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EGIIN GOLIIN

HYDROPOWER
PLANT PROJECT
INTRODUCTION
The Egiin Goliin Hydropower Plant Project
(EGHPP) was initiated in 1991 by the Minsitry of
Energy and the Feasibility Study and Environmental
Impact Study was completed in 1995, financed by
ADB.
Since then the project was delayed until
November 2013 the Government of Mongolia
approved the construction of 220 MW hydropower
plant and established project implementation unit
(PIU) specifically for EGHPP. The project is a state
owned project, currently financed by the Governments
Chinggis bond. Once the hydropower plant is
operational it will be connected to the Central energy
system grid. The PIU is working with Tractebel
Engineering (GDF Suez) and local expert consultants
on the completion of Feasibility Study update and EIA,
planned to complete in July 2014. Access road, bridge
to the dam site and transmission line, substations
construction is to start within this year.
Key Specifications.
Location 2.5 km upstream of Eg and
Selenge confluence,
Bulgan province Khutag
Undur sum. 130 km from
Erdenet city.
Installed capacity 220 - 315MW
Annual electricity
generation
480 - 670 mln.kW/hr
Dam height 95 -115 m
Crest width 8 m
Crest length 710-740 m
Crest elevation 900- 920 m a.s.l
Dam type RCC
Reservoir 50- 62 km long,
max surface area
125- 168
2
,
volume of 4- 6.8 billion
3
Turbines 4 vertical 55 MW Francis
turbines or + 2 x 20MW
Energy demand forecast.

The Central energy system (CES) distributes to 70% of
the nation, 85% of the population. The current CES
installed capacity is 864.3 MW.
To calculate energy demand increase since 2000, using
correlation analysis and estimate annual regular
increase starting 2014 is 8% then energy sources
balance and forecasted demand shows that energy
deficiency could occur from 2014 to 2020.
Planned energy sources immediate construction and
operation shall generate the condition where increasing
demand and estimated use gets closer to start in 2020.
Energy use peak load increase shows that Mongolia
needs to act immediately to construct more energy
sources into operation in order to meet peak load
demand.
EGHPP contribution to the
Central Energy System.



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This material is the property of EGIIN GOLIIN HYDROPOWER PLANT PROJECT UNIT.
Except as may be expressly authorized by EGHPP, any reproduction,
modification or distribution of this material or content,
in whole or in part, is strictly prohibited
Decrease dependency on import
Mongolian Electricity System Reserve Margin has
been declining to a point where dependence on import
from Russia is at highest level. Since 1988, no any
significant energy sources were commissioned into
operation. The EGHPP participation in the CES would
be to decrease the peak load electricity which is
currently from import.
Reliable electricity supply
Mongolian energy system is in need of 200 MW, which
likely to increase to 250 MW during peak load in near
future as well as spinning reserve of 100 MW.
Connecting a regulating hydropower plant can produce
the needed energy that could prevent Mongolia from
facing energy shortage.
Stable system frequency regulation
Mongolian Energy System existing thermal plants
frequency regulating capacity is limited; manually
regulates required power amount, temporary and slight
difference between supply and demand leads to
increases in power import. The system lacks frequency
regulating spinning reserve, consumes import
electricity to regulate frequency change, which results
in cutting energy supply to customers during
emergency conditions such as connection interference
from Russia and/or sudden delay of generators etc. It is
obvious that cutting energy supply is very poor and
uneconomic approach. Hence, as a solution to these
issues, EGHPP needs to be constructed as soon as
possible.
Mongolia is committed to
renewable energy development.
The Mongolias National Programme for Renewable
Energy 2005-2020, the country is targeting 20.0 25.0
percent of the total energy to be produced from
renewable sources by 2020 by introducing advanced
renewable energy technology and increasing
conservation and increase efficiency in production,
transmission, distribution and operation.
Mongolias 3,800 streams and rivers, which are located
primarily in the northern and western areas of the
country, have the potential for the generation of up to
6.4GW of hydropower.
Egiin Goliin hydropower plant
contribution to sustainable
development.


