Umnugovi Province Secures Approval to Issue ₮500 Billion Bond for New Combined Heat and Power Plant

On August 13, 2025, the Cabinet authorized the Umnugovi provincial government to issue up to ₮500 billion in domestic bonds, in phases, to finance a 50 MW combined heat and power (CHP) plant in Dalanzadgad.

Governor N. Enkhbat and Finance Minister B. Javkhlan were instructed to include the bond issuance in the annual state budget, ensure proper allocation of funds, and guarantee timely repayment from the provincial budget.

Electricity demand in Dalanzadgad has been rising sharply — peak load grew 11.3% year-on-year in 2023, and total consumption is projected to nearly double from 59.2 million kWh in 2023 to 105.8 million kWh by 2033. The existing 9 MW plant generates only 30.6 million kWh, with the shortfall currently supplied by Mongolia’s national power grid, operated from Ulaanbaatar.

The planned 50 MW CHP plant will not only meet Dalanzadgad’s growing demand but also reduce dependence on the national grid, ease regional electricity bottlenecks, and support mining, tourism, and local infrastructure development.

This marks the first time a province has raised financing through domestic bond issuance—a historic milestone.