The World Bank has approved a USD12-million scale up of a project begun in 2001 that has been instrumental in improving the financial sustainability of the energy sector by reducing losses and improving revenue collection in Ulaanbaatar and 9 provincial centers. As of 2009, the cumulative reduction in total distribution network losses has resulted in increased revenues of around USD17 million.

According to the Ulaanbaatar Electricity Distribution Network Company (UBEDN), demand for electricity is expected to double in the next five years and triple by 2020. The city”s power system, including transmission and distribution networks, is already under strain as it has not been properly updated for over 40 years. The scale-up will enable the Government to further reduce losses in distribution networks and to meet urgent investment needs at UBEDN. It will “further contribute to the energy sector”s financial viability, improve efficiency, and serve as a platform for continued dialogue and engagement in this important area of Mongolia”s development,” said Arshad Sayed, Country Manager and Resident Representative of the World Bank in Mongolia.