CHP5 Concessionaire signs Power Purchase Agreement with entities representing the Government of Mongolia

Ulaanbaatar, 29 July 2015 - The CHP5 Concessionaire, consisting of ENGIE (new name of GDF SUEZ, 30%), SOJITZ CORPORATION (30%), POSCO ENERGY (30%) and NEWCOM LLC (10%) have signed a Power Purchase Agreement with the National Dispatching Center LLC and the National Power Transmission Grid State Owned Joint Stock Company, representing the Government of Mongolia for the CHP5 plant in Ulaanbaatar, the capital of Mongolia.
The Concessionaire will build and operate a coal-fired combined heat and power plant with the capacity to produce 450 MW of electricity (gross) and 587 MW of heat. The plant will have air-cooled condensers that significantly reduce the use of water, a scarce resource in Mongolia, as well as three circulating fluidized bed boilers that use efficient control measures to significantly reduce emissions of particulates, SO2 and NOx, in line with international standards. 
The entire output from the plant will be purchased by the organizations which represent the Government of Mongolia in the agreement and the heat produced will be used for heating of Ulaanbaatar city.  The new plant will help to meet the rising electricity demand in Mongolia, which is largely driven by the mining sector and a growing population.
During construction, CHP5 will create up to 2,700 direct jobs, and will employ a wide range of local sub-contractors.
The CHP5 project is the first Public-Private Partnership in Mongolia of this scale in the energy sector, and it is the first large thermal power plant to be built in Mongolia since 1984. The project is being developed under a Build-Own-Operate-Transfer scheme via a 25-year Concession Agreement.