Ulaanbaatar has officially launched the CHP-5 Project, a historic milestone in Mongolia’s energy sector. On October 16, 2025, the Citizens’ Representative Khural authorized the Mayor to finalize a public-private partnership for the project. This initiative represents the country’s first large-scale energy infrastructure project under a PPP model. It aims to meet rising electricity and heat demands while reducing air pollution.
The CHP-5 Project will build a 2×150 megawatt combined heat and power plant. Using advanced circulating fluidized bed combustion technology, it will generate 2.2 billion kilowatt-hours of electricity and 4.8 million gigajoules of heat annually. In addition, the plant will feature a flue gas filtration system to cut particulate emissions by up to 99.9 percent, contributing to cleaner air in the city.
Authorities organized a multi-stage selection process according to the Public-Private Partnership Law and Government Resolution No. 210 of 2024. After careful evaluation, a working group negotiated with the highest-ranked bidder. They reached mutual agreement on September 25, 2025. With the Khural’s approval, the project now moves into practical implementation.
The project will create more than 1,600 jobs during construction. Once operational, it will provide 369 permanent positions. Moreover, it will train engineers and technical specialists, strengthen domestic manufacturing, and support service industries.
Investors will provide 80 percent of the total USD 658.6 million investment, while the city will contribute the remaining 20 percent in phases. Experts emphasize that the CHP-5 Project will improve energy reliability, promote sustainable growth, and protect the environment.
City officials noted that the CHP-5 Project can serve as a model for future infrastructure development. They also said the project could attract further private investment and support additional strategic energy initiatives.
Looking forward, the project team will focus on timely construction and strict environmental compliance. They will also ensure workforce training programs maximize benefits for local communities. The CHP-5 Project positions Ulaanbaatar to modernize its energy infrastructure and strengthen Mongolia’s long-term development goals.
