Fourth Energy Sector Project

active

• Component 1: Transmission Line construction and Associated Substation Expansion (US$75.84 million IBRD). This component will finance the construction of a new 220kV double circuit transmission line from the Mandalgovi substation to the Arvaikheer substation. A new substation and 2.2 km 110kV transmission line will be constructed at Arvaikheer to connect the new 220kV facilities to the existing 110kV system. The existing Mandalgovi substation will be expanded to connect the new 220kV transmission line. The new transmission line will provide an additional power supply source to the Arvaikheer region, which is currently served by a single corridor 110kV transmission line despite significant commercial and industrial demand. The transmission line will, therefore, serve the following purposes: (i) increase power supply capacity; (ii) enable VRE generation in the region; and (iii) improve system resilience and reliability. Climate proofing measures will be embedded in the transmission line and substations.• Component 2: Implementation Support (US$2.16 million IBRD and US$0.84 counterpart funding). This component will provide technical and operational assistance to strengthen the institutional and technical capacity of relevant agencies, including MOE and other entities affiliated to MOE. It will also provide implementation support, and project management, including financial management, disbursement, procurement, environmental and social risk and impact management, and monitoring, reporting and evaluation.