Russia“s energy export and import monopoly Inter RAO UES has said it is ready to switch to long-term and mutually advantageous contracts on power supplies to Mongolia. The present contracts that run until 2012 call for annual adjustment of price parameters and supply terms. Now Inter RAO has offered to switch to 15-year contracts.

If Mongolia takes a positive decision, consultations will be held engaging responsible ministries and infrastructure companies. The new proposal envisions revision of the price formula once in three years, allowing Mongolia the opportunity to plan its budget and draft a long-term strategy for social and economic development. It will also be able to pledge these long-term contracts to raise funds for projects, including those on the construction of power generating facilities.

Inter RAO will get a similar opportunity for long-term planning of the revenue side of its budget on one of its major export activities.