The Citizens’ Representative Khural of Ulaanbaatar approved an energy partnership project that marks a major milestone for Mongolia’s energy sector. The resolution, passed on October 16, 2025, authorizes the city’s mayor to finalize a deal for the Combined Heat and Power Plant No. 5 (CHP-5). This energy partnership project is Mongolia’s first large-scale public-private collaboration in power generation.
The CHP-5 project aims to meet rising electricity and heating needs in Ulaanbaatar. Moreover, it also seeks to improve supply reliability and cut air pollution. The plant will feature two 150-megawatt units using modern circulating fluidized bed combustion technology. Furthermore, it will produce 2.2 billion kilowatt-hours of electricity and 4.8 million gigajoules of heat annually. Its flue gas filtration system can cut particulate emissions by 99.9 percent.
Project planners followed Mongolia’s Public-Private Partnership Law and Government Resolution No. 210 of 2024. In addition, a working group selected the top-ranked private bidder and completed negotiations on September 25, 2025. With city approval now granted, the project enters its implementation stage. Therefore, this milestone signals real progress for the energy partnership project.
The construction phase will create more than 1,600 jobs. Once the plant begins operations, 369 permanent positions will remain. Additionally, the project also plans to train engineers and technicians, strengthening the local workforce. The total investment amounts to USD 658.6 million. Private investors will provide 80 percent of the funds, while the capital city will contribute 20 percent in phases.
Officials say the partnership model improves investment efficiency and project management. They also believe combining private expertise with public oversight ensures both innovation and accountability. Energy analysts view the project as a turning point in Mongolia’s infrastructure development.
Ultimately, the energy partnership project highlights Mongolia’s focus on clean energy and economic growth. As construction begins, Ulaanbaatar moves closer to achieving a stable, eco-friendly, and sustainable energy future. Consequently, this initiative could serve as a model for future national infrastructure projects.