Project Purpose:
The Eg River Hydropower Plant project is recognized for its strategic importance under Mongolia’s long-term water and energy policy. According to Resolution No. 52 adopted by the National Water Committee in 2020 approving the “Blue Horse – 2050” water sector development policy, and Resolution No. 106 of 2021 approving the “New Revival Policy”, the implementation of the Eg River Hydropower Plant project was included as a priority.
The project aims to establish a reliable and stable energy source in the central region of Mongolia’s power system, strengthen energy security, create clean water reserves, and contribute positively to the environment, society, and the national economy. Therefore, it is considered a strategically important green project.
PROJECT SIGNIFICANCE AND EXPECTED RESULTS:
1. In Terms of Energy:
• The integrated energy system will reduce overloads and allow adjustments during emergencies, becoming an alternative source to imported electricity.
• It will help balance the energy system, which currently relies on coal-fired thermal power plants and renewable sources such as wind power.
2. In Terms of Environment:
Mongolia has abundant water resources with approximately 76.8 billion cubic meters of river runoff per year. However, due to uneven distribution, many regions experience water shortages. Under these circumstances, the implementation of this project is considered a green project that will improve long-term environmental stability.
• A clean water reserve of about 5.7 billion cubic meters will be created.
• By regulating floodwaters, it will reduce damage to the Selenge River basin and increase the availability of water resources.
• The reservoir will store seasonal water flow, protecting against drought risks and enabling better regulation of river flow during dry periods.
• Increased environmental humidity will help reduce desertification and soil degradation.
• Reducing greenhouse gas emissions by 709 tons annually, supporting ecological sustainability in the region.
• Lowering the risk of environmental disasters such as melting glaciers and flooding.
• Improving water conditions and stabilizing river flows affected by climate change and temperature increases.
• Creating a favorable habitat for fish and other aquatic and terrestrial wildlife.
3. In Terms of Society and Economy:
• If the Eg River Hydropower Plant is put into operation, Mongolia will save 48–52 million USD annually by reducing electricity import payments.
• Approximately 150 permanent jobs and up to 3,000 temporary jobs will be created.
• It will ensure stable water supply for industries and technology parks such as the Erdenet industrial complex.
• By forming a reservoir, surrounding areas can be developed for agriculture and livestock farming.
• The project will also create favorable conditions for eco-tourism, water sports, and fishing tourism, attracting both domestic and international visitors.
PROJECT IMPLEMENTATION STATUS:
Under the Eg River Hydropower Plant Project, the following environmental, social impact assessment and technical research activities are currently being implemented.
These include:
1. Joint Mongolia–Russia Study: “Comprehensive assessment of the potential impacts of the Eg River Hydropower Plant Project on the ecosystem of the Selenge River and Lake Baikal.”
Implementers: A team of experts appointed by the Russian Academy of Sciences, including research institutes in Irkutsk under the Siberian Branch and working groups of specialists from relevant fields; and a team of experts appointed by the Mongolian Academy of Sciences, including the Institute of Geography and Geoecology and working groups of researchers from related disciplines.
2. Environmental and Social Impact Assessment of the Eg River Hydropower Plant Project, implemented in accordance with UNESCO methodology and international standards.
Methodology: Conducted according to the World Heritage impact assessment methodology of UNESCO and aligned with the International Finance Corporation (IFC) Performance Standards.
Implementers: Partnership between EACC LLC and Khatandalai LLC (Contract signed on August 20, 2025).
Project Duration: 2025.08.20 – 2026.12.31
