CHP5 PPA Signed

CHP5 PPA Signed

by Arcdev Dev, Sep 30, 2015

In 2012 the Mongolian Government  selected a consortium comprising ENGIE (previously GDF SUEZ, Sojitz Corporation, POSCO ENERGY Co. Ltd. and Newcom LLC as the Concessionaire for the 3 x 135MWe – 587MWt CHP#5 combined heat and power plant located near the capital Ulaanbaatar. 

On 29 July 2015, the National Dispatching Center LLC and the National Power Transmission Grid State Owned Joint Stock Company, representing the Government of Mongolia signed the Power Purchase Agreement (PPA), with the CHP5 Concessionaire in Ulaanbaatar. The entire output from the plant will be purchased under the PPA. 

The CHP5 project is the first and largest PPP energy project in Mongolia. ARC  have been advising the Government of Mongolia since 2011 as part of the transaction advisor team with the ADB, leading the commercial, financial and technical activities associated with drafting of the main contractual agreements and subsequent negotiations with the Concessionaire.