The Mongolian government has awarded a group led by GDF Suez a contract to build a $1.2bn coal-fired power plant in Ulaanbaatar.

GDF, Sojitz Corp. (2768), Posco (005490) Energy Corp. and Mongolia’s Newcom Group, signed a memorandum of understanding at Mongolia’s energy ministry to build a 450 MW combined heat and power plant, Energy Minister Mishig Sonompil told reporters.

Half of Ulaanbaatar’s rapidly growing population live in unplanned districts, whose reliance on raw coal in winter contributed to the World Health Organization naming Ulaanbaatar as the world’s second-most polluted city in 2011.

Coal-fired power

The plant is expected to be commissioned in 2017.

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