SAINSHAND ONSHORE WIND PROJECT

Construction and operation of a 54MW onshore wind farm near Sainshand, the capital of Dornogobi province in Mongolia

The project will contribute to the promotion of renewable energy and climate change mitigation, key priorities for the Bank. The project is also fully in line with Mongolia's national plan for the development of renewable energy resources and will lessen the country's reliance on ageing coal-fired power generation.

The competent authority screened the project in October 2014 and concluded that it requires an environmental and social impact assessment (ESIA) according to Mongolian law. An environmental impact assessment (EIA) conducted and approved in 2009 was only valid for five years and therefore needs to be updated and expanded to meet recent changes in legislation. During appraisal the ESIA will be screened for compliance with the Bank's environmental and social standards.

The project is considered as a concession under the Bank's Guide to Procurement. The concession is based on Mongolian laws that provide a framework for independent power production (IPP) operation and a feed-in tariff that is generally available as well as economically reasonable in terms of price, quality and risk-sharing. During appraisal the Bank will assess the concession process for publicity, fairness and transparency in accordance with section 3.4.3 of the Guide to Procurement.