{"data":{"news":{"items":[{"title":"Mongolia’s Tavantolgoi-Gashuunsukhait Railway Project completed","date":"2022-10-05 08:51:02","id":4134,"author":"","blurb":"","blurb_image_uid":"https://dxfpracgmlczp.cloudfront.net/2022/10/1664774586204_image00003.jpg","blurb_expanded_image_uid":null,"article":"\n\t\n\n\n

The Erdenes-Tavantolgoi’s (ETT) Tavantolgoi-Gashuunsukhait Railway Project in Mongolia has been completed. It is hailed as a milestone of co-operation in the face of many longstanding challenges, and a major boost for the country’s economy.

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In its press release, ETT said the project has brought together more than 600 enterprises and 5,000 workers. This first-of-its-kind, heavy-duty railway provides an annual capacity of 30-50 mil t of freight, specifically for the shipment of coal to neighbouring China.

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While it is expected to generate a net profit of US$147.7 million, off an annual revenue of US$268.9 million, the railway has also created about 2,000 permanent jobs, a significant long-term investment in the local economy that will improve quality of life for thousands of people.

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Speaking at the opening ceremony, President Khürelsükh Ukhnaa expressed, on behalf of the Mongolian people, “our deepest gratitude and warm congratulations to ETT for putting this railway into operation on schedule, despite the difficult situation of international geopolitics and epidemics in recent years.”

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He added that the development “has clearly shown the importance of mutual understanding, proper management, rational policy and responsibility between the government and the private sector.”

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The project was first started a decade ago, but almost immediately placed on hold by the Mongolian government in 2013 due to financial concerns and mismanagement issues. Re-initiated in March 2020 with the creation of Tavantolgoi Railway LLC under Government Resolution No. 242, the project was revitalised with Erdenes-Tavantolgoi JSC responsible for investment and financing. Together, these entities managed to complete the railway in just two years.

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Recognising the impact that the construction phase of the project has made, ETT’s CEO Gankhuyag Battulga also expressed his gratitude to “everyone who participated and supported this major development in our country, which is so important for our economy.”

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Lintec CSM4000 and CSM5000 asphalt batching plants from Lintec & Linnhoff have been used on several major road projects in Inner Mongolia, an autonomous region in northern China. The job was carried out by local contractor Inner Mongolia Road & Bridge Group Co Ltd. The asphalt plants feature huge output capacity and ease of transport, which make them ideal for the projects.

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In 2020, the CSM5000 had produced 720,000 t of asphalt for the reconstruction of 26 km of the eight-lane G65 BaoMao Expressway running south from Baotou. The asphalt plant was then relocated with ease to face a new challenge on the Jingwu Expressway in the Hexigten Banner, Chifeng area.

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“The contractor from the Department of Transportation of Inner Mongolia Autonomous Region found this class-leading portability feature a key reason for their purchase,” explained Tony Liu, CEO of Lintec & Linnhoff in China. “Their main business is the construction, reconstruction and expansion of expressways in Inner Mongolia, but due to the vast territory of this region, the next jobsite can often be hundreds of kilometres away. This is why they need plants that can be easily relocated to another jobsite and place an emphasis on the rapid setup and disassembly.”

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Intelligent design

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The Lintec CSM asphalt plants offer outstanding advantages with their modular structure. This is made possible by a design that fully utilises the many benefits of ISO certified sea containers, thus providing safe, efficient and economical transportation, as well as speedy dismantling and installation.

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In 2021, the CSM5000 was commissioned for the third leg of the 96-km Jingwu Expressway that connects Jingpeng town with Ulan Butong Grassland. For one 28-km section of this highway, the batching plant produced an impressive 275,000 t of asphalt.

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As a result of the success of this CSM5000 plant on the G65 project, Inner Mongolia Road & Bridge Group decided to purchase the CSM4000 containerised asphalt plant. This unit was used on the fourth leg of the Jingwu Expressway and ultimately produced 320,000 t of asphalt for a 30-km section of road.

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The contractor’s annual asphalt production easily reaches a million tons, so a high batching accuracy is required to avoid wastage of raw materials. The CSM4000 and CSM5000 asphalt plants offer an hourly output of 320 t and 400 t respectively, supported by a German-made operating system that ensures precise mixing.

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“The prestigious international projects completed by Lintec asphalt plants such as the Hong Kong-Zhuhai-Macao Bridge are testimony to the superior build quality of the brand. Lintec offers timely and attentive after-sales service and places emphasis on the safety and stability of its equipment,” said Lintec & Linnhoff.

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Construction of the RMB 6.063 billion (US$952 million) Jingwu Expressway, which adopts the standard construction of a 26-m-wide expressway, began in 2019 and is scheduled for completion by October 2023.

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By reducing the typical Jingpeng to Ulan Butong journey time by half and helping shorten travel time to Beijing, the expressway is expected to improve regional transportation conditions, promote the development of ecological tourism resources, and drive social and economic development.

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The Asian Development Bank (ADB), International Finance Corporation (IFC), and the Municipality of Ulaanbaatar City have signed a Memorandum of Understanding (MOU) to support the implementation of the Excellence for Design and Greater Efficiencies (EDGE) green building standards and the certification system for 10,000 new affordable homes to be built under the Ulaanbaatar Green Affordable Housing and Resilient Urban Renewal Sector Project in Mongolia.

