Mogul Power, backed by investment manager Firebird Management, has signed a binding memorandum of understanding (MoU) with Chinese state-owned enterprise SEPCOIII Electric Power Construction Corporation for developing and financing the Tevshiin Gobi power plant project in Mongolia.
The Tevshiin Gobi mine mouth power project will be constructed at the Tevshiin Gobi coal deposit in the Santsagaan Sum of the Dondgobi province.
Mogul Power will own the 600MW project, for which the estimated investment is $1bn.
The project has received necessary construction and environmental approvals from Mongolian Energy Regulatory Commission and Ministry of Environment.
Feasibility study for the project was approved by the Mongolian Ministry of Energy in 2013, which was conducted by Burns and Roe Enterprises.
Firebird principal James Passin said: "I am excited to advance this important energy project in Mongolia following the passage of the Investment Law in October 2013."
SEPOCOIII vice president Zhang Hongsong said: "This project underpins the importance of the recent discussions for more energy cooperation – during the recent APEC meetings in Beijing and also recently addressed between the top leaders of both countries."
Mongolia ambassador to China Sukhbaatar Tsedenjav said: "The government of Mongolia supports this project which is the first mine-mouth IPP in the history of our country and one of the first to pave the way for further cooperation between our two great countries."
Image: In the presence of Mongolia ambassador to China Sukhbaatar Tsedenjav, SepcoIII vice president Zhang Hongsong (left) and Mogul Power CEO Erdembileg J (right) celebrate the signing of the agreement. Photo: courtesy of Mogul Power LLC/PRNewsFoto.