ADB Signs Projects to Develop Renewable Energy and Improve Tax Administration in Mongolia
EconomyUlaanbaatar/MONTSAME/ On November 2, the Asian Development Bank (ADB) and Government of Mongolia signed loan and grant agreements totaling USD85.6 million for projects focused on developing the country’s first distributed renewable energy system and improving tax administration and public investment management using information and communications technology (ICT).
The agreements were signed
by Minister of Finance Mr. Khurelbaatar Chimed and ADB Country Director for
Mongolia Ms. Yolanda Fernandez Lommen at a ceremony in Ulaanbaatar.
Representatives from the Ministry of Energy and Mongolian Tax Authority
witnessed the event.
“These projects will support
the government’s efforts to raise the share of renewable energy, decrease
carbon dioxide emissions, and improve public financial resource mobilization
and management,” said Ms. Fernandez Lommen. “They are also closely aligned with
ADB’s Country Partnership Strategy for Mongolia to foster inclusive growth,
improve people’s access to services, and strengthen environmental
sustainability.”
The renewable energy loan
will develop a 41 megawatt distributed renewable energy system—a
first-of-its-kind in Mongolia—using solar photovoltaic and wind powers with
advanced battery storage technology and energy management systems. The project
will result in the supply of clean and reliable electricity to about 260,000
people in remote and less-developed towns in western Mongolia, who currently
rely on high-cost and high-polluting carbon-intensive electricity.
ADB’s funding of USD40.0
million is supplemented by grant cofinancing; USD14.6 million from the
Strategic Climate Fund under the Scaling Up Renewable Energy Program in
Low-Income Countries; and USD6.0 from the Japan Fund for the Joint Crediting
Mechanism. The Government of Mongolia is contributing USD5.6 million to the
project.
The second project will
support the Mongolian Tax Authority in its tax collection efforts by
streamlining processes for tax administration and public investment in line
with international good practice. The USD25 million loan will establish an
information system and provide required ICT infrastructure to host it. The
project will also develop an ICT-based public investment management information
system to help the government select the investment projects that will bring
most benefits to the country and better manage them. The Government of Mongolia
is contributing USD1.47 million to the project.
ADB is committed to
achieving a prosperous, inclusive, resilient, and sustainable Asia and the
Pacific, while sustaining its efforts to eradicate extreme poverty. Established
in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations
totaled USD32.2 billion, including USD11.9 billion in cofinancing.
Source: adb.org