The provision of a sovereign loan of up to US$ 10 million (€ 8.3 million) to the state of Mongolia to be on-lent to the Ulaanbaatar District Heating Company (the "Company" or "UBDH"), Company's Priority Investment Programme ("PIP") includes i) the rehabilitation and the replacement of selected sections of the district heating network, (ii) the installation of an energy-efficient booster pumping station, (iii) other auxiliary investments, such as upgrading of central heating substations ("CHS") or installing individual heating substations ("IHS") in buildings directly connected to the UBDH network, (iv) the construction of a new energy centre to serve the north of the city and (v) the installation of DH accumulators, which could store heat energy either produced during the night hours when the cost of electricity is minimal or at times when CHP plants produce excess heat. The project is expected to be co-financed by a capital grant from bi-lateral or multilateral donors or the Special Shareholder Fund (or a combination of donor funding) amounting up to US$ 5 million (€ 4.5 million). The Project is expected to improve the quality of the Company's service by modernising the central DH infrastructure. For more details, please refer to the project summary document at https://www.ebrd.com/view/psd/49511