Mongolia Awards MNT 3.89 Billion Heating Sector Contract Under World Bank-Financed Ulaanbaatar Project

Ulaanbaatar, Mongolia - February 6, 2026

Mongolia has announced a key contract award under the Ulaanbaatar Heating Sector Improvement Project (P170676), a World Bank-supported initiative financed through IDA-65890. The awarded tender relates to the construction works package referenced as W-SO-22-1-REBID.

The contract was awarded to KHEMJILZUI LLC, a Mongolia-based contractor, following a competitive Request for Bids (RFB) procurement process.

Contract Details and Value

The signed contract price stands at MNT 3,897,624,785, following an evaluated bid at the same amount. The notification of award was issued on November 25, 2025, with a contract duration of 120 days.

The scope of work includes construction activities under the W-SO-22-REBID package, forming part of broader infrastructure upgrades aimed at improving district heating services in Ulaanbaatar. The project seeks to modernize heating networks, enhance system reliability, and reduce winter energy inefficiencies in the capital city.

Procurement and Bidders

The borrower bid reference W-SO-22-1-REBID was published as a contract award notice (OP00425243).

In addition to the successful bidder, two Mongolian companies participated:

• TAVAN KHAN ENERGY - Rejected due to non-compliance

• TAKAANAR LLC - Rejected due to non-compliance

The competitive process underscores Mongolia’s efforts to ensure transparent procurement procedures in line with international development financing standards.

Project Significance

The Ulaanbaatar Heating Sector Improvement Project is strategically important for Mongolia, where harsh winters place heavy demand on aging district heating infrastructure. Upgrades under this government contract are expected to:

• Improve heating reliability for residential and commercial consumers

• Reduce energy losses in transmission networks

• Strengthen urban infrastructure resilience

• Support environmental and emissions reduction goals

Given Ulaanbaatar’s long-standing air pollution and infrastructure challenges, this awarded tender marks a significant step toward modernizing public utilities and improving urban living standards.

About the Winning Contractor

KHEMJILZUI LLC, headquartered in Sukhbaatar district, Ulaanbaatar, specializes in construction and infrastructure works. Securing this contract award strengthens its position in Mongolia’s growing public infrastructure and energy development sector.

Conclusion

With this procurement milestone, Mongolia continues to advance critical heating infrastructure reforms backed by international development financing. Further tender results and procurement news are expected as the Ulaanbaatar Heating Sector Improvement Project progresses toward implementation and completion.

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