PPG – Chandgana Coal-Fired Power Plant 600 MW – Khentii - Project Profile

PPG – Chandgana Coal-Fired Power Plant 600 MW – Khentii - Project Profile


"PPG – Chandgana Coal-Fired Power Plant 600 MW – Khentii - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.

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Prophecy Power Generation LLC (PPG), a wholly owned subsidiary of Prophecy Development Corporation (PCY), formerly Prophecy Coal Corporation, is planning to undertake the construction of a Coal Fired Power Plant in Khentii, Mongolia.

The project involves the construction of a 600MW coal-fired power plant comprising four units of 150MW each on a 532.4ha of land. The project is planned to be developed in two phases.

The first phase involves the construction of 300MW (2x150MW) power plant with value of US$600 million and the second phase involves the construction of 300MW (2x150MW) power plant.

It includes the construction of a powerhouse and a substation, the installation of turbines, generators and safety systems, and the laying of transmission lines.

STEAG Energy Services GmbH has completed a feasibility study and the project received approval from the Inner Mongolia Government.

On November 15, 2010, PPG received approval of its Detailed Environmental Impact Assessment (DEIA) for the project.

The power plant will be supplied with coal from Chandgana Tal coal deposit for which PPG secured a mining license in January 2011.

In August 2011, Power Transmission Line EIA Approval was received by PCY and construction license was granted in November 2011. The Chandgana Coal EIA Approval was also received in November 2011.

In December 2011, PPG issued a comprehensive request for proposal (RFP) for engineering, procurement, and construction (EPC) contract.

In 2012, eight EPC firms accessed the project and conducted site tours and PPG received six tenders by May 1, 2012.

In September 2012, Power Purchase Agreement was submitted.

In November 2012, PPG signed a memorandum of understanding (MoU) with a Strategic Partner to jointly develop Chandgana Power Plant project.

In February 2013, Geotechnical Study completed.

In March 2013, PPG secured a land use permit covering 532.4ha of land from the Murum soum government.

In June 2013, PPG signed a coal supply agreement (CSA) with Chandgana Coal LLC. The scope of CSA covers supply of 3.6 million tonnes of coal annually for a period of 25 years.

In July 2013, PPG requested more detailed tenders, which resulted in short listing of three EPC contractors based on completeness of the tenders, construction capability, equipment quality, time to deployment, and price.

In August 2013, PPG submitted a concession application to the Ministry of Economic Development (MoED). The signing of the Concession Agreement is important since the scope of the Concession Agreement includes government guarantee of the proposed plant’s revenue, a key requirement for international project financing.

The project will be financed through a combination of debt and equity with 70% of the funds raised through debt.

In February 2014, the Chandgana Power Plant was approved by the Mongolian government and is to be included in the list of concession projects.

On September 2014, the EPC tender was concluded with no winning bids as no bidders submitted the US$1.6 million bank guarantee. However, PPG selected a preferred bidder whose information has not been revealed.

In October 2014, PPG was invited by MoED to negotiate the conditions of the Concession Agreement and PPG submitted all required documents to MOED.

In December 2014, the new Mongolian government transferred the concession department from MOED to Ministry of Industry (MoI).

On December 18, 2015, PPG signed an Engineering, Procurement, and Construction (EPC) agreement, equity investment agreement and share purchase Agreement with China-based Shandong Electrical Power Construction No2 Company (SEPCO2) to invest and build the facility.

PPG secured power plant land use rights and the construction license.

PPG is in discussions with the Mongolian government to finalize the Power Purchase Agreement (PPA) and signing of the concession agreement that will enable PPG to seek project financing and begin construction of the power plant.


The project involves the construction of a 600MW coal-fired power plant on a 532.4ha of land in Chandgana, Khentii, Mongolia.

The US$1,000 million project includes the following:

1. Construction of four units of power plant with a capacity of 150MW each

2. Construction of a powerhouse

3. Construction of a substation

4. Installation of turbine

5. Installation of generators

6. Installation of safety systems

7. Laying of transmission lines

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