The Mongolian Cabinet has decided to take a total of 28,000 hectares of land in the Erdeneburen and Myangad Soums of Khovd Province, the Bayannuur Soum of Bayan-Ulgii Province and Umnugobi Soum of Uvs Province for hydroelectric power station construction. The government’s top plan is to construct the Erdeneburen Hydroelectric Power Station within four years with a total investment of USD288 million. Nearly 90 percent of the financing will come from a USD 1 billion soft loan by from the Chinese Government.

When the Erdeneburen Hydroelectric Power Station comes into operation, it will be a reliable and cheap energy source for the western parts of Mongolia. The 100MW facility is expected to produce 300 million kW/h of electricity annually.

Currently, 75 percent of all the electricity needs in the western parts of Mongolia are provided by imports from Russia and China.