On 29 July 2015, two Mongolian offtakers – the National Dispatching Center State-Owned company and the National Power Transmission Grid State-Owned company – have signed “Power Purchase Agreement” for CHP No.5. The PPA was signed with a consortium led by Engie (formerly known as GDF Suez SA) of France, also including Posco Energy of South Korea, Sojitz Corp. of Japan, and Newcom Group of Mongolia. Under the terms of the PPA, the concessionaire will pay for and build CHP No.5, operate it for 25 years, sell the entire output from the plant to the central grid of Mongolia and transfer the facility to the Government of Mongolia at the end of PPA.
Signing of the PPA marks another milestone in satisfying the rising demand for electricity and heating of Ulaanbaatar, one of the coldest capitals of Mongolia.
Once in operation, CHP No.5 will become the first and largest power PPP project in Mongolia. On 20 June 2014, the Government of Mongolia and a consortium led by GDF Suez have signed Concession Agreement for the combined heat and power CHP No.5 Power Plant in Ulaanbaatar. The CHP No.5 would be built and operated under a Build-Own-Operate-Transfer scheme.
As part of the ADB Advisory Team, KhanLex advised the Government of Mongolia.
Baker McKenzie Wong & Leow, member firm of Baker & McKenzie in Singapore, acted as the international counsel for the Government of Mongolia.
Link to the further news on this transaction:
N.B.: Enkhbat Batsukh led the above work while being a partner with the merged firm “MDS KhanLex LLP” (now de-merged). In 2018, Enkhbat Batsukh together with other lawyers of “MDS KhanLex” has relaunched the pre-merger firm “KhanLex Partners LLP”.