EGHPP is an environmentally friendly project. Once in
operation, it will help reduce 550 000 tons of carbon
dioxide emission annually, by avoiding CO2 emissions
from electricity generation by fossil fuel power plants
that is supplied to Grid. It will also help reduce
greenhouse gas emission and contribute to sustainable
development in following ways:
To replace importing fuel and coal burning
technology by hydropower
It will support irrigated agriculture and tourism
etc.
To bring and adapt world best practices and
technologies through hydropower plant
establishment and contribute to country's
development
To prevent local citizens migrating to settled areas
and leave remote areas behind
Employment opportunities during and upon
construction phase, will empower work force and
prepare skilled employees and
Additional income to local community (forest
operation, fish breeding etc)



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This material is the property of EGIIN GOLIIN HYDROPOWER PLANT PROJECT UNIT.
Except as may be expressly authorized by EGHPP, any reproduction,
modification or distribution of this material or content,
in whole or in part, is strictly prohibited
Economic benefits.
In accordance with the Feasibility study (1992-1995),
the economic and financial analysis show that EGHPP
is not only the best available future source of peaking
capacity of Mongolia and reserve capacity, but also that
the project is economically and financially feasible.
The EGHPP installed capacity in the previous study
was 220 MW, however the PIU and the consultants are
studying the possibility of EGHPP installed capacity of
315 MW to produce approximately 670 million kWh of
electricity annually, generating approx. annual income
of $ 51 million.
To determine economic benefits of EGHPP, not only
direct economic benefits, but also the indirect benefits
shall be considered as well.
EGHPP is a multiple purpose project. For instance:
Mongolian Central Energy System would become
independent of electricity imports to meet peaking
requirements. Mongolia paid 39 billion tugriks for
imported electricity (325 million kWh) in 2013.
To increase existing plants efficiency.
To reduce greenhouse gas emissions in Mongolia
compared to a business-as-usual scenario.
Mongolias first regulating plant, which would
enable the country to control the reliability of its
peaking capacity.
Reservoir would increase humidity in the region,
thus, mitigating desertification in the long run.
To bring benefits such as to decrease centralization
of production in energy market and creates an
opportunity to develop the market
As to estimate the economic benefits of EGHPP,
above-mentioned advantages need to take into account,
which cannot be expressed in monetary terms.
Feasibility study update will allow to evaluate those
benefits and study is being conducted.

Financing of the project
The project unit is planning to start the Access road,
Bridge and Transmission line, substations construction
works within this year and to begin the Main dam
construction in 2015 spring.

Two financing phases:
I. Pre-construction works financing
/Access road, Bridge and Transmission
line, substations/
Construction period: 2014 July December
II. Main construction financing
Construction period: 2015 spring 2019
Autumn However, the two phases of
financing is considered as one project
financing.
The Government has provided the project initiation
funding, and in accordance with resolution numbered
375 of Government of Mongolia, the source of
financing of the whole project shall be from loan
financing.
Hence, the project unit is seeking efficient source of
loan financing.
Cost estimation

The EGHPP total project cost was estimated three
times in the past.
In 1995, Electrowatt Engineering Services
estimated $ 275.6 million.
In 2006, Ministry of Energy estimated $385.4
million.
In 2007, Sinohydro and CMEC tender bidding
price proposal estimated the EGHPP project cost
to be $398.6 million.
The 2014 total project cost estimation will be
completed when the Feasibility study and EIA update
is completed in July 2014.






Tel: (+976) 7711 - 1150
Fax: (+976) 7711 1160
Website: www.eghpp.mn/en
Address: Encanto Town 3rd
floor, Olympic street,
Bayanzurkh district, 26th
khoroo,Ulaanbaatar,
Mongolia