your questions and give more information about our project. Thank you for your attention.

Thank you for your attention EbHPP project Contact information Phone (mobile): 976+ 91911366, 976+ 99090504 Phone (office): 976+ 76101366, 976+ 76111366 E-mail: ganbat_ebhpp@energy.gov.mn, erdeneburen_hpp@energy.gov.mn Address: Gray office building, Room# 303, 304 Chinggis Avenue, 2nd khoroo, Khan-Uul district Ulaanbaatar city, Mongolia