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ADB, the Municipality of Ulaanbaatar, and the Development Bank of Mongolia are working to transform the ‘ger’ areas (settlements of low- and middle-income households) in the capital city into affordable, climate-resilient, and liveable eco-districts with support from the Green Climate Fund and the High-Level Technology Fund. The US$570.2 million project, which includes grants and some US$350 million in private sector investment, will build 10,000 energy efficient homes in 20 new environment-friendly districts with good services, green spaces, and access to shops and jobs. Out of 10,000 homes, 1,500 will be social housing, 5,500 will be affordable housing, and the remaining 3,000 will be sold at the prevailing market price.

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“At the government’s initiative and with ADB and IFC’s support, we are excited to pilot an internationally recognised format that offers a global perspective, but in a local context,” said Sukhbaatar Borkhuu, executive director of Mongolia’s Capital City Housing Corporation.

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With IFC’s help, the design and development of the affordable homes will be improved by adopting EDGE standards. In partnership with the Energy Sector Management Assistance Program administered by the World Bank and the Government of Hungary, IFC has been facilitating the Ministry of Construction and Urban Development and Energy Regulatory Commission to assess the energy efficiency of buildings in Mongolia through the development of a building labelling system. IFC is also promoting green building certifications in Mongolia, including IFC’s EDGE resource efficiency certification.

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“An IFC analysis sees a US$3.4 trillion green buildings market through 2025 in developing countries. Against this backdrop, green construction can help a rapidly urbanising city like Ulaanbaatar become more liveable - while saving money and securing emission cuts,” said Rufat Alimardanov, IFC’s resident representative in Mongolia.

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IFC - a sister organisation of the World Bank and a member of the World Bank Group - is the largest global development institution focused on the private sector in emerging markets. It works with more than 2,000 businesses worldwide, using its capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, it delivered more than US$19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

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The Asian Development Bank (ADB) and Private Infrastructure Fund (LEAP) have signed a US$18.7 million loan with Sermsang Power Corporation Public Company Limited (SSP) and Tenuun Gerel Construction LLC (TGC) to build, operate and maintain a 15-MW solar power plant supplying electricity to Mongolia’s central grid system.

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The loan agreement for the Sermsang Khushig Khundii Solar Project marks ADB’s first cofinancing with LEAP in Mongolia’s renewable energy sector. The Canadian Climate Fund for the Private Sector in Asia provided a technical assistance grant to offset first mover costs and to catalyse the financing of ADB’s first private sector solar power project in Mongolia.

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“This project uniquely incorporates climate-resilient technical solutions from the private sector to accommodate Mongolia’s cold and dry climate,” said Michael Barrow, director general of private sector operations department at ADB. “The project also benefits from the transfer of operational knowledge and advanced technology from Japan and Thailand in developing and operating solar power plants.”

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The solar power plant is located in the Khushig valley at Tuv aimag province, in the Sergelen soum county. It aims to supply electricity to the Central Energy System, which delivers power to an area accounting for over 80% of the country’s energy demand.

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The solar project is expected to generate clean electricity totalling 22.3 GW-h annually in Mongolia, while lowering the country’s carbon emissions by 26,400 tons per year (about 23,949 tonnes). It will help the government increase the share of renewable energy in total installed capacity from 12% in 2017 to a targeted 20% by 2023 and 30% by 2030, according to ADB.

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Shifting to cleaner energy sources will also reduce electricity imports, improve Mongolia’s energy security, and mitigate air pollution. The energy sector is dominated by coal-fired power plants and currently accounts for over 60% of the country’s greenhouse gas emissions.

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TGC is owned by Sermsang Power Corporation Public Company Limited (SSP) in Thailand, Sharp Energy Solutions Corporation (SESJ) in Japan, and AMOE Solar LLC and SH Energy Solution LLC in Mongolia.

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“For SSP, this project is not only an important milestone for investment in renewable power projects in Asia, but also reflects our philosophy in developing ecologically sustainable projects,” said SSP CEO Varut Tummavaranukub.

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“With ADB’s and LEAP’s support, we are excited to equip the Mongolian central area with clean energy and contribute to the reduction of greenhouse gas emissions through this landmark project,” said Tatsuya Satoh, senior executive director of SESJ and chair of TGC.

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LEAP was established in 2016 to fill financing gaps and increase access to finance for ADB-supported infrastructure projects in Asia and the Pacific. The fund is supported by the Japan International Cooperation Agency and is managed by ADB’s private sector operations department.

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The Canadian Climate Fund for the Private Sector in Asia (CFPS) was established by the Government of Canada in 2013 to provide blended concessional financing and technical assistance grants to private sector climate change mitigation and adaptation projects in Asia. The CFPS is administered by ADB under the Clean Energy Financing Partnership Facility.

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Sermsang Power Corporation Public Company Limited, established in 2015 and based in Bangkok, Thailand, is a renewable energy producer and distributor in Asia that is committed to sustainable power production, as well as promoting a clean environment for a better future.

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Sharp Corporation, parent company of SESJ, founded in 1912 and headquartered in Sakai City, Osaka, Japan, is a leading global electronics manufacturer. It is dedicated to contributing to the culture, benefits, and welfare of people worldwide through the use of its innovative technology.